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  • Zoonotic Diseases: Medical Sciences Involved & Preventive Measures

    What is Contact Tracing Technology?

    Global technology giants Apple and Google have announced that they are partnering on developing contact tracing technology to help governments and health authorities tackle the novel coronavirus pandemic.

    What did tech-giants announce?

    • Contact tracing is considered essential for bringing epidemics under control and is expected to help governments in relaxing lockdown orders.
    • The tech companies announced that they would build a comprehensive solution that includes application programming interfaces (APIs) and operating system-level technology to assist in enabling contact tracing.

    What is contact tracing?

    • The WHO defines contact tracing as the process of identifying, assessing, and managing people who have been exposed to a disease to prevent onward transmission.
    • Via contact tracing, people who have come into contact with a person carrying a disease are alerted and identified.

    Importance of contact tracing

    • Identifying people at the onset of symptoms and promptly isolating them reduces exposure to other persons, preventing subsequent EVD (Ebola Virus Disease) infections.
    • Additionally, prompt isolation and admission of the symptomatic person to a treatment facility decreases the delay to supportive treatment, which improves the likelihood of survival.

    How will the new technology by Google and Apple work?

    • Google and Apple are the developers of the Android and iOS platforms respectively, which together power most of the world’s smartphones.
    • Both companies will release application programming interfaces (APIs) that would enable interoperability between Android and iOS devices using apps from public health authorities.
    • The official apps will be available for users to download via their respective app stores, as per the press release.
    • When this step is realized, phone-based matching via official apps will help alert people if they have come in contact with someone diagnosed with COVID-19.

    Actual working

    • For this to work, COVID-19 patients would have to declare their status to the respective apps voluntarily.
    • Following this, all people whose Android/iOS smartphones were detected nearby such patients, would get notified.
    • This means the user will be notified even if he/she was around a stranger who has tested positive for the disease.

    Issues with contact tracing

    • Privacy, transparency, and consent are of utmost importance in this effort.
    • The tech giants should look forward to building this functionality in consultation with interested stakeholders.

    Note: How is our Aarogya Setu app different from the technology mentioned in the newscard?

  • Capital Markets: Challenges and Developments

    How a dollar swap line with US Fed can help in uncertain times?

    India is working with the US to secure a dollar swap line that would help in better management of its external account and provide an extra cushion in the event of an abrupt outflow of funds.

    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.
    • The purpose of a currency swap is to lower exposure to exchange rate risk or reduce the cost of borrowing a foreign currency.

    Why do we need dollars?

    • According to RBI data, 63.7% of India’s foreign currency assets — or $256.17 billion — are held in overseas securities, mainly in the US treasury.
    • While FPIs investors looking for safer investments, the current global uncertainty over COVID outbreak have led to a shortfall in Indian stock markets.
    • This has pulled down India’s foreign exchange reserves.
    • This means that the government and the RBI cannot lower their guard on the management of the economy and the external account.

    How does a swap facility work?

    • In a swap arrangement, the US Fed provides dollars to a foreign central bank, which, at the same time, provides the equivalent funds in its currency to the Fed, 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.

    Benefits of currency swap

    • The absence of an exchange rate risk is the major benefit of such a facility.
    • This facility provides India with the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.
    • currency swaps between governments also have supplementary objectives like 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).

    Recent examples

    • India already has a $75 billion bilateral currency swap line with Japan, which has the second-highest dollar reserves after China.
    • The RBI also offers similar swap lines to central banks in the SAARC region within a total corpus of $2 billion.

    Note: Relate all other terminologies related to USD-INR convertiblity viz. Current Account, BoP etc.

  • Corporate Social Responsibility: Issues & Development

    Covid-19 donations to CM Relief Fund won’t qualify as CSR

    The corporate affairs ministry has clarified that COVID-19 donations to CM Relief Fund won’t qualify as CSR contributions.

    Contributions considered under CSR

    • According to the ministry, contributions made to the State Disaster Management Authority to combat COVID-19 would qualify as CSR expenditure.
    • The contributions by companies to PM-CARES Fund to tackle the pandemic would be considered as CSR.
    • Ex-gratia payments made to temporary, casual and daily wage workers by companies will be considered as CSR expenditure under the company’s law, provided that such payments are over and above disbursement of wages.
    • The contribution towards ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19’ would not be considered as spending towards CSR work.

