Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Lessons from Ukraine crisis
Context
The Russia-Ukraine conflict, now more than three months old, will cause major, long-term shifts in the global energy and commodity trade.
Factors responsible for high prices
- Ukraine war: Western sanctions on Russia and efforts of European nations to diversify their energy supplies are already causing market distortions and high prices.
- Crude oil prices are at their highest level since 2014; the price of LNG is at its highest ever, fertiliser and food are up and markets for several other commodities such as nickel have been disrupted.
- Expensive commodities are already causing distress in India’s neighbourhood, for example, in Sri Lanka and Pakistan.
- Insufficient investment: Insufficient investment in oil and gas production in preceding years resulted in high prices, and shortages were being felt.
- A number of European investors, such as Norway’s sovereign wealth fund, announced they would no longer invest in traditional fuels — oil, gas, coal.
- Natural gas is used as a feedstock for fertiliser.
- An energy shock is then inevitably followed by a food price shock.
Future trends
1] Strained EU-Russia relations will distort prices
- In the immediate term, the EU is trying to source its raw materials — most critically oil and natural gas, but also fertiliser, agricultural goods and metals — from non-Russian sources.
- This will cause distortions and price spikes for those commodities in the global market, as can already be seen in the natural gas market, up 300 per cent in the last year.
2] Sanctions are unlikely to achieve the desired political outcome
- The US and its allies are quick to impose sanctions — and these are rarely withdrawn, if ever.
- Iran has been under US sanctions since 1979, and the same with Venezuela for over a decade.
- In both cases, sanctions have failed to achieve the desired political outcome.
- As Russia is much better placed than either of those two countries to weather sanctions, the restrictions are likely to remain for a long while.
3] Emerging world unwilling to align with West on sanctions
- The high price of energy and the resulting inflation shows why much of the emerging world is unwilling and unable to align with the West on the current sanctions.
- Russia is 11 per cent of the global landmass and among the world’s top five producers and exporters of oil, gas, fertiliser and other critical commodities like nickel.
- It is too big to be replaced as a supplier.
- In emerging economies, it can fan public anger and political unrest, as was seen in Tunisia and other Arab countries from 2010 on.
4] Larger emerging economies will disregard sanction
- Larger emerging economies such as China, India and Brazil will disregard sanctions on their key economic interests, particularly food, fertilisers and energy.
- Specifically for India, its dependence on these essentials is unlikely to reduce meaningfully over the next 15-20 years.
Way forward for India
- Collaborate with other economies: In the immediate future, the India should collaborate with other similar economies to ensure that Russia doesn’t get locked out of global commodity markets.
- Work on insulating the supply chains: For the long term, it must work on insulating its supply chains from global political crises.
Conclusion
India needs to brace for the price shock emanating from the distortion caused by the shift in the energy policies of Europe. At the same time, India needs to collaborate with other similar economies to ensure that Russia doesn’t get locked out of global commodity markets.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Consumer Protection Act 2019
Mains level: Paper 2- Right to repair
Context
The U.S. state of New York recently passed the Fair Repair Act, which requires manufacturers to supply repair information, tools, and parts to independent repair shops and not just their own stores or partners.
What is the right to repair?
- It refers to proposed government legislation that would allow consumers the ability to repair and modify their own consumer products (e.g. electronic, automotive devices).
- The idea behind “right to repair” is in the name: If you own something, you should be able to repair it yourself or take it to a technician of your choice.
- People are pretty used to this concept when it comes to older cars and appliances, but right-to-repair advocates argue that modern tech, especially anything with a computer chip inside, is rarely repairable.
Why is such right significant?
- Lifespan enhancement: The goal of the movement is to increase the lifespan of products and to keep them from ending up in landfills.
- Against planned obsolescence: The electronic manufacturers are encouraging such culture so that devices are designed specifically to last a limited amount of time and to be replaced.
- Scarcity of natural resources: Obsolescence leads to immense pressure on the environment and wasted natural resources.
- Mitigating climate change: Manufacturing an electronic device is a highly polluting process. It makes use of polluting sources of energy, such as fossil fuel.
- Boost to repair economy: Right to repair advocates also argue that this will help boost business for small repair shops, which are an important part of local economies.
Why we need the right to repair?
- Exorbitant repair price: Often, manufacturers reduce the durability of the product, compelling consumers to either repurchase the product or get it repaired at exorbitant prices affixed by the manufacturers.
