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  • Coronavirus – Health and Governance Issues

    Tackling vaccine hesitancy challenge in rural India

    In rural India, concerns about COVID-19 vaccines are now increasingly commonplace.

    Vaccination dilemma these days

    • People voice their concern about what will happen to them if they get vaccinated and have doubts that the government is sending inferior quality vaccines to them.
    • Vaccination sessions in local health centers often see very few or no takers.
    • In contrast, urban vaccination sites face increased demand, especially in the 18-45 age group, and vaccine shortage is a major issue.
    • From a public health and equity perspective, this is a cause for worry.

    Why this failure?

    • The fear of vaccines and rural communities not only resisting but also outright rejecting vaccination is a reality.
    • Efforts by local health authorities to create awareness and convince people are of little avail.
    • There are contrasting dimensions to the COVID-19 vaccine rollout: one where people are enthusiastically accepting it and the other of resistance.
    • There are many diverse factors at play in this, which may go beyond the health concerns and have more to do with socio-anthropological aspects of health-seeking behavior.

    Vaccine hesitancy

    • Vaccine hesitancy refers to delay in acceptance or refusal of vaccines despite the availability of vaccine services.
    • It is complex and context-specific varying across time, place, and vaccines.
    • It is influenced by factors such as complacency, convenience, and confidence.

    Its scope

    • Vaccine hesitancy is not a recent phenomenon. It is neither limited to a particular community or country nor have we seen it only in the context of COVID-19.
    • We have also seen vaccine hesitancy among the urban and the more educated or ‘aware’ populations, with pockets of populations of socio-economically well-off communities refusing to get their kids vaccinated.
    • While vaccine hesitancy can lead to a firm rejection of vaccines, there’s also a possibility of people changing their perceptions over time.

    Socio-cultural context behind

    • Most of our fears and apprehensions stem from a deep impact of something adverse or unfavorable that we have personally experienced or our social circles have experienced.
    • Over time these become our beliefs, our innate guards.
    • In the context of the concerns described at the beginning of this article, we must look at vaccine hesitancy from a distinct lens of fear and not necessarily skepticism for new vaccines.
    • Rather, they seem to indicate deep-seated fears and belief in conspiracies, the fear of perhaps being discriminated and deceived, and of being omitted (from societal benefits).

    Building trust

    • Communities might not see the impact of a vaccine instantly, as it’s usually preventive in nature rather than curative.
    • People are used to taking medications or intravenous fluids when they are unwell or in pain, and they may feel better almost immediately, but that’s not the case with vaccines.
    • On the contrary, vaccines administered to a healthy person may lead to occasional side effects like fever, body aches, etc.
    • Add to those rumors about deaths post-vaccination, and it may not be so easy for people to get convinced about the vaccines.

    Way ahead

    • Addressing vaccine hesitancy in rural India would first of all require health systems to be honest and transparent.
    • Create awareness, let people know how vaccines work, how they help prevent disease, what are the probable side effects and how they can be managed.
    • Health authorities need to be comfortable about people raising questions while providing the answers as best as possible.
    • Being cognizant of local cultural sensitivities and working with trusted intermediaries is important in this effort.
    • Sustained and meaningful efforts need to be made to build trust, gain the confidence of communities and meet their expectations.
    • Even more crucial is to engage communities in planning, execution, and monitoring of health care services at all levels.
  • Intellectual Property Rights in India

    Digital Millennium Copyright Act

    Union Minister for Electronics and Information Technology was locked out of his Twitter account for an hour allegedly over a notice received for violation of the Digital Millennium Copyright Act (DMCA).

    Why such a move by Twitter?

    • The DMCA oversees the implementation of two 1996 treaties signed by World Intellectual Property Organization (WIPO) member nations.

    What is the DMCA?

