💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

GS Paper: GS3

  • Extradition of Fugitive Economic Offenders (FEOs)

    fugitive

    Central idea: India has called upon G20 countries to adopt multilateral action for faster extradition of fugitive economic offenders (FEOs) and recovery of assets both on the domestic front as well as from abroad.

    Who are Fugitive Economic Offenders (FEOs)?

    • FEOs are individuals who have fled their home country to avoid facing prosecution for financial crimes such as money laundering, fraud, and embezzlement.
    • These individuals typically engage in illegal activities that involve large sums of money and often cause significant damage to the economy of the country they have fled.

    FEOs and India

    fugitive

    • India has put in place specialized legislation in this regard, in the form of the Fugitive Economic Offenders Act, 2018.
    • It defines the term- as an individual against whom a warrant of arrest in relation to a scheduled offense has been issued by any court in India and who has left the country so as to avoid criminal prosecution; or the FEO abroad, refuses to return to face criminal prosecution”.

    Why do offenders go fugitive?

    • Finding safe heavens: FEOs seek refuge in countries that do not have an extradition treaty with their home country or that have weak extradition laws.
    • Evading justice: FEOs often exploit legal loopholes and the differences in laws and regulations across countries to evade justice.
    • Asset offshoring: They may move their assets to offshore accounts or invest in assets such as real estate and art that are difficult to seize.

    How FEOs impact the economy?

    FEOs can have a significant impact on the economy of the country they have fled from.

    • Loan defaults: They may default on loans, engage in fraudulent activities, and siphon off large amounts of money from banks and financial institutions.
    • NPA crisis: This can lead to a rise in non-performing assets (NPAs), a slowdown in economic growth, and a loss of investor confidence.

    International mechanisms for FEOs

    Some of the key international mechanisms for FEOs are:

    • Extradition treaties: Many countries have extradition treaties in place with other countries that enable them to request the extradition of individuals who have fled to other countries to avoid prosecution.
    • Mutual Legal Assistance Treaties (MLATs): MLATs are agreements between countries that facilitate the exchange of information and evidence in criminal investigations and proceedings.
    • International Conventions and Agreements: There are several international conventions and agreements that address financial crimes and provide a framework for international cooperation. Ex. UN Convention against Corruption, FATF etc.
    • INTERPOL: Interpol facilitates cross-border police cooperation and coordination. It maintains a database of wanted individuals, including FEOs, and works with member countries to locate and apprehend them.
    • Asset recovery: Such mechanisms are designed to enable countries to recover assets by means of seizure and repatriation of assets, as well as the freezing of assets to prevent FEOs from accessing them.

    Way forward

    • Strengthening domestic laws: India can strengthen its domestic laws and regulations to make it easier to prosecute FEOs and recover their assets.
    • Developing extradition treaties: India can work to develop and strengthen extradition treaties with other countries to ensure that FEOs are not able to evade justice by fleeing to other countries.
    • Enhancing international cooperation: India can enhance its cooperation with other countries and international organizations to facilitate the sharing of information and intelligence about FEOs.
    • Seizing and repatriating assets: India can work to seize and repatriate assets that have been acquired through illegal means by FEOs.
    • Improving transparency and accountability: India can improve transparency and accountability in its financial system to prevent FEOs from exploiting loopholes and engaging in illegal activities.

     

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

  • RBI’s new pilot project on Coin Vending Machines

    coin

    The RBI in collaboration with banks is set to launch a pilot project to assess the functioning of a QR-code-based coin vending machine.

    Coin Vending Machines

    • The vending machines would dispense coins with the requisite amount being debited from the customer’s account using United Payments Interface (UPI) instead of physical tendering of banknotes.
    • Customers would be endowed the option of withdrawing coins in required quantities and denominations.
    • The central idea here is to ease the accessibility to coins.
    • With particular focus on ease and accessibility, the machines are intended to be installed at public places such as railway stations, shopping malls and marketplaces.

    Why such a move?