- Violation of rights: This tramples upon the right to obtain information about the quality of the product, the right to procure products at reasonable prices, and the right to seek redress against unscrupulous practices.
- Implicit in Consumer Protection Act: The ‘right to repair’ can be said to be implicit in Section 2(9) of the Consumer Protection Act, 2019.
- Right to repair provides consumers with the right to repair and refurbish their purchased goods.
- Providing livelihood to repair technicians: An entire repair class is, in effect, denied its right to conduct business as it does not have the tools, parts, guidelines and technical know-how to repair these high-tech products.
- In addition to protecting their right to livelihood, it may also prove beneficial as tech companies are required to share their repair manuals with certified technicians.
What are the concerns of the manufacturers?
- IP rights, security and quality concers: While right to repair is a victory for consumer rights, privacy, security and quality concerns along with blatant intellectual property (IP) rights violations of the manufacturers cannot be sidelined.
- Impact on quality and functioning: Manufacturers claim that the quality and functioning of the product might be adversely affected if they allow repairs by consumers and third parties.
- The fear of manufacturers is so potent that they incorporate warranty clauses which lapse when the product is repaired by a third party.
Way forward
- Avoiding blanket waiver: While necessary clauses to maintain the quality of the product can be included, a blanket waiver should be avoided.
- For instance, the quality assurance clause can be incorporated for use of company-recommended spare parts and certified repair shops.
- Making available the repair manual: Making repair manuals available to certified business owners could go a long way in balancing the rights of consumers and manufacturers.
- Sign non-disclosure agreement to protect IP rights: Manufacturers can sign a non-disclosure agreement to protect the IP with the certified repairers/businesses.
- Alloting certification/license: Further, the lack of certification/licensing of repair workers is seen as a reflection of their lack of skills.
- But a repair certification/licence can be allotted to those who pass certain criteria and skill tests.
- Insert right to repair in Consumer protection Act: The ‘right to repair’ can be said to be implicit in Section 2(9) of the Consumer Protection Act, 2019.
- Its apparent disregard merits an explicit insertion of a ‘right to repair’ clause in the said provision.
- This would make consumers more aware, provide tooth to an already implicit right, and aid in advancing repair-related liability on various stakeholders.
- Reparability parameter: The product liability clause under Section 84 can be amended and expanded to impose product liability concerning various reparability parameters of the product.
- France requires manufacturers to display a repairability index on their products which consists of five parameters.
- Duration of product liability: The duration of imposing product liability may vary depending on the product and its longevity.
- Here, we can rely on the EU’s guidelines on Ecodesign for Energy-Related Products and Energy Information Regulations, 2021, which mandate manufacturers to provide spare parts for up to 10 years to avoid premature obsolescence.
Conclusion
The New York legislation is a reminder that it is time to not only acknowledge the right to repair of consumers but also respond to the corresponding rights of the manufacturers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CERC
Mains level: Paper 3- Power crisis
Context
The recent power crisis due to the coal shortage in India underscores the need for measures to avoid a repeat of episodes in the future.
Factors contributing to power crisis
- Spike in power demand: With the sudden early onset of summer in 2022, power demand spiked, riding on the back of the post-Covid economic recovery.
- Increase in price due to Ukraine crisis: The matter was further exacerbated by the Ukraine conflict, which led to a sharp increase in the price of imported coal.
- Consequently, power stations designed on imported coal stopped importing because it was no longer economical for them to generate, given their contract price with the distribution companies.
- Availability of railway rakes: It’s not that domestic coal was not available since enough stock had been built in the mines.
- The issue was of availability of railway rakes for transportation.
What were the measures taken by the government ?
- 1] Import of coal to 10 per cent: First, all generators have been asked to import coal to the extent of 10 per cent (as against 4 per cent earlier) and that half of this should be physically available by the end of June.
- CIL as aggregator: Coal India will function as the aggregator on behalf of the generators.
- CIL functioning as the aggregator is a better idea and it may be able to import at a cheaper cost by accumulating demand as well as standardising the coal grade to be procured.
- Moreover, it would be easier for regulators to calculate the revised energy charge since the price at which coal was imported would be well-documented.
- 2] Section 11 of the Electricity Act 2003 (Act) invoked: Under this section, the government directed imported coal-based plants to run at full capacity with the assurance that their enhanced cost of operation would be compensated.
- 3] Tolling: The government invoked the concept of tolling, which allowed states to transfer their allotted coal to private generators located near the mines instead of transporting it to far away state generators.
- This move would ease the burden on the availability of railway rakes.