    • The Digital Millennium Copyright Act, or DMCA, is a 1998 law passed in the US and is among the world’s first laws recognizing intellectual property on the internet.
    • The law oversees the implementation of the two treaties signed and agreed upon by member nations of the World Intellectual Property Organization (WIPO) in 1996.
    • WIPO members had then agreed upon two treaties, namely the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty.
    • The said protection, accorded by each member state, must not be any less in any way than the one being given to a domestic copyright holder.
    • Further, it also obligates those signatories to the treaty to ensure ways to prevent circumvention of the technical measures used to protect copyrighted work.
    • It also provides the necessary international legal protection to digital content.

    What is WIPO and how does it ensure the protection of content on the internet?

    • The rapid commercialization of the internet in the late 1990s started with static advertisement panels being displayed on the internet.
    • It became important for website owners to get the user to spend more time on their webpage.
    • For this, fresh content was generated by creators and shared over the Internet.
    • The problem started when the content would be copied by unscrupulous websites or users, who did not generate content on their own.
    • Further, as the Internet expanded worldwide, websites from countries other than the one where the content originated, also started to copy the unique content generated by the websites.
    • To avoid this and bring to task the unauthorized copiers, the members of WIPO, which was established in 1967, also agreed to extend the copyright and intellectual property protection to digital content.
    • As of date, 193 nations across the world, including India, are members of WIPO.

    Who can generate a DMCA notice and how are they sent to companies or websites?

    • Any content creator of any form, who believes that their original content has been copied by the user or a website without authorization can file an application citing their intellectual property has been stolen or violated.
    • Users can either approach the website on which the content has been hosted, or third-party service providers like DMCA.com, which utilize a team of experts to help take down the stolen content for a small fee.
    • In the case of social media intermediaries like Facebook, Instagram or Twitter, content creators can directly approach the platform with proof of them being original creators.
    • Since these companies operate in nations that are signatories to the WIPO treaty, they are obligated to remove the said content if they receive a valid and legal DMCA takedown notice.
    • Platforms, however, also give the other users against whom allegations of content cheating have been made, a chance to reply to the DMCA notice by filing a counter-notice.
    • The platform shall then decide which party is telling the truth and shall accordingly, either restore the content or keep it hidden.
  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    MCA raises threshold of Small and Medium Companies

    The Ministry of Corporate Affairs has expanded the turnover and borrowing thresholds for Small and Medium-sized Companies (SMC), allowing a larger number of firms to benefit from reporting exemptions under accounting norms.

    What is the change?

    • The MCA has increased the turnover threshold for SMCs to Rs 250 crore from Rs 50 crore, and the borrowing threshold to Rs 50 crore from Rs 10 crore.
    • SMCs are permitted to avail a number of exemptions under the Company (Accounting Standards) Rule 2021 to reduce the complexity of regulatory filings for smaller firms.
    • Banks, financial institutions, insurance companies, and listed companies cannot be classified as SMCs.
    • Further, any company which is either the holding company or subsidiary of a company that is not an SMC cannot be classified as an SMC.

    What are the exemptions available to SMCs that are not available to other firms?

    • SMC are completely exempted from having to file cash flow statements and provide a segmental break up of their financial performance in mandatory filings.
    • SMCs can also avail partial reporting exemptions in areas including reporting on employee benefits obligations such as pensions.
    • SMCs are exempted from having to provide a detailed analysis of benefit obligations to employees, but are still required to provide actuarial assumptions used in valuing the company’s obligations to employees.
    • SMCs are also exempted from having to report diluted earnings per share in their filings.
    • Diluted earnings per share reflect the per-share earnings of a company assuming that all options to convert other securities into shares are exercised.

    Answer this PYQ in the comment box:

    Q. What is/ are the recent policy initiative(s) of the Government of India to promote the growth of the manufacturing sector?

    1. Setting up of National Investment and Manufacturing Zones.
    2. Providing the benefit of single window clearance.
    3. Establishing the Technology Acquisition and Development Fund.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    How does this impact these firms?

