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  • The Future of the US Dollar As a World Reserve Currency

    US Dollar

    Central Idea

    • The status of the US dollar as the world reserve currency has been a topic of speculation, especially as China, India, and Russia explore alternative currencies for international trade. However, the demise of the dollar as the world reserve currency is unlikely to happen anytime soon.

    Rise of the dollar: Historical Context

    • The rise of the dollar as the world’s preferred currency aligns with the rise of the US as one of the world’s strongest economies with a deep financial system and stable government.
    • Though the position of the dollar has been challenged over time by the Great Britain Pound, the euro, and other currencies, the dollar has maintained its dominance.

    What is the current status of Dollar as forex reserve?

    • According to reports from the International Monetary Fund, the dollar’s share of foreign exchange reserves has fallen over time from 80% in the 1970s to about 60% in 2022.
    • The euro has made up for about 20% of the remaining 40% room created by this fall.
    • Smaller currencies such as the Australian and Canadian dollars, Swedish krona, and South Korean won have claimed their share in the portfolios of various countries’ foreign exchange reserves making up most of the remaining gap of 20%, with Chinese currency taking up the rest.

    How Dollar maintained its dominance as a reserve currency?

    • The strength of the U.S. economy: The U.S. has one of the world’s strongest economies, with a deep financial system and a stable government. This has contributed to the popularity of the dollar as a preferred currency for international trade and as a reserve currency.
    • Demand for dollar-denominated assets: Many countries hold U.S. government debt as a hedge against currency fluctuations affecting the valuation of their reserves. Additionally, many currencies are pegged to the U.S. dollar and some countries use the dollar as their own currency. This has meant that a huge proportion of U.S. dollars reside outside the U.S.
    • The dollar premium: The U.S. government debt is in high demand worldwide, which allows it to issue debt at the lowest interest rate. This relaxes the fiscal constraint substantially, boosting the debt-issuing government’s capacity to borrow more without having to deal with the negative effects of such borrowing on the domestic economy. This phenomenon is often referred to as the dollar premium.
    • No serious competition: Although the position of the dollar as the world currency has been challenged from time to time by other currencies, no currency has emerged as a serious contender. The only serious competitor at this point is the euro, which stands second but at quite a distance.

    Facts for prelims

    Common Currency or Reciprocal Trading Arrangement?

    • A common currency or reciprocal trading arrangement refers to an agreement between two or more countries to use a common currency or to trade with each other using their own currencies without the involvement of a third-party currency, such as the US dollar.
    • The purpose of such an arrangement is to increase trade among the participating countries and reduce the reliance on a single currency for international transactions.
    • The idea of a common currency or reciprocal trading arrangement has been discussed among various countries, including China, India, and Russia, as an alternative to the US dollar-dominated international financial system.

    What are the Factors supporting the US Dollar?

    • Status as Reserve Currency: The US Dollar is still the world’s most dominant reserve currency, which means that central banks and governments around the world hold significant quantities of it as part of their foreign exchange reserves.
    • Large Financial Market: The US has one of the largest and most liquid financial markets in the world, which makes it an attractive destination for foreign investment.
    • Safe Haven Status: The US Dollar is often seen as a safe haven during times of global economic uncertainty, due to the perceived stability of the US economy and political system.
    • Demand for US Treasury Bonds: The US government issues Treasury bonds, which are widely held by foreign governments and investors as a low-risk investment.
    • Petrodollars: The US Dollar is used as the currency of choice for global oil trading, which means that countries that buy oil from the OPEC countries must hold US Dollars to pay for it. This leads to a constant demand for US Dollars.
    • Military and Political Influence: The US has a significant military and political influence on the world stage, which gives it leverage in global trade negotiations and financial institutions such as the IMF and World Bank.

    US Dollar

    Challenges facing the US Dollar

    • Increased global competition: As more countries try to shift away from the US dollar, there is increased competition from other currencies such as the euro, the Chinese renminbi, and even cryptocurrencies. This could potentially reduce the demand for the US dollar.
    • Rising US debt levels: The US has been running persistent budget deficits and adding to its national debt for many years. This could lead to inflation and a loss of confidence in the US dollar, particularly if investors begin to worry about the US government’s ability to service its debt.
    • Geopolitical risks: Political tensions and instability around the world could also undermine the US dollar’s status as the world’s reserve currency. For example, sanctions imposed by the US on other countries could prompt them to look for alternatives to the US dollar in international trade.
    • Emerging technologies: The rise of digital currencies and blockchain technology could challenge the dominance of traditional currencies, including the US dollar. If cryptocurrencies become more widely accepted, they could potentially weaken demand for the US dollar as a global reserve currency.

    Future of the US Dollar

    • Despite the challenges, the US dollar is likely to remain the dominant reserve currency for the foreseeable future due to its widespread use in international trade, its deep and liquid financial markets, and its historical stability.
    • The euro and other currencies may continue to gain ground, but are unlikely to displace the dollar anytime soon.
    • The growing use of digital currencies, such as Bitcoin, may also pose a challenge to the traditional reserve currency system in the future, but it remains to be seen how this will play out.

    Facts for prelims: Concept box from civilsdaily

    What is mean by closed capital account?

    • A closed capital account is a situation where a country has restrictions on the flow of capital in and out of its borders. This means that the government regulates and limits the movement of funds across its borders.
    • Closed capital accounts are often implemented to protect the domestic economy from external shocks and to maintain the stability of the local currency.
    • China, for example, has a relatively closed capital account as it imposes strict controls on capital inflows and outflows.