    • Prevent hoarding of coins: The situation with respect to coins is peculiar with the supply being very high. It is taking up a lot of storage space and is not getting properly distributed despite high demands.
    • Eliminate the physical tendering of banknotes: It was observed that the currency being fed into the machines (for coin exchange) were often found to be fake and could not be checked right at that point of time.

    Do you know?

    For perspective, coins in India are issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees and twenty rupees (not considering special edition coins of various denomination).

    Coins of up to 50 paise are called ‘small coins’ while those of one rupee and above are called ‘rupee coins’.

     

    How coins are significant in our economy?

    • As per the latest RBI bulletin, the total value of circulation of rupee coins stood at ₹28,857 crore as of December 30 last year. The figure is an increase of 7.2% from the year-ago period.
    • Circulation of small coins remained unchanged at ₹743 crore.
    • The figures above could be compared to the volume of digital payments until December 2022 which stood at approximately ₹9,557.4 crore, as per the Digidhan Dashboard.
    • The number is inclusive of mobile banking, internet banking, IMPS, BHIM-UPI and NEFT, among others.
    • Hence the reliance on UPI for dispensing coins is particularly noteworthy.

    Is it going against the digital push?

    • RBI is in the midst of a pilot for the Central Bank Digital Currency (CBDC).
    • But this proposal should not be viewed as a “zero-sum game of digital versus cash.”
    • The two can easily supplement each other by re-circulating existing coins in the economy.

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

  • Proton Beam Therapy out of reach for many

    proton

    There is currently a demand-supply gap of proton beam therapy machines in India, leaving many cancer patients in a difficult situation.

    What is Proton Beam Therapy?

    • Proton beam therapy is a type of radiation therapy — a treatment that uses high-energy beams to treat tumors.
    • Radiation therapy using X-rays has long been used to treat cancers and noncancerous (benign) tumors.
    • It uses protons rather than x-rays to treat cancer. At high energy, protons can destroy cancer cells.
    • It can also be combined with x-ray radiation therapy, surgery, chemotherapy, and/or immunotherapy.
    • Like x-ray radiation, proton therapy is a type of external-beam radiation therapy.

    How it works?

    proton

    • Fundamentally, all tissue cells are made up of molecules with atoms as their building blocks.
    • In the center of every atom is the nucleus. Orbiting the nucleus of the atom are negatively charged electrons.
    • When energized protons pass near orbiting electrons, the positive charge of the protons attracts the negatively charged electrons, pulling them out of their orbits. This is called ionization.
    • It changes the characteristics of the atom and consequentially the character of the molecule within which the atom resides.
    • Because of ionization, the radiation damages molecules within the cells, especially the DNA.
    • Damaging the DNA destroys specific cell functions, particularly the ability to divide or proliferate.
    • While both normal and cancerous cells go through this repair process, a cancer cell’s ability to repair molecular injury is frequently inferior.
    • As a result, cancer cells sustain more permanent damage and subsequent cell death than occurs in the normal cell population.

    Why in news?

    • There is currently a significant demand-supply gap of proton beam therapy machines in India, with only a few machines available in the country.
    • This has resulted in long wait times for patients who need the treatment, and many patients are forced to travel abroad to access the treatment, which can be prohibitively expensive.

    Various challenges

    • Huge demand: The demand for PBT machines is also increasing, as more and more patients are being diagnosed with cancer and are seeking the latest and most effective treatments available.
    • High cost: One of the major challenges in setting up PBT machines is the high cost involved, as the machines are complex and require a significant investment.
    • Shortage of personnel: In addition, there is a shortage of trained personnel who can operate and maintain the machines, which further limits their availability.

    Way Forward

    • The government and private sector need to invest more in setting up and maintaining the machines. This could include-
    1. Offering tax incentives and subsidies to private healthcare providers who invest in PBT machines
    2. Providing training and education to personnel who can operate and maintain the machines
    3. Setting up more public hospitals that offer proton beam therapy, which would help to make the treatment more accessible and affordable to patients who need it

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

  • ISRO successful in key test for Chandrayaan-3 Mission

    chandrayaan

    The Indian Space Research Organisation (ISRO) has successfully conducted a crucial test for its upcoming Chandrayaan-3 mission.

