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GS Paper: GS3

  • Species in news: Red Panda

     

     

    According to a report by the TRAFFIC report, there has been a considerable reduction in the poaching of Red Panda (ailurus fulgens). The report also recommended trans-boundary law enforcement co-operation through the use of multi-government platforms like SAWEN (South Asia Wildlife Enforcement Network).

    Red Panda

    IUCN Red List Status: Endangered

    • The red panda (Ailurus fulgens) is a mammal native to the eastern Himalayas and southwestern China.
    • Its wild population is estimated at fewer than 10,000 mature individuals and continues to decline due to habitat loss and fragmentation, poaching, and inbreeding depression.
    • Despite its name, it is not closely related to the giant panda
    • The animal has been hunted for meat and fur, besides illegal capture for the pet trade.
    • An estimated 14,500 animals are left in the wild across Nepal, Bhutan, India, China and Myanmar.
    • About 5,000-6,000 red pandas are estimated to be present in four Indian states – Arunachal Pradesh, Meghalaya, Sikkim and West Bengal.
    • The diminishing habitat is a major threat to the species which is a very selective feeder and survives on selected species of bamboos.

    About South Asia Wildlife Enforcement Network (SAWEN)

    • SAWEN is a Regional network is comprised of eight countries in South Asia: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
    • It aims at working as a strong regional intergovernmental body for combating wildlife crime by attempting common goals and approaches for combating illegal trade in the region.
    • The South Asia region is very vulnerable to illegal traffic and wildlife crimes due to the presence of precious biodiversity and large markets as well as traffic routes for wildlife products in the south East Asian region.
    • The collaboration in harmonizing as well as enforcing the wildlife protection in the region is considered very important for effective conservation of such precious biodiversity.
    • India adopted the Statute of the SAWEN and became its formal member in 2016.

    Back2Basics

    TRAFFIC

    • The TRAFFIC, the Wildlife Trade Monitoring Network, is a leading non-governmental organisation working on wildlife trade in the context of both biodiversity conservation and sustainable development.
    • It is a joint program of World Wildlife Fund (WWF) and the IUCN.
    • It aims to ensure that trade in wild plants and animals is not a threat to the conservation of nature.
    • The TRAFFIC is governed by the TRAFFIC Committee, a steering group composed of members of TRAFFIC’s partner organizations, WWF and IUCN.
    • TRAFFIC also works in close co-operation with the Secretariat of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

  • N95 Mask

    In a new mandate to curb unnecessary demand, the Maharashtra Food and Drug Administration said that chemists cannot sell N95 masks without a doctor’s prescription. The FDA also warned that serious action would be taken against those who are found selling masks at high prices or hoarding them.

    Why such a move?

    • Personal Protective Equipment (PPE) kits and N95 masks are being sold at very high prices in medical shops. The State has received many complaints about the same.
    • It has also been found that many are making bulk purchases and hording PPE kits and N95 masks.
    • Since the COVID-19 outbreak in China, shortage of PPE gear and masks has been reported from across the world.
    • While the Indian government has currently banned exports of N95 masks, the manufacturers are focussed on making other surgical marks to get good returns from exports.

    N95 mask

    • A disposable N95 mask (respirator) is a safety device that covers the nose and mouth and helps protect the wearer from breathing in some hazardous substances.
    • An N95 respirator is designed to achieve a very close facial fit and very efficient filtration of airborne particles.
    • The ‘N95’ designation means that when subjected to careful testing, the respirator blocks at least 95 percent of very small (0.3 micron) test particles.
    • If properly fitted, the filtration capabilities of N95 respirators exceed those of face masks. However, even a properly fitted N95 respirator does not completely eliminate the risk of illness or death.

  • [pib] Person in news: Gaura Devi

     

     

    Union HRD Minister along with senior women officers of the Ministry planted a sapling in memory of Gaura Devi, Chipko Activist in New Delhi.