    Conclusion

    • The run of the US dollar as an international reserve currency is far from over. The only serious contender at this point is the euro, which stands second but at quite a distance. The possibility of the Chinese currency or any other common currency becoming a serious contender is thin and distant at this point. The current system may not be optimal and should be improved, but expecting a common currency between China, India, and Russia or any such reciprocal trading arrangement to replace the US dollar would be an exaggeration.

    Mains Question

    Q. The status of the US dollar as the world reserve currency has been a topic of speculation, especially as China, India, and Russia explore alternative currencies for international trade. In this light discuss the challenges faced by US dollar and viability of reciprocal trading arrangements.

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    Also Read:

    The Rising Demand for De-Dollarisation

     

  • The Maoist Insurgency: Challenges and The Way Forward

    Insurgency

    Central Idea

    • The recent ambush of the convoy in Chhattisgarh’s Dantewada district resulting in the deaths of 10 personnel of the District Reserve Guards (DRG) highlights that the Maoist insurgency remains a significant threat in India. The Home Minister has repeatedly given the impression that the end of the Maoist problem is near, but history has shown otherwise.

    What is mean by Insurgency?

    • Insurgency refers to a violent uprising against the established government or authority of a country, typically carried out by a group of individuals or an organization that seeks to challenge the existing political, economic, or social order.
    • It often involves armed conflict, sabotage, and other forms of violence aimed at destabilizing the government or seizing power.
    • The ultimate goal of an insurgency is to overthrow the existing government and establish a new political system that is more in line with the insurgents’ ideology or goals

    Rise of Insurgency India

    • The Communist Party of India (Marxist) split in 1967, with a section of the party rejecting the electoral path and advocating for armed struggle to overthrow the Indian state.
    • The Naxalbari uprising in West Bengal in 1967, where a group of peasants led by Charu Majumdar and Kanu Sanyal revolted against the local landlords and police. The uprising was brutally crushed by the state, but it gave birth to the Naxalite movement.
    • The formation of the Communist Party of India (Marxist-Leninist) in 1969, which became the political front of the Naxalite movement.
    • The formation of the People’s War Group in Andhra Pradesh in 1980, which became one of the most active Naxalite groups in the country.
    • The merger of the People’s War Group with the Maoist Communist Centre in 2004, to form the Communist Party of India (Maoist), which is the largest Naxalite group in India today.
    • The expansion of the Naxalite movement from West Bengal and Andhra Pradesh to other states, including Chhattisgarh, Jharkhand, Bihar, Odisha, and Maharashtra, among others.
    • The violent attacks by Naxalites on the state and central police forces, government officials, politicians, and civilians, resulting in the loss of thousands of lives over the years.

    Facts for prelims

    District Reserve Guards (DRG)

    • District Reserve Guards (DRG) is a special unit of the police force in some Indian states, primarily in Chhattisgarh, that is trained and equipped to combat Naxalite and Maoist insurgency.
    • DRG personnel are typically drawn from local tribal communities and are familiar with the local terrain, which makes them effective in fighting the insurgency.
    • They are provided with specialized training in guerrilla warfare, jungle warfare, and use of modern weaponry.
    • The DRG is often at the forefront of anti-Naxalite operations and is considered a vital component of the Indian government’s efforts to counter the Maoist insurgency in the country.

    What are the flaws in the anti-Naxal strategy?

    1. Outsourcing operations to central armed police forces:
    • In most states, there is a tendency to outsource the operations against Naxals to the central armed police forces.
    • This strategy is flawed because unless the local police, who know the language and terrain, take the lead in anti-Naxal operations, the problem would linger.
    1. Imposed development paradigm:
    • The development paradigm pursued since independence has always been imposed on the tribal communities and has been insensitive to their needs and concerns. As a result, government plans have ended up in destroying their social organization, cultural identity, and resource base and generated multiple conflicts.
    • The tribals want schools and hospitals, but they neither need nor want capital-intensive plants or factories, which are inevitably accompanied by deforestation and displacement.
    1. Insensitivity towards tribal communities:
    • The development paradigm pursued since independence has always been imposed on the tribal communities and has been insensitive to their needs and concerns. As a result, government plans have ended up destroying their social organization, cultural identity, and resource base and generated multiple conflicts.
    1. Lack of an overall strategic plan:
    • There is no overall strategic plan against the Naxals. States have been carrying out anti-Naxal drives according to their individual understanding.
    • Territorial domination is essential, and security forces are able to achieve that, but that should be followed by the administrative apparatus establishing its network in the affected areas.
    1. Absence of peace talks:
    • The government should seriously think of applying the healing touch. If it can have peace talks with the Nagas and several other insurgent outfits in the Northeast, there is no reason why it should not take the initiative to have a dialogue with the Maoist leadership. This would not be seen as a sign of weakness on the contrary, it would be taken as a magnanimous gesture.