    What was the test?

    • The test involved the high-thrust cryogenic engine, which will be used to power the rocket that carries the Chandrayaan-3 spacecraft.
    • The engine was tested for its endurance and performance under various conditions.

    About Chandrayaan-3 Mission

    • The Chandrayaan-3 mission is the third lunar exploration mission by the Indian Space Research Organisation.
    • The mission follows the successful Chandrayaan-1 and Chandrayaan-2 missions, which were launched in 2008 and 2019 respectively.
    • The Chandrayaan-3 mission is designed to further explore the Moon’s South Pole region and conduct various scientific experiments, including studying the lunar surface, mineralogy, and the presence of water.

    Significance of the recent test

    • With the successful test of the high-thrust cryogenic engine, ISRO is now one step closer to launching the Chandrayaan-3 mission.
    • The mission is expected to be a significant step forward in India’s space exploration efforts and will further our understanding of the Moon and its potential for future exploration and exploitation.

    Chandrayaan-2: A quick recap

    • Chandrayaan-2 consisted of an Orbiter, Lander and Rover, all equipped with scientific instruments to study the moon.
    • The Orbiter would watch the moon from a 100-km orbit, while the Lander and Rover modules were to be separated to make a soft landing on the moon’s surface.
    • ISRO had named the Lander module as Vikram, after Vikram Sarabhai, the pioneer of India’s space programme, and the Rover module as Pragyaan, which crash-landed.

    Inception of Chandrayaan 3

    • The subsequent failure of the Vikram lander led to the pursuit of another mission to demonstrate the landing capabilities needed for the Lunar Polar Exploration Mission proposed in partnership with Japan for 2024.

    Its design

    • The lander for Chandrayaan-3 will have only four throttle-able engines.
    • Unlike Vikram on Chandrayaan-2 which had five 800N engines with a fifth one being centrally mounted with a fixed thrust.
    • Additionally, the Chandrayaan-3 lander will be equipped with a Laser Doppler Velocimeter (LDV).

    Back2Basics: Chandrayaan-1 Mission

    • The Chandrayaan-1 mission was launched in October 2008 was ISRO’s first exploratory mission to the moon, in fact to any heavenly body in space.
    • The mission was designed to just orbit around the moon and make observations with the help of the instruments onboard.
    • The closest that the Chandrayaan-1 spacecraft came to the moon was in an orbit 100 km from its surface.

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

     

  • [pib] Exercise Cobra Warrior

    IAF contingent comprising to participate in Exercise Cobra Warrior at the Waddington Air Force Base of the Royal Air Force in the United Kingdom.

    Exercise Cobra Warrior

    • Cobra Warrior is a multinational military exercise that takes place annually in the United Kingdom.
    • It is designed to improve the readiness and interoperability of the Royal Air Force and allied air forces for joint combat operations.
    • The exercise brings together military units from different countries, including NATO allies and partner nations, to practice and enhance their air combat capabilities.
    • During the exercise, the participating air forces conduct a series of realistic training scenarios that simulate air-to-air combat, air-to-ground attacks, and other mission types.
    • The aim is to provide pilots and ground crews with realistic training experiences to help prepare them for real-world combat situations.

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom sessions, Tests, & Mentorship

  • Current Account Deficit (CAD): Desirable and Undesirable Components

    CAD

    Central Idea

    • As per the RBI’s quarterly statistics, the current account deficit (CAD) widened to 4.4 per cent of GDP in the second quarter of 2022-23, down from 2.2 per cent in the preceding quarter. This marks a reversal from an unusual surplus of 0.9 per cent of GDP in 2020-21. In the third quarter of this financial year, while the merchandise trade deficit has widened, the CAD may witness a fall.

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

    What is Current Account Deficit (CAD)?

    • Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers
    • A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
    • This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
    • A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.