    • Experts have noted that the move would promote ease of doing business for the firms that would now be included under the definition of SMC.
    • The Accounting Standards for SMC, which were notified in December 2006 and amended from time to time, are much simpler as compared to Indian Accounting Standards (Ind AS).
    • These accounting standards involve less complexity in their application, including the number of required disclosures being less onerous.
    • Ind AS standards are applied to larger firms and are largely similar to International Financial Reporting Standards (IFRS) used in most developed jurisdictions.
  • Historical and Archaeological Findings in News

    Skull found in China represents a new human species

    Scientists have announced that a skull discovered in northeast China represents a newly discovered human species they have named Homo longi, or “Dragon Man”.

    Answer this PYQ in the comment box:

    Q.The word ‘Denisovan’ is sometimes mentioned in media in reference to (CSP 2019):

    (a) fossils of a kind of dinosaurs

    (b) an early human species

    (c) a cave system found in North-East India.

    (d) a geological period in the history of Indian subcontinent

    Who is the “Dragon Man”, the latest Chinese discovery?

    • The cranium found in China has been dubbed the “Dragaon Man” or Homo longi, a name that has been derived from the Long Jiang or Dragon River in the Heilongjiang province of China where the city of Harbin is located.
    • The skull was reportedly discovered back in 1933, when a bridge was built over the Songhua River.
    • For thousands of years, the skull remained buried in sediments.
    • Because of the distinctive shape of the skull, which was found almost complete, some members of the team have suggested that it be declared a part of a new species of the genus Homo.
    • Significantly, the size of the skull, which has a considerable brain capacity, is comparable to that of modern humans and Neanderthals.

    Why is this discovery being considered significant?

    • For one, it brings new knowledge about the evolution of Homo sapiens.
    • It might help to bridge the gaps between our ancient ancestors called Homo erectus and us.
    • This knowledge is important because there is very little consensus in the scientific community about how different human species are related, and which species are our immediate ancestors.
    • Smithsonian for instance notes that some palaeontologists believe Homo heidelbergensis to be our immediate ancestors.
    • This species was discovered in 1908, and lived about 700,000 to 200,000 years ago in Europe and possibly China and some parts of Africa.

    Back2Basics: Species of Humans

    • Modern humans are the only human species that exist in the world today.
    • While the exact number of human species is a matter of debate, most scientists believe that there are at least 21 of them.

    As per the Smithsonian National Museum of Natural History, there are over 21 human species.  Major among these are:

    (1) Sahelanthropus tchadensis

    • Sahelanthropus tchadensis is believed to be the oldest member of the human family tree.
    • It lived about 7-6 million years ago somewhere around present-day Chad in Africa.
    • It had both ape-like and human-like features and was bipedalled, an ability that may have increased its chances of survival.

    (2) Homo erectus

    • Homo erectus lived about 1.89 million-110,000 years ago, in Northern, Eastern, and Southern Africa and Western and East Asia.
    • ‘Turkana Boy’ is the most complete fossil belonging to this species and is dated to be around 1.6 million years old.

    (3) Modern man

    • Homo neanderthalensis lived about 400,000-40,000 years ago and co-existed with Homo sapiens for a few thousand years.
    • They lived in Europe and in southwestern and central Asia.
    • Homo sapiens evolved about 300,000 years ago, and are found worldwide.
  • New Species of Plants and Animals Discovered

    Species in news: Euphlyctis Kerala

    A new species of skittering frog has been identified from the surroundings of the Thattekkad bird sanctuary.

    Euphlyctis Kerala

    • The new species is named Euphlyctis Kerala in honor of the remarkable biodiversity of the State, which is also known for many endemic species of frogs.
    • The new species is known to be found in the freshwater bodies of the foothills of the Western Ghats, south of the Palakkad Gap.
    • Although multiple skittering frogs have been described from India for almost two centuries (since 1799), the taxonomic mess within this group created a lot of confusion due to “morphological character crypticity”.
    • Members of the genus Euphlyctis (skittering frogs) have their distribution range from Arabian Peninsula, Pakistan, India, Nepal, Sri Lanka, Myanmar, and Thailand.
    • As of now, Kerala is known to have 180 species of frogs and there could be many more new species awaiting formal descriptions.
  • Where is the Indian rupee headed?

