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  • National Infrastructure Pipeline (NIP)

    • To augment infrastructure and create jobs in the country, the government task force on National Infrastructure Pipeline (NIP), which in its report projected total investment of Rs 111 lakh crore in infra projects over five years.
    • It said that 18 per cent of the targeted investment is expected to be made in the road sector.

    It is estimated that India would need to spend $4.5 trillion on infrastructure by 2030 to sustain its growth rate. The endeavour of the National Infrastructure Pipeline (NIP), is to make this happen in an efficient manner.

    What is the National Infrastructure Pipeline (NIP)?

    • NIP includes economic and social infrastructure projects.
    • During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.
    • It has outlined plans to invest more than ₹102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure in a 39:39:22 formula.

    Key benefits of NIP

    • Economic: Well-planned NIP will enable more infra projects, grow businesses, create jobs, improve ease of living, and provide equitable access to infrastructure for all, making growth more inclusive.
    • Government: Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused in productive areas.
    • Developers: Provides a better view of project supply, provides time to be better prepared for project bidding, reduces aggressive bids/ failure in project delivery, ensures enhanced access to sources of finance as a result of increased investor confidence.
    • Banks/financial institutions (F1s)/investors: Builds investor confidence as identified projects are likely to be better prepared, exposures less likely to suffer stress given active project monitoring, thereby less likelihood of NPAs.

    Projects include

    • The report contains recommendations on general and sector reforms relating to key infrastructure sectors for implementation by the Centre and states.
    • These projects will be implemented under the National Infrastructure Pipeline (NIP), a first of its kind exercise, by consulting states, relevant ministries and departments.
    • Three committees will be set up to monitor project progress, eliminate delays, and find ways to raise resources, along with a steering committee in each of the infrastructure ministries.
    • Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected investments.
    • The projects will also be spread across sectors such as irrigation, mobility, education, health, water and the digital sector.
  • Rebate of State Levies (ROSL) Scheme

    The Department of Revenue has allowed the release of pending Rebate of State Levies (RoSL) worth Rs 464.13 crore to garment exporters.

    We may expect a prelim question like- “The Rebate of State Levies (ROSL) Scheme is related to which of the following industrial sector? ” with some unrelatedly looking options.

    Rebate of State Levies (ROSL) Scheme

    • Last year, the Union Cabinet has approved the Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector.
    • The scheme aimed to reimburse the State levies that garment and made-up exports incurred.
    • But it was discontinued on and replaced with the Rebate of State and Central Taxes and Levies scheme.

    Why was such a scheme needed?

    • ROSL plays a vital role for the exporters by providing zero-rated taxation on apparel and made-up products.
    • This scheme enabled the exporters to increase traffic, enhance competitiveness among the global market, and compete against countries such as Sri Lanka, Bangladesh, Cambodia and Vietnam, who enjoy zero taxation.
    • This also benefits the traders who export to the European Union (EU), India’s largest export market for the apparel sector, facing a tariff variation of 9.6 per cent.
  • Kashmir saffron gets GI tag

    Kashmir saffron has been given the Geographical Indication (GI) tag by the Geographical Indications Registry.

    Must read:

    GI Tags in news for 2020 Prelims

    All time GI tags in news

    Kashmir saffron

    • It is cultivated and harvested in the Karewa (highlands) in some regions of Kashmir, including Pulwama, Budgam, Kishtwar and Srinagar.
    • It is a very precious and costly product. Iran is the largest producer of saffron and India is a close competitor.
    • It rejuvenates health and is used in cosmetics and for medicinal purposes.
    • It has been associated with traditional Kashmiri cuisine and represents the rich cultural heritage of the region.
    • Saffron cultivation is believed to have been introduced in Kashmir by Central Asian immigrants around 1st Century BCE. In ancient Sanskrit literature, saffron is referred to as ‘bahukam’.