    Components of Current Account

    1. Trade Deficit
    • Trade Deficit = Imports – Exports
    • A Country is said to have a trade deficit when it imports more goods and services than it exports.
    • Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
    • A trade deficit represents an outflow of domestic currency to foreign markets.
    1. Net Income
    • Net Income = Income Earned by MNCs from their investments in India.
    • When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
    • Net income is measured by Payments made to foreigners in the form of dividends of domestic stocks, Interest payments on bonds and Wages paid to foreigners working in the country.
    1. Net Transfers
    • In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners. It also Includes Remittances, Gifts, Donation etc.

    CAD

    India’s CADs have both desirable and undesirable components

    • Desirable:
    • A desirable deficit is a natural reflection of rising investment, portfolio choices and the demographics of the country.
    • If CADs can be financed by stable capital inflows, such as FDI inflows, they are desirable as they are less prone to capital flight.
    • Stable capital flows are desirable as they allow debtor countries, such as India, to utilize and allocate them into sectors that may yield long-term productive gains and foster higher economic growth.
    • Undesirable:
    • Large and persistent CADs can be undesirable if they reflect bigger problems such as poor export competitiveness and are financed by unstable financing.
    • If deficits are financed by volatile capital flows such as portfolio flows, there may be a cause of concern. Portfolio flows are capricious and more susceptible to reversals in case of any global financial shock.

    The countercyclical nature of India’s CAD: A matter of concern

    • Dominance of external shocks: Research suggests that the country’s CAD rises when output falls rather than when demand rises, indicating the dominance of external shocks.
    • For instance: If oil prices rise, and as oil is an input in the production process, it raises the cost of production and leads to a fall in economic growth. In this case, CADs rise with falling growth due to both the inelasticity of oil import demand as well as its major share in India’s total imports.

    Remarks to be Noted

    • Remittances and services exports have provided a counter-balance to rising merchandise trade deficits.
    • India’s services exports grew at 23.5 per cent in 2021-22.
    • While capital flows are pro-cyclical and react negatively to contractionary monetary policy by the Fed, remittances have exhibited remarkable stability.

    Challenges and a Way ahead

    • The composition of financing is crucial. While FDI inflows were enough to finance the deficit in 2021-22, these inflows have been weak in the current fiscal year.
    • Over the medium term, policymakers need to arrest the negative spillovers from the slowdown in global trade on merchandise exports.
    • Further rate hikes by the US Fed may lead to capital outflows leading to additional exchange rate market pressures. This could be challenging in the current situation as a weaker currency, coupled with a sticky import basket will lead to imported inflation.
    • Policy measures thus must facilitate exports by focusing on structural reforms to improve trade competitiveness, alongside which the government must sign free trade agreements.

    CAD

    Conclusion

    • India is currently facing the twin-deficit problem of high fiscal and CADs. While aggressive fiscal consolidation may be undesirable in the face of rising fears about a global slowdown, a comfortable external environment can be maintained by ensuring stable financing, along with using exchange rates as a shock absorber to weather the adverse global economic situation.

    Mains Question

    Q. Explain the concept of Current account deficit? India’s CAD have both desirable and undesirable components. Discuss.

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

  • e-Waste Rules 2022

    e-waste

    Central Idea

    • The burgeoning problem of managing e-waste is a cross cutting and persisting challenge in an era of rapid urbanisation, digitalisation and population growth. In November 2022, the Ministry of Environment and Forests notified a new set of e-waste rules, which will come into force from April 1, 2023. These rules address some of the critical issues but are silent on others.

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

    What is e-Waste?

    • e-waste refers to electronic waste, which includes any discarded electronic or electrical device, such as computers, mobile phones, televisions, and refrigerators.
    • These devices contain hazardous substances such as lead, mercury, cadmium, and polyvinyl chloride (PVC) that can pose significant environmental and health risks if not disposed of properly.

