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  • Blockchain Technology: Prospects and Challenges

    Explained: Cryptocurrency Market Crash

    | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    The cryptocurrency market saw a big correction with prices of major currencies, including Bitcoin, Ethereum, BNB, and others crashing as much as 30% within 24 hours.  This came in the backdrop of Chinese regulators announcing a crackdown on cryptocurrencies.

    Try this question from our AWE initiative:

    What is a cryptocurrency? What benefits and challenges do cryptocurrencies pose? (250 Words)

    Crackdown on Crypto Market

    • China has barred financial institutions and payment companies from providing any services related to cryptocurrency transactions.
    • This means that banks and online payment channels must not offer clients any service involving cryptocurrencies, such as registration, trading, clearing, and settlement.
    • China had issued such a ban in 2017 as well, but compared with the previous ban, the new rules have expanded the scope of prohibited services, and surmise that “virtual currencies are not supported by any real value”.

    Other reason behind this crash: The Tesla story

    • Tesla recently announced that it wouldn’t favor Bitcoin on ‘environmental’ concerns because Bitcoin mining requires electricity which is mostly generated using fossil fuels.
    • However, this seems to be motivated and raises a few questions like – didn’t the Tesla management already know about Bitcoin mining before diversifying into it?

    What does this fall imply?

    • A crackdown by one of the world’s biggest economy notwithstanding, those in the ecosystem has termed this decline as a short-term correction.
    • A nearly 40% dip in the bitcoin price from its all-time high looks dramatic but is normal in many volatile markets, including crypto, especially after such a large rally.
    • Such corrections are mainly due to short-term traders taking profits.
    • Long-term value investors might call these lower prices a buying opportunity.

    Back2Basics: Cryptocurrencies

    • A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database.
    • It uses strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership.
    • It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.
    • Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.

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  • Goods and Services Tax (GST)

    E-way bill integrated with FASTag, RFID

    Prelims Only | Governance | Mains Paper 2: Ministries & Departments Of The Government

    GST officers have been armed with real-time data of commercial vehicle movement on highways with the integration of the e-way bill (EWB) system with FasTag and RFID.

    Why such a move?

    • The integration of e-way bill, RFID, and FASTag will enable tax officers to undertake live vigilance in respect of EWB compliances by businesses and will help curb tax evasion.
    • It will aid in preventing revenue leakage by real-time identification of cases of recycling and/or non-generation of EWBs.

    What are E-way bills (EWB)?

    • Under the GST regime, transporters should carry the eWay Bill when moving goods from one place to another when certain conditions are satisfied.
    • EWBs are mandatory for inter-state transportation of goods valued over Rs 50,000 from April 2018, with the exemption to precious items such as gold
    • In this system, businesses and transporters have to produce before a GST inspector the e-way bill, if asked.
    • On average, 25 lakh goods vehicle movements from more than 800 tolls are reported on a daily basis to the e-way bill system.

    Benefits of the move

    • Tax officers can now access reports on vehicles that have passed the selected tolls without EWBs in the past few minutes.
    • Also, vehicles carrying critical commodities specific to the state and having passed the selected toll can be viewed.
    • Any suspicious vehicles and vehicles of EWBs generated by suspicious taxpayer GSTINs, that have passed the selected toll on a near real-time basis, can also be viewed in this report.
    • The officers can use these reports while conducting vigilance and make the vigilance activity more effective.
    • Also, the officers of the audit and enforcement wing can use these reports to identify fraudulent transactions like bill trading, recycling of EWBs.

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    World’s largest iceberg breaks off from Antarctica

    India Mapping | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    A huge ice block has broken off from western Antarctica into the Weddell Sea, becoming the largest iceberg in the world and earning the name A-76.

    Answer this PYQ in the comment box:

    Q.On the planet earth, most of the freshwater exists as ice caps and glaciers. Out of the remaining freshwater, the largest proportion:

    (a) is found in the atmosphere as moisture and clouds

    (b) is found in freshwater lakes and rivers

    (c) exists as groundwater

    (d) exists as soil moisture

    A-76 Iceberg

    • A-76 is the latest in a series of large ice blocks to dislodge in a region acutely vulnerable to climate change, although scientists said in this case it appeared to be part of a natural polar cycle.
    • The iceberg, measuring around 170 km long and 25 km wide, with an area of 4,320 sq km is now floating in the Weddell Sea.
    • Slightly larger than the Spanish island of Majorca, A-76 had been monitored by scientists since it began to separate from the Ronne Ice Shelf.
    • It joins the previous world’s largest title holder A-23A — approximately 3,880 sq. km. in size — which has remained in the same area since 1986.
    • A-76 was originally spotted by the British Antarctic Survey and the calving — the term used when an iceberg breaks off — was confirmed using images from the Copernicus satellite.

