March 2021
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Banking Sector Reforms

India should abandon its suspicion of digital currency

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Blockchain technology and its applications

Mains level: Paper 3- Central bank digital currency

The article discusses the advantages of central bank digital currency which could combine the advantages of both fiat money and cryptocurrency.

India’s suspicion of the cryptocurrencies

  • In 2018, the Reserve Bank of India prohibited regulated entities from providing services to anyone who deals with or settles trades in any virtual currency.
  • This was effectively banning Bitcoin trading in the country.
  • The Supreme Court lifted this restriction in 2020.
  • There were rumours earlier this year that a new law was in the works that would make it a crime to possess, issue, mine, trade or transfer crypto assets in India.

Thinking of digital currencies as asset not currency

  • There are concerns over the speculative nature of cryptocurrencies.
  • There are also law enforcement concerns around how digital currencies make it hard for the police to track down criminals.
  • One of the most important attributes of a currency is that it should be a stable store of value, and Bitcoin is anything but.
  • To deal with this difficulty, it will be helpful to think of digital currencies as just another asset—the digital equivalent of a scarce commodity that, like gold, certain collectors prize.

Difference between working of banks and cryptocurrencies

  • Our financial system relies on banks to record transactions.
  • It is a ‘permissioned’ ledger system in that only trusted intermediaries-registered banks under the supervision of the central bank-can make changes to the ledgers to certify that a given transaction has been completed.
  • Cryptocurrencies, on the other hand, are ‘permissionless’ systems that need no intermediary.
  • Instead of a centralized ledger, transactions are recorded on a distributed database.
  • A purely permissionless system has no need of banks.

Role of banks in maintaining financial health

  • Central banks are not just intermediaries managing the great big financial ledger of the country, they are responsible for its financial health.
  • To perform this function, they need to be able to take money out of the system when required or put money back into economic circulation.
  • None of this is possible in a purely permissionless system.

Advantages of digitally native currencies

  • Digitally native currencies are programmable and capable of being incorporated into smart contracts, offering various opportunities for innovative digital solutions.
  • Since they can be directly allotted to citizens who don’t have a bank account, they are ideal for financial inclusion.
  • Being digitally auditable, transactions can be audited, reducing the scope for illicit activity.
  • The challenge is one of integrating the best that digital currencies have to offer into the traditional financial paradigm.

Central bank digital currencies as an alternative

  • CBDCs are a completely re-engineered form of money that use a distributed ledger as their underlying technology layer, but are backed by suitable amounts of monetary reserves, just like normal fiat currency.
  • Many countries have been toying with the idea of a central bank digital currency (CBDC).
  • They are run by central banks along with select financial entities responsible for managing the distributed ledger.
  • The best CBDCs will converge the best of both worlds—the programability and security of cryptocurrencies and the reserve-backed stability of fiat currency.
  • Several countries are already testing this concept.

How central bank digital currency differs from cryptocurrency? What are its advantages?”

Conclusion

Banning technology has never made it go away. Instead, let’s make an effort to better understand it, and having done so, do all we can to create the digital currency our country needs.

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Foreign Policy Watch: India-United States

A robust economic relationship between India and U.S.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Generalised System of Preferences

Mains level: Paper 2- Trade ties between India-U.S.

The article outlines the potential for India-U.S. collaboration in certain ares of trade which will bring many gains.

India-U.S. bilateral trade

  • In the five years to 2019, bilateral trade grew at a CAGR of 7.7% per year to $146 billion.
  • If we assume the same rate of growth, the $500 billion target will be achieved by 2036.
  • To ensure this, the CAGR would need to be set at 11.9%.
  • This is doable if the right policy actions are taken.

Areas of collaboration

1) Healthcare exchanges

  • A collaborative response to the pandemic would contribute to global containment of the virus.
  • Business partnerships are already taking place in the supply chain.
  • As India becomes the hub of global vaccine distribution, building confidence in the Indian IPR regime, reviving the U.S.-India Health Dialogue, and mutually recognising standards and approvals will help drive healthcare exchanges.

2) Improving the macro trade architecture

  • The macro trade architecture can be strengthened with a broad trade agreement focusing on resolving the low-hanging fruit.
  • The U.S.-India Trade Policy Forum meetings can be revived along with a cross-sector track-2 group to look at convergence on issues such as market access.
  • There is potential for flexibility from both sides for restoring the Generalised System of Preferences.
  • The two countries should consider initiating discussions on a free trade agreement.

