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  • Digital India Initiatives

    Need for open protocols and networks in the realm of internet

    We are familiar with the dominance of some platforms on the internet. That dominance start to create problems. This article discusses the issues with dominance and suggests the solution drawing on the success of UPI.

    Platforms on the internet

    • Platforms are technology layers that leverage the internet to bring together producers, resellers and consumers.
    • Platforms reduce transaction costs by cutting out intermediaries.
    • Amazon started by selling books but became a profitable giant by creating the e-commerce platform called Amazon Marketplace.
    • The most valuable companies today are platforms for search, social interaction, advertising, insurance, travel, real estate, etc.

    Issues with the platforms

    • 1)The promise of the internet was disintermediation, but the process has hit a speed breaker with major platforms taking on the role of mediation. 
    • 2) There may be multiple platforms in the game to start with, but due to network effects and the non-portability/lock-in, only a few monopolies space.
    • 3) Big platforms have tried to create a sort of  cartel in which to trap the customers while fencing off the rest of the internet.
    • 4) The platforms amass data about users which is used to influence user behaviour, which is not limited to guiding the buying decisions.

    So, what is the solution?

    Let’s look at the success story of  the UPI

    • Unified Payment Interface (UPI) is a set of protocols that standardises the language of money transfer.
    • It is an interface: a simple and structured protocol for instructions and a clearinghouse that relays well-formed requests to concerned parties for execution.
    • Once the language is there, a user may choose any app to link their bank account to a UPI ID and make a pay or collect request involving any other bank account.
    • UPI handled 1.3 billion transactions in June 2020, overtaking the aggregate number of transactions of all legacy “platforms”.
    • UPI succeeded because it treated all players, big or small, equally.
    • This allowed third-party innovators to drive adoption by creating solutions that addressed the need of the people.

    Solution: Adopting of open protocols

    • Application Programming Interfaces (or API) are protocols that define the meaning of data exchanged between two computers.
    • Universally accepted API definitions could allow a cabbie to be discovered by any cab aggregator app the rider may choose.
    • In healthcare, it could facilitate finding a doctor, booking an ambulance, taking out insurance, filing a claim, sharing a medical report or purchasing medicines from a pharmacy.

    Advantages of open protocols

    • Open protocols create ecosystems that are non-rivalrous and non-excludable by design.
    • Even smallest of application developers or start-ups can offer low-cost, locally relevant solutions using the protocol.
    • We can address the needs of the diverse business community and achieve much greater penetration for e-commerce than the 10 per cent of today.
    • Open systems have the potential to transform education, food delivery, by enabling entrepreneurs to compete on their quality and reputation alone.
    • Portability from one application to another, privacy and data empowerment will be some of the issues taken care of.
    • We can reduce our dependence on foreign platforms.

    Consider the question “What are APIs? Examine the issues created by the dominant internet platforms and how the adoption of open protocols for API could address the problem?”

    Conclusion

    With such a huge potential in APIs open protocols, the government must bring out the policy for the creation of open protocols and realise the untapped potential it offers.

  • Important Judgements In News

    Relations between judiciary and legislature

    The article discusses the relation between the judiciary and the legislature. Recent development in Rajasthan assembly serves as the backdrop.

    Context

    • The political tussle in Rajasthan entered the High Court and the Supreme Court.
    • The Supreme Court itself proposed to rule on the larger question of the jurisdiction of courts to entertain such pleas.

    Historical background

    • The President of India made a presidential reference to the Supreme Court on the relative powers of legislative assemblies and constitutional courts.
    • The Supreme Court held that there is a broad separation of essential powers of each organ of the State.
    • However, the Court went on to hold that a judge who entertains a petition challenging any order of the legislature does not commit contempt of the said legislature.
    • Since then court have restrained themselves from interfering in the workings of legislative assemblies or Parliament is concerned.
    • The sole exception is under the anti-defection law-after a final order of disqualification has been passed.

    Let’s look into Kihoto Hollohan’s case

    • Constitution bench of the Supreme Court in 1992 held that the Speaker acting in a disqualification matter acts as a tribunal and is subject to judicial review.
    • However, the same judgment makes it clear that the Court will not intervene at an interim stage.
    • The same judgment further holds the Speakers/Chairmen hold a pivotal position in the scheme of Parliamentary democracy and are guardians of the rights and privileges of the House.