    The way ahead to address the Naxal insurgency in India

    • Multi-pronged approach: The government should adopt a multi-pronged approach to address the Naxal problem that includes development initiatives, security measures, and dialogue with the Naxal leadership.
    • Focus on development: The government should focus on development initiatives in Naxal-affected areas that are tailored to meet the needs of the local population. This includes building infrastructure like schools, hospitals, and roads, creating employment opportunities, and addressing land rights issues.
    • Empowering local police: The state police should be empowered to take the lead in anti-Naxal operations as they have a better understanding of the local language and terrain.
    • Humanitarian approach: The government should adopt a humanitarian approach in dealing with the problem. The use of excessive force should be avoided, and care should be taken to ensure that the local population is not adversely affected.
    • Dialogue with Naxal leadership: The government should initiate a dialogue with the Naxal leadership to address their grievances and concerns. This would help in building trust and confidence between the two sides and pave the way for a peaceful resolution of the problem.
    • Coordination among states: The states should coordinate their efforts to address the Naxal problem. The sharing of intelligence, resources, and best practices would go a long way in addressing the issue.
    • Strengthening of institutions: The government should strengthen institutions like the police, judiciary, and administrative machinery to ensure that they are better equipped to deal with the problem.
    • Long-term vision: A long-term vision should be adopted to address the Naxal problem. This requires sustained efforts over a period of time to ensure that the problem is effectively tackled.

    Conclusion

    • India’s Maoist insurgency problem is not one that can be solved by just law and order enforcement. It is crucial to address the underlying social and economic aspects of the problem. The government should acknowledge the flaws in its anti-Naxal strategy and undertake a comprehensive approach to solve the problem. It must ensure that the local police take the lead in anti-Naxal operations, and the development policies must be sensitive to the needs and concerns of the tribal communities. Initiating peace talks with the Maoist leadership could also go a long way in resolving the issue.

    Mains Question

    Q. The recent events of violent attacks on security forces highlights that the Maoist insurgency remains a significant threat in India. In light of this discuss what are the flaws in anti-Naxal strategy and what is needed to address the Naxal insurgency in India?

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    Also Read:

    Village Defence Guards (VDG): A sense of security and confidence

     

  • UTF (Uthuru Thila Falhu- Island) Harbour Project

    utf

    Central Idea: The article discusses the recent commissioning of the Indian grant-in-aid UTF (Uthuru Thila Falhu- Island) Harbour Project, the coastal surveillance radar system, in the Maldives. The project is a significant milestone in the growing defence ties between the two countries.

    What is the UTF Project?

    • The UTF project was announced during External Affairs Minister S Jaishankar’s visit in February 2021.
    • It is among the biggest Indian grant-in-aid projects in the Maldives.
    • It is aimed at developing a maintenance and repair hub for naval vessels and will help the Maldives become self-sufficient.

    Importance of the Project

    • The project marked a major step in growing defence cooperation between India and Maldives.
    • The facility will strengthen the capability of the Maldivian Coast Guard and facilitate regional humanitarian assistance and disaster relief efforts.

    Controversy Surrounding the Project

    • There were allegations that the project was a cover for Indian military presence in the Maldives.
    • An “India Out” campaign was launched in the island nation backed by its opposition leader Abdulla Yameen.
    • Maldives President Ibrahim Solih banned anti-India protests as a threat to national security.

    Defence Cooperation and Other Projects

    • India has gifted a Dornier aircraft and a patrol vessel to the Maldives in the past.
    • India has provided 24 vehicles and a naval boat and will build police facilities on 61 islands in the country.
    • The joint statement released by India and Maldives after Defence Minister’s visit highlighted ongoing defence cooperation between the two neighbours.
    • The countries have agreed to explore additional avenues for cooperation, including in areas of defence trade, capacity building, and joint exercises.
    • Both the countries are working closely to address challenges, including those on maritime security, terrorism, radicalisation, piracy, trafficking, organised crime, and natural disasters.
    • India has financed the Greater Male Connectivity Project (GMCP), a $500 million project, to build a 6.74 km bridge and causeway linking the capital of Maldives, Male, with neighboring islands.

    India-Maldives Relations: A backgrounder

    • India and Maldives are neighbors sharing a maritime border.
    • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
    • India was one of the first nations to recognize Maldives’ independence.
    • Since then, India and Maldives have developed close strategic, military, economic and cultural relations.
    • Maldivians generally regard Indians and India as a friend and trusted neighbor in the field economic, social and political.

    Causes for the anti-India sentiments

    • Political instability: The anti-India sentiment is nearly a decade old and can be traced back to when Abdulla Gayoom became president in 2013. He used anti-India sentiments for his political mobilization and started tilting China.
    • Controversy over helicopter gift: Two Dhruv Advanced Light Helicopters (ALF) that were given by India to the Maldives for ocean search-and-rescue operations. Opposition tried to portray this as military presence in the country.
    • Confidential agreements: Most agreements being signed between the Ibrahim Solih government and India are backdoor and has not been publicly discussed in the Maldives Parliament.
    • Alleged interference in domestic politics: India being a big neighbour, there are unsubstantiated perceptions & allegations on Indian Diplomats stationed in Maldives interfering in Domestic affairs.

    Restoration of ties

    Ibrahim Mohamed Solih who became President in 2018 has restored Maldives close ties with India.

    Major irritants in ties

    • Political Instability: India’s major concern has been the impact of political instability in the neighborhood on its security and development.
    • Increasing radicalization: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
    • Inclination towards terror: Radicalism in the island nation has increased the possibility of Pakistan based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
    • Chinese affinity: China’s strategic footprint in India’s neighborhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.

    Recent gestures by India

    [1] 2014 Male drinking-water crisis

    • In the wake of a drinking water crisis in Malé in December 2014, following collapse of the island’s only water treatment plant, Maldives urged India for immediate help.
    • India came to rescue by sending its heavy lift transporters like C-17 Globemaster III, Il-76 carrying bottled water.

    [2] 2020 Covid-19 crisis

    • During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material and logistical support.
    • Also, the IAF airlifted 6.2 tonnes of essential medicines and hospital consumables to Maldives, as part of ‘Operation Sanjeevani’.