    Note: An iceberg is a large piece of freshwater ice that has broken off a glacier or an ice shelf and is floating freely in open water.

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  • Contention over South China Sea

    Places in news: Paracel Islands

    India Mapping | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    A United States warship sailed through the Paracel Islands in the disputed South China Sea.

    Paracel Islands

    • The Paracel Islands, also known as the Xisha Islands are a disputed archipelago in the South China Sea.
    • The archipelago includes about 130 small coral islands and reefs, most grouped into the northeast Amphitrite Group or the western Crescent Group.
    • They are distributed over a maritime area of around 15,000 square kilometers with a land area of approximately 7.75 square kilometers.
    • The archipelago includes Dragon Hole, the deepest underwater sinkhole in the world.
    • It is surrounded by productive fishing grounds and a seabed with potential, but as yet unexplored, oil and gas reserves.

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  • International Space Agencies – Missions and Discoveries

    [pib] Magnetospheric Multiscale Mission

    PIB | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Indian Scientists have developed a theory that helps understand the complicated nature of Sun-Earth interaction’s happening in the magnetosphere

    Magnetospheric Multiscale (MMS) Mission

    • The Magnetospheric Multiscale (MMS) Mission is a NASA robotic space mission to study the Earth’s magnetosphere, using four identical spacecraft flying in a tetrahedral formation.
    • The mission is designed to gather information about the microphysics of magnetic reconnection, energetic particle acceleration, and turbulence⁠—processes that occur in many astrophysical plasma.
    • Indian researchers have developed a theory that solves every bit of uncertainty regarding the conflict between the observations from MMS Mission.

    Answer this PYQ in the comment box:

    Q.Consider the following statements:

    1. The Earth’s magnetic field has reversed every few hundred thousand years.
    2. When the Earth was created more than 4000 million years ago, there was 54% oxygen and no carbon dioxide.
    3. When living organisms originated, they modified the early atmosphere of the Earth.

    Which of the statements given above is/ are correct? (CSP 2018)

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What is the Magnetosphere?

    • The magnetosphere is the region of space surrounding Earth where the dominant magnetic field is the magnetic field of Earth, rather than the magnetic field of interplanetary space.
    • It is formed by the interaction of the solar wind with Earth’s magnetic field.

    Findings of the Indian Researchers

    • The MMS spacecraft observed negative monopolar potential (electric field potentials which can be visualized in the form of single-humped pulse-type structures).
    • The scientific community suddenly recognized its importance, and publications were presented.
    • However, none of the available theories could explain the characteristics of these structures due to the exotic background conditions.
    • Indian theory provides a better understanding of their characteristics and sheds light on the generation of these structures.
    • This has lead to the unraveling of nature’s greatest mystery that causes phenomena -plasma transport and heating of plasma- the fourth state of matter after solid, liquid, and gas.

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  • Civil Services Reforms

    The outdated nature of bureaucracy

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    The second wave of Covid has exposed the inherent weakness of the bureaucracy in India. The article highlights the necessity for reforms in the way bureaucracy functions in India.

    Features of traditional bureaucracy

    • Preference to generalist: Weberian bureaucracy still prefers a generalist over a specialist.
    • Preference to leadership of position: The leadership of position is preferred over leadership of function in the traditional bureaucracy.
    • The leadership of function is when a person has expert knowledge of a particular responsibility in a particular situation.
    • The role of the leader is to explain the situation instead of issuing orders.
    •  Every official involved in a particular role responds to the situation rather than relying on some dictation from someone occupying a particular position.
    • Lack of innovation: The rigid adherence to rules has resulted in the rejection of innovation.

    Covid exposed limits of traditional bureaucracy

    • A generalist officer IAS and State civil service officials are deemed an expert and as a result, superior in traditional bureaucracy.
    • Specialists in every government department have to remain subordinate to the generalist officers.
    • The COVID-19 pandemic has exposed the weakness of this system.
    • Healthcare professionals who are specialists have been made to work under generalist officers and the policy options have been left to the generalists when they should be in the hands of the specialists.
    • The justification is that the generalist provides a broader perspective compared to the specialist.

    Is privatisation and private sector managerial techniques an answer?