    Let’s now look into Rajasthan episode

    • In this case, issuance of a possible disqualification notice by the Speaker, has been contested in constitutional courts.
    •  Even in routine petitions against notices of proposed administrative actions, the petitioner is told to answer the show cause notice and to challenge the final action only.
    • The Rajasthan High Court, however, entertained a petition to challenge the Speaker’s authority to decide, if MLAs had committed an act of defection.
    • The Rajasthan High Court reserved its judgment, requested the Speaker to defer further proceedings and proceeded to direct him to await judgment.

    Co-equality of Constitutional authorities

    • Rajasthan assembly Speaker moved the Supreme Court, questioning the court’s power to direct a Constitutional authority.
    • The principle of law applied is that Constitutional authorities cannot issue directions to each other.
    • They can, at best, make a polite request.
    • The single judge in Calcutta, recorded in his judgment that the Supreme Court was only co-equal with the High Court, as a Constitutional Court.
    • Appellate powers of the Supreme Court did not make it a superior authority to which the High Court was subordinate.
    • Ever since, the Supreme Court has been careful to couch its orders as requests to any High Court, or Constitutional authority.
    • Constitutional courts have followed the same principle, in addressing other Constitutional authorities.

    Role of judiciary in maintaining the balance

    • Unnecessary conflict between organs of state may well invite some Speaker, backed by a solid majority at State and Centre, to defy the courts.
    • Courts are apolitical but keep getting pulled into political thickets, especially in matters of mass defections resulting in regime change.
    • The walls of separation between constitutional organs, once breached, cannot be then repaired against future intrusions.

    Consider the question “Analyse fine balance Indian Consitution strikes between the various Constitutional authorities. Also examine how role of judiciary in dealing with the anti-defection law.”

    Conclusion

    Even under a sovereign Constitution, parliamentary and legislative supremacy in their areas of working must be respected.

  • RBI Notifications

    RBI signs $400 mn currency swap facility for Sri Lanka

    The RBI has agreed to a $400 million currency swap facility for Sri Lanka till November 2022.

    Practice question for mains:

    Q. What are Currency Swaps? Discuss the efficacy of Currency Swap Agreements for liberalizing bilateral trade.

    Why such move by RBI?

    • The RBI’s action follows a recent bilateral ‘technical discussion’ on rescheduling Colombo’s outstanding debt repayment to India.
    • Following the outbreak of COVID-19 in the region, India had proposed a virtual meeting to discuss the request. Sri Lanka owes $960 million to India.
    • In turn, Sri Lanka would facilitate, protect and promote a liberal ecosystem for Indian investors.

    What are Currency Swaps?

    • A currency swap, also known as a cross-currency swap, is an off-balance sheet transaction in which two parties exchange principal and interest in different currencies.
    • Currency swaps are used to obtain foreign currency loans at a better interest rate than could be got by borrowing directly in a foreign market.

    How does it work?

    • In a swap arrangement, RBI would provide dollars to a Lankan central bank, which, at the same time, provides the equivalent funds in its currency to the RBI, based on the market exchange rate at the time of the transaction.
    • The parties agree to swap back these quantities of their two currencies at a specified date in the future, which could be the next day or even three months later, using the same exchange rate as in the first transaction.
    • These swap operations carry no exchange rate or other market risks, as transaction terms are set in advance.

    Why does one need dollars?

    • FPIs investors look for safer investments but the current global uncertainty over COVID outbreak has led to a shortfall everywhere in the global markets.
    • This has pulled down foreign exchange reserves of many small and developing countries.
    • This means that the government and the RBI cannot lower their guard on the management of the economy and the external account.

    Benefits of currency swap

    • The absence of an exchange rate risk is the major benefit of such a facility.
    • This facility provides the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.
    • Swaps agreements between governments also have supplementary objectives like the promotion of bilateral trade, maintaining the value of foreign exchange reserves with the central bank and ensuring financial stability (protecting the health of the banking system).
  • Wetland Conservation

    What is Khazan Farming System?

    The Salim Ali Bird Sanctuary in low-lying floodplains of Goa is characterized by an estuarine agricultural system called Khazan farming.

    Try this question from our AWE initiative:

    How far is the Integrated Farming System (IFS) helpful in sustaining agricultural production? (10 Marks)

    Khazan Farming

    • The low-lying floodplains of Goa host an estuarine agricultural system called Khazan farming.
    • This system is a carefully designed topo-hydro-engineered agro-aquacultural ecosystem mainly based on the regulation salinity and tides.

    How does it work?