    [3] Greater Male Connectivity Project

    • India has recently announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP).
    • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.

    Maldives’ significance for India

    • Increasing maritime cooperation: As maritime economic activity in the Indian Ocean has risen dramatically in recent decades, the geopolitical competition too in the Indian Ocean has intensified.
    • Toll Gate in Indian Ocean: It is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region.
    • Naval cooperation: Maldives is an important partner in India’s role as the net security provider in the Indian Ocean Region.
    • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
    • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
    • Major destination for Tourists: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

    Way forward

    • India continues to be an important partner of the Maldives.
    • India must not grow complacent over its position and must remain attentive to the developments in the Maldives.
    • India must play a key role within Indo-Pacific security space to ensure regional security in South Asia and surrounding maritime boundaries.
    • At present, the ‘India Out’ campaign has support from a limited population but this cannot be taken for granted by the Indian government.

     

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  • India operationalizes Sittwe Port in Myanmar

    myanmar kaladan

    Central Idea

    • The Sittwe Port in Myanmar has been made operational with the departure of the inaugural shipment, the MV-ITT LION (V-273), from Syama Prasad Mookerjee Port in Kolkata.
    • This development is part of the Kaladan Multimodal Transit Transport project, which aims to provide alternate connectivity from the eastern coast of India to the northeastern states through the Sittwe port.

    About Sittwe Port, Myanmar

    • The Sittwe Port in Myanmar has been built under a grant assistance from the Indian government.
    • It has been developed under a framework agreement between India and Myanmar for the construction and operation of a multimodal transit transport facility on the Kaladan river.

    Significance of Sittwe Port

    • The Ministry of Ports, Shipping and Waterways has stated that the port will open up new opportunities for trade and transit from and to Myanmar, particularly the Rakhine state.
    • The port is expected to enhance trade and commerce between India and Myanmar, and the wider region.

    Connectivity of KMTTP

    • Once fully operationalized, the Kaladan Multimodal Transit Transport project will provide alternate connectivity from the eastern coast of India to the northeastern states through the Sittwe port.
    • The port connects to Paletwa in Myanmar through an inland waterway, and from Paletwa to Zorinpui in Mizoram through a road component.
    • The port is expected to boost trade and commerce between India and Myanmar, and the wider region.

    Back2Basics: Kaladan Multi-Modal Transit Transport Project

    myanmar

    • It connects the seaport of Kolkata in India to Sittwe seaport in Rakhine State, Myanmar, by sea.
    • In Myanmar, the project links Sittwe seaport to Paletwa in Chin State via the Kaladan river boat route and then from Paletwa by road to Mizoram state in Northeast India.
    • The project is being funded by the Indian government and is aimed at reducing the distance from Kolkata to Sittwe by approximately 1,328 km.

    History of the Project

    • It was initially scheduled to be completed by 2014.
    • The project is affected by Chin conflict, Rohingya conflict, and militant groups such as Arakan Army and Arakan Rohingya Salvation Army (ARSA).

    Route of the Project

    • There are different sections of the Kaladan Multi-Modal Transit Transport Project, which combines multi-modes of transport, including sea, river, and road routes.
    • It includes- Kolkata-Sittwe shipping route, Sittwe seaport to Paletwa inland jetty river boat route, Sittwe Special Economic Zone at Ponnagyun town, Paletwa inland jetty to Zorinpui road route in Myanmar, and the Zorinpui to Aizawl road route in India.
    • This project will complement the river-road route of the Kaladan Multi-Modal Transit Transport Project in Myanmar-Mizoram.
    • It has the Sittwe-Kyaukhtu railway in Myanmar, Kyaukhtu-Zorinpui in Myanmar, and the Zochawchhuah (Zorinpui)-Sairang railway in India.

     

     

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  • What is Project Dantak?

    The Prime Minister has praised the initiative by Border Roads Organisation Project Dantak to commemorate 64th Raising Day.

    What is Project Dantak?

    Description
    Establishment Established on April 24, 1961, as per the agreement between the third king of Bhutan and then Prime Minister of India Jawahar Lal Nehru.
    Objective Identify the most important aspects of connectivity and spur the socio-economic development and growth of Bhutan.
    Responsibility Construct and maintain roads suitable for motorised transportation in Bhutan.
    Legal Provision Established under the provision of the Indo-Bhutan Treaty of Peace and Friendship, 1949.

     

    Works and Involvement

    Description
    Infrastructure Development Constructing infrastructure in adjoining Indian districts, including Sherbathang–Nathu La road, Gangtok–Sherbathang road, and Sevoke–Gangtok road.
    Establishment of Facilities Establishing medical and education facilities in outlying areas, which were the first in those regions.
    Takthi Canteen Takthi Canteen, commonly known as the DANTAK canteen, is a major stop for travelers midway between Phuentsholing and Thimphu.
    Recruitment of Workers Recruiting local workers from Bhutan and Indian workers from adjoining districts like Jaigaon, Alipurduar, and other parts of Eastern and North-Eastern India under a basic monthly wage.
    Supervision of Work Posting officials from India for the supervision of work.

     

    Controversies and Incidents

    • The Bhutanese Government accused DANTAK of installing Indian tricolour-themed raised pavement markers or reflectors on the highway railings. DANTAK confirmed their presence, and those reflectors were immediately replaced.
    • A 204 meters long bridge in Haa along the Damchu-Haa road collapsed in February 2021, leaving 3 workers dead and 6 missing. The bridge was handed over to Project DANTAK by the contractor.
    • The project has faced criticisms for its approach to hiring practices and labor management.