    The article explains the factors affecting the Indian rupee’s value against the dollar in implications of change in value for the Indian economy.

    Factor’s affecting rupee’s value

    • First, India’s foreign exchange reserves need to be considered, which have been increasing quite rapidly.
    • Second, there are daily fluctuations caused by foreign portfolio investment (FPI) flows.
    • Third, there is the external factor of the dollar, when the US currency strengthens against the euro, the rupee tends to decline and vice-versa.
    • Fourth, there is the concept of the real effective exchange rate (REER), a construct of economists in which relative inflation comes into play.
    • If inflation in India is higher than in countries associated with its export basket of currencies, then the rupee is overvalued and will correct through depreciation.
    • Fifth, at what stage will the RBI intervene by buying or selling dollars to stabilize the Indian currency also matters.

    Let’s look at some of these factors in detail.

    Impact of the U.S. economy and Fed

    • The dollar is driven by the US economy as well as its Federal Reserve’s policies.
    • The Fed’s recent indication that it would raise its policy rate of funds in the years ahead was enough to strengthen the dollar and weaken the rupee.  As an increase in US rates could see global investor money flocking back to the US, the dollar gained in relative value.
    • The dollar should logically be strengthening, given improving US growth, now reinforced by the Fed.

    Inflation factor

    • The inflation factor, however, has been curious.
    • Indian inflation will be high in India and hence also the rupee’s REER.
    • To the extent the market understands this concept and uses it for valuation, it should be pushing the rupee downwards.
    • But the pressure will be less this time as global inflation is also being raised by rising commodity prices.
    • Indian inflation may not be so much higher as to warrant a deep depreciation.

    Increase in Forex reserves

    • An increase in forex reserves is an indication that India is getting in more dollars than we are spending.
    • This also means that our combined current and capital accounts are in surplus zone.
    • However, India’s current account will go into a deficit this year, as imports will be greater than exports, but will not be very high. Maybe 0.5-1% of GDP.
    • The capital account can get tricky.
    • Inward foreign direct investment was high in 2020-21.
    • At $60 billion in equity and $80 billion overall, it was one of the world’s highest.
    • Therefore, capital flows should remain strong.
    • External commercial borrowings could slow down amid weak investment within India.
    • So the fundamentals suggest that the rupee should be stable, with a tilt towards depreciation.

    The RBI intervention

    • The RBI’s surplus liquidity and accommodative stance have not worked in favour of the rupee.
    • In response to its April policy, when RBI affirmed its dovish stance, the rupee began falling on expectations that if RBI kept rates low at a time of high inflation and excessive market borrowing by the government, investors will potentially move out.
    • This pushed the rupee towards the 75 level against the dollar, but reverted with time as RBI kept infusing liquidity and managed the yield curve.
    •  In April, RBI bought $4.2 billion worth of the US currency.
    • Exports have grown smartly in the first two months of 2021-22, and at this stage, the central bank would not want to that trend by stalling the rupee’s depreciation.

    Conclusion

    Taking all these factors into account, one can foresee the rupee moving in the range of 74-75 to the dollar, unless there’s a shock of some sort, though none looks likely at present.

  • Microfinance Story of India

    Microfinance institutions

    The microfinance institutions (MFI) faced several restrictions by RBI which were not applicable to banks, NBFC and small finance banks. This denied the MFIs level playing field. A recent Consultative document by the RBI frees MFIs from such restrictions. The article explains this in detail.

    Background of regulation of MFI’s  by RBI

    • RBI first allowed informal self-help groups to open savings accounts in banks and bank lending to these groups in 1991-92.
    • In 2000, RBI permitted all types of institutions to offer microcredit and bank loans extended to these institutions for on-lending were treated as part of the priority sector lending.
    • Beyond these, RBI was unwilling to bring in any regulations on the plea that as long as these are not deposit-taking institutions there is no need to regulate them. 
    • That was the stand of various RBI-appointed committees too, including the Vyas Committee of 2004.
    • Based on the Malegam Committee recommendations, RBI came out with detailed guidelines for microfinance institutions (not the microfinance sector) in 2011.
    • These guidelines introduced a new category of NBFCs, viz NBFC-MFIs (microfinance institutions).
    • It also set norms for income criteria for clients of MFIs, repayment period, borrower loan limits, interest rate norms and caps, limits on a number of lenders to a borrower and a host of other norms and criteria.