3) Trade in services

  • Recent regulations in the U.S. have impacted labour mobility which can be addressed through immigration reforms for employment-based visa backlogs and smooth and timely processes.
  • The MoU on labour cooperation signed in 2011 could be updated in line with India’s recent labour regulatory changes.
  • This may also be a good time to reconsider a totalisation agreement pertaining to social security, given that both have already entered into such agreements with many of the same partner countries.

4) Defence industry ties

  • Defence industry ties can be stepped up in coordination with industry.
  • A defence dialogue including the private sectors of both sides could help in co-production and co-development in the defence and aerospace sectors.

5) Stepping up engagement of SMEs

  • Five, engagement of small and medium enterprises (SMEs) can be stepped up.
  • Smaller U.S. companies can find significant new opportunities for investments in India and sourcing from India.
  • A U.S.-India SME CEOs Forum can be set up to catalyse such partnerships.

6) Clean energy and climate change

  • The U.S.-India Strategic Energy Partnership should be geared towards joint investments in industrial decarbonisation, carbon dioxide removal and green hydrogen.
  • The programmes of Partnership to Advance Clean Energy Research, Partnership to Advance Clean Energy Deployment and Promoting Energy Access through Clean Energy must be relaunched.

7) Digital economy partnership

  • India has proved its ability in this space with new opportunities opening up in robotics, space, AI and electric vehicles.
  • It is also important to disseminate information on India’s IPR regime improvements and work towards taking India off the U.S. Trade Representative IPR priority watchlist.

8) Other areas

  • Other opportunities in the bilateral economic relationship include education, innovation and R&D, and agricultural trade and technology.

Conclusion

A closer economic partnership would bring gains to both sides in terms of GDP, employment, and productivity, given the complementary natures of their economies.

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

Responsible and ethical AI

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- AI governance

The article highlights the challenges and opportunities offered by the Artificial Intelligence and suggests the ways to deal with them.

AI as a part of our life

  • AI is embedded in the recommendations we get on our favourite streaming or shopping site; in GPS mapping technology; in the predictive text that completes our sentences when we try to send an email or complete a web search.
  • And the more we use AI, the more data we generate, the smarter it gets.
  • In just the last decade, AI has evolved with unprecedented velocity.

How AI could help us

  • AI has helped increase crop yields, raised business productivity, improved access to credit and made cancer detection faster and more precise.
  • It could contribute more than $15 trillion to the world economy by 2030, adding 14% to global GDP.
  • Google has identified over 2,600 use cases of “AI for good” worldwide.
  • A study published in Nature reviewing the impact of AI on the Sustainable Development Goals (SDGs) finds that AI may act as an enabler on 134 of all SDG targets.

Concerns with AI

  • Yet, the study in Nature also finds that AI can actively hinder 59 — or 35% — of SDG targets.
  • AI requires massive computational capacity, which means more power-hungry data centres — and a big carbon footprint.
  • AI could compound digital exclusion.
  • Many desk jobs will be edged out by AI, such as accountants, financial traders and middle managers.
  • Without clear policies on reskilling workers, the promise of new opportunities will in fact create serious new inequalities.
  • Investment is likely to shift to countries where AI-related work is already established widening gaps among and within countries.
  • AI also presents serious data privacy concerns. 
  • We shape the algorithms and it is our data AI operate on.
  • In 2016, it took less than a day for Microsoft’s Twitter chatbot, “Tay”, to start spewing egregious racist content, based on the material it encountered.

Way forward

  • Without ethical guard rails, AI will widen social and economic schisms, amplifying any innate biases.
  • Only a “whole of society” approach to AI governance will enable us to develop broad-based ethical principles, cultures and codes of conduct.
  • Given the global reach of AI, such a “whole of society” approach must rest on a “whole of world” approach.
  • The UN Secretary-General’s Roadmap on Digital Cooperation is a good starting point.
  • This approach lays out the need for multi-stakeholder efforts on global cooperation.
  • UNESCO has developed a global, comprehensive standard-setting draft Recommendation on the Ethics of Artificial Intelligence to Member States for deliberation and adoption.
  • Many countries, including India, are cognisant of the opportunities and the risks, and are striving to strike the right balance between AI promotion and AI governance.
  • NITI Aayog’s Responsible AI for All strategy, the culmination of a year-long consultative process, is a case in point.

Consider the question “What are the ways in which Artificial Intelligence in helping humanity? What are the concerns with the promotion and the governance of AI?”

Conclusion

Chellenging part starts where principles meet reality that the ethical issues and conundrums arise in practice, and for which we must be prepared for deep, difficult, multi-stakeholder ethical reflection, analyses and resolve. Only then will AI provide humanity its full promise.