    3 Types

    The saffron available in Kashmir is of three types —

    • ‘Lachha Saffron’, with stigmas just separated from the flowers and dried without further processing;
    • ‘Mongra Saffron’, in which stigmas are detached from the flower, dried in the sun and processed traditionally; and
    • ‘Guchhi Saffron’, which is the same as Lachha, except that the latter’s dried stigmas are packed loosely in air-tight containers while the former has stigmas joined together in a bundle tied with a cloth thread

    Whats’ so special about Kashmir Saffron?

    • The unique characteristics of Kashmir saffron are its longer and thicker stigmas, natural deep-red colour, high aroma, bitter flavour, chemical-free processing, and high quantity of crocin (colouring strength), safranal (flavour) and picrocrocin (bitterness).
    • It is the only saffron in the world grown at an altitude of 1,600 m to 1,800 m AMSL (above mean sea level), which adds to its uniqueness and differentiates it from other saffron varieties available the world over.
  • [pib] River erosion in Ladakh Himalayas

    Indian researchers have studied rivers in Ladakh Himalaya, bringing out 35 thousand-year histories of river erosion and identified hotspots of erosion and wide valleys that act buffer zones.

    Click here to read more about the Himalayan river systems and its orogeny

    Erosion hotspot: Ladakh region

    • The Ladakh Himalaya forms a high altitude desert between Greater Himalayan ranges and Karakoram Ranges.
    • The Indus and its tributaries are major rivers flowing through the terrain.
    • The Zanskar River is one of the largest tributaries of the upper Indus catchment, draining orthogonally through highly deformed Zanskar ranges.

    Zanskar: A major river in Ladakh

    • Two prominent tributaries of Zanskar River are the Doda and Tsrap Lingti Chu, which confluence at Padam village in the upper valley to form the Zanskar River.
    • Zanskar catchment was explored to understand the landform evolution in the transitional climatic zone, using morpho-stratigraphy and study of landforms like valley fill terraces, alluvial fans (triangle-shaped deposit of gravel, sand, and even smaller pieces of sediment, such as silt).

    Zanskar Padam

    • Zanskar river makes a deep gorge in its lower reaches with the headwaters in upper Zanskar makes wide basin called as Padam.
    • The basin stores large amount of sediments in form of fans and river terrace deposits
    • The research suggested that the wide valley of Padam, with an area of 48 square km, in the upper Zanskar, has stored a vast amount of sediments in these landforms.
    • Thus Padam valley is a hotspot of sediment buffering in the Zanskar.

    Sediment study reveals the erosion

    • The study suggested that most sediments were derived from Higher Himalayan crystalline that lies in the headwater region of Zanskar.
    • It was found out that dominant factors responsible for sediment erosion were deglaciation and Indian Summer Monsoon derived precipitation in the headwaters despite the presence of a geomorphic barrier (the deep, narrow gorge).

    Significance of the study

    • The scientists have traced where the rivers draining Himalaya and its foreland erode the most and identify the zones that receive these eroded sediments and fill up.
    • The study will help understand river-borne erosion and sedimentation, which are the main drivers that make large riverine plains, terraces, and deltas that eventually become the cradle to evolving civilizations.
    • It will also help study the dynamics of devastating floods created by these Himalayan rivers in recent times.
    • Thus, the understanding of water and sediment routing becomes crucial while developing infrastructure and for other development works in the river catchment area.
  • [pib] Year of Awareness on Science & Health (YASH) Program

    National Council for Science & Technology Communication (NCSTC) has launched a programme on health and risk communication ‘Year of Awareness on Science & Health (YASH)’ with focus on COVID-19.

    There are various initiatives named with Hindi acronyms. YASH is newer among them. It is very unlikely to frame a prelim question on it. Still, we should know it for the sake of general awareness.