    e-Waste

    Key components of e-waste Rules in India

    • Extended Producer Responsibility (EPR): The first set of e-waste Rules was notified in 2011 and came into effect in 2012. An important component of the Rules (2011) was the introduction of EPR. Under EPR compliance, producers are responsible for the safe disposal of electronic and electric products once the consumer discards them.
    • Authorization and product stewardship: E-waste rules 2016, which were amended in 2018, were comprehensive and included provisions to promote authorisation and product stewardship. Other categories of stakeholders such Producer Responsibility Organisations (PRO) were also introduced in these rules.
    • A digitalized systems approach, introduced in the new rules (2022): Standardizing the e-waste value chain through a common digital portal may ensure transparency and is crucial to reduce the frequency of paper trading or false trail i.e., a practice of falsely revealing 100% collection on paper while collecting and/or weighing scrap to meet targets

    e-Waste

    e-waste recycling: Analysis

    • Two important stages of efficient e-waste recycling:
    • 1. Component recovery (adequate and efficient recoveries of rare earth metals in order to reduce dependence on virgin resources) and
    • 2. Residual disposal (safe disposal of the leftover residual during e-waste recycling).
    • Concern: The rules briefly touch upon the two aspects, but do not clearly state the requirement for ensuring the recovery tangent.
    • The new notification does away with PRO and dismantlers: All the responsibility of recycling vests on authorised recyclers; they will have to collect a quantity of waste, recycle them and generate digital certificates through the portal.
    • Concern: Fresh challenges might emerge as companies are no longer required to engage with PROs and dismantlers, who partially ensured double verification in terms of quantity and quality of recycling.
    • Lack of recognition to informal sector: The new rules for e-waste management in India do not recognize the crucial role played by the informal sector, which handles 95% of e-waste in the country. This lack of recognition may be due to the sector’s “illegality
    • Concern: This move could further push e-waste handling into the shadows and make it more difficult to monitor and regulate. This could lead to environmental pollution, health hazards for workers, and inefficient e-waste management.

    Impact on Health

    • Incineration and leaching: Open incineration and acid leeching often used by informal workers are directly impacting the environment and posing serious health risks, especially to child and maternal health, fertility, lungs, kidney and overall well-being.
    • Occupational health hazards: In India, many of these unskilled workers who come from vulnerable and marginalised are oblivious to the fact that that what they know as ‘black plastics’ have far reached occupational health hazards especially when incinerated to extract copper and other precious metals for their market value.
    • Exposures to children: This ‘tsunami of e-waste rolling out of the world’, as described in an international forum on chemical treaties, poses several health hazards for women in this sector as they are left exposed to residual toxics elements mostly in their own households and often the presence of children.
    • Constant contact with organic pollutants: According to a recent WHO report, a staggering 18 million children, some as young as five, often work alongside their families at e-waste dumpsites every year in low- and middle-income countries. Heavy metals such as lead, as well as persistent organic pollutants (POPs), like dioxins, and flame retardants (PBDEs) released into the environment, have also added to air, soil, and water pollution

    e-Waste

    Way ahead

    • In order to ensure maximum efficiency, the activities of the recyclers must be recorded in the system.
    • The authorities should periodically trace the quantity of e-waste that went for recycling vis-à-vis the recovery towards the end.
    • Recognising the potential of informal sector in e- waste handling.
    • For instance, ‘Karo Sambhav’, a Delhi-based PRO, has integrated informal aggregators in its collection mechanism. Through this initiative, e-waste is entered in a safe and structured system and the informal sector also has an advantage in terms of financial and legal security.
    • In order to ensure the efficient implementation of the law, stakeholders must have the right information and intent to safely dispose of e-waste.
    • There is need of strengthening reverse logistics, building capacity of stakeholders, improving existing infrastructure, enhancing product designing, rationalising input control and adopting green procurement practices.
    • Provide doorstep collection to consumers.

    Conclusion

    • e-waste recycling and management have become a major environmental challenge in the modern world, as the volume of e-waste generated continues to grow rapidly. Simultaneous efforts needed to increase awareness and improve infrastructure for effective e-waste management. Moreover, robust collection and recycling system and required to meet legislative requirements.

    Mains Question

    Q. What is e- waste? Discuss the set of e-waste rules in India and suggest what needs to be done for effective e- waste management?