    • The reform often suggested in India is new public management.
    • This as a reform movement promotes privatisation and managerial techniques of the private sector as an effective tool to seek improvements in public service delivery and governance.
    • But this isn’t a viable solution in India where there is social inequality and regional variations in development.
    • It renders the state a bystander among the multiple market players with a lack of accountability.
    • Further, COVID-19 has shown that the private sector has also failed in public service delivery.

    Way forward: Collaborative governance

    • The most appropriate administrative reform is the model of new public governance.
    • Work together: In collaborative governance, the public sector, private players and civil society, especially public service organisations (NGOs), work together for effective public service delivery.
    • As part of new public governance, a network of social actors and private players would take responsibility in various aspects of governance with public bureaucracy steering the ship rather than rowing it.
    • As part of new public governance, the role of civil society has to be institutionalised.
    • It needs a change in the behaviour of bureaucracy.
    • Openness to reforms: It needs flexibility in the hierarchy, a relook at the generalist versus specialist debate, and an openness to reforms such as lateral entry and collaboration with a network of social actors.
    • All major revolutions with huge implications on public service delivery have come through the collaboration of public bureaucracy with so-called outsiders.
    • These include the Green Revolution (M.S. Swaminathan), the White Revolution (Verghese Kurien), Aadhaar-enabled services (Nandan Nilekani) and the IT revolution (Sam Pitroda).

    Consider the question “What are the weaknesses of bureaucracy in India? Suggest the measures to improve the quality of public service delivery in India.”

    Conclusion

    New public governance is the future of governance, especially public service delivery.

    Back2Basics: The Weberian Model of bureaucracy

    • The classic model of bureaucracy is typically called the ideal Weberian model, and it was developed by Max Weber, an early German sociologist.
    • Weber argued that the increasing complexity of life would simultaneously increase the demands of citizens for government services.
    • Therefore, the ideal type of bureaucracy, the Weberian model, was one in which agencies are apolitical, hierarchically organized, and governed by formal procedures.
    • Furthermore, specialized bureaucrats would be better able to solve problems through logical reasoning.
    • Such efforts would eliminate entrenched patronage, stop problematic decision-making by those in charge,, impose order and efficiency, create a clear understanding of the service provided, reduce arbitrariness, ensure accountability, and limit discretion.

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

    The fault line of poor health infrastructure

    op-ed snap | Governance | Mains Paper 2: Health & Education

    The poor public health infrastructure in India hits the poor hard. The article examines the factors responsible for poor public health infrastructure and suggests the measures to deal with it.

    Poor state of health infrastructure

    • World Bank data reveal the poor state of India’s health infrastructure.
    • It reveals that India had 85.7 physicians per 1,00,000 people in 2017.
    • In contrast, it is 98 in Pakistan, 58 in Bangladesh, 100 in Sri Lanka and 241 in Japan.
    • India had 53 beds per 1,00,000 people.
    • It is 63 in Pakistan, 79.5 in Bangladesh, 415 in Sri Lanka and 1,298 in Japan.
    • India had172.7 nurses and midwives per 1,00,000 people in contrast to 220 in Sri Lanka, 40 in Bangladesh, 70 in Pakistan, and 1,220 in Japan.

    What are the factors responsible for poor health infrastructure?

    • Stagnant expenditure: Analysis by the Centre for Economic Data and Analysis (CEDA), Ashoka University, shows that health expenditure has been stagnant for years.
    • Lack of expertise with states: Despite health being a state subject, the main bodies with technical expertise are under central control.
    • The States lack corresponding expert bodies such as the National Centre for Disease Control or the Indian Council of Medical Research.
    • Inter-State variation: States also differ a great deal in terms of the fiscal space to deal with the novel coronavirus pandemic because of the wide variation in per capita health expenditure.
    • Kerala and Delhi have been close to top in years from 2011 to 2019-20.
    • Bihar, Jharkhand and Uttar Pradesh, States that have been consistently towards the bottom of the ranking in the same years.

    Out-of-pocket expenditure and its impact on the poor

    • Due to low levels of public health provision, the World Health Organization estimates that 62% of the total health expenditure in India is OOP, among the highest in the world.
    • Some of the poorest States, Uttar Pradesh, Bihar, Madhya Pradesh, Jharkhand and Odisha, have a high ratio of OOP expenditures in total health expenditure.
    • Impact on the poor: High ratio of OOP means that the poor in the poorest States, the most vulnerable sections, are the worst victims of a health emergency.