- 4] Seeking the consent of beneficiaries for hike: the government issued policy directions to the Central Electricity Regulatory Commission (CERC) overriding CERC’s regulations that made it mandatory to seek the consent of beneficiaries if the tariff went up by more than 30 per cent, if some alternate fuel is used.
- 5] Committee to rework the energy charge: A committee of officials was set up to rework the energy charge for imported coal-based generators.
- 6] Additional working capital: The government is cognisant of the fact that there is a need for additional working capital and has advised REC/PFC as well as commercial banks to arrange for this.
Issues with the measures
- Use of Section 11: The government invoked Section 11 to give direction to private generators to import coal at a higher cost.
- Section 11(1) allows the government to give direction to a generation company to operate and maintain a generating station in extraordinary circumstances.
- Section 11(2) of the Act mentions that the adverse financial impact on generating compacy due to directions referred to in sub-section (1) would be offset by the regulator.
- Going by Section 11(2), the government should have left the job of working out the energy charge to the regulator instead of setting up a committee of officials to do so though, of course, the CERC was represented in the committee.
- 2] No transparency: The committee has already worked out the revised energy costs for six of the plants but there is no transparency regarding the coal cost assumed, its calorific value, transportation cost, etc.
- 3] Additional rakes: We have to bear in mind that the coal problem arose because of the non-availability of rakes.
- With 38 MT of coal to be imported by October this year, and half of that by end of June, the need for rakes will not only go up but would be front-loaded.
- We need the requisite number of rakes otherwise, we are back to where we began.
Conclusion
While the government is taking steps to increase coal imports and addressing the other issues, it must ensure that domestic production does not dip during monsoon season.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: India’s Nuclear Doctrine, Nuclear Proliferation
India had 160 nuclear warheads as on January 2022 and it appears to be expanding its nuclear arsenal, said the Stockholm International Peace Research Institute (SIPRI), a defense think tank.
What is the news?
- India’s nuclear stockpile increased from 156 in January 2021 to 160 in January 2022.
Nukes in thy neighbour
- Pakistan’s nuclear stockpile has remained at 165, SIPRI claimed.
- China is in the middle of a substantial expansion of its nuclear weapon arsenal, which satellite images indicate includes the construction of over 300 new missile silos.
- China had 350 nuclear warheads in January 2021 and 2022.
Why do countries proliferate nuclear weapons?
- Proliferation models centered on security concerns or dilemmas dominate nuclear literature.
- Nuclear weapons provide an overwhelmingly destructive force that increases a state’s relative power in comparison to its neighbors.
- It provides a powerful tool in an anarchic system where superpowers dominate other nation-states sovereignty.
- Hence weaponizing helps establish a deterrence to prevent war.
What is the Deterrence Theory?
- Deterrence is widely defined as any use of threats (implicit or explicit) or limited force intended to dissuade an actor from taking an action (i.e. maintain the status quo).
- The topic gained increased prominence as a military strategy during the Cold War with regard to the use of nuclear weapons.
- It is related to but distinct from the concept of mutual assured destruction, which models the preventative nature of full-scale nuclear attack that would devastate both parties in a nuclear war.
- The central problem of deterrence revolves around how to credibly threaten military action or nuclear punishment on the adversary despite its costs to the deterrer.
Issues in Nuclear Disarmament
- Notion of Nuclear ‘Haves’ and ‘Have-Nots’: The proponents of disarmaments are themselves nuclear armed countries thus creating a nuclear monopoly.
- Concept of Peaceful Nuclear Explosion (PNE): conducted for non-military purposes such as mining.
India’s commitment for de-nuclearization
India has always batted for a universal commitment and an agreed global and non-discriminatory multilateral framework.
- It has outlined a working paper on Nuclear Disarmament submitted to the UN General Assembly in 2006.
- India participated in the Nuclear Security Summit process and has regularly participated in the International Conferences on Nuclear Security organised by the International Atomic Energy Agency (IAEA).
- India is also a member of the Nuclear Security Contact Group (but has signed off the Nuclear Non-Proliferation Treaty (NPT)).
- India has expressed its readiness to support the commencement of negotiations on a Fissile Material Cut-off Treaty (FMCT).
- India couldn’t join the Comprehensive Nuclear-Test-Ban Treaty (CTBT) due to several concerns raised by India.
- India has piloted an annual UNGA Resolution on “Measures to Prevent Terrorists from Acquiring Weapons of Mass Destruction” since 2002, which is adopted by consensus.