    Gaura Devi

    • Gaura Devi was born in 1925 in a village named Lata in the state of Uttarakhand. She moved to a nearby village named Reni by the Alaknanda River.
    • She was elected to lead the Mahila Mangal Dal (Women’s Welfare Association) in the wake of the Chipko movement. The organization worked on the protection of community forests.

    Her contributions in Chipko Movement

    • Gaura Devi came to notice in 1974 when she was told that local loggers were cutting the trees.
    • The men of Reni village had been tricked out of the village by news that the government was going to pay out compensation for land used by the army.
    • She challenged the men to shoot her instead of cutting down the trees and she described the forest with her maika (mother’s house).
    • They managed to halt their work by hugging the trees despite the abuse of the armed loggers.
    • They kept guard of the trees that night and over the next three or four days other villages and villagers joined the action. The loggers left leaving the trees.

    Impact

    • After this incident, the Uttar Pradesh Government established a committee of experts to investigate the issue of felling of trees, and the lumber company withdrew its men from Reni.
    • The committee stated that the Reni forest was an ecologically sensitive area and that no trees should be felled there.
    • Thereafter the government of Uttar Pradesh placed a 10-year ban on all tree-felling in an area of over 1150 km².

  • [pib] Quantum coin or ‘qubit’ and Entanglement Theory

    Researchers from Raman Research Institute (RRI), an autonomous institution under the Dept. of Science & Technology, have devised a new test for fairness of quantum coin or ‘qubit’ using entanglement theory. The Qubit is the basic unit of information in a quantum computer.

    Entanglement Theory

    • It is a special type of correlation that exists in the quantum world with no classical counterpart.
    • The researchers from RRI made use of this quantum resource to arrive at a test for fairness of a quantum coin (a qubit).
    • Their strategy, which makes use of entanglement, enables better discrimination between quantum states. Such advantage is valuable in quantum sensors.
    • This work is a significant contribution to the domain of quantum state discrimination, which is an essential aspect of quantum information science.
    • It brings out the crucial role of entanglement in improving our ability to discriminate quantum states.
    • In this work the researchers concretely implemented the theoretical idea on the simulation facility of the IBM quantum computer.

    Quantum coins

    • By repeated trials, one can determine the fairness of a classical coin with a confidence which grows with the number of trials.
    • A quantum coin can be in a superposition of heads and tails.
    • Given a string of qubits representing a series of trials, one can measure them individually and determine the state with a certain confidence.
    • The team has shown that there is an improved strategy which measures the qubits after entangling them, which leads to a greater confidence.

    Significance

    • This is a significant contribution to quantum state discrimination, an essential aspect of quantum information science which is expected to influence quantum sensing.
    • The domain of Quantum Information and Quantum Computing Technology is a growing area of research which is expected to influence Data Processing, which in turn, plays a central role in our lives in this Information Age.
    • For instance, bank transactions, online shopping and so on crucially depend on the efficiency of information transfer.
    • Thus the recent work on quantum state discrimination is expected to be valuable in people’s lives in the current era.

  • Monetary policy can’t combat the COVID-19 impact

    Context

    Central banks the world over are devising the strategies to deal with the impact of COVID-19 on their economies.

    How the Central banks are responding?

    • US Fed’s response: The huge 50 basis points cut in rates by the U.S. Federal Reserve to lift economic sentiment hit by COVID-19 has disrupted central banking worldwide.
    • Pressure on other Central banks to follow suits: Even as analysts debate whether a monetary policy response is a right strategy, central banks across the world are feeling the pressure to follow suit to the largest rate cut by the Fed since 2008.
    • How banks are responding? Central banks of Australia and Malaysia have cut rates already while others such as the Bank of Japan, Bank of England and the European Central Bank are contemplating joining the caravan.

    How the RBI is responding?

    • First line of economic defence: With monetary policy turning out to be thede facto first line of economic defence against the ill-effects of the virus, the focus in India has turned to the Reserve Bank of India’s response.
    • Hope of rate cut: Yields on 10-year government securities fell by as much as 0.12% in the hope of a rate cut by the RBI and they stayed soft.
    • But what are the central bank’s options?
      • No unilateral rate adjustment: Unlike other countries, the legal framework in India after the setting up of the Monetary Policy Committee (MPC) is such that the RBI cannot unilaterally adjust rates.
      • The MPC will have to meet and deliberate on the situation before the call to cut rates is taken and such a call will have to be based on an assessment of inflation in the economy.