    Way forward

    1) Coordinated national plan

    • The inter-State variation in health expenditure highlights the need for a coordinated national plan at the central level to fight the pandemic.
    • The Centre already tightly controls major decisions, including additional resources raised specifically for pandemic relief, e.g. the PM CARES Fund.
    • The need for a coordinated strategy on essential supplies of oxygen and vaccines is acute.
    • The Centre can bargain for a good price from vaccine manufacturers in its capacity as a single large buyer like the European Union did for its member states.
    • Centre will also benefit from the economies of scale in transportation of vaccines into the country.
    • Once the vaccines arrive in India, these could be distributed across States equitably in a needs-based and transparent manner.
    • Another benefit of central coordination is that distribution of constrained resources like medical supplies, financial resources can internalise the existing disparities in health infrastructure across States.

    2) Form Pandemic Preparedness Unit

    • There is a need for the creation of a “Pandemic Preparedness Unit” (PPU) by the central government.
    • PPU would streamline disease surveillance and reporting systems; coordinate public health management and policy responses across all levels of government.
    • It will also formulate policies to mitigate economic and social costs, and communicate effectively about the health crisis.

    Consider the question “India has among the highest out-of-pocket expenditure in the world, which is the result of poor public health infrastructure. Examine the factors responsible for poor public health infrastructure and suggest the ways to deal with it.”

    Conclusion

    As and when we emerge on the other side of the pandemic, bolstering public health-care systems has to be the topmost priority for all governments: the Centre as well as States.

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  • Centre’s decision to provide security to MLAs raises questions

    op-ed snap | Polity | Mains Paper 2: Federalism

    The article deals with the issue of the Home Ministry’s decision to provide security to BJP MLAs in West Bengal.

    Context

    Recently, the Union Ministry of Home Affairs (MHA) decided to provide security cover to 77 MLAs of the Bharatiya Janata Party (BJP) who were elected earlier this month after the West Bengal Assembly poll.

    Issues with the decision

    1) Threat perception discussed for a group and not one by one person

    • Decisions to provide security to persons under threat is taken by a committee in the MHA.
    • The committee comprises officials from the MHA, the Intelligence Bureau, Delhi Police and senior officials of the Central Armed Police Forces.
    • In the meetings of the committee, the threat perception of each of the person to be secured is discussed one by one and not collectively for any group as such.
    • However, in the decision to deploy CAPF personnel for the 77 MLAs, threat perception for each of the persons was not discussed.

    2) Law and order is a state subject

    • Law and order being a State subject, West Bengal is duty-bound to protect every citizen of the State, more so the MLAs.
    • By deploying central forces, the Centre has sent a clear signal that it does not rely upon the State government to provide fool-proof security to the BJP MLAs.
    • This is not a good sign for Centre-State relations.
    • The Central government’s distrust of officers who are considered close to a State’s ruling dispensation does not bode well for police officers across the country.

    3) Burdening the security forces

    • The number of protected persons has increased in recent years.
    • In 2019, as many as 66,043 police and CAPF personnel were deployed to protect 19,467 persons against the sanctioned strength of 43,556 personnel, as per the Data on Police Organisations.
    • Constant deployment of CAPF personnel on protection duties impacts their training schedule.

    Curbing the tendency to have security as status symbol

    • To curb the tendency of demanding security personnel around themselves, leaders and prominent persons should be asked to bear the expenditure.
    • Similarly, Members of Parliament and leaders with criminal records should be charged a fee for the security personnel deployed to protect them.

    Conclusion

    The Centre’s decision to provide security to the MLAs would set a wrong precedent and does not bode well for federalism.

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  • Modern Indian History-Events and Personalities

    6 UNESCO heritage sites added in India

    India Mapping | History | Mains Paper 1: Arts & Culture

    Six sites have been added to India’s tentative list of UNESCO world heritage sites.

    Which are the 6 sites?

    1. Ganga ghats in Varanasi
    2. Temples of Kancheepuram in Tamil Nadu
    3. Satpura Tiger Reserve in Madhya Pradesh
    4. Maratha military architecture in Maharashtra
    5. Hire Bengal megalithic site in Karnataka and
    6. Bhedaghat-Lametaghat of Narmada Valley in Madhya Pradesh

    [1] Ghats of Varanasi

    • The Ganges riverfront of Varanasi, Uttar Pradesh, has been vying for the UNESCO tag for several years now.
    • The Ganga river with its riverfront ghats also fulfil the criteria of Cultural Landscapes as designated in Article 1 of the Convention and specifically that of a cultural landscape/
    • It retains an active social role in contemporary society closely associated with the traditional way of life, and in which the evolutionary process is still in progress.