Back2Basics: India’s Nuclear Doctrine
- This was first articulated by Prime Minister Atal Bihari Vajpayee on May 27, 1998, days after India had undertaken a series of nuclear tests in Pokhran.
- It outlined various principles:
- Building and maintaining a Credible Minimum Deterrence
- Posture of ‘No First Use’– nuclear weapons will only be used in retaliation against a nuclear attack on Indian Territory or on Indian forces anywhere
- Massive Nuclear retaliation to a first strike will be designed to inflict unacceptable damage
- Non-use against non-nuclear states
- In response to biological or chemical weapons, India will retain the option of retaliating with nuclear weapons
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various types of Pardons
Mains level: Read the attached story
The Union Home Ministry issued a set of guidelines to the States and the Union Territories on the grant of special remission to prisoners to commemorate the 75th year of Independence.
What is the news?
- The decision comes as part of the Azadi Ka Amrit Mahotsav celebrations.
- The special remission would be granted to a certain category of prisoners, and they would be released in three phases.
What is Remission?
- The suspension is the stay or postponement of the execution of the sentence.
- In remission, the duration of the sentence is reduced, without changing the nature of the sentence.
- In remission, the nature of the sentence is remained untouched, while the duration is reduced i.e. the rest of the sentence need not be undergone.
- The effect of the remission is that the prisoner is given a certain date on which he shall be released and the eyes of the law he would be a free man.
- However, in case of breach of any of the condition of remission, it will be cancelled and the offender has to serve the entire term for which he was originally sentenced.
Constitutional provisions for Remission
- ‘Prisons’ is a State subject under the State List of the Seventh Schedule of the Constitution.
- Indian laws provide pardoning power sourcing from statuary and constitutional authorities.
- By virtue of Article 72 and 161 of the Constitution of India, the President and Governor can grant pardon, to suspend, remit or commute a sentences passed by the courts.
What are the new norms?
The prisoners who would qualify for premature release under the scheme are:
- Women and transgender convicts of ages 50 and above
- Male convicts of 60 and above who have completed 50% of their total sentence period without counting the period of general remission earned
- Physically challenged or disabled convicts with 70% disability and more who have completed 50% of their total sentence period
- Terminally ill convicts
- Convicted prisoners who have completed two-thirds (66%) of their total sentence
- Poor or indigent prisoners who have completed their sentence but are still in jail due to non-payment of fine imposed on them by waiving off the fine
- Persons who committed an offence at a young age (18-21) and with no other criminal involvement or case against them and who have completed 50% of their sentence period would also be eligible for the remission
Exceptions to these norms
Following persons would not be eligible for the grant of special remission:
- Persons convicted with death sentence or where death sentence has been commuted to life imprisonment or persons convicted for an offence for which punishment of death has been specified as one of the punishments
- Persons convicted with sentence of life imprisonment
- Convicts involved in terrorist activities or persons convicted under the Terrorist and Disruptive (Prevention) Act, 1985, Prevention of Terrorist Act, 2002, Unlawful Activities (Prevention) Act, 1967, Explosives Act, 1908, National Security Act, 1982, Official Secrets Act, 1923, and Anti-Hijacking Act, 2016
Back2Basics: Pardoning powers in India
- Under the Constitution of India (Article 72), the President of India can grant a pardon or reduce the sentence of a convicted person, particularly in cases involving capital punishment.
- A similar and parallel power vests in the governors of each state under Article 161.
- President
- Article 72 says that the president shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence.
- The pardoning powers of the Indian President are elucidated in Art 72 of the Indian Constitution. There are five different types of pardoning which are mandated by law.
- Pardon: means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
- Commutation: means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
- Reprieve: means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
- Respite: means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
- Remission: means changing the quantum of the punishment without changing its nature, for example reducing twenty-year rigorous imprisonment to ten years.
Cases as specified by art. 72
- in all cases where the punishment or sentence is by a court-martial;
- in all cases where the punishment or sentence is for an offence against any law relating to a matter to which the executive power of the Union extends;
- in all cases where the sentence is a sentence of death.
- Governor
- Similarly, as per article 161: Governor of a State has the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence against any law.
- It must be relating to a matter to which the executive power of the state extends.
- Please note that President can grant pardon to a person awarded death sentence. But a governor of a state does not enjoy this power.
Nature of the Pardoning Power
- The question is whether this power to grant pardon is absolute or this power of pardon shall be exercised by the President on the advice of Council of Ministers.