    Is a rate cut the right response?

    • Impact of the virus on the supply side: The first-order impact on the global economy of the spreading virus is a disruption to trade and to global supply chains.
      • With China being the factory of the world, the clampdown in that country has already disrupted supplies of products ranging from cell phone components to bulk drugs and auto components.
      • Factory lines across the world could freeze as supply chains get disrupted.
    • Limits of Monetary policy to deal with the supply-side problem: Monetary policy is excellent to address demand shocks but is a blunt tool when it comes to addressing supply-side issues.
      • Where to spend? People may be encouraged to spend more due to a rate cut but what will they spend on if products go scarce, travel convulses and public spaces such as movie theatres and malls become no-go areas?
    • The rate cut will boost the sentiments only: A rate cut can, at best, help to boost sentiment but that again will be transient as the market’s reaction after the Fed rate cut proves.
      • Expansionary monetary policy cannot improve the situation: The Swedish central bank’s deputy governor Anna Breman has rightly questioned the logic of a rate cut as a response to the coronavirus impact pointing out that an expansionary monetary policy cannot improve the situation.
    • How the RBI might respond? The sentiment being what it is, the RBI may find itself under increasing pressure to act. Given the MPC constraint, it may well choose to do what it did in the February monetary policy– unleash other weapons in its armoury to give the same effect as a rate cut.
      • Thus, we may well see the central bank announcing another tranche of long-term repo operation, akin to the ₹1 lakh crore that it announced in February.
      • That will mean that banks will gain access to three-year funds at the repo rate of 5.15%, much lower than the market rate.
      • And then, there’s Operation Twist which the RBI employed to good effect in December, softening rates at the long end of the yield curve.

    Would any of these measures yield any response?

    • Doubtful results: It’s doubtful if any of these measures can address the hit to economic growth. The virus has undoubtedly surfaced at a very wrong time for the Indian economy which is showing hesitant signs of a return to growth.
    • Which sectors will be impacted the most? The impact will be felt on more than one front. Industries such as pharmaceuticals, electronics and automobiles could be headed for trouble given their high dependence on Chinese inputs.
    • Government’s response: While the government is said to be formulating a response, including the possibility of airlifting supplies, the practicality of this solution needs to be watched as also its impact on costs for the industries concerned.

    Impact on exports and offsetting factor of oil import

    • The biggest problem: The bigger problem could be from a fall in exports, which accounts for 20% of the GDP.
    • Which exporters would feel the heat? If the developed world tips into recession due to the virus, exporters of products ranging from petroleum and textiles to leather and gems and jewellery will feel the heat.
    • Oil offset due to fall in oil prices: The offsetting factor, of course, will be a lower oil import bill due to the sharp fall in oil prices. This may also have a benevolent effect on inflation.
    • But there will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.

    Conclusion

    • Hot money concern for RBI: There will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.
    • Opportunity in the crisis: As with every crisis, there’s also an opportunity here. Economic growth is bound to suffer in the short-term but there could be long-term spin-offs if domestic industry and government get their acts right.
      • Supply chains can be localised through fresh investments and India can bid to be an alternative to China in the global value chain.
    • India can be an option to China for global supply chain: The COVID-19 crisis has only underlined in red the lesson that global corporations learnt when trade war broke out between the U.S. and China- the global supply chain needs alternative options to China. India is eminently qualified to assume that role. If only our policymakers and industrialists rise up to the challenge.

     

     

  • An unrest, a slowdown and a health epidemic

    Context

    India faces imminent danger from the trinity of social disharmony, economic slowdown and a global health epidemic.