    • Centuries ago, people in this region reclaimed low-lying brackish coastal floodplains and mangrove forests.
    • They constructed bunds using locally available material to prevent the ingress of saltwater, which killed the halophilic mangroves.
    • To control the flow of tidal waters, they built openings in bunds fitted with one-way gates.
    • These channels would fill in with the oncoming tide and bring with them fish, crab and shrimp, and the gates would automatically shut when the water level was equal on both sides.
    • This prevented the water from overflowing into the fields used to grow paddy and which has a low tolerance to salt.
    • When the tide receded, these gates would open outwards automatically, allowing the water to drain out.
    • During this time, a bag net was set at the gate to catch fish that had entered in earlier.

    Benefits of Khazan

    • Every bit of space was precious and used efficiently — the bunds were used to grow a variety of vegetables.
    • The Khazan system allowed for the farmer and the fisher to harmoniously coexist and was the key to sustaining what is considered Goa’s staple — fish, curry and rice.

    Why is it neglected these days?

    • Today, for various reasons, but primarily due to post-independence agrarian reforms of 1961, these lands largely lie fallow and are in a state of decay.
    • Lack of cultivation and maintenance of the bunds and sluice gates is leading to their breaching and the natural reclamation of these fallow lands by mangroves.
    • Moreover, mangroves are protected by law and it is illegal to cut them.
    • Areas that have these trees growing on them also come under the purview of the coastal regulation zone (CRZ); according to the 2011 notification, the mangrove areas are classified as CRZ I and cannot be developed upon.

    Back2Basics: Salim Ali Bird Sanctuary

    • The Salim Ali Bird Sanctuary is Goa’s smallest protected area — it comprises barely two square kilometres of lush mangrove forests.
    • The sanctuary is located on Chorão, one of Goa’s estuarine islands in the Mandovi river approximately five kilometres from capital Panaji.
    • The sanctuary and its surrounds are home to marsh crocodiles, smooth-coated otter, the unique glossy-marsh snake that feeds on crabs, mud lobsters, sap-sucking sea slugs, among others.
  • Coronavirus – Health and Governance Issues

    In news: National Centre for Disease Control (NCDC)

    India’s premier organisation mandated to collect data about diseases, the NCDC is failing in its task as the spread of COVID-19 continues unabated.

    Practice question for mains:

    Q. Health infrastructure in India is hardly capable of handling any pandemic. Critically comment.

    About the National Centre for Disease Control

    • The NCDC carries out nationwide disease surveillance through its Integrated Disease Surveillance Programme (IDSP).
    • It is a vertical programme under Directorate General of Health Services.

    Its formation

    • This programme has been present in the country in different avatars since 1997 when the National Surveillance Programme for Communicable Diseases was set up.
    • This was upscaled to the Integrated Disease Surveillance Project in 2004, with assistance from the World Bank, to address the demands of the WHO’s International Health Regulations, 2005.
    • Under this, each country had to assess public health emergencies of international concern within 48 hours and report them to WHO within the next 24 hours.
    • It was then included in the 12th Plan (2012-17) under the Union Health Ministry and renamed IDSP.

    Mandate of the NCDC

    To aid the process of an investigation, NCDC has put down 10 steps that need to be followed for each outbreak:

    • Determine the existence of an outbreak
    • Confirm the diagnosis
    • Define a case
    • Search for cases
    • Generate hypothesis using descriptive findings
    • Test hypothesis with the analytical study
    • Draw conclusions
    • Compare hypothesis with established facts
    • Communication of findings
    • Execute preventive measures

    Why did NCDC fail?

    • IDSP’s manual says weekly and monthly updates are mandatory for each State and UTs even if no outbreaks are reported.
    • But this has never been observed to date.
    • There is an overlap between the diseases being followed by IDSP and other agencies like the National Vector Borne Disease Control Programme
    • The fact that IDSP does not collect mortality data was also a concern. Moreover, the IDSP was not investigating zoonotic diseases.
  • Skilling India – Skill India Mission,PMKVY, NSDC, etc.

    [pib] Kumhar Sashaktikaran Yojana (KSY)

    The Centre has distributed 100 electric potter wheels to 100 trained artisans under the KSY.

    Try this question from CSP 2018:

    Q. Consider the following provisions under the Directive Principles of State Policy as enshrined in the Constitution of India:

    1. Securing for citizens of India a uniform civil code.
    2. Organising village panchayats.
    3. Promoting cottage industries in rural areas.
    4. Securing for all the workers reasonable leisure and Cultural opportunities.

    Which of the above are the Gandhian Principles that are reflected in the DPSP?