- The pardoning power of the president is not absolute. It is governed by the advice of the Council of Ministers.
- This has not been discussed by the constitution but is the practical truth.
- Further, the constitution does not provide for any mechanism to question the legality of decisions of President or governors exercising mercy jurisdiction.
- But the SC in Epuru Sudhakar case has given a small window for judicial review of the pardon powers of President and governors for the purpose of ruling out any arbitrariness.
- The court has earlier held that court has retained the power of judicial review even on a matter which has been vested by the Constitution solely in the Executive.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 142
Mains level: Read the attached story
The Supreme Court has crafted a victory for a disabled student by using its special powers under Article 142 to declare the successful completion of her Master of Designs course from the Indian Institute of Technology (IIT).
What is Article 142?
Article 142 titled ‘Enforcement of decrees and orders of the Supreme Court and orders as to discovery, etc.’ has two clauses:
[1] Article 142(1)
- The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it.
- Any decree so passed or order so made shall be enforceable throughout the territory of India.
- It may be in such manner as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, in such manner as the President may by order prescribe.
[2] Article 142(2)
- The Supreme Court shall have all and every power to make any order for the purpose of securing the attendance of any person, the discovery or production of any documents, or the investigation or punishment of any contempt of itself.
Important instances when Article 142 was invoked
- Bhopal Gas tragedy case: The SC awarded a compensation of $470 million to the victims and held that “prohibitions or limitations or provisions contained in ordinary laws cannot, ipso facto, act as prohibitions or limitations on the constitutional powers under Article 142.”
- Babri Masjid demolition case: The Supreme Court ordered framing of a scheme by the Centre for formation of trust to construct Ram Mandir at the Masjid demolition site in Ayodhya.
- Liquor sale ban case: The Supreme Court banned liquor shops within a distance of 500 metres from National as well as State highways in order to prevent drunken driving.
- Ex-PM Assassin case: In the case of Perarivalan, the Supreme Court invoked Article 142(1) under which it was empowered to pass any order necessary to do complete justice in any matter pending before it.
Try this PYQ from CSP 2019:
Q.With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following?
(a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.
(b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.
(c) In the event of grave financial crisis in the country, the President of India can declare Financial Emergency without the counsel from the Cabinet.
(d) State Legislatures cannot make laws on certain matters without the concurrence of Union Legislature.
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Diabetes , its types
Mains level: Not Much
Last week, the Indian Council of Medical Research (IMCR) released guidelines for the diagnosis, treatment, and management for type-1 diabetes.
Why such move?
- India is considered the diabetes capital of the world, and the pandemic disproportionately affected those living with the disease.
- Type 1 or childhood diabetes, however, is less talked about, although it can turn fatal without proper insulin therapy.
- Type 1 diabetes is rarer than type 2. Only 2% of all hospital cases of diabetes in the country are type 1.
What is Diabetes?
- Diabetes is a chronic (long-lasting) health condition that affects how your body turns food into energy.
- Most of the food you eat is broken down into sugar (also called glucose) and released into your bloodstream.
- When your blood sugar goes up, it signals your pancreas to release insulin.
What is Type 1 Diabetes?
- Type 1 diabetes is a condition where the pancreas completely stops producing insulin.
- Insulin is the hormone responsible for controlling the level of glucose in blood by increasing or decreasing absorption to the liver, fat, and other cells of the body.
- This is unlike type 2 diabetes — which accounts for over 90% of all diabetes cases in the country — where the body’s insulin production either goes down or the cells become resistant to the insulin.
How lethal diabetes is?
- Type 1 diabetes is predominantly diagnosed in children and adolescents.
- Although the prevalence is less, it is much more severe than type 2.
- Unlike type 2 diabetes where the body produces some insulin and which can be managed using various pills, if a person with type 1 diabetes stops taking their insulin, they die within weeks.
How rare is it?
- There are over 10 lakh children and adolescents living with type 1 diabetes in the world, with India accounting for the highest number.
- Of the 2.5 lakh people living with type 1 diabetes in India, 90,000 to 1 lakh are under the age of 14 years.
- For context, the total number of people in India living with diabetes was 7.7 crore in 2019.
- Among individuals who develop diabetes under the age of 25 years, 25.3% have type 2.
Who is at risk of type 1 diabetes?
- The exact cause of type 1 diabetes is unknown, but it is thought to be an auto-immune condition where the body’s immune system destroys the islets cells on the pancreas that produce insulin.
- Genetic factors play a role in determining whether a person will get type-1 diabetes.