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

  • Invest In People For The Brighter Future

    Invest

    Central Idea

    • The world is indeed looking up to the Indian economy as a bright star, as the finance minister noted in the Budget speech on February 1. In 2020, India accounted for 20.6% of the worldwide population of 15- to 29-year-olds. Which means that in the years ahead, one out of every five workers deployed globally could be an Indian. No doubt, the rest of the world foresees a fortune in India’s young population. But are our policymakers doing enough to realise the possibilities that are unfolding?

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

    The key proposals in this year’s Union budget are the following

    • Increase in capital expenditures for infrastructure: There will be a considerable increase in capital expenditures, for the building of physical infrastructure, mainly in transport, energy and defence. The figures under this head are expected to be higher in 2023-24 compared to the corresponding level in 2022-23 (revised estimates).
    • Modest tax revenue: The growth of the tax revenues is going to be modest, the government is nevertheless committed to reducing the fiscal deficit to 5.9% of GDP. That could have been achieved only by reducing the spending on some other sectors
    • The axe has fallen on subsidies and social sector expenditures: Compared to its previous year, in 2023-24, the Union government’s expenditure on food subsidy will fall by ₹0.9 trillion (or 90,000 crore), on fertilizer subsidy by ₹0.5 trillion, and on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by ₹0.3 trillion.
    • Marginal increase unlikely to make impact: The marginal increases in the allocations on health, education, agriculture and the Angwandi scheme are unlikely to make an impact, after taking into account the effect of inflation.

    Public-private complementarities

    • Capital spending indicates country’s productive capability: A jump in capital spending by the government, as proposed in the Budget, is a much-needed step to reinvigorate the Indian economy. Investment as a proportion of income or GDP indicates the rate at which a country’s productive capabilities are growing.
    • High rates of investment; Fast rates of economic progress: In India, this proportion rose steadily during the mid-2000s and peaked at 42% in 2007, which was even better than China’s record at that point in time. High rates of investment translated into extremely fast rates of economic progress in the country, which lasted until the early 2010s.
    • Crowd in Private investments: If the proposed investments by the government come through, and they indeed crowd in private investments as the finance minister has predicted, that can set the stage for a revival of the Indian economy.

    Global financial crisis in 2007-08 was a turning point

    • China responded with high domestic investment: China responded to the crisis by increasing domestic investment, a large part of which coming from its public sector.
    • India restrained its expenditures: In India, the government restrained its expenditures, worrying about the rising fiscal deficits. As public expenditures nosedived, private investors lost confidence as well. Investment as a proportion of GDP was on a steady downward slide

    Invest

    Investing in people is an investment in the future

    • Expenditure on social sector: Public expenditures on the social sectors constitute an investment for the future more so for a country with a predominantly young population.
    • For instance: The income a destitute mother receives for work through MGNREGA may ensure that her children do not have to go to school with empty stomachs.
    • Underinvestment in education: Underinvestment in education and health will undercut India’s chances in a global economy that is increasingly dominated by knowledge. Millions of young people are denied access to affordable education and decent jobs, leading to frustration.
    • For instance: In 2022, only 2.6% of the nearly 1.9 million candidates who wrote the NEET managed to secure a seat for MBBS in a government college.
    • Government expenditure to boost to supply and demand: Government expenditure on health and education can provide a boost to both the supply and the demand fronts in a knowledge-driven economy, more new jobs as teachers and doctors, especially for women, and a greater supply of younger professionals and skilled workers.

    Importance of social sector spending for long-term growth and social welfare

    • Contrasting Capital Expenditures with Social Sector Spending: Unlike capital expenditures, which are generally considered productive, subsidies and social sector spending are often labeled as wasteful. It is commonly believed that cutting social sector spending will not harm economic growth; however, this perception is incorrect.
    • The Negative Impact of Reducing Social Sector Spending: Cutting social sector spending not only exacerbates existing social inequalities but also dampens the prospects for long-term growth.
    • For instance: In India, for example, only 9.8% of workers have access to regular jobs that provide some form of social security. Therefore, measures such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the free provision of food have been a lifeline for millions of poor Indians who have been affected by the COVID-19 pandemic and joblessness.