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BREXIT

UK turns to Indo-Pacific  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Quad

Mains level: Expansion of Quad

Britain wants to expand its influence among countries in the Indo-Pacific region to try to moderate China’s global dominance.

Seems like QUAD is getting attention from other democratic nations for the big-brother role!

What is the news?

  • A document laying out post-Brexit has highlighted foreign defence policy priorities of the UK.

Britain’s post BREXIT plan

  • This document is Britain’s biggest foreign and defence policy review since the end of the Cold War.
  • It sets out a planned increase to Britain’s nuclear arsenal to weigh against evolving global security threats and underlines the importance of strong ties with the US while naming Russia as the top regional threat.
  • It sets out how PM Boris Johnson wants to be at the forefront of a reinvigorated, rules-based international order based on cooperation and free trade.

Focus on Indo-pacific

  • China and the U.K. both benefit from bilateral trade and investment, but China also presents the biggest state-based threat to the U.K.’s economic security, the report said.
  • Calling the Indo-Pacific increasingly the geopolitical centre of the world, the government highlighted a planned British aircraft carrier deployment to the region.
  • Britain, the world’s sixth-largest economy, is dwarfed economically and militarily by China.
  • The UK believes, through soft power and strategic alliances, it can help persuade Beijing to play by the rules of a new, more dynamic international system.

Content over Hong Kong

  • The Sino-British ties have tensed since over issues including Beijing’s security crackdown on former British colony Hong Kong.

UK needs India for this juncture

  • UK PM Boris Johnson has called ”India is an increasingly indispensable partner for the United Kingdom.”
  • India’s skilled labour, technological assistance and the vibrant market will open a lot of avenues for Britain which has recently parted ways with the European Union.
  • India is not the world’s largest telecom market; it is also the fastest-growing.
  • According to a study on India’s telecom sector, an increase in telecom subscriptions often touches 20 million a month.
  • India also offers the cheapest data compared at current market exchange rates. As per cable.co.uk, the price per GB data in India to be $0.09.
  • Along with the world, India is now steering towards 5G. The UK will need India’s help to marginalize China in the telecom market.

What else?

  • The report categorised India as “an international actor of growing importance”
  • Earlier the British government has approached Washington about a “D10” club of democratic partners, based on G7 plus Australia, South Korea and India.

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Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

Rajya Sabha passes MTP Bill, 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MTP Act

Mains level: Termination of Pregnancy (MTP) and associated issues

The Rajya Sabha has passed the Medical Termination of Pregnancy (Amendment) Bill, 2020 that increases the time period within which an abortion may be carried out.

What are the differing opinions with regards to the Termination of Pregnancy (MTP) Amendment Bill, 2020? Discuss.

MTP Bill, 2020

The MTP Bill was passed in Lok Sabha in March 2020. Its salient features included:

  • Proposing requirement for the opinion of one provider for termination of pregnancy, up to 20 weeks of gestation and introducing the requirement of the opinion of two providers for termination of pregnancy of 20-24 weeks of gestation.
  • Enhancing the upper gestation limit from 20 to 24 weeks for special categories of women which will be defined in the amendments to the MTP Rules and would include ‘vulnerable women including survivors of rape, victims of incest and other vulnerable women (like differently-abled women, Minors) etc.
  • Upper gestation limit not to apply in cases of substantial foetal abnormalities diagnosed by Medical Board. The composition, functions and other details of the Medical Board to be prescribed subsequently in Rules under the Act.
  • Anonymity of the person: The name and other particulars of a woman whose pregnancy has been terminated shall not be revealed except to a person authorised in any law for the time being in force.

Benefits sought with the bill

  • It is seen as a step towards the safety and well-being of the women and many women will be benefitted from this.
  • Recently several petitions were received by the Courts seeking permission for aborting pregnancies at a gestational age beyond the present permissible limit on grounds of foetal abnormalities or pregnancies due to sexual violence faced by women.
  • The proposed increase in gestational age will ensure dignity, autonomy, confidentiality and justice for women who need to terminate the pregnancy.

Flaws in the bill

  • The Bill allows abortion after 24 weeks only in cases where a Medical Board diagnoses substantial foetal abnormalities.
  • This implies that for a case requiring abortion due to rape, that exceeds 24-weeks, the only recourse remains through a Writ Petition.
  • The Bill does not specify the categories of women who may terminate pregnancies between 20-24 weeks and leaves it to be prescribed through Rules.
  • The Act (and the Bill) requires an abortion to be performed only by doctors with a specialization in gynaecology or obstetrics.
  • As there is a 75% shortage of such doctors in community health centres in rural areas, pregnant women may continue to find it difficult to access facilities for safe abortions.