- The risk of the disease in a child is 3% when the mother has it, 5% when the father has it, and 8% when a sibling has it.
- The presence of certain genes is also strongly associated with the disease.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Web and its evolution
Mains level: Not Much
Former Twitter CEO recently announced his vision for a new decentralized web platform that is being called Web 5.0 and is being built with an aim to return “ownership of data and identity to individuals”.
Various versions of Web
- Web 1.0 was the first generation of the global digital communications network. It is often referred to as the “read-only” Internet made of static web-pages that only allowed for passive engagement.
- Web 2.0 was the “read and write” Internet. Users were now able to communicate with servers and other users leading to the creation of the social web. This is the World Wide Web that we use today.
- Web 3.0 is an evolving term that is used to refer to the next generation of Internet – a “read-write-execute” web – with decentralization as its bedrock. It leverages the blockchain technology and will be driven by Artificial Intelligence and machine learning.
- Web 4.0 is not really a new version, but is a alternate version of what we already have. Web needed to adapt to its mobile surroundings. Web 4.0 connects all devices in the real and virtual world in real-time.
What is Web 5.0?
- Web 5.0 is aimed at building an extra decentralized web that puts you in control of your data and identity.
- Simply put, Web 5.0 is Web 2.0 plus Web 3.0 that will allow users to ‘own their identity’ on the Internet and ‘control their data’.
- Both Web 3.0 and Web 5.0 envision an Internet without threat of censorship – from governments or big tech, and without fear of significant outages.
What are the use cases for Web 5.0?
There can be two use cases for how Web 5.0 will change things in the future.
- Control of identity: A digital wallet that securely manages user identity, data, and authorizations for external apps and connections.
- Control over own data: Say, we can grant any music app access to settings and preferences, enabling the app to take our personalized music experience across different music apps.
Try this question from CSP 2022:
With reference to Web 3.0, consider the following statements:
- Web 3.0 technology enables people to control their own data.
- In Web 3.0 world, there can be blockchain based social networks.,
- Web 3.0 is operated by users collectively rather than a corporation.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Consultative Group on International Agricultural Research (CGIAR)
Mains level: Paper 3- Food crisis due to price shocks
Context
This increase in global food prices which manifested itself in the three food price crises since the 1960s offers some pertinent lessons for global food systems and the international community.
Managing year-to-year volatility Vs. periodic spikes in food prices
- Year-to-year volatility is easily managed by most countries through changes in their trade and domestic policies.
- But steep and severe periodic price shocks can lead to some sort of a crisis at the global and national levels.
- Implications: The crisis can emerge in the form of food shortages, trade disruptions, a rise and spread in hunger and poverty levels, depletion of foreign exchange reserves, a strain on a nation’s fiscal resources, a threat to peace, and even social unrest in some places.
History of food crises after since adoption of Green Revolution
- Data from Food and Agriculture Organization of the United Nations, the World Bank/International Monetary Fund show that since the onset and the adoption of Green Revolution technology in the early 1960s, the world has been struck thrice by food price crises.
- First shock-1973-76: The first shock was experienced during 1973-76 when the food price index (based on prices in U.S. dollars) doubled in nominal terms.
- Declining trend: For the next two decades, food prices in real terms followed a declining trend and were at their lowest around 2002.
- After this, nominal as well as the real prices of food began rising.
- Second crisis-2008: This momentum built up to culminate in the next food price crisis of 2008, which was further intensified by 2011.
- While the price shock began softening after 2014, food prices did not move back to their pre-2006 level.
- Third crisis-2020: This time the increase in the food price index happened very quickly and it turned out to be very big – it has taken the food price index to its historically highest level.
- Cause outside agriculture: All the three food price crises were triggered by factors outside agriculture.
- They were not caused by any serious shortfall in agriculture production.
- The interval between crises is reducing: The interval between two consecutive price shocks has narrowed down considerably and the severity of shock is turning stronger.
What are the causes responsible for the recent food price crisis?
- 1] Covid-19 and Ukraine crisis: It was triggered by supply disruptions due to COVID-19 and further aggravated by the Russia-Ukraine war.
- The current food price spike first began in vegetable oils and then expanded to cereals.
- Higher the global trade higher disruption: The effect of global trade disruption will be higher for commodities that are traded more and vice-versa.
- 2] Diversion of food for biofuel: Another factor underlying the rising trend and spikes in food prices is the diversion of food for biofuel needs.