    Major projects undertaken

    • Paro Airport: Built in 1968 as an airstrip for on-call helicopter services for the Indian Armed Forces. Now used as an international airport.
    • Yonphula Airfield: Domestic Airport in Bhutan
    • Thimphu – Trashigang Highway: Major Highway in Bhutan
    • Damchu-Chukha Road: Major Road in Bhutan
    • India House Estate: The Indian Embassy in Bhutan.

     

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  • FDA approves first vaccine for Respiratory Syncytial Virus

    respiratory

    The Food and Drug Administration (FDA) has approved the first vaccine ‘Arexvy’ for respiratory syncytial virus (RSV) to lower respiratory tract disease in people older than 60 years.

    What is Respiratory Syncytial Virus?

    • Respiratory Syncytial Virus (RSV) is a common respiratory virus that can cause illness in people of all ages.
    • It is the most common cause of lower respiratory tract infections in infants and young children, and it can also affect older adults and people with weakened immune systems.
    • RSV is highly contagious and spreads through droplets when an infected person coughs or sneezes, or by touching a surface contaminated with the virus and then touching one’s face.
    • Symptoms of RSV can range from mild to severe, including runny nose, coughing, sneezing, fever, wheezing, and difficulty breathing.
    • In severe cases, it can lead to pneumonia, bronchiolitis, or death.

    Identification of Protein F

    • In 2013, Barney Graham and other scientists identified the key protein, protein F, responsible for the RSV virus to infect human cells.
    • The protein, introduced in humans, elicited neutralizing antibodies against the virus.

    Approval and Efficacy of Arexvy

    • The FDA has approved Arexvy, the first RSV vaccine to be approved anywhere in the world, manufactured by GSK.
    • The approval was based on a phase-3 trial carried out on nearly 25,000 participants.
    • It showed a single dose of the vaccine reduced the risk of developing lower respiratory tract disease caused by the RSV virus by 82.6% and severe disease by 94.1% in people older than 60 years.
    • The vaccine will be available for older adults in the U.S. before the 2023-2024 RSV season.

     

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  • Scientists help find new kind of Molecular Motor

    motor

    Central Idea: Researchers from the National Centre for Biological Sciences have discovered a new kind of molecular motor that has potential applications in biology and medicine.

    What is a molecular motor?

    • Cells use molecular motors to move things like organelles and molecules, and disruption of these processes can lead to diseases.
    • Molecular motors use biochemical energy to do mechanical work.

    What did the new study find?

    • The study found that EEA1, a long protein, can regain its rigid shape to create a new kind of two-part molecular motor.
    • EEA1 regains its rigid shape through a reaction called GTP hydrolysis, mediated by enzymes called GTPases.
    • The researchers believe this could mark a new class of molecular machines that operate as motors in a unique way with novel collective effects.

    Why is the finding significant?

    • The motor is different from most motors because it doesn’t produce a lever-like back-and-forth action and it uses GTP instead of ATP (Adenosine Tri Phosphate) for energy.
    • EEA1 exerts an entropic force on the membranes that it pulls, which is a unique feature.
    • The finding could have potential applications for understanding membrane fusion and for many other mechanochemical proteins or assemblies.

    What are the potential applications?

    • The discovery of the molecular motor could have potential applications in biology and medicine.
    • The study provides a general mechanism that is applicable to many mechanochemical proteins or assemblies that harness chemical energy for mechanical work in cells.

     

     

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  • Legalizing Cannabis Cultivation and Decriminalizing Drug Use

    Cannabis

    Central Idea

    • Himachal Pradesh is reportedly considering legalizing cannabis cultivation, joining Uttarakhand, Gujarat, and Madhya Pradesh. The criminalisation of cannabis cultivation and drug use in India under the Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985 has resulted in long pre-trial incarceration, stigmatisation of users, and poor rehabilitation prospects. A public health approach could help address drug dependence and reduce the burden on the criminal justice system.

    What is Cannabis?

    • Cannabis, also known as marijuana among other names, is a psychoactive drug from the Cannabis plant used primarily for medical or recreational purposes.
    • The main psychoactive component of cannabis is tetrahydrocannabinol (THC), which is one of the 483 known compounds in the plant, including at least 65 other cannabinoids, including cannabidiol (CBD).
    • It is used by smoking, vaporizing, within the food, or as an extract.