Key Issues and Analysis

  • There are differing opinions with regard to allowing abortions. One opinion is that terminating a pregnancy is the choice of the pregnant woman and a part of her reproductive rights.
  • The other is that the state has an obligation to protect life, and hence should provide for the protection of the foetus.
  • Across the world, countries set varying conditions and time limits for allowing abortions, based on foetal health, and risk to the pregnant woman.
  • Several Writ Petitions have been filed by women seeking permission to abort pregnancies beyond 20-weeks due to foetal abnormalities or rape.

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Anti Defection Law

Anti-defection law: when a nominated MP loses RS membership

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Anti-defection law

Mains level: Not Much

A nominated MP had to resign from Rajya Sabha before the completion of his term due to the Anti-defection law.

The story of Nominated Members

  • During the making of the Constitution, members of the Constituent Assembly felt that Rajya Sabha should have members who might not win elections but will bring knowledge and expertise to discussions.
  • It led to Rajya Sabha having 12 nominated members from different walks of life.
  • The broad criterion for their nomination is that they should have distinguished themselves in fields like literature, science, art, and social service.
  • The President nominates such individuals as recommended by the Centre.
  • Nominated members have the same rights and privileges as elected members, with one notable difference — they cannot vote in the election of the President.

Anti-defection law

  • In 1985 the Tenth Schedule, popularly known as the anti-defection law, was added to the Constitution.
  • But its enactment was catalyzed by the political instability after the general elections of 1967.
  • This was the time when multiple state governments were toppled after MLAs changed their political loyalties.
  • The purpose of the 1985 Constitution Amendment was to bring stability to governments by deterring MPs and MLAs from changing their political parties on whose ticket they were elected.
  • The penalty for shifting political loyalties is the loss of parliamentary membership and a bar on becoming a minister.

Try this PYQ:

Consider the following statements:

  1. The Chairman and the Deputy Chairman of the Rajya Sabha are not the members of that House.
  2. While the nominated members of the two Houses of the Parliament have no voting right in the presidential election, they have the right to vote in the election of the Vice President.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

What invites defection?

The law covers three types of scenarios with respect to MP switching parties.

  1. The first is when a member elected on the ticket of a political party “voluntarily gives up” membership of such a party or votes in the House contrary to the wishes of the party.
  2. The second possibility is when an MP who has won his or her seat as an independent candidate after the election joins a political party. In both these instances, the MP lose the seat in the House on changing (or joining) a party.
  3. The third scenario relates to nominated MPs. In their case, the law specifies that within six months of being nominated to the House, they can choose to join a political party.

Why is a nominated member given 6month time?

  • The time is given so that if a nominated MP is not a member of a political party, they can decide to join one if they want.
  • But if they don’t join a political party during the first six months of their tenure, and join a party thereafter, then they lose their seat in Parliament.

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Air Pollution

World Air Quality Report, 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: World Air Quality Report

Mains level: Air pollution in Delhi

Delhi remained the most polluted capital city in the world but India, on the whole, had improved its average annual PM 2.5 (particulate matter) levels higher in 2020 than in 2019, according to a report from World Air Quality Report Air.

Try this question from CS Mains 2015:

Q.Mumbai, Delhi and Kolkata are the three megacities of the country but air pollution is a much more serious problem in Delhi as compared to the other two. Why is this so?

World Air Quality Report

  • It is released by a Swiss air quality technology company IQAir.
  • IQAir is an air quality technology company that since 1963 seeks to empower individuals, organizations and communities to breathe cleaner air through information, collaboration and technology solutions.
  • The 2020 Report is based on PM2.5 data from 106 countries that have been measured by ground-based monitoring stations.

Highlights of the report

  • Of the 14 most polluted cities, 13 were in India.
  • When ranked by cities, Hotan in China was the most polluted, with an average concentration of 110.2 µg/m³, followed by Ghaziabad in Uttar Pradesh at 106.
  • Delhi’s concentration level, based primarily on data from the Central Pollution Control Board, was 84.1 µg/m³ in 2020, a 15% improvement from the 98.6 µg/m³ recorded in 2019 — a consequence of the lockdown.
  • Bangladesh and Pakistan were the countries in 2020 with worse average PM 2.5 levels than India, says the report.
  • China ranked 11th in the latest report, a deterioration from the 14th in the previous edition of the report. In the 2020 report, 106 countries were evaluated.