- When crude prices increase beyond a certain level it becomes economical to use oilseeds and grains for biodiesel and ethanol, respectively.
- The second reason for the use of food crops for biofuel is the mandates to increase the share of renewable energy resources.
- 3] Increased cost of agrochemicals and fertilisers: Food prices are also expected to go up in the current and next harvest season because of an increase in the prices of fertilizer and other agrochemicals.
Way forward for India
- Transmission of international prices to domestic prices can be prevented only if there is no trade.
- 1] Trade policy changes: This transmission of global prices to the domestic market can be moderated through trade policy and other instruments.
- When international prices go too low, India has checks on cheap imports to protect the interests of producers; and when international prices go too high, the country liberalises imports and imposes checks on exports to ensure adequate availability and reasonable food prices for domestic consumers.
- 2] Buffer stock: The policy of having a buffer stock of food staples has also been very helpful in maintaining price stability, especially in the wake of global food crises.
- 3] Strategic liberalisation: India should continue with a policy of strategic liberalisation, as followed in the past, to balance the interests of producers and consumers.
- 4] Maintain image as a reliable and credible exporter: The importance of agriculture exports to mop up food and agriculture surplus from the country is increasing.
- Ongoing trends in domestic demand and supply imply that India will be required to dispose of 15% of its domestic food output in the overseas market by 2030.
- This underscores the need to maintain India’s image as a reliable and credible exporter.
- However, it is important to differentiate between the two situations: disturbing normal export and regulating exports exceeding the normal level.
What are the implications for India?
- Increased prices in India: Export and import in the agriculture sector constituted 13% of gross value added in agriculture during 2020-21.
- Therefore, some transmission of an increase in global prices on domestic prices is inevitable.
- Wheat export ban and implications: The recent ban on wheat exports and restrictions on the export of other food commodities by India need to be seen in the light of an abnormal situation created by spikes in international prices.
- Some experts see it as a setback to India’s image as a reliable exporter as this move is seen to disrupt (regular) export channels.
- A closer examination of data reveals that India’s action to ban or restrict food exports is not disrupting its normal exports.
- India was a very small exporter of wheat, with its share in global wheat trade ranging between 0.1% to 1% during 2015-16 to 2020-21.
- The international market is looking for around 50 million tonnes of wheat to compensate for the disruption in wheat exports from Russia and Ukraine.
- If India had not imposed a ban on wheat export, it would have resulted in a severe shortage of wheat within the country.
Global impact and suggestions
- As the steam of Green Revolution technology slowed down with the start of the 21st century, food prices began increasing in real terms.
- New breakthroughs required: The world requires new breakthroughs such as Green Revolution technology, for large-scale adoption in order to enable checks on food prices rising at a faster rate.
- Increase spending on agri-research: This in turn requires increased spending on agriculture research and development (especially by the public sector and multilateral development agencies).
- Strengthen global agri-research system: There is a need to strengthen and rejuvenate the global agri-research system under the Consultative Group on International Agricultural Research (CGIAR) which is heading towards disarray.
- Rethink biofuel protocols: Biofuel protocols have contributed to the global food crisis for the second time in the last 15 years.
- Diversion of land under food crops and food output for biofuel should be carefully calibrated with implications for food availability.
Conclusion
- The last three food price crises were primarily caused due to an increase in energy prices and disruptions in the movement of food across borders.
- Factors related to climate change are going to be an additional source of supply shocks in the years ahead.
- Therefore, the global community must plan to have a global buffer stock of food in order to ensure reasonable stability in food prices and supply.
Back2Basics: Consultative Group on International Agricultural Research (CGIAR)
- CGIAR (formerly the Consultative Group for International Agricultural Research) is a global partnership that unites international organizations engaged in research about food security.
- CGIAR research aims to reduce rural poverty, increase food security, improve human health and nutrition, and sustainable management of natural resources.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Duopoly threat in India's telecom sector
Context
The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.
About 5G
- 5G is the 5th generation mobile network.
- It is a new global wireless standard after 1G, 2G, 3G, and 4G networks.
- 5G can be significantly faster than 4G, delivering up to 20 Gigabits-per-second (Gbps) peak data rates and 100+ Megabits-per-second (Mbps) average data rates.
- 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.
- 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users.
- Higher performance and improved efficiency empower new user experiences and connects new industries.
- With high speeds, superior reliability and negligible latency, 5G will expand the mobile ecosystem into new realms.
- 5G will impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics — and more — a reality.