    Prospects of legalizing Marijuana

    1. Health benefits:
    • The cannabinoids found in Cannabis is a great healer and has found mentioned in Ayurveda.
    • It can be used to treat a number of medical conditions like multiple sclerosis, arthritis, epilepsy, insomnia, HIV/AIDS treatment, and cancer.
    1. Ecological benefits:
    • The cannabis plant and seeds apart from being labelled a super-food as per studies is also a super-industrial carbon-negative raw material.
    • Each part of the plant can be used for some industry. Hemp currently is also being used to make bio-fuel, bio-plastics and even construction material in certain countries. The cosmetic industry has also embraced Hemp seeds.
    1. Marijuana is addiction-free:
    • An epidemiological study showed that only 9% of those who use marijuana end up being clinically dependent on it.
    • The ‘comparable rates’ for tobacco, alcohol and cocaine stood at 32%, 15% and 16% respectively.
    1. Good source of Revenue:
    • By legalizing and taxing marijuana, the government will stand to earn huge amounts of revenue that will otherwise go to the Italian and Israeli drug cartels.
    • In an open letter to US President George Bush, around 500 economists, led by Nobel Prize winner Milton Friedman, called for marijuana to be “legal but taxed and regulated like other goods.
    1. A potential cash crop:
    • The cannabis plant is something natural to India, especially the northern hilly regions. It has the potential of becoming a cash crop for poor marginal farmers.
    • If proper research is done and the cultivation of marijuana encouraged at an official level, it can gradually become a source of income for poor people with small landholdings.
    1. Prohibition was ineffective:
    • In India, the consumption of synthetic drugs like cocaine has increased since marijuana was banned, while it has decreased in the US since it was legalized in certain states.
    • Moreover, these days, it is pretty easy to buy marijuana in India and its consumption is widespread among the youth. So it is fair to say that prohibition has failed to curb the problem
    1. Marijuana is less harmful:
    • Marijuana consumption was never regarded as a socially deviant behaviour any more than drinking alcohol was. In fact, keeping it legal was considered as an enlightened view.
    • It is now medically proven that marijuana is less harmful than alcohol.

    All you need to know about Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985

    • The Narcotic Drugs and Psychotropic Substances (NDPS) Act is an Indian law that prohibits the production, manufacture, possession, transportation, sale, and consumption of narcotic drugs and psychotropic substances.
    • The Act was enacted in response to the US-led global war on drugs in the 1970s.
    • The NDPS Act has been amended several times since its enactment, with the most recent amendment being in 2014.
    • The Act defines different categories of drugs and prescribes different punishment for different offenses.
    • The Act has been criticized for its strict provisions, especially for small-scale drug users, who are often imprisoned and face difficulty accessing rehabilitation and de-addiction centers. In recent years, there have been calls for decriminalizing small-scale drug use and treating drug consumers as victims rather than offenders.

    Why criminalizing drug users is not a good option?

    • Pre-trial incarceration and stigmatization: Criminalization means long pre-trial incarceration and stigmatization of drug users, who are often from socially and economically vulnerable backgrounds.
    • Lack of access to de-addiction centres: Many drug users lack access to de-addiction centres, which makes their rehabilitation difficult.
    • Difficulty in rehabilitation: Putting drug users behind bars makes their rehabilitation difficult and exposes them to the risk of becoming peddlers.
    • Overburdened criminal justice system: Over-criminalisation of drug users clogs already burdened courts and adds to the workload of overworked investigating agencies.
    • Squandering public resources: Public resources that could have been deployed to set up a robust rehabilitation network are squandered away in the process.
    • Ineffective in deterring drug use: Criminalisation was intended to deter the use of drugs. However, drug dependence has increased over the years across the world.
    • Undermining social well-being: The over-criminalisation of drug users undermines their social well-being, which perpetuates the cycle of addiction and crime.

    Steps to address the negative impact of criminalizing drug users

    • Decriminalization: The government should consider decriminalizing the possession of small quantities of drugs for personal consumption, as recommended by the Ministry of Social Justice and Empowerment. This will treat drug users as victims rather than culprits and facilitate their rehabilitation.
    • Public health approach: The government should adopt a public health approach to address drug use as a public health issue. This involves providing healthcare services to drug users, focusing on their well-being and rehabilitation, rather than just punishing them.
    • Differentiating between peddlers and consumers: The government should differentiate between drug peddlers and drug consumers and take different approaches to dealing with them. While drug peddlers should be punished, drug users should be treated as victims and provided with rehabilitation services.
    • Setting up a robust rehabilitation network: The government should allocate resources to set up a robust rehabilitation network for drug users. This will help address the root cause of drug use and reduce its negative impact on society.
    • Public awareness campaigns: The government should conduct public awareness campaigns to educate people about the negative impact of drug use on health and well-being. This will help reduce the demand for drugs and prevent drug use among the population.

    Facts for prelims

    What is CBD oil?

    • CBD oil is a type of oil that contains cannabidiol (CBD), a non-psychoactive compound found in the cannabis plant.
    • CBD oil is made by extracting CBD from the plant and diluting it with a carrier oil such as hemp seed oil or coconut oil.
    • It is used for a variety of purposes, including reducing anxiety, relieving pain, and improving sleep.

    Conclusion

    • The criminalization of drug use in India has not deterred drug dependence and has resulted in a burden on the criminal justice system. A public health approach could help address drug dependence and reduce the stigma associated with drug use. India could learn from the examples of countries like Portugal and Canada and the state of Sikkim.

    Mains Question

    Q. Recently more and more states are considering legalizing cannabis cultivation. In light of this discuss the benefits of its cultivation and impact of criminalizing drug users in India.

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    Also read:

    Himachal Pradesh considering legalizing Cannabis Cultivation
  • India’s Leadership of G-20 and SCO: Challenges and Realities

    Central Idea

    • India’s year-long presidency of the G-20 and leadership of the Shanghai Cooperation Organization (SCO) should not create unrealistic expectations about the dividends India can reap from these summits. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. The need for India is to proceed with caution during its presidency.

    Overview of the current geopolitical climate

    • Tensions and distrust between the US-led camp and China/Russia-led camp pose a threat of global conflict.
    • China is on a major diplomatic-cum-strategic offensive across Asia, particularly in West Asia, and is flexing its naval and military muscle in the East and Southeast Asian seas.
    • India is facing challenges due to China’s offensive and its efforts to widen the arc of conflict with India.
    • The situation in Ukraine is fraught, with the US and its allies providing advanced weaponry and training to Ukrainian troops, while Russia is receiving support from its allies.
    • India’s ties with Russia are not necessarily anchored in defense cooperation, and India is looking more to the West, especially the US, for state-of-the-art weaponry.
    • India needs to proceed with caution while holding the presidency of the G-20 and the SCO and balance the contradictory demands of the two institutions and the Global South.