    Note: Please remember or make note of the various contributions complying for CSR.


    Back2Basics: CSR in India

    • India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to the Companies Act, 2013 in April 2014.
    • Prior to that, the CSR clause was voluntary for companies, though it was mandatory to disclose their CSR spending to shareholders.
    • Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.
    • Under the Companies Act, 2013, certain classes of profitable entities are required to spent at least 2 per cent of their three-year average annual net profit towards CSR activities.
    • Under Section 135 of the Companies Act, 2013, every company having net worth of at least ₹500 crore, turnover of ₹1,000 crore or more, or a minimum net profit of ₹5 crore during the immediately preceding financial year, has to make CSR expenditure.
  • Festivals, Dances, Theatre, Literature, Art in News

    [pib] Diverse names of harvesting festival

    The nation today celebrates the festival of harvest, Vaishakhi under diverse names. Vaisakhi celebrates the solar new year, based on the Hindu Vikram Samvat calendar.

    Vaishakhi

    • Vaisakhi also known as Baisakhi is a historical and religious festival in Sikhism.
    • It is usually celebrated on 13 or 14 April every year which commemorates the formation of Khalsa panth of warriors under Guru Gobind Singh in 1699.
    • In Sikhism, Vaisakhi marks the start of the Khalsa in 1699 by Guru Gobind Singh.

    Other names

    • Maha Bishuba Pana Sankranti (Odisha)
    • Bikhu or Bikhauti (Kumaon region of Uttarakhand)
    • Bisu (Tulu region of Karnataka)
    • Bohag Bihu (Assam)
    • Puthandu (Tamil Nadu)
    • Vishu (Kerala)

    Note: Harvest festivals are significant events. Do try to remember their names as one can expect a match the pair question.

  • Coronavirus – Economic Issues

    [pib] Operation Lifeline UDAN

    To ensure a steady supply of essentials, even in the most remote locations, the Union Civil Aviation Ministry launched ‘Lifeline Udan’.

    Don’t get confused or correlate this with Ude Desh ka Aam Nagrik (UDAN) Scheme. The name clearly indicates that it is an HADR like operation. Whats HADR? Humanitarian Assistance and Disaster Relief

    Op. Lifeline Udan

    • Under this operation, flights are being operated to transport essential medical cargo to remote parts of the country amid the lockdown to support India’s fight against Covid-19.
    • The flights have been operated by Air India, Alliance Air, Indian Air Force, Pawan Hans and private carriers.
    • The cargo compulsorily supplies goods such as regents, enzymes, medical equipment, testing kits and PPE, masks, gloves and other essential items as applicable by the State and UT Governments.
    • Air India is shouldered to operate dedicated scheduled cargo flights to other countries for transfer of critical medical supplies, as per the requirement.
  • Coronavirus – Health and Governance Issues

    [pib] YUKTI web-portal

    Union Ministry for HRD has launched a web-portal YUKTI (Young India Combating COVID with Knowledge, Technology and Innovation).

    There are various web/portals/apps with peculiar names, ex. DISHA, SWAYAM. Note them down with their one line purpose. UPSC Prelims may quiz you on these.

    YUKTI web-portal

    • YUKTI is a unique portal and dashboard to monitor and record the efforts and initiatives of MHRD.
    • The portal intends to cover the different dimensions of COVID-19 challenges in a very holistic and comprehensive way.
    • The primary aim of the portal is to keep academic community healthy, both physically & mentally and to enable a continuous high-quality learning environment for learners.

    Utility of the portal

    • The portal allows various institutions to share their strategies for various challenges which are there because of the unprecedented situation of COVID-19 and other future initiatives.
    • It will give inputs for better planning and will enable MHRD to monitor effectively its activities for coming six months.
    • It will establish a two-way communication channel between the Ministry of HRD and the institutions so that the Ministry can provide the necessary support system to the institutions.
  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    World trade fall mustn’t stoke export pessimism

    Context

    The WTO expects a sharp drop-off in global trade in the wake of Covid-19. But India must not withdraw inwards.