    How these norms created the issue of a level playing field?

    • After 2015-16, the entry of small finance banks, eight of which were MFIs, into the microfinance space started to create issues.
    • MFIs discovered to their dismay that while they had to adhere to a set of regulations, it was a free-for-all for non-MFIs (banks, SFBs and NBFCs).
    • The main issue was that non-MFIs need not adhere to the norm of number of lenders (two in the case of NBFC-MFIs) and per-borrower loan limits.
    • It prompted non-MFIs to target borrowers identified and nurtured by MFIs with higher loan amounts, leading to high levels of borrower indebtedness.
    • In addition, the interest rate cap (2.75 times the base rate declared quarterly by RBI) was squeezing the margins of small and medium MFIs, as none of them get loans from the biggest banks.

    Way forward

    • The recent Consultative Document by RBI frees MFIs from the restriction imposed by the 2011 regulations and gives them a level-playing field.
    • Another important feature for MFIs is that by doing away with the 50% income generation loans criteria and the repayment period norms.
    • RBI is facilitating credit flow into lifecycle needs like housing, water sanitation, education, health, renewable energy, etc, which are now as important as income generation.
    • On the interest rate front, initially, some upward correction could be there by medium and small MFIs based on their borrowing rates.
    • The document enhances the role for the regulator as the adoption of Board-approved policies to determine the norms of household indebtedness and to fix a transparent rate of interest by each institution and their implementation need a rigorous supervisory oversight

    Conclusion

    Providing a level playing field to the MFI is critical to their development, the document by RBI rightly does that. It will help in providing credit to those who remain outside the formal banking network.


    Source:

    https://www.financialexpress.com/opinion/unfettering-microfinance-recent-rbi-consultative-document-frees-mfis-from-shackles-imposed-by-2011-regulations/2277925/

  • Zoonotic Diseases: Medical Sciences Involved & Preventive Measures

    Covid-19 Delta-plus Variant

    The Maharashtra government has tightened the Covid-19 unlocking process in the wake of a rise in cases of the Delta Plus variant.

    What is Delta Plus?

    • A variant that has emerged as a new threat, especially in India, Delta Plus (B.1.617.2.1/(AY.1) is a new mutant strain of the Delta variant of SARS-CoV-2.
    • It is technically the next generation of SARS-COV-2.
    • The Delta variant that was first detected in India eventually became a huge problem for the whole world.
    • However, the Delta Plus variant, at present, is limited to smaller areas in the country. This mutant of Delta was first detected in Europe in March 2021, but it came to light on June 13.
    • Although it is still under investigation, experts believe that the Delta Plus variant has increased transmissibility.

    What is known so far?

    • The new Delta plus variant has been formed due to a mutation in the Delta or B.1.617.2 variant.
    • Delta Plus (AY.1) is resistant to monoclonal antibodies cocktail.
    • Since it’s a new variant, its severity is still unknown.
    • 63 genomes of Delta (B.1.617.2) with the new K417N mutation have been identified by the GISAID (global science initiative) so far.
    • The mutation is in the spike protein of SARS-COV-2, which helps the virus enter and infect the human cells.
    • People reported symptoms like headaches, sore throats, runny noses, and fever.

    Are COVID-19 vaccines effective against the Delta Plus variant?

    • Medical experts say it is too early to predict the effectiveness of the existing vaccines on the new variant.
    • A detailed study would be required to establish any effect of the mutant on the immune system.
    • However, Union Health Ministry says that both Indian vaccines — Covishield and Covaxin are effective against the Delta variant.
    • There is fear that this new variant Delta Plus may spark the third wave of COVID-19, but there is a very low incidence of such cases, so there is no certainty.
  • Insolvency and Bankruptcy Code

    Who is a Registered Valuer?