India’s telecom sector: From monopoly to hyper-competition to duopoly
- India’s telecom market has seen monopoly as well as hyper-competition.
- Twenty-five years ago, the government alone could provide services.
- Technology and deregulation: In the following years, the combined forces of technology and deregulation helped break the shackles of public sector dominance despite the latter’s stiff resistance
- In the following years, there were nearly a dozen competing operators. Most service areas now have four players.
- However, the possible exit of the financially-stressed Vodafone Idea would leave only two dominant players-Airtel and Jio in the telecom sector.
- A looming duopoly, or the exit of a global telecommunications major, are both worrying.
- They deserve a careful and creative response.
Government package for telecom sector to prevent duopoly
- The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.
- As a part of its support package for the telecom sector, in October 2021, it dispensed with the requirement of performance bank guarantees required earlier as security.
- It increased the tenure of spectrum holding from 20 to 30 years.
- It allowed for the surrender of the unutilised or underutilised spectrum after 10 years.
- Most importantly removed the levy of spectrum usage charges.
Why competitive telecom market is important?
- Key to achieving digital ambitions: A competitive telecom sector is fundamental to realising India’s digital ambitions.
- Innovation: Monopolies have no incentive to innovate.
- Investment: The competition will guarantee that operators find it attractive to invest in network infrastructure upgradation and offer consumers a wide range of innovative service options.
- Source of revenue: A competitive telecom sector would be an indirect source of tax revenue as well.
- How to make market competitive? Competition cannot be willed into the sector.
- It needs careful nurturing, assiduous fostering and regulatory neutrality.
Way forward on 5G
- Structural changes: While the package may have prevented the exit of Vi from the market, to embed competition within the sector, structural changes are necessary.
- The imminent 5G networks demand massive investment and sophistication of operations.
- 1] Level playing field: This will not be achieved unless the playing field is level across the relevant operators and honest incentives are provided to operators to embrace new technology.
- 2] Change the spectrum allocation method: There is no doubt that spectrum auctions have served India well in the past due to the acrimonious political economy associated with administrative spectrum assignment, including First Come First Serve (FCFS) method.
- The auction regime worked well when demand exceeded supply, but if there is an adequate quantity of spectrum for everyone, that constraint would not exist.
- Administrative assignments can thus be considered once again.
- 3] Administrative assignments: An administrative assignment will include the possibility that all spectrum can be assigned at reasonable prices and in the process, a grand bargain can be struck with telecom operators.
- 4] Assigning 5G spectrum for private enterprise business: TRAI and the Digital Communications Commission (DCC) are considering whether 5G spectrum should be assigned to companies like TCS, Amazon and Google, among others, for their private enterprise business.
- 5G spectrum assignment for enterprises would adversely affect the business model of telcos.
- But there will be enterprises that telcos could serve that are not large enough to purchase 5G spectrum.
- A grand bargain that allows enterprises to buy 5G spectrum while assigning spectrum to the existing telcos through the administrative route will also serve the revenue needs of the government.
- 5] Privatise public sector operator: This is an opportunity to also signal to the public sector operator that 5G business is outside the range of its capability set.
- Hence like Air India it needs to be privatised in the fullness of time.
- These are difficult decisions and will need much more political will than in 1994.
Consider the question “Why a competitive telecom market is a prerequisite for achieving India’s digital dream and why an eminent duopoly in the sector stands to threaten that dream? Suggest way forward.”
Conclusion
It would be tragic if India’s telecom-access market was to be reduced to only two competing operators, as we have a long way to go. What we need is structural changes in the sectors as well as the way the sector is regulated.
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Back2Basics: Spectrum usage charges
- Companies had to pay 3-5 per cent of their adjusted gross revenue (AGR) as spectrum usage charge to the department of telecom.
- If they share spectrum with another operator, operators must pay an additional 0.5 per cent of AGR for that band as SUC.
- However, in September 2021, the Department of Telecommunications (DoT) decided to remove the floor rate of 3% of the adjusted gross revenue (AGR) for operators to pay their spectrum usage charge (SUC).
- The removal of the clause fixing a floor rate of 3% was done to give effect to the recently announced telecom relief package.
- Though the telecom package talks of scrapping SUC only on spectrum acquired in future auctions like that of 5G, if the 3% floor is abolished, as and when operators acquire more spectrum in future auctions, their SUC will become zero on the entire holding.
- This is because of a complex weighted average formula to calculate the SUC of operators who have a mix of administratively allocated spectrum and acquired through auctions.
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