    Reasons for the distrust between the two camps; United States and China/Russia

    • Economic competition: The US and China are in a race for economic and technological supremacy, with both countries vying for dominance in fields such as artificial intelligence, 5G networks, and cybersecurity. This has led to tensions between the two countries.
    • Military competition: The US and China are also in a race for military supremacy, with both countries investing heavily in their armed forces and developing advanced weapons systems. This has led to concerns about a potential arms race between the two countries.
    • Territorial disputes: China has territorial disputes with several countries in the region, including India, Japan, Vietnam, and the Philippines. This has led to tensions and concerns about China’s expansionist policies.
    • Human rights issues: The US and other Western countries have criticized China and Russia for their human rights records, including issues such as the treatment of Uighur Muslims in China and the treatment of political dissidents in Russia. This has led to tensions between these countries and the West.
    • Political influence: The US has accused China and Russia of attempting to interfere in its political processes, including the 2016 US presidential election. This has led to concerns about the countries’ intentions and their influence in other countries.
    • Strategic competition: The US and China/Russia have differing visions for the international order, which has led to strategic competition and tensions between them. The US seeks to uphold the current order, while China and Russia seek to challenge it and establish a new order that reflects their interests and values.
    • COVID-19 pandemic: The COVID-19 pandemic has further exacerbated tensions between the US and China, with both countries blaming each other for the outbreak and its spread.

    Issues for India specifically with China

    • Border disputes: India and China have long-standing border disputes, which have led to multiple conflicts over the years. The recent clashes in the Galwan Valley in June 2020 resulted in the deaths of Indian and Chinese soldiers and have further escalated tensions between the two countries.
    • China’s aggressive behavior: China’s assertive stance and expansionist policies in the South and East China Seas, as well as its attempts to limit India’s influence in the Indian Ocean Region, have led to tensions between the two countries.
    • China’s regional initiatives: China’s regional initiatives such as the China-Pakistan Economic Corridor (CPEC) and the China-Indian Ocean Region Forum are of concern to India as they may limit India’s strategic and economic interests in the region.
    • The Quad: China sees India’s partnership in the Quad (an informal strategic grouping of India, Australia, Japan, and the US) as a threat to its regional ambitions, and has openly criticized the grouping.
    • Cyber warfare and hybrid tactics: India is also concerned about China’s ability to engage in cyber warfare and hybrid tactics, including the adoption of cyber tactics and the ‘politics of water’ by re-directing the Himalayan rivers.

    Other turmoil’s in India’s immediate neighborhood

    • Afghanistan: The situation in Afghanistan appears to be steadily worsening and is now beginning to affect nations on its periphery. India has lost all traction with the Taliban in Afghanistan.
    • Pakistan: The relations between India and Pakistan are strained due to various reasons, including cross-border terrorism.
    • Sri Lanka: The political situation in Sri Lanka has been unstable in recent years, and it has caused concerns for India.
    • Nepal: The political situation in Nepal has been unstable in recent years, with frequent changes in government and disagreements over the new constitution. India has also had strained relations with Nepal over various issues, including border disputes.
    • Myanmar: The military coup in Myanmar in February 2021 has led to widespread protests and violence, causing concerns for India’s security in its Northeast region as well as affecting India’s strategic interests in the region.

    Way ahead

    • Identifying commonalities: India should focus on identifying areas of commonality between the G-20, the SCO, and the Global South, such as sustainable development, climate change, and economic cooperation, and work towards promoting these goals in each forum.
    • Prioritizing issues: India should prioritize the issues that are most important to its national interests, such as regional security and economic development, and work towards finding solutions that are mutually acceptable to all parties.
    • Engaging with all parties: India should engage with all parties in each forum, including the major powers, to ensure that its voice is heard and its interests are taken into account.
    • Building coalitions: India should work towards building coalitions with like-minded countries within each forum, such as other developing countries, to promote its interests and priorities.
    • Developing strategic partnerships: India should develop strategic partnerships with key players in each forum, such as China and Russia in the SCO, to promote regional stability and cooperation.

    Conclusion

    • India needs to be aware of the persisting challenges it faces, tone down the high expectations being generated of reaping a rich dividend from helming the G-20 and the SCO, and proceed with caution. It must chart a course that balances the contradictory demands of the G-20 and the SCO and even more so that of the Global South. India should not claim to have attained its goal of being a global power, as there are many obstacles that have to be overcome before India can achieve its predetermined goal.

    Mains Question

    Q. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. In light of this discuss the issues for India specifically with China and how other turmoil’s in immediate neighborhood compounding the problems for India.

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    Also Read:

    India could lead the G20 agenda in a unique way
  • Smart Meters to Bring a Revolution in the Power Sector

    Smart Meters

    Central Idea

    • India is replacing conventional electric meters with prepaid smart meters to bring a revolution in the power sector. The majority of smart meter users have begun to experience some of the technology benefits. However, the low uptake of smart meter apps and access to detailed electricity bills are some of the road bumps that need to be solved.

    What are Smart Meters?

    • Smart meters are next-generation digital electricity meters that measure energy consumption and communicate this information back to the utility company in near real-time.
    • Unlike traditional electric meters that require manual reading, smart meters automatically send readings to the utility company, enabling a two-way communication between the meter and the utility.