    Social disharmony

    • Violence in Capital: Delhi has been subjected to extreme violence over the past few weeks. We have lost nearly 50 of our fellow Indians for no reason. Several hundred people have suffered injuries.
      • Communal tensions have been stoked and flames of religious intolerance fanned by unruly sections of our society, including the political class.
    • University campuses, public places and private homes are bearing the brunt of communal outbursts of violence.
    • Institutions of law and order have abandoned their dharma to protect citizens. Institutions of justice and the fourth pillar of democracy, the media, have also failed us.

    Impact of social disharmony on the economy

    • Exacerbating the economy: At a time when our economy is floundering, the impact of such social unrest will only exacerbate the economic slowdown.
    • Lack of investment by the private sector: It is now well accepted that the scourge of India’s economy currently is the lack of new investment by the private sector.
      • Investors, industrialists and entrepreneurs are unwilling to undertake new projects and have lost their risk appetite.
      • Increase in fears and risk aversion: Social disruptions and communal tensions only compound investors’ fears and risk aversion.
      • Social harmony, the bedrock of economic development, is now under peril.
    • When policy tweaks stop to matter: No amount of tweaking of tax rates, showering of corporate incentives or goading will propel Indian or foreign businesses to invest, when the risk of eruption of sudden violence in one’s neighbourhood looms large.
    • How the vicious cycle works: Lack of investment means a lack of jobs and incomes, which, in turn, means a lack of consumption and demand in the economy.
      • A lack of demand will only further suppress private investments. This is the vicious cycle that our economy is stuck in.

    Impact of COVID-19 on the economy

    • Global reactions: Nations across the world have sprung into action to contain the impact of this epidemic. China is walling off major cities and public places. Italy is shutting down schools. America has embarked aggressively both to quarantine people as well as hasten research efforts to find a cure.
      • Many other nations have announced various measures to address this issue.
    • What India can learn? India too must act swiftly and announce a mission-critical team that will be tasked with addressing the issue. There could be some best practices we can adopt from other nations.

    Bringing in reforms to address the problems

    • The government must quickly embark on a three-point plan.
      • First, it should focus all energies and efforts on containing the COVID-19 threat and prepare adequately.
      • Two, it should withdraw or amend the Citizenship Act, end the toxic social climate and foster national unity.
      • Three, it should put together a detailed and meticulous fiscal stimulus plan to boost consumption demand and revive the economy.

    Turning a moment of deep crisis into a moment of great opportunity

    • The past instance of turning crisis into an opportunity: In 1991, India and the world faced a similar grave economic crisis, with a balance of payments crisis in India and a global recession caused by rising oil prices due to the Gulf War.
      • But India was able to successfully turn this into an opportunity to reinvigorate the economy through drastic reforms.
    • Turning the present crisis into an opportunity: Similarly, the virus contagion and the slowing down of China can potentially open up an opportunity for India to unleash second-generation reforms to become a larger player in the global economy and vastly improve prosperity levels for hundreds of millions of Indians.
      • To achieve that, we must first rise above divisive ideology, petty politics and respect institutional salience.

    Conclusion

    The India that we know and cherish is slipping away fast. Wilfully stoked communal tensions, gross economic mismanagement and an external health shock are threatening to derail India’s progress and standing. It is time to confront the harsh reality of the grave risks we face as a nation and address them squarely and sufficiently.

     

     

     

     

     

  • Online versus offline

    Context

    Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise.

    Duopolies and scrutiny by the CCI

    • Duopolies in the most segment: The online marketplace or the platform/intermediation service market is now largely characterised by duopolies in most segments:
      • Amazon and Flipkart in e-commerce, Uber and Ola in transport, Zomato and Swiggy in food service, MakeMyTrip and Yatra in travel bookings.
      • Some niche players do exist in these segments, but by and large, the market has been carved up by large players.
    • Why CCI is scrutinising these companies? Several of these companies have come under the scrutiny of the Competition Commission of India (CCI).
      • What are the issues involved? The issues involved here have far-reaching ramifications for both online and offline market places. Some of the more contentious issues are:
      • Do such market structures restrict online competition?
      • Are the players engaging in predatory pricing?
      • If so, is it driving out both online and offline competition and does this adversely impact consumer welfare?
      • Is there a need for policy intervention, and, if so, what should be the underlying framework?