    Unwarranted fears about fiscal deficit

    • The Counterproductive Nature of Inflated Fears: Inflated fears about the fiscal deficit and government debt will only be counterproductive in a country possessing vast reserves of untapped human and other resources as India does.
    • India’s government debt is held largely by domestic financial institutions does not pose threat: Only a small portion of India’s public debt is owed to external agencies (amounting to 4.2% of GDP in 2022), which does not pose a threat. India’s public debt is held largely by domestic financial institutions, including public sector banks, insurance companies. This is a debt the government owes to the people of this country, whose savings the financial institutions have mobilised.
    • For example: Greece and the most recent example of Sri Lanka’s economic crisis was a result of external debt.
    • A Virtuous Cycle of Debt: Higher levels of development and incomes will lead to the creation of fresh savings, which can help pay off the debts. Borrowing to feed and educate all of its young citizens will provide asset-poor and socially disadvantaged households the opportunity to pick up qualifications required to enter the new job market.

    Invest

    Conclusion

    • For a generation of young Indians, this is, without a doubt, a ‘make or break moment’. without increased public spending on human capabilities, there is little hope for them to escape poverty, lack of skills, and discontent. However, if the government invests in food security, health, and education, India’s young people can thrive and become bright stars that illuminate the world.

    Mains question

    Q. Without increased public spending on human capabilities, there is little hope for young Indians to escape poverty and discontent. Discuss.

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

  • SC raps govt on plea on ED chief’s term

    ed

    The Supreme Court has sharply reacted over tenure extensions granted to Enforcement Directorate Director by the government to subvert ongoing investigations against their leaders.

    What is Enforcement Directorate (ED)?

    • ED was formed in 1957 to look into cases of foreign exchange-related violations, a civil provision.
    • It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
    • Now, the ED falls under the finance ministry’s Department of Revenue.
    • But in 2002, after the introduction of the PMLA, it started taking up cases of financial fraud and money laundering, which were of criminal nature.
    • It was then tasked for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
    • Today, it is a multi-dimensional organisation investigating economic offences under the:
    1. Prevention of Money Laundering Act (PMLA)
    2. Fugitive Economic Offenders Act
    3. Foreign Exchange Management Act
    4. Foreign Exchange Regulation Act (FERA)

    Its establishment

    • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
    • Therefore, there was a need to control and prevent the laundering of money.
    • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
    • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
    • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

    At what stage does the ED step in when a crime is committed?

    • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
    • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
    • This will be done to find out if any laundering has taken place.

    What differentiates the probe between the local police and officers of the ED?

    Case study:

    • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
    • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
    • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
    • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
    • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
    • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

    Roles and functions of the ED

    • Summon, Search and seizure: The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
    • Arrest and detentions: On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
    • Attachment of property: Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning. It is not necessary to summon the person first and then start with the search and seizure.
    • Filing of chargesheet: If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.

    Centrestage of our debate: Over-reach by Investigation Agencies

    Why is ED comes to pictures frequently?

    Ans. Money laundering

    • Money laundering is the process of making significant amounts of money obtained through criminal activities, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.
    • As a result, it provides an incentive for money launderers to “legitimize” their ill-gotten gains through money laundering.
    • The money generated is referred to as ‘dirty money,’ and money laundering is the act of converting ‘dirty money’ into ‘legitimate’ money.

    Why ED mostly grips Politicians?

    • Exposing rampant corruption: It is not always ironic to say that most politicians are never corrupt. We have a very inglorious past of political corruption.
    • Selective witch-hunt: The ED has often been attacked for initiating investigations, raiding and questioning leaders of opposition parties, be it under the current regime or under past governments.

    Issues with PMLA

    • Misuse of central agencies: PMLA is being pulled into the investigation of even ordinary crimes by the Enforcement Directorate.
    • Seizing of assets: Assets of genuine victims have been attached. The ED could just walk into anybody’s house.
    • Politically motivated raids: In all this, the fundamental purpose of PMLA to investigate the conversion of “illegitimate money into legitimate money” was lost.
    • Opacity of charges: Petitioners pointed out that even the Enforcement Case Information Report (ECIR) – an equivalent of the FIR – is considered an “internal document” and not given to the accused.
    • Vagueness over evidence: The accused is called upon to make statements that are treated as admissible in evidence.
    • Harassment: The ED begins to summon accused persons and seeks details of all their financial transactions and of their family members.
    • Against individual liberty: The initiation of an investigation by the ED has consequences that have the potential of curtailing the liberty of an individual.