    A study on Smart Meters

    • A recent study by the Council on Energy, Environment and Water (CEEW) found that the majority of smart meter users have already begun to experience some of the technology benefits.
    • The study covered about 2,700 urban households that use prepaid or postpaid smart meters across six States.
    • Half the users reported improvements in billing regularity, and two-thirds said paying bills had become easier.
    • Around 40% of users alluded to multiple co-benefits such as a greater sense of control over their electricity expenses, a drop in instances of electricity theft, and improved power supply to the locality.
    • In fact, 70% of prepaid smart meter users said they would recommend the technology to their friends and relatives.
    • These findings give confidence that India’s smart metering transition is heading in the right direction.

    Advantages of Smart Meters over traditional electric meters

    • Accurate billing: Smart meters enable accurate billing as they eliminate the need for estimated bills, providing customers with accurate and transparent information about their energy usage.
    • Near real-time data: Smart meters provide near real-time data on energy consumption, enabling customers to monitor their usage and make informed decisions about their energy consumption.
    • Dynamic pricing: Smart meters have the potential to enable dynamic pricing, where electricity tariffs vary depending on the time of day, season or other factors, incentivizing customers to use energy when it’s cheaper and reducing demand during peak hours.
    • Improved energy management: Smart meters allow utilities to better manage energy supply and demand, reduce power outages, and integrate renewable energy sources more effectively.
    • Energy theft detection: Smart meters can help detect and respond to energy theft, reducing losses for utilities and ensuring a fair distribution of energy costs.
    • Customer control: Smart meters provide customers with more control over their energy consumption, allowing them to better manage their energy usage and reduce their bills.

    Challenges in the Smart Meter Deployment

    • High installation costs: The upfront cost of installing smart meters can be significant, and may be a barrier to adoption for utilities or customers.
    • Technical challenges: Installing and integrating smart meters into existing grid infrastructure can be technically complex, requiring significant upgrades to communication networks and other equipment.
    • Data privacy and security: Smart meters collect and transmit sensitive customer data, raising concerns about data privacy and security.
    • User adoption: Encouraging customers to adopt smart meters can be a challenge, particularly if they are unfamiliar with the technology or if there is a lack of education around the benefits of smart meters.
    • Interoperability: Ensuring that smart meters are interoperable with different communication protocols and standards can be a challenge, particularly in areas with multiple utility providers.
    • Regulatory challenges: The regulatory environment can also be a challenge, particularly if regulations around smart meters are unclear or if there is resistance from stakeholders such as utility providers or consumer groups.

    Ways to improve smart meter deployment

    • Education and awareness: Utilities and governments can run awareness campaigns to educate customers about the benefits of smart meters, and how they can help reduce energy consumption and save money. These campaigns should target different socio-economic groups, and provide actionable tips and information on how to use smart meters to their advantage.
    • Co-ownership and collaboration: Utilities and government bodies should collaborate to ensure a smooth installation and recharge experience for users, and leverage smart meter data for revenue protection and consumer engagement. Discoms (distribution companies) should take the driving seat and co-own the program with Advanced Metering Infrastructure Service Providers (AMISPs) who are responsible for installing and operating the AMI system.
    • Innovative and scalable data solutions: Discoms, system integrators, and technology providers should collaborate to devise innovative and scalable data solutions to effectively use smart meter data to unlock their true value proposition. This would require an ecosystem that fosters innovation in analytics, data hosting and sharing platforms, and enables key actors to collaboratively test and scale new solutions.
    • Empower consumers: Policymakers and regulators must strengthen regulations to empower consumers to unlock new retail markets. They must also enable simplification and innovation in tariff design and open the retail market to new business models and prosumagers (producers, consumers, and storage users). Regulations should be put in place concerning phase-out of paper bills, arrear adjustment, frequency of recharge alerts, buffer time, rebates, and data privacy.
    • Interoperability: It is crucial to ensure that smart meters are interoperable with different communication protocols and standards. This can be achieved through standardization, certification, and testing programs.
    • Pilot programs and learning opportunities: Utilities and governments can run pilot programs to test new smart meter technologies and business models, and learn from the results to scale up successful models.

    Smart Meters

    Conclusion

    • India is on a unique journey of meeting its growing electricity demand while decarbonizing its generation sources. Smart meters comprise a critical part of the transition toolbox, by way of enabling responsible consumption, efficient energy management, and cost-effective integration of distributed energy resources. A user-centric design and deployment philosophy will be crucial for the success of India’s smart metering initiative. With the effective implementation, India can improve smart meter deployment and user satisfaction, making the smart-meter revolution a reality.

    Facts for prelims:

    Electricity Regulatory Commissions (ERCs):

    • ERCs are independent statutory bodies established by the government to regulate the generation, transmission, distribution, and trading of electricity in a particular state or region.
    • The primary role of ERCs is to protect the interests of electricity consumers by ensuring that electricity is supplied to them at reasonable and affordable rates while ensuring the financial viability of the electricity sector.
    • ERCs also have the power to issue licenses to power generation and distribution companies, set tariffs, and adjudicate disputes between stakeholders in the electricity sector.

    Mains Question

    Q. India is replacing conventional electric meters with prepaid smart meters to bring a revolution in the power sector. In this light discuss advantages and challenges of deploying smart meters. How India can improve smart meter deployment and user satisfaction, making the smart-meter revolution a reality?

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    Also Read:

    Electricity Amendment Bill 2022 – Addressing the transition and equity