    [2] Temples of Kanchipuram

    • Synonymous with spirituality, serenity, and silk, the temple town of Kanchipuram in Tamil Nadu, is dotted with ancient temples that are architectural marvels and a visual treat, states incredibleindia.org.
    • Situated on the banks of River Vegavathi, this historical city once had 1,000 temples, of which only 126 (108 Shaiva and 18 Vaishnava) now remain.
    • Its rich legacy has been the endowment of the Pallava dynasty, which made the region it’s capital between the 6th and 7th centuries and lavished upon its architectural gems that are a fine example of Dravidian styles.

    [3] Satpura Tiger Reserve

    • Located in Madhya Pradesh, the Satpura National Park is home to 26 species of the Himalayan region including reptiles, and 42 species of Nilgiri areas.
    • It is the largest tiger-occupied forest and also has the largest tiger population.
    • The website also states the place has more than 50 rock shelters with paintings that are 1500 to 10,000 years old.

    [4] Maratha Military Architecture in Maharashtra

    • There are 12 forts in Maharashtra dating back to the era of the 17th-century Maratha king Chhatrapati Shivaji.
    • They are namely Shivneri (the birthplace of Shivaji); Raigad (the capital fort rebuilt for the coronation of the Maratha king), Torna (the first fort of the Maratha empire), Rajgad, Salher-Mulher, Panhala, Pratapgad, Lohagad, Sindhudurg, Padmadurga (Kasa), Vijaydurg and Kolaba.
    • This highlight how the formation of Military Landscape in the form of hill and sea forts as a response to hilly terrain in the area is of outstanding universal value.

    [5] Megalithic site of Hire Benkal

    • The 2,800-years-old megalithic site of Hire Benkal in Karnataka is one of the largest prehistoric megalithic settlements where some funerary monuments are still intact.
    • The granite structures are burial monuments that may also have served many ritual purposes.
    • Due to the extremely valuable collection of Neolithic monuments, the site was proposed for recognition.

    [6] Bhedaghat-Lametaghat in Narmada Valley- Jabalpur

    • Bhedaghat, often referred to as the Grand Canyon of India, is a town in the Jabalpur district, around 25 km from Jabalpur.
    • It is known for its marble rocks and their various morphological forms on either side of the Narmada River which flows through the gorge states whcunesco.org.
    • It has also been observed that the magical marble mountains assume different colours and even shapes of animals and other living forms as one moves through them.
    • Several dinosaur fossils have been found in the Narmada valley, particularly in Bhedaghat-Lametghat area of Jabalpur. In 1828, the first Dinosaur fossil was collected from Lameta Bed by William Sleeman.
    • River Narmada narrows down on its way through marble rocks and plunges in a waterfall giving out the appearance of a smoke cascade.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    FinMin grants ‘infrastructure’ status for convention centres

    | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The Finance Ministry has granted ‘Infrastructure’ status for exhibition and convention centres, a move that is expected to ease bank financing for such projects.

    Exhibition-cum-Convention Centre

    • ‘Exhibition-cum-Convention Centre is included in the Harmonized Master List of Infrastructure sub-sectors by insertion of a new item in the category of Social and Commercial Infrastructure.
    • The benefits available as ‘infrastructure’ projects would only be available for projects with a minimum built-up floor area of 1,00,000 square metres of exclusive exhibition space or convention space or both combined.
    • This includes primary facilities such as exhibition centres, convention halls, auditoriums, plenary halls, business centres, meeting halls etc.
    • As of now, the major projects underway in the sector are backed by the government – the International Exhibition-cum-Convention Centres at Dwarka as well as Pragati Maidan in the capital.

    What is the Master List?

    • The Harmonized Master list approved by the cabinet committee on infrastructure has five main sectors and 29 infra subsectors.
    • The five sectors include transport, energy, water sanitation, communication and social and commercial infrastructure.
    • The infra tag allows certain benefits including access to easier borrowings overseas, the ability to raise funds through tax-free bonds, tax concessions, and access to dedicated lenders such as IIFCL, and the debt funds.
    • Last August, the government had added affordable rental housing projects to the list of sectors recognised as infrastructure.

    Benefits of the move

    • The infrastructure tag no longer involves significant tax breaks but would help such projects get easier financing from banks, said experts.
    • India doesn’t have large convention centres or single halls with capacities to hold 7,000 to 10,000 people, unlike countries like Thailand that is a major global MICE-destination.
    • Becoming a MICE (Meetings, Incentives, Conferences and Exhibitions) destination can generate significant revenue with several global companies active in India but it will take time to become a preferred destination.

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