    (a) 1, 2 and 4

    (b) 2 and 3

    (c) 1, 3 and 4

    (d) 1, 2, 3 and 4

    Kumhar Sashaktikaran Yojana

    • KSY is an initiative of the Khadi and Village Industries Commission (KVIC) for the empowerment of potters’ community in the remotest of locations in the country.
    • It reaches out to the potters in U.P., M.P., Maharashtra, J&K, Haryana, Rajasthan, West Bengal, Assam, Gujarat, Tamil Nadu, Odisha, Telangana and Bihar.

    Benefits provided

    This program provides the following support to potters.

    • Training for advanced pottery products
    • Latest, new technology pottery equipment like the electric Chaak
    • Market linkages and visibility through KVIC exhibitions

    Back2Basics: KVIC

    • The KVIC is a statutory body formed in April 1957 under the ‘Khadi and Village Industries Commission Act of 1956’.
    • It is an apex organisation under the Ministry of Micro, Small and Medium Enterprises, with regard to khadi and village industries within India.
    • It seeks to plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas.
    • Its head office is in Mumbai, whereas its six zonal offices in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati.
  • Modern Indian History-Events and Personalities

    Rosalind Franklin: the unsung heroine of DNA

    The famous British scientist and virologist Rosalind Franklin is remembered across the world on her birth centenary who worked to construct the double-helix structure of DNA.

    Try this PYQ from CSP 2019:

    DNA/RNA has been an all-time favourite of UPSC!

    Q.‘RNA interference (RNAi)’ technology has gained popularity in the last few years. Why?

    1. It is used in developing gene-silencing therapies.
    2. It can be used in developing therapies for the treatment of cancer.
    3. It can be used to develop hormone replacement therapies.
    4. It can be used to produce crop plants that are resistant to viral pathogens.

    Select the correct answer using the code given below:

    (a) 1, 2 and 4

    (b) 2 and 3

    (c) 1 and 3

    (d) 1 and 4 only

    Rosalind Franklin (1920-1958)

    • She was an English chemist and X-ray crystallographer whose work was central to the understanding of the molecular structures of DNA (deoxyribonucleic acid), RNA (ribonucleic acid), viruses, coal, and graphite.
    • Although her works on coal and viruses were appreciated in her lifetime, her contributions to the discovery of the structure of DNA were largely recognised posthumously.

    DNA breakthrough

    • In 1952, Raymond Gosling, a graduate student at King’s College London, took a historic X-ray photograph under Franklin’s supervision.
    • Photo 51, as it is called, demonstrates the now-familiar, double-helix structure of DNA.

    Why is she remembered now?

    • The world is currently gripped in a pandemic, and her pioneering research in virology provided a crucial early step in the search for cures, vaccinations and tests.
    • During the Second World War, Franklin carried out research into coal and graphite that proved important for gas-masks, the PPE of that time.
    • It is because of Franklin, her collaborators and successors, that today’s researchers are able to use tools such as DNA sequencing and X-ray crystallography to investigate viruses such as COVID-10.

    Back2Basics: DNA/RNA 

    • Deoxyribonucleic acid (DNA) and Ribonucleic acid (RNA) are perhaps the most important molecules in cell biology, responsible for the storage and reading of genetic information that underpins all life.
    • They are both linear polymers, consisting of sugars, phosphates and bases, but there are some key differences which separate the two.
    • These distinctions enable the two molecules to work together and fulfil their essential roles.
    • DNA encodes all genetic information and is the blueprint from which all biological life is created. And that’s only in the short-term.
    • In the long-term, DNA is a storage device, a biological flash drive that allows the blueprint of life to be passed between generations.
    • RNA functions as the reader that decodes this flash drive. This reading process is multi-step and there are specialized RNAs for each of these steps.

    Three types of RNA

    • Messenger RNA (mRNA) copies portions of genetic code; a process called transcription and transports these copies to ribosomes, which are the cellular factories that facilitate the production of proteins from this code.
    • Transfer RNA (tRNA) is responsible for bringing amino acids, basic protein building blocks, to these protein factories, in response to the coded instructions introduced by the mRNA. This protein-building process is called translation.
    • Finally, Ribosomal RNA (rRNA) is a component of the ribosome factory itself without which protein production would not occur.
  • Foreign Policy Watch: India-South Korea

    Deepening ties with South Korea

    South Korea’s technological advancement and manufacturing capabilities can be helpful in India’s economic growth and human resource development. Seoul’s successful development story of the last few decades can complement Modi’s vision of making a “New India” by 2022.

  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Gold and forex reserves cannot finance stimulus

    The article analyses the issues with suggestions like printing of currency and using forex reserves to finance the stimulus. They also lead to an increase in government debts.