    A valuation report by a registered valuer is at the heart of the recent controversy surrounding a Rs 4,000 crore share allotment decision by PNB Housing Finance.

    Who is a Registered Valuer?

    • A registered valuer is an individual or entity which is registered with the Insolvency and Bankruptcy Board of India (IBIBI) as a valuer in accordance with the Companies (Registered Valuers and Valuation) Rules, 2017.
    • Under Section 458 of the Companies Act, IBBI has been specified as the authority by the central government.
    • The concept of registered valuer was introduced in the Companies Act in 2017 in order to regulate the valuation of assets and liabilities linked to a company and to standardize the valuation procedure in line with global valuation standards.
    • Before the concept of registered valuer became part of the Companies Act, valuation was done in an arbitrary manner, often leading to question marks over the authenticity of the valuation.

    What does the valuation report comprise?

    • As per the Companies (Registered Valuers and Valuation) Rules, 2017, the valuer should, in his/its report, state 11 key aspects including disclosure of the valuer’s conflict of interest, if any.
    • Among others, it must include the purpose of valuation; sources of information; procedures adopted in carrying out the valuation; valuation methodology; and major factors that influenced the valuation.

    Who can become a registered valuer?

    • An individual needs to clear the Valuation Examination conducted by IBBI.
    • The rules state that an individual who has completed 50 years of age and has been substantially involved in at least ten valuation assignments of assets amounting to Rs 5 crore rupees or more, during the five years preceding the commencement of these rules, shall not be required to pass the Valuation Examination.
    • The individual should, however, have a postgraduate degree in the specified discipline (relevant for valuation of the class of asset for which the registration is sought) and should have at least three years of experience in the discipline thereafter.
    • As of March 31, 2021 there were 3,967 registered valuers in the country. Only 40 of them are registered entities; the rest are individuals.

    For what assets can a registered valuer undertake valuation?

    • A registered valuer can get themselves registered for valuation of assets such as land and building; plant and machinery; and securities and financial assets.
    • They can get registered for valuation of all three classes, and can undertake valuation of only the assets for which they have got the registration.

    Answer this PYQ in the comment box:

    Q.Which of the following statements best describes the- term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (CSP 2017)

    (a) It is a procedure for considering the ecological costs of developmental schemes formulated by the Government.

    (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

    (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

    (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

  • Wildlife Conservation Efforts

    What is Ambergris?

    In the past few weeks, there have been two cases where the Mumbai Police has arrested five persons trying to sell Ambergris or whale vomit.

    What is Ambergris?

    • Ambergris, French for grey amber, is generally referred to as whale vomit.
    • It is a solid waxy substance that floats around the surface of the water body and at times settles on the coast.
    • A sperm whale eats several thousand squid beaks a day.
    • Occasionally, a beak makes it way to the whale’s stomach and into its looping convoluted intestines where it becomes ambergris through a complex process, and may ultimately be excreted by the whale.

    Is it Ambergris valuable?

    • This excretion is so valuable it is referred to as floating gold.
    • As per the latest estimates given by Mumbai Police, 1 kg of ambergris is worth Rs 1 crore in the international market.
    • The reason for its high cost is its use in the perfume market, especially to create fragrances like musk.
    • It is believed to be in high demand in countries like Dubai that have a large perfume market. Ancient Egyptians used it as incense.
    • It is also believed to be used in some traditional medicines.

    Why are the laws on Ambergris?

    • Due to its high value, Ambergris has been a target for smugglers especially in coastal areas.
    • There have been several cases where the coastline of Gujarat has been used for such smuggling.
    • Since the sperm whale is a protected species, hunting of the whale is not allowed.
    • However, smugglers are known to have illegally targeted the fish in order to obtain the valuable Ambergris from its stomach.
    • However, Ambergris is produced only by an estimated one per cent of sperm whales.

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