    Prospects of the exports

    • Impact on global trade: The World Trade Organization (WTO) predicts that global trade could fall by 13-32% this year on account of disruptions and all the turmoil.
    • At this point, we cannot even count on a quick recovery after this health emergency is past its peak.
    • A trade revival may have to wait till 2022 or later.
    • Indian exports have been in a slump for a large part of the past decade, and recent reports point to a rash of cancelled orders from abroad (except, notably, for drugs).
    • This, however, should not mean that we slip into export pessimism.
    • Opportunity in the crisis: Instead, a crisis such as this could serve as an opportunity to sharpen our competitive edge that has got blunt over the years.
    • Rupee and reform: This is best done through reforms, though a rupee on the decline vis-à-vis the US dollar should help too.

    Reasons for export orientations

    • The relation between growth and exports: No country is an island unto itself, and nations will continue to exchange goods and services so long as it makes economic sense.
    • Trade partners are usually better off producing what they’re best at, for all users, and buying from the rest what others turn out better—at a lower cost and higher quality.
    • Economies that participate in this game, as the historical record has shown, tend to grow faster.
    • There is another good reason for export orientation.
    • Foreign earnings: India needs foreign earnings, not just for oil imports and suchlike, but also for overall economic stability, given our reliance on foreign capital for growth.
    • In tough times such as these, when we may need to borrow money from abroad to bridge a hugely enlarged fiscal deficit, ensuring a stream of future dollar earnings becomes even more crucial.
    • To enable the issuance of dollar bonds and raise our chances of staging a less painful return to form, we need to get our export act together.

    Way forward to increase exports

    • Structural and policy changes: Export success goes by competitiveness, and for domestic businesses to achieve this, India would need to undertake several structural and policy changes.
    • We could begin with reversing the tariff barriers that have been raised in recent years.
    • Exposure to foreign competitors would force them to turn efficient and perform better.
    • Duties on inputs, especially, need to come down. So do other taxes that hold companies back. Other steps to raise productivity will help, too.
    • Good logistical backup is another big requirement.
    • The low value of rupee: The rupee’s slump is a plus for exporters, since their output is cheaper in dollar terms, but we may need to pursue a policy that does not let our currency’s value get over-inflated by inflows of foreign “hot money” (when they return).
    • Cost of capital: The cost of capital in India needs to be low, too, and this would depend on how well the government manages its finances.
    • India’s annual exports currently form less than 2% of the world’s. We should aim for 5%.
  • Government Budgets

    A plan for the aftermath

    Context

    Everyone is agreed that the whole world is hurtling towards an unprecedented economic recession. India, already facing a massive slowdown, is going to get hurt perhaps more than the others, because our economic immune system is already weak.

    Three things that we must do in the present situation

    • The first is containing the spread of the virus.
    • Apart from the manpower, medicines, protective equipment for frontline workers and other methods, it will need massive resources to tackle it.
    • Second, the poor are already suffering in more ways than one, including the daily wage earners. They will have to be taken care of, again needing massive resources.
    • Third, economic activity will have to be revived as soon as conditions return to normal or near-normal, for which businesses will have to be helped, again needing massive resources; both in terms of revenue foregone and actual cash outgo.
    • The question, therefore, on everyone’s mind is how much money will be needed for all this and where will it come from?
    • What the government and the RBI have done so far is clearly awfully inadequate. Other countries have done much more. India can be no exception.

    Where will the government will get resources?

    • Partly from market and partly form RBI: Broadly speaking, resources will come partly through market borrowings and partly from the RBI.
    • Manmohan Singh had decided in 1994 that in future the government of India would not monetise its deficit; in other words, would not borrow from the RBI but go to the money market and borrow from there.
    • Borrow from the RBI: In these unprecedented times, we may take leave from that very sound principle, which all governments have followed religiously since then, and borrow from the RBI.
    • What does it mean? This means printing of more currency notes with all its attendant problems including inflation.
    • Government of India will have to take the steps necessary to tackle the after-effects to the extent possible. It must ensure that the supply chains work smoothly.

    How will the money be spent?

    • The Important role of states: The states will have to play a very important role in this, as much of the work will have to be done by them.
    • Responsibility of finance commission: Since the finance commission continues to be in existence and has a clear idea of the state finances, it should be immediately tasked with the responsibility of discussing this matter with the state governments and making its recommendations available within a period of one month.
    • The task force under the finance minister could work out the needs of businesses and the government of India both in the short as well as the medium term.
    • Spending money properly and efficiently: It should not be wasted and each rupee spent creates its own multiplier effect.
    • Our system leaves much to be desired. And the moment it is known that funding is not a constraint, the system can go berserk.
    • We must guard against that and ensure that rules are in place, specially at the field level to ensure the proper use of resources.