    Lower barrier to entry not translating into greater competition

    • Market not working as per theory: In theory, the online market structure should facilitate greater competition given the lower barriers to entry. But this may not be the case.
      • Take-over: Most other firms in the segments mentioned above have either been taken over or have folded up.
    • What is the reason for the emergence of such marker structures
    • Positive feedback loop: One explanation for the emergence of these market structures is that as companies grow, with more users coming on board these platforms, they benefit from what CCI calls positive feedback loop.
      • This leads to market concentration.
      • Difficulties for new players: Given the network effects, which are common in digital spaces, it becomes difficult for new players to enter these spaces, and gain market share as there isn’t much space for many such networks.
    • Capital intensive market: Another possible explanation is that, contrary to perception, the online space is highly capital intensive.
      • Deep pockets are required to fund the discounts to get customers on board initially.
      • Such market structures are more likely in capital deficit countries like India.
    • Incumbents restricting new entrant: Incumbents, as in other sectors, may also engage in various strategies to restrict entry and thus competition.
      • Even small actions by these platforms coupled with the network effects can adversely impact competition.

    Predatory pricing-issues involved in it

    • Allegations of predatory pricing driving out the competition: Many allege that these two-sided online platforms engage in predatory pricing or below-cost pricing either by funding it themselves (deep pockets) or by squeezing producers.
      • This drives out the competition — both online as well as offline.
      • Predatory pricing is anti-competition, to begin with.
      • How it is harmful to the customers? While consumers do benefit in the short run, once the competition is driven out, the platform starts raising prices to recoup previous losses.
      • But is it that straightforward?
    • What are the issues involved in predatory pricing?
    • First- Assessing whether a platform is engaged in predatory pricing.
      • In India, it is defined as price falling below average variable cost — may not be a straightforward exercise.
      • Why it is not a straight forward exercise? The dynamics of online pricing (prices change over time), their unique cost structures — in such two-sided platforms, prices/costs on both sides should be seen in conjunction — as well as the impact of economies of scale and organisational efficiency in lowering costs, all need to be factored in.
      • Discount for clearing inventories: Besides, one would also have to take into account that even offline firms engage in deep discounting to clear inventories.
      • As do both online and offline firms to acquire customers in the early stages of their business.
    • Second-The impact of such pricing strategies on competition and on consumer welfare must be carefully assessed.
      • Driving out competitors is not equal to driving out the competition: It is quite likely that once the competition is eliminated and the platform starts to raise prices, new players will enter the market, attracted by higher prices.
      • Driving out competitors may not be the same as driving out the competition — though the extent to which new firms are able to enter the market will depend on the degree to which barriers to entry exist.
      • Concerns of recovering the losses: Platforms will be mindful that losses will be hard to recover, and may not engage in below-cost pricing to drive out competitors for extended periods.
      • Consumers are unlikely to lose out as prices are likely to remain low.
    • Third- Possibility of collusion
      • There is also an argument for closer examination of such market structures because of the possibility of collusion.
      • Customers moving towards cheaper options: In most such markets, as the consumer has little to differentiate between the two platforms, it is the price that sets them apart.
      • Consumers tend to gravitate towards the cheaper option. This ensures continuous competition between the major players to offer low prices.
      • Possibility of customer left with no option: It is possible that at some point, the players will find it in their interest to venture into some sort of agreement that allows both of them to survive, rather than be engaged in a race to the bottom — as has seemingly happened in the telecom sector.
    • Fourth- Linking predatory pricing with abuse of dominant market position must be reexamined.
      • The dominant position is not always linked with predatory pricing: As the experience of the telecom sector shows, a dominant position may not be a prerequisite for predatory pricing.
      • Accepting this argument would imply that if regulatory intervention is required to check predatory pricing, it could kick in before market power or dominance is established.
      • Taking into account deep pockets: Alternatively, the definition of market dominance could be expanded to take into account deep pockets.

    Conclusion

    • Set of guidelines instead of the fixed framework: Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise. Having a fixed predetermined framework is unlikely to be helpful. Instead, it would be more useful to have a set of guiding principles based on which regulatory intervention, if required, can be undertaken.
    • Safeguarding competition not competitors: Competition policy should be driven by safeguarding competition, not competitors. It should seek to bring about greater transparency in pricing and reduce information asymmetry.

     

  • [pib] Polymer Electrolyte Membrane Fuel Cells (PEMFC)

    Scientists at International Advanced Research for Powder Metallurgy & New Materials (ARCI), Hyderabad have developed Polymer Electrolyte Membrane fuel cells (PEMFC).

    Polymer Electrolyte Membrane Fuel Cells

    • Proton-exchange membrane fuel cells, also known as polymer electrolyte membrane (PEM) fuel cells (PEMFC) are a type of fuel cell being developed mainly for transport applications, as well as for stationary fuel-cell applications and portable fuel-cell applications.
    • Their distinguishing features include lower temperature/pressure ranges (50 to 100 °C) and a special proton-conducting polymer electrolyte membrane.
    • PEMFCs generate electricity and operate on the opposite principle to PEM electrolysis, which consumes electricity.
    • They are a leading candidate to replace the aging alkaline fuel-cell technology, which was used in the Space Shuttle.

    Working

     

    • The PEMFC uses a water-based, acidic polymer membrane as its electrolyte, with platinum-based electrodes.
    • The protons pass through the membrane to the cathode side of the cell while the electrons travel in an external circuit, generating the electrical output of the cell.

    Applications in disaster management

    • Emergency Operation Centres (EOC) backed with 10 kW systems is being planned as a natural disaster management measure.
    • Tamil Nadu is generally affected by five to six cyclones every year, of which two to three are severe and is followed by frequent power cuts.
    • ARCI is now planning to set up a PEMFC system for Tamil Nadu to operate the systems like early warning systems, VHF set, IP phone, BSNL Ethernet and office equipment like scanner, computers, printers, phone, FAX and normal requirements like lighting and fan.

  • [pib] Law for Rain Water Harvesting

     

     

    The Ministry of Housing & Urban Affairs has issued the Model Building Bye Laws, 2016 for guidance of the States/UTs and has a chapter on ‘Rainwater Harvesting’.

    Why such move?

    • These laws aim to regulate the over-exploitation and consequent depletion of ground water.
    • It would enable States/UTs to enact suitable ground water legislation for regulation of its development, which includes provision of rain water harvesting.

    About the Bye Laws

    • 33 States/UTs have adopted the rainwater harvesting provisions.
    • The provisions of this chapter are applicable to all the buildings.

    Various provisions

    • As per Model Building Bye Laws- 2016, provision of rainwater harvesting is applicable to all residential plots above 100 sq.m.
    • Water being a State subject, initiatives on water management including conservation and water harvesting in the Country is primarily States’ responsibility.
    • So the implementation of the rainwater harvesting policy comes within the purview of the State Government/Urban Local Body / Urban Development Authority.

    Back2Basics

    Groundwater governance in India

    • Central Ground Water Authority (CGWA) has been constituted under Section 3(3) of the ‘Environment (Protection) Act, 1986’ for the purpose of regulation and control of groundwater development and management in the Country.
    • CGWA is regulating ground water withdrawal by industries/infrastructure/ mining projects in the country for which guidelines/ criteria have been framed which includes rainwater harvesting as one of the provisions while issuing No Objection Certificate.

  • NASA’s new Mars rover: Perseverance

    NASA has named its next Mars rover ‘Perseverence’.

    About Perseverance

    • The Perseverance rover weighs less than 2,300 pounds and is managed by NASA’s Jet Propulsion Lab.
    • The rover’s mission will be to search for signs of past microbial life. It will also collect samples of Martian rocks and dust, according to the release.
    • The rover will also be tasked with studying the red planet’s geology and climate.
    • All of NASA’s previous Mars rovers — including the Sojourner (1997), Spirit and Opportunity (2004) and Curiosity (exploring Mars since 2012) — were named in this way.