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Women empowerment issues – Jobs,Reservation and education

Orunudoi Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Orunudoi Scheme

Mains level: Women empowerment moves

Ahead of the Assam Assembly elections, the Orunudoi scheme, with women as its primary target group, is the most popular.

There can be confusion from the name of the scheme.

Orunudoi Scheme

  • Through Orunodoi — announced in the 2020-21 Budget — monthly assistance of Rs 830 is transferred to women members of marginalised families of Assam.
  • On account of being a DBT, or a Direct Benefit Transfer scheme, the money is credited directly to the bank account of the woman head of a family because they are primary caretakers of the household.
  • The scheme gives a choice to the poor and needy households on how they want to spend their money.

Eligibility criteria

  • The applicant, a woman, has to be a permanent resident of Assam, whose composite household income should be less than Rs 2 lakh per annum.
  • Families with specially-abled members and divorced/widowed/separated /unmarried women are prioritized.
  • Poorer families, those without the National Food Security Act (NFSA) or ration cards, are also given priority.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

ACT-Accelerator Coalition

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ACT-Accelerator

Mains level: Coronovirus outbreak

ACT-Accelerator, a global coalition formed in April 2020 to fight the novel coronavirus disease (COVID-19) is facing a severe fund crunch to meet its goals for 2020-21.

ACT-Accelerator

  • The Access to COVID-19 Tools Accelerator (ACT Accelerator) is a G20 initiative announced on 24 April 2020.
  • A call to action was published simultaneously by the World Health Organization (WHO).
  • The ACT Accelerator is a cross-discipline support structure to enable partners to share resources and knowledge.
  • It comprises four pillars, each managed by two to three collaborating partners:
  1. Vaccines (also called “COVAX”)
  2. Diagnostics
  3. Therapeutics
  4. Health Systems Connector
  • India is an active donor in this alliance.

Try this PYQ based on a global coalition:

Q.Consider the following statements:

  1. Climate and Clean Air Coalition (CCAC) to Reduce Short Lived Climate Pollutants is a unique initiative of G20 group of countries.
  2. The CCAC focuses on methane, black carbon and Hydrofluorocarbons.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

[pib] Multi-Layer Farming

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Multi-Layer Farming, ATMA

Mains level: Not Much

ICAR is undertaking location-specific multi-layer farming involving crops of different heights.

Multi-Layer Farming

  • Multi-layer farming means growing and cultivating compatible plants of different heights on the same field and at the same time.
  • It is generally practised in orchards and plantation crops for the utmost use of solar energy even under high planting density.
  • It is mostly cash crop-based and it includes a combination of vegetables and fruits that can be grown together.

How it is done?

  • In Multi-layer farming, the crops are grown at different heights on the same land.
  • This farming cannot be done in open fields as shade is required. It is one type of intercropping.
  • Growing plants of different height in the same field at the same time is termed Multi-layer cropping. It is generally practised in orchards and plantation crops for maximum use of solar energy even under high planting density. It is the practice of several crops of varying heights, rooting pattern and duration to cultivate together.
  • The objective is to utilize vertical space more effectively.
  • In this, the tallest components have foliage of strong light and high evaporative demand and shorter components with foliage requiring shade and high humidity.

Try this PYQ:

Q.What are the advantages of fertigation in agriculture?

1.Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.

Select the correct answer using the code given below:

(a) 1, 2 and 3 only

(b) 1,2 and 4 only

(c) 1,3 and 4 only

(d) 2, 3 and 4 only

Benefits offered

  • Prevent water evaporation from the soil; as an effect, 70% of water is saved.
  • The income per unit area increases substantially
  • Minimize risks of crop yield loss and this system enables a steady supply of farm products the whole round the year.
  • Reduces the impacts of hazards such as high-intensity rainfall, soil erosion, and landslides.
  • Improve the soil characteristics and adds organic matter to the soil.
  • Effective utilization of leaching materials and helps in effective weed control.
  • Provide micro-climate conditions that advantage crops underneath.

What else?

: Agricultural Technology Management Agency (ATMA)

  • In addition to this, a Centrally Sponsored Scheme ‘Support to State Extension Programs for Extension Reforms” popularly known as ATMA Scheme is already under implementation since 2005.
  • Presently, the Scheme is being implemented in 691 districts of 28 states & 5 UTs in the country.
  • The scheme promotes a decentralized farmer-friendly extension system in the country.
  • Under the scheme, grants-in-aid are released to the State with an objective to make available the latest agricultural technologies and good agricultural practices in different thematic areas of agriculture and allied areas to farmers including training for multi-layer farming.
  • Training of farmers is one of the eligible activities of the ATMA Scheme.

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