    Role of banks, financial institutions and MGNREGA

    • The banks and other financial institutions will have to be provided with resources to help the private sector, especially the agricultural and MSME sectors.
    • In the rural areas, we must ensure that durable assets are created out of the funds made available.
    • The rules governing the MGNREGA scheme should be tweaked to the extent necessary in order to ensure that more material than labour is used wherever necessary.

    Conclusion

    India should and can come out of the present crisis with as little damage as possible if we tackle it together. We cannot control what happens in other countries, but we can surely learn from them and adopt their best practices. We must also play our role in defining the new global order because the world is more intertwined now than ever before.

  • Foreign Policy Watch: India-China

    The new multilateralism

    Context

    As the major global institutions — from the WHO to the WTO — are experiencing unprecedented turmoil India needs to be pragmatic and fleet-footed.

    Reorientation of India’s multilateral strategy

    • As many international institutions, including the World Health Organisation and the United Nations Security Council, come under great stress in the corona crisis, Delhi’s multilateral strategy is going through a rapid reorientation.
    • Realists in Delhi recognise that India’s engagement with the UN is not about the pursuit of some higher ideological calling, but the navigation of hardball geopolitics.

    China’s growing influence and implications for India

    • China’s role on Kashmir question: China repeatedly pressed the UN to discuss the Kashmir question after Delhi changed the constitutional status of the region last August.
    • China avoiding discussion on Covid crisis: But through last month, as the rotating chair of the UNSC, China blocked any discussion of the Covid crisis.
    • Beijing insisted that the crisis was not a matter of international peace and security that the UNSC ought to bother itself with.
    • A mere internal administrative change in Kashmir, Beijing continues to insist, is a grave threat to international peace and security.
    • With its veto power, Beijing can simply prevent the UNSC from doing anything against China.

    Why the credibility of the UN and WHO bureaucracy is under cloud?

    • Secretary-General Antonio Guterres, jumped quickly into the Indo-Pak arguments over Kashmir, and raised concerns over India’s Citizenship Amendment Act and the National Register of Citizens.
    • Guterres went on an extended visit to Pakistan in February and made an ostentatious public offer to mediate between Delhi and Islamabad on Kashmir.
    • But when it comes to China’s role in the spread of the coronavirus, Guterres can’t seem to find the words.
    • The situation at the WHO is a lot worse.
    • The Director-General of WHO, Tedros Adhanom Ghebreyesus warns against the dangers of “politicising” the Covid crisis.
    • Many in Europe and the US think that is exactly what Tedros has done at the WHO in the last few months.
    • Breakdown of the multilateral system: What we are witnessing is the breakdown of the multilateral system that emerged from the ashes of the Second World War amidst the deepening contestation between the world’s foremost powers — the US and China.

    NEW MULTILATERALISM adopted by India

    • India’s new multilateralism — as a pragmatic response to external change — involves downplaying some past associations and strengthening new partnerships.
    • Take, for example, two innovations India has made since the end of the Cold War.
    • One was the BRICS forum with Brazil, Russia, China and South Africa and the other was the so-called Quad — a coalition of democracies with Australia, Japan and the US.
    • Actions of BRICS members with respect to India: As India reorders its multilateral priorities amid the corona crisis, the BRICS forum is losing some of its salience and the Quad is gaining traction.
    • Preventing discussion on COVID crisis: Two of India’s partners in BRICS — Russia and South Africa — had reportedly backed the efforts of a third, China, to prevent a discussion of the COVID crisis in the UNSC.
    • If Delhi were sitting in the UNSC right now as a non-permanent member, it would have had every interest in pressing for a discussion of the COVID crisis that has severely damaged India’s economic and social prospects.
    • Meanwhile, India is in regular consultations on managing the corona crisis with the “Quad Plus” grouping that draws in South Korea, Vietnam and New Zealand.
    • Neither the BRICS nor the Quad square with the conventional narrative on India’s multilateralism that was dominated in the past by the Non-Aligned Movement (NAM) and the G-77.
    • As circumstances change, India is finding new international partners to secure its interests.