    Context

    • Prime Minister announced a stimulus package of 20 trillion to fight the economic fallout of the covid pandemic.
    • Since then, several unorthodox ideas have been floated to raise funds for it without straining government finances.
    • Among the suggestions are the printing of currency, and using foreign exchange reserves or household gold.

    Let’s look at entries in the RBI’s balance sheets

    • On the liabilities side of it is the currency in circulation, commercial bank reserves  and government reserves.
    • On the asset side of it is forex reserves, government securities and gold.
    • The balancing item represents the central bank’s equity and accumulated surplus.

    Let’s look at 3 options suggested above and issues with them-

    1) Printing currency

    • Doing this would increase the liabilities of the RBI under “currency in circulation”.
    • But it first needs to acquire assets to offset this increase in liability.
    • These assets could be government securities, forex reserves or gold.
    • Thus, one way for the government to finance its expenditure would be to issue government bonds and ask RBI to print currency with which to subscribe to such bonds.
    • This is known as deficit monetization.
    •  It is important to note that for the central bank to print money, the government would have to issue bonds to it.
    • It will increase government debt.

    2) Monetisation of gold held by household

    • This would first involve the government buying gold from households in exchange for its bonds.
    • Then, the accumulated gold would be bought by RBI from the government with newly printed currency.
    •  In this case, instead of creating new money to acquire government bonds, RBI would be doing the same to acquire gold.
    • This too involves the Centre taking on additional debt.
    •  Moreover, gold monetization schemes in the past have yielded only mild success.

    3) Using RBI’s forex reserves

    • Against every dollar of forex reserves shown by RBI on the asset side, an equivalent rupee amount has already been created on the liability side.
    • This is because whenever RBI acquires foreign currency, it pays for it using the Indian rupee.
    • Thus, no additional currency can be printed against such already-acquired reserves.
    • The only way our forex reserves can be used for generating additional resources is by pledging them to a third party.
    • The pledging of RBI’s assets to raise funds is done only under extreme circumstances, for instance, during the 1991 balance of payments crisis.
    • We are certainly not in a situation that warrants a repeat of an exercise where RBI’s assets, be it gold or forex reserves, have to be mortgaged.

    So, what is the way out?

    • There are only three ways to finance government expenditure: taxes, debt and asset sales.
    • Taxes and asset sales can pitch in a bit towards the stimulus bill.

    Consider the question “Examine the ways in which government can raise the funds to finance the stimulus package and also discuss the issues with each move.”

    Conclusion

    There is no escaping the fact that we are staring at a higher build-up of government debt in the future. When we stop harbouring the notion that we can pay the stimulus bill without any deterioration in government finances, we will be able to see the bitter truth: There is no such thing as a free lunch.

    Read more about the issue here:

    India’s rising Forex Reserves

  • Urban Transformation – Smart Cities, AMRUT, etc.

    False urban rural binary

    The article brings out the issues in the rural-urban binary, which leads to the disparity in the allocation of resources to the urban areas.

    Congestion and health issues in cities

    • The congestion in large cities has turned out to be their worst enemy during this pandemic.
    • Congestion is most evident in slums in large cities and poses a grave health and environmental challenges.
    • Yet, the Centre’s allocation for the rural component of the Swachh Bharat Mission is about seven times more than for urban areas.
    • Class I cities have 1.4 beds per 1,000 people. (with the population more than 1 lakh)
    • However, the urban support under the National Health Mission is just three per cent of the total allocation, while 97 per cent of the funds are set aside for rural areas.

    Issues with the present urban development programs

    • The Jawaharlal Nehru National Urban Renewal Mission (2005-2014) allocated the bulk of funds to large cities: 70 per cent to large cities and 30 per cent to smaller towns.
    • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and the Smart Cities Mission, focus on Class I cities.
    • Both these schemes provide funds for the more developed cities that already have relatively better infrastructure.
    • But these schemes overlook the nearly seven crore people who live in smaller towns.
    • These are towns that lag behind in services and infrastructure as compared to the big cities.

    Consider the question “The rural-urban binary has led to the policy formulation in which there is a huge disparity in the allocation of resources and attention on the urban area. Comment.”

    Conclusion

    The pandemic has forced us to reflect on the unequal and unplanned development of urban settlements and the absence of infrastructure to provide for the teeming millions.  The challenges of urban poverty and congestion cry for more attention, more government support.

    Original article:

    https://indianexpress.com/article/opinion/columns/coronavirus-covid-19-pandemic-india-urban-cities-6520574/

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