    Allegations against ED

    • Huge discretions: The ED is the only Central agency in the country that does not require permission from the government to summon or prosecute politicians or government functionaries for committing economic offences like money laundering.
    • Used for petty crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
    • Actual purpose denigrated: PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from the trade in narcotics.
    • Violations of Rights: PMLA was enacted in response to India’s global commitment to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined”.
    • Functional opacity: There is also a lack of clarity about ED’s selection of cases to investigate. We often see ED raiding houses of opposition parties suddenly.
    • Poor rate of conviction: We have hardly read the conclusion of cases by ED. Meantime media-trial tears off the accused person’s credibility which is the most desired intent.
    • Under-trials and slower prosecution: ED has been focusing on keeping the accused in custody rather than actually proving the charges against them.

    Challenges to ED

    • ED being dragged to court: The petitions against the ED had the effect of slowing down the investigations, as officers have to defend themselves in court.
    • Foul crying politicians: There are attempts to cover up unexplained, high-value transactions that fall within the PMLA’s ambit
    • Investigation of foreign transactions: Getting information on accounts and money stashed abroad to establish a trail is the biggest challenge they face.

    Way forward

    • The fight against corruption is intimately linked with the reform of the investigations.
    • Therefore the adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.
    • ED has been walking a tightrope to safeguard its integrity by speeding up investigations and court procedures.
    • The need of the hour could be systemic fixes—and not shrill calls to throw the baby out with the bathwater.
    • It is unlikely that corruption can be substantially reduced without modifying the way government agencies operate.

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

  • Organ on a chip: New setup for lab testing

    organ

    Central idea: Organ-on-a-chip technology has emerged as a new laboratory setup that scientists are using instead of animals to test new drugs.

    What is Organ-on-a-Chip?

    • Organ-on-a-chip is a microfluidic device that aims to mimic the structure and function of specific human organs or tissues in vitro.
    • It is a small, transparent chip made of biocompatible materials such as silicon, glass, or polymers, and contains tiny channels lined with living cells.
    • The living cells are derived from human tissues and can be cultured to replicate the microenvironment of the specific organ being modelled.

    How does Organ-on-a-Chip work?

    • Microfluidic channels simulation: Each organ-on-a-chip contains a complex network of microfluidic channels and chambers that can simulate the mechanical and chemical environment of a specific organ.
    • Mimics the blood flow: The microfluidic channels can mimic the flow of blood and air, while the living cells provide a realistic environment for drug testing and disease modelling.

    Potential applications of organ-on-a-chip

    • Organ-on-a-chip technology has numerous potential applications, including drug development, disease modelling, and toxicity testing.
    • By replicating the structure and function of human organs, researchers can study how organs interact with drugs and other compounds.
    • This could lead to the development of more effective and personalized treatments for a variety of diseases.
    • Additionally, organ-on-a-chip technology provides a more ethical and effective approach to testing drugs and other compounds, reducing the reliance on animal testing.

    Examples of Organ-on-a-Chip

    Several examples of organ-on-a-chip technology have been developed, including-

    • Lung-on-a-chip mimics the air-blood interface in the lungs
    • Heart-on-a-chip mimics the mechanical and electrical properties of the heart
    • Liver-on-a-chip replicates the metabolic activity of the liver
    • Brain-on-a-chip models the blood-brain barrier and neural activity in the brain

    Future prospects

    • Organ-on-a-chip technology is a promising and rapidly evolving field that offers numerous advantages over traditional drug development and testing methods.
    • It provides a more ethical and effective approach to testing drugs and other compounds, reducing the reliance on animal testing.
    • Furthermore, it has the potential to revolutionize the field of drug development by enabling more personalized and effective treatments for a variety of diseases.

     

    Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

    Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship