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

Civilsdaily

Login

GS Paper: GS3

  • Moon-forming region seen around an exoplanet for the first time

     

    Scientists for the first time have spotted a Moon-forming region around an exo-planet beyond our solar system.

    What are Exoplanets?

    • More than 4,400 planets have been discovered outside our solar system, called exoplanets.
    • Most orbit other stars, but free-floating exoplanets, called rogue planets, orbit the galactic center and are untethered to any star.
    • No circumplanetary discs had been found until now because all the known exoplanets resided in “mature” – fully developed – solar systems, except the two infant gas planets orbiting PDS 70.

    What is the new finding?

    • The researchers have detected a disc of swirling material accumulating around one of two newborn planets.
    • They were seen orbiting a young star called PDS 70, located a relatively close 370 light-years from Earth.
    • It is called a circumplanetary disc, and it is from these those moons are born.
    • The discovery offers a deeper understanding of the formation of planets and moons.

    Focus of the finding: Formation of disc

    • In our solar system, the impressive rings of Saturn, a planet around which more than 80 moons orbit, represent a relic of a primordial moon-forming disc.
    • The orange-colored star PDS 70, roughly the same mass as our Sun, is about 5 million years old– a blink of the eye in cosmic time.
    • The two planets are even younger. Both planets are similar (although larger) to Jupiter, a gas giant.
    • It was around one of the two planets, called PDS 70c, that a Moon-forming disc was observed.

    Observing birth of a moon: Core Accretion

    • Stars burst to life within clouds of interstellar gas and dust scattered throughout galaxies.
    • Leftover material spinning around a new star then coalesces into planets, and circumplanetary discs surrounding some planets similarly yield moons.
    • The dominant mechanism thought to underpin planet formation is called “core accretion”.
    • In this scenario, small dust grains, coated in ice, gradually grow to larger and larger sizes through successive collisions with other grains.
    • This continues until the grains have grown to a size of a planetary core, at which point the young planet has a strong enough gravitational potential to accrete gas which will form its atmosphere.
    • Some nascent planets attract a disc of material around them, with the same process that gives rise to planets around a star leading to the formation of moons around planets.
    • The disc around PDS 70c, with a diameter about equal to the distance of the Earth to the sun, possesses enough mass to produce up to three moons the size of Earth’s moon.

  • Special Economic Zones

    Key Highlights of the report

    • If India is to become a US $5 trillion economy by 2025, then the current environment of manufacturing competitiveness and services has to undergo a basic paradigm shift.
    • The report notes that the success seen by services sectors like IT and ITES (IT enabled services) has to be promoted in other services sector like health care, financial services, legal, repair and design services.

  • India’s FAANG moment has arrived

    Context

    In the US, the Big Tech FAANG five are Facebook, Apple, Amazon, Netflix and Google (now Alphabet).  Today, in India, Zomato’s stock market debut is a big occasion for India that could pave the path for other online successes.

    Significance for economy

    • It is the first among a host of domestic unicorns to have taken the IPO road, heralding a watershed moment.
    • Boost for startups: It is also also a big leap for our country as a whole, which today boasts of the third largest start-up ecosystem in the world.
    • Creation of online ecosystem: The response to Zomato’s initial public offer (IPO) gave us interesting insights into the robustness of the online economy in a pandemic-stricken world.
    • Help creation of tech-giants: It could alter the composition as well as perception of markets, giving Indian investors a feel of new-generation, tech-heavy, assets-light and agile entrepreneurial growth stories, woven around the consumer internet ecosystem in India.
    • Attracting FDI: With global liquidity at unprecedented levels and tech being the toast of the season, we could be looking at FDI inflows in unforeseen proportion in days to come.
    • The ascent of new-age enterprises like Zomato and Paytm on the Stock Market, followed by likes of Oyo, Ola, Swiggy, Byju’s and even Flipkart could signal the emergence of India’s own FAANG family.

    What sets the tech startups apart?

    • Their reliance on big data and leveraging of ever-evolving technology, while sustaining a two-way connection with clients set them apart.
    • The ‘stickiness’ and the ‘connect’ built over the years through carefully fabricated social layers puts them in the league of giant social media influencers.
    • During the last few decades, two distinctive traits that have the potential to push the boundaries of limitations are the creation of a large talent pool and India’s prowess in software and data (including AI/ML) technology, both on a global scale.

    Conclusion

    As we celebrate 30 years of economic reforms, today’s debut, at least for the markets and the economy, may well be called India’s re-tryst with destiny.

  • Challenging China

    Context

    The Chinese are about to extend their geographical advantage by building a new high-speed rail from Chengdu, running close by and parallel to the Arunachal border, up to Lhasa.

    Manpower and Defence Budget: Comparison with China

    • The Indian army, according to diverse sources, numbers between 12,50,000 and 14,00,000 officers and men.
    • Chinese PLA actually has only 9,75,000 officers and men.
    •  They have downsized their army.
    • China is an aspiring world power that spends $252 billion on its defence budget, as compared to $72.9 billion that India spends.
    • Both countries limit their budget to around 2 per cent of their GDP, which in China’s case is five times our size.

    Why does India need to reduce manpower in defense?

    • Expensive:  A major portion of the budget is spent on manpower, 81 percent of the army budget goes into manpower and maintenance. Gradually, manpower is going to get increasingly expensive.
    • Also, our strategic options get constrained because the army gets 61 percent of the defense budget.
    • We need to downsize the army by 2,00,000 men over five years through retirement and reduced recruitment.
    • The reduction in manpower will save approximately Rs 30,000 crore, which can be equally divided between the three services.

    Way forward: Bigger role to navy and air force

    • We can achieve better conventional deterrence against China by giving bigger roles to the navy and air force.
    • The first step is to accept that we are an asymmetric power and leverage the RMA (Revolution in Military Affairs) so that numerical inferiority is of no consequence.
    • They are invulnerable on land, and their only strategic weakness is their reliance on the Indian Ocean SLOCs (sea lines of communications) for 70 percent of their imported oil.
    • The only guarantee of Chinese non-aggression and good behavior is a well-crafted threat to their oil tankers and a complete naval mastery of the escalation that is bound to follow.
    • India can also leverage the QUAD resources in various ways such as information.
    • Build up the Car Nicobar airfield into a full-fledged airbase.
    • We could negotiate with Oman for the use of the old RAF airbase at Masirah to dominate the Gulf of Hormuz and threaten the Chinese base at Djibouti.

    Conclusion

    China cannot be countered by throwing expensive manpower at the problem, but only by shifting the battlespace to advantageous geography, by a united navy and air force effort, while a technically advanced army holds the Himalayan border.

  • What is Gross Environment Product?

    The Uttarakhand government recently announced it will initiate valuation of its natural resources in the form of ‘Gross Environment Product’ (GEP), said to be along the lines of Gross Domestic Product (GDP).

    Why such a move?

    • The idea of the valuation of the components of the environment is not new.
    • But it got impetus following rapid degradation of ecosystems, which led to adverse impacts on more than 60 percent of services we get from the ecosystems.

    What is Gross Environment Product (GEP)?

    • GEP is the measure of ecosystem services of any area.
    • It reflects the aggregated annual value of goods and services provided by ecosystems (forests, water bodies, oceans, etc.) to people in a given region, such as at district levels, state, and country.
    • It entails the establishment of a natural capital accounting framework by integrating ecological benefits into common measures of economic growth such as GDP.
    • It summarizes the value of ecosystem services in a single monetary metric.

    Evolution of GEP

    • The term “ecosystem services” was coined in 1981 to attract academics towards this aspect.
    • Ecosystem services represent the benefits humans get: Forests, lakes, and grasslands; timber and dyed; carbon sequestration and nutrient cycling; soil formation and productivity; and tourism.
    • The definition is still in the process of evolution. The concept received attention and now is part of global knowledge.

    Advantages offered

    • GEP can be applied as a scientific basis for Eco-Compensation and public financial transfers.
    • For example, Finance Commission’s revenue-sharing formula between the Union and the states including forest cover as a determining factor in a state’s share.
    • GEP can be applied to measure the status of ecosystem services, which is an important indicator of sustainable development.
    • It is also a critical indicator for measuring the progress of Eco-civilization.
    • Its implementation can help assess the impact of anthropological pressure on our ecosystem and natural resources- air, water, soil, forests.

    The Himalayan context

    • The Himalayas contribute substantially to the sustainability of the Gangetic Plains where 500 million people live.
    • The Union government incorporated the value of ecosystem services of its states in national accounting.
    • According to the recommendation of the 12th and 13th Finance Commissions, grants were transferred to forest-rich states in amounts corresponding to their forest covers.
    • However, considering only the forest cover in transferring funds to states is inadequate.

  • [pib] Periodic Labour Force Survey (2019 –2020)

    The Periodic Labour Force Survey (PLFS) Annual Report for July, 2019 to June 2020 was recently released by the National Statistical Office (NSO).

    Periodic Labour Force Survey

    • Considering the importance of the availability of labor force data at more frequent time intervals, National Statistical Office (NSO) launched PLFS in April 2017.
    • The objective of PLFS is primarily twofold:
    1. to estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS).
    2. to estimate employment and unemployment indicators in both ‘Usual Status’ and CWS in both rural and urban areas annually.

    Various dimensions of the survey

    The PLFS gives estimates of Key employment and unemployment Indicators:

    • Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the labor force (i.e. working or seeking or available for work) in the population.
    • Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
    • Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labor force.
    • Activity Status- Usual Status: When the activity status is determined on the basis of the reference period of the last 365 days preceding the date of the survey, it is known as the usual activity status of the person.
    • Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of the last 7 days preceding the date of the survey is known as the CWS of the person.

    Highlights of the third report

    • The Labour force participation ratio has increased to 40.1% in 2019-20 from 37.5% and 36.9%, respectively, in the last two years.
    • Worker population rate improved to 38.2% in 2019-20 compared with 35.3% in 2018-19 and 34.7% in 2017-18.
    • The unemployment rate fell to 4.8% in 2019-20. In 2018-19, it stood at 5.8% and 6.1% in 2017-18.

  • Challenges in withdrawing stimulus measures

    Context

    Economic-policy discussions increasingly revolve around the question of when and how quickly central banks should pull back the uber-stimulus measures implemented last year in response to the pandemic.

    Why withdrawal is challenging?

    • Uncertainties: Both parts of the question (when and how) call for finely balanced judgment to account for uncertainties that are in play.
    • Policy changes by major central banks can have far-reaching implications for economic and financial well-being, affecting not just those directly involved but also the many nations.
    • To answer the question, an assessment of three current issues is required:
    • The labor market.
    • The surge in inflation.
    • The risk of not being able to recover quickly in the event of a policy mistake.

    Let’s look into these three issues

    1) Labour market puzzle

    • Despite massive demand, the labor market is unable to match unemployed workers to jobs.
    • The situation is particularly stark in the US.
    • Job data for April show that there are a record number of job openings in the US—more than nine million—labor-force participation remains stubbornly low, and unemployment high, compared to pre-pandemic levels.
    • The labor market’s persistent malfunctioning—particularly employers’ struggle to find employees—is likely to lead to higher wage growth, a possibility that fuels concern about the second issue-inflation.

    2) Inflation: Is it transitory or long-lasting?

    • There is a view that the current uptick in inflation will sharply reverse itself.
    • As the year progresses, it is expected that the base effect will wash out together with the supply and demand mismatches.
    • However, there is a possibility of supply bottlenecks, changes in supply chains, and lasting inventory management challenges.

    3) Policy challenges: To act or not to act

    • Policymakers must be mindful of the risks associated with any given course of action—including inaction.
    • In the face of such uncertainty, it is wise to ask not just what could go wrong but also what the consequences of a policy mistake would be.
    • Under the current conditions, a wrong move could have far-reaching, lasting effects.
    • Those favoring a continuation of loose monetary policies argue that central bankers still have tools to overcome inflation should it persist.
    • But as the opponents are quick to point out, those tools have become increasingly ineffective and difficult to calibrate.
    • The risk of inaction (or inertia) in this case may be larger than that of acting early.

    Options with systemically important central banks

    • In the case of the US, economic growth is buoyant, fiscal policy is also extremely expansionary, and businesses and households alike have significant accumulated savings that they will now be spending down.
    • The conditions are now ripe for the Fed to start reducing—gradually and carefully—its bond-buying program from its current rate of $120 billion per month.
    • The European Central Bank, however, is in a different position.
    • While eurozone growth is picking up, the level of financial support is not as strong as in the US, and the private-sector recovery is not as advanced.
    • The hardest case to call in the UK.
    • With growth, fiscal support, and the private sector’s prospects more finely balanced.
    • Other central bankers around the world also have an important role to play.
    • Central bankers elsewhere should be running their own scenario analyses and formulating appropriate response plans.

    Conclusion

    There is nothing wrong with hoping that three systemically important central banks will get to their destination smoothly. But the journey is far from over, and the risk of someone slipping is not negligible.

    Back2Basics: Labour force participation rate

    • The labor force participation rate is a measure of an economy’s active workforce.
    • The formula for the number is the sum of all workers who are employed or actively seeking employment divided by the total noninstitutionalized, civilian working-age population.
    • Used in conjunction with the unemployment numbers, it offers some perspective into the state of the economy.

    Source:

    https://www.financialexpress.com/opinion/withdrawal-symptoms-central-banking-fast-and-slow/2295940/

  • RBI working towards ‘phased introduction’ of Digital Rupee

    The Reserve Bank of India (RBI) is working toward a “phased implementation strategy” of a Central Bank Digital Currency (CBDC).

    Do you know?

    China’s digital RMB was the first digital currency to be issued by a major economy.

    Central Bank Digital Currency (CBDC)

    • The phrase CBDC has been used to refer to various proposals involving digital currency issued by a central bank.
    • They are also called digital fiat currencies or digital base money.
    • The present concept of CBDCs was directly inspired by Bitcoin, but a CBDC is different from virtual currency and cryptocurrency.
    • Cryptocurrencies are not issued by a state and lack the legal tender status declared by the government.

    Why India needs a digital rupee?

    • Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
    • High currency in circulation: India has a fairly high currency-to-GDP ratio.
    • Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.

    Features of CBDC

    • High-security instrument: CBDC is a high-security digital instrument; like paper banknotes, it is a means of payment, a unit of account, and a store of value.
    • Uniquely identifiable: And like paper currency, each unit is uniquely identifiable to prevent counterfeit.
    • Liability of central bank: It is a liability of the central bank just as physical currency is.
    • Transferability: It’s a digital bearer instrument that can be stored, transferred, and transmitted by all kinds of digital payment systems and services.

    Various benefits offered

    • It is efficient than printing notes (cost of printing, transporting, and storing paper currency)
    • It reduces the risk of transactions
    • It makes tax collection transparent
    • Prevents money laundering

  • Species in news: Great Indian Bustards

    The Environment Ministry has informed the Parliament that there were no Great Indian Bustards (GIB) left in Kutch Bustard Sanctuary (KBS) in Gujarat’s Kutch district.

    Great Indian Bustards

    • GIBs are the largest among the four bustard species found in India, the other three being MacQueen’s bustard, lesser florican, and the Bengal florican.
    • GIBs’ historic range included much of the Indian sub-continent but it has now shrunken to just 10 percent of it. Among the heaviest birds with flight, GIBs prefer grasslands as their habitats.
    • GIBs are considered the flagship bird species of grassland.

    On the brink of extinction

    • The GIB population in India had fallen to just 150.
    • Pakistan is also believed to host a few GIBs and yet openly supports their hunting.

    Protection accorded

    • Birdlife International: uplisted from Endangered to Critically Endangered (2011)
    • Protection under CITES: Appendix I
    • IUCN status: Critically Endangered
    • Protection under Wildlife (Protection) Act: Schedule I

    Threats

    • Overhead power transmission
    • Poor vision: Due to their poor frontal vision, can’t detect powerlines in time and their weight makes in-flight quick maneuvers difficult.
    • Windmills: Coincidentally, Kutch and Thar desert are the places that have witnessed the creation of huge renewable energy infrastructure.
    • Noise pollution: Noise affects the mating and courtship practices of the GIB.
    • Changes in the landscape: by way of farmers cultivating their land, which otherwise used to remain fallow due to frequent droughts in Kutch.
    • Cultivation changes: Cultivation of cotton and wheat instead of pulses and fodder are also cited as reasons for falling GIB numbers.

    Supreme Court’s intervention

    • The Supreme Court has ordered that all overhead power transmission lines in core and potential GIB habitats in Rajasthan and Gujarat should be undergrounded.
    • The SC also formed a three-member committee to help power companies comply with the order.

    Conservation measures

    • In 2015, the Central government launched the GIB species recovery program.
    • Under the program, the WII and Rajasthan Forest departments have jointly set up conservation breeding centers where GIB eggs are harvested from the wild.
    • They have been incubated artificially and hatchlings raised in a controlled environment.

    Answer this PYQ in the comment box:

    Q.Consider the following pairs:

    Protected Area :: Well-known for

    1. Bhiterkanika, Odisha — Salt Water Crocodile
    2. Desert National Park, Rajasthan — Great Indian Bustard
    3. Eravikulam, Kerala — Hoolock Gibbon

    Which of the pairs given above is/are correctly matched? (CSP 2014)

    (a) 1 only

    (b) 1 and 2

    (c) 2 only

    (d) 1, 2 and 3

  • Nord Stream 2 Pipeline Project

    The US, which had previously imposed sanctions to prevent the completion of a major new gas pipeline between Russia and Germany, has now signaled its approval for the project.

    Nord Stream 2 Pipeline

    • It is a system of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
    • It includes two active pipelines running from Vyborg to Lubmin near Greifswald forming the original Nord Stream, and two further pipelines under construction running from Ust-Luga to Lubmin termed Nord Stream 2.
    • In Lubmin the lines connect to the OPAL line to Olbernhau on the Czech border and to the NEL line to Rehden near Bremen.
    • The first line Nord Stream-1 was laid and inaugurated in 2011 and the second line in 2012.
    • At 1,222 km in length, Nord Stream is the longest sub-sea pipeline in the world, surpassing the Langeled pipeline.

    Why is the pipeline controversial?

    • The US believed that the project would increase Europe’s dependence on Russia for natural gas.
    • Currently, EU countries already rely on Russia for 40 percent of their gas needs.
    • The project also has opponents in eastern Europe, especially Ukraine, whose ties with Russia have seriously deteriorated in the aftermath of the Crimean conflict in 2014.
    • There is an existing land pipeline between Russia and Europe that runs through Ukraine.
    • The country feels that once Nord Storm 2 is completed, Russia could bypass the Ukrainian pipeline, and deprive it of lucrative transit fees of around $3 billion per year.
    • Ukraine also fears another invasion by Russia once the new pipeline is operational.