    YASH Program

    • YASH is a comprehensive and effective science and health communication effort for promoting grass-root level appreciation and response to health.
    • The current pandemic scenario has posed concerns and challenges all around, where scientific awareness and health preparedness play a significant role to help combat the situation.
    • This requires translation and usage of authentic scientific information to convey the risks involved and facilitates communities to overcome the situation.
    • The programme will encompass the development of science, health, and risk communication software, publications, audio-visual, digital platforms, folk performances, trained communicators, especially in regional languages to cater to various cross-sections of the society in the country.
    • It would help to save and shaping the lives of people at large, as well as build confidence, inculcate a scientific temper and promote health consciousness among them.

    Activities under YASH

    • The programme is aimed at minimizing risks at all levels with the help of public communication and outreach activities.
    • It would promote public understanding of common minimum science for community care and health safety measures like personal sanitation and hygiene, physical distancing, maintaining desired collective behaviour and so on.
    • It also includes information dissemination mechanisms to reduce the fear of risks and build confidence with necessary understanding for adopting sustainable healthy lifestyles and nurturing scientific culture among masses and societies.
  • [pib] Kisan Sabha App to Connect Farmers to Supply Chain and Freight Transportation

    Kisan Sabha App developed by CSIR to connect farmers to supply chain and freight transportation management system was recently launched.

    Initiatives as such are less likely to be asked in the prelims as the name and purpose create no different analogy. But for the sake of information and mains perspective, it is vital to remember such technology interventions while emphasizing on Agricultural marketing reforms.

    Kisan Sabha App

    • Kisan Sabha aims to provide the most economical and timely logistics support to the farmers and increase their profit margins by minimizing the interference of middlemen and directly connecting with the institutional buyers.
    • It will also help in providing the best market rates of crops by comparing nearest mandis, booking of freight vehicle at the cheapest cost thereby giving maximum benefit to the farmers.
    • The portal connects the farmers, transporters, Service providers (like pesticides/ fertilizer/ dealers, cold store and warehouse owner), mandi dealers, customers and other related entities for a timely and effective solution.
    • The app has 6 major modules taking care of Farmers/Mandi Dealers/Transporters/Mandi Board Members/ Service Providers/Consumers.

    Facilities provided by the app

    • The portal acts as a single stop for every entity related to agriculture, be they a farmer who needs better price for the crops or mandi dealer who wants to connect to more farmers or truckers who invariably go empty from the mandis.
    • It provides a platform for people who want to buy directly from the farmers.
    • It would also prove to be useful for those associated with cold store(s) or godown(s).
  • [Burning Issue] 100% Reservation and Associated Issues

    Background

    • Reservation in India is a system of affirmative action by the State that provides representation for historically and currently disadvantaged groups in Indian society in education, employment and politics.
    • It was envisaged to help address social disparities and economic backwardness of certain sections of the population within a few decades.
    • But gradually, amendments have been made, and there is no review of the list nor has reservation come to an end. Instead, there is a demand to increase them.
    • Now it is very tough for any elected government to have the political will to meet the challenges that arise from the reservation.

    Reservation being an all-time contested issue is a less inevitable topic for mains. However, we can expect some of the thought triggering questions such as – “Reservation is hardly capable of striking a balance between social inclusion and merit. Critically comment. (250 W)”

    OR

    Essay topic like- “Meritocracy is unrealized without an egalitarian society” are ready to raid your mind.

    Present context

    • Recently, the Constitution Bench of the Supreme Court has held it unconstitutional to provide 100% reservation for tribal teachers in schools located in Scheduled Areas across the country.
    • The Bench was answering a reference made to it in 2016 on whether 100% reservation is permissible under the Constitution.
    • The principal grounds cited are mainly found in a 1992 judgment of a nine-judge Bench in Indra Sawhney vs Union of India.

    Yet again in the news

    • Since 1992, governments—both the Centre and the states—have been liberal in their interpretation of “extraordinary situation”, and have used various legal provisions to protect policies that breached the 50% cap.
    • For instance, some states have used the Schedule IX shield to protect state laws that expanded reservation beyond 50%. (A Tamil Nadu law that provides 69 per cent reservation in the state is part of the Schedule.)
    • Maharashtra recently enacted legislation to give reservation benefits to Marathas