    Context which gave rise to BRICS

    • It started out as a triangular coalition with Russia and China in the mid-1990s.
    • India’s interest in the RIC was borne out of fear of the unipolar moment and Russia’s relentless efforts to draw it into a “strategic triangle” that would resist “American hegemony”.
    • In the early 1990s, Delhi was rather wary of the Bill Clinton Administration’s plans to relieve India of its nuclear and missile programmes.
    • What made matters worse was the Clinton Administration’s formulation that “Kashmir is the world’s most dangerous nuclear flashpoint”.
    • This was not just a description; it was accompanied by a prescription for Delhi: Resolve the Kashmir question by sitting down with Pakistan and the Hurriyat.
    • If Delhi needs any help, Washington will be happy to chip in.
    • Balancing the US pressure: Going into a political tent with Russia and China seemed a sensible bet to ward off American pressures on the nuclear and Kashmir questions.

    Two decades after BRICS-Changes in circumstances

    • Two decades later, we are in a very different place.
    • Take the same two issues — Kashmir and the nuclear programme — that drove India into the BRICS.
    • China’s role on Kashmir issue: It is Beijing that wants the UNSC to take up the Kashmir question, and it is Paris and Washington that are preventing it.
    • NSG membership blocked by China: China has also resolutely blocked India’s effort to become a full member of the global nuclear order by joining the Nuclear Suppliers Group.
    • On the nuclear front too, it was France and the US that helped India break the nuclear blockade.
    • Shielding of Pakistan by China: China shields Pakistan from international pressures to end cross-border terrorism.
    • And it is India’s partners in the West and the Muslim world that are helping Delhi cope better with violent extremism.

    India’s engagement with Europe

    • India has also discovered the new possibilities for engaging Europe in the multilateral arena.
    • Europe as an important partner: If India’s definition of multilateralism — Afro-Asian solidarity — immediately after Independence was defined in opposition to colonial Europe, Delhi now sees Europe as a valuable partner in rearranging the global order.
    • India has joined the “alliance for multilateralism” initiated by Germany and supported by its European partners.

    Conclusion

    India needs all the pragmatism it can muster to pursue its interests in a world where all the major global institutions — from the WHO to the WTO — are experiencing unprecedented turmoil and are heading towards an inevitable restructuring.

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

    Alternative Market Channel: Bypassing the Farmer Mandis

    The start of the coronavirus pandemic coincided with the peak vegetable harvesting season. As the markets were locked down, there was a threat to the crop in over 100 lakh hectares in the country.

    Alternative Market Channels

    • The alternative market channel works on the principles of decentralisation and direct-to-home delivery.
    • The idea is to create smaller, less congested markets in urban areas with the participation of farmers’ groups and Farmer Producer Companies (FPCs) so that farmers have direct access to consumers.
    • It is providing a valuable option against the lockdown when efforts to avoid crowding in the wholesale markets are likely to continue.

    Success in Maharashtra

    • Maharashtra is one of a handful of states where FPCs are robust.
    • The model, implemented by the state Agriculture Department and Maharashtra State Agri Marketing Board (MSAMB), requires urban and rural local bodies and other stakeholders to buy into the agricultural marketing chain.

    Innovations in food supply chain management are always a hot topic in mains answers. Talk about decentralization and give examples of a successful implementation and you are all set for a good answer.

    How does it work?

    • The government and MSAMB identify farmer groups and FPCs, and form clusters; local bodies choose the market sites and link the markets for direct delivery to cooperative housing societies.
    • The FPCs and farmers’ groups are allotted space for weekly markets in municipal wards or localities.
    • Some producers group park pick-up trucks loaded with fruits and vegetables at the gates of housing societies.

    Why need such a mechanism?

    • The traffic of both buyers and sellers in these decentralized markets can be controlled more effectively than in wholesale mandis — a key advantage when social distancing is critical.
    • Most FPCs have minimized contact, and have taken to selling pre-packed, customised packets of vegetables.
    • This will likely help create alternative market chains that could continue even after more normal times return.

    Conclusion: A boon for the farmer

    • The practices of rudimentary packing, sorting and branding are being inculcated in farmers, as they pack and send pre-ordered packets to housing societies.
    • With this, a larger numbers of vegetable growers in Maharashtra have got into direct selling to consumers thus bypassing middlemen.

    Also read:

    Is e-NAM portal capable of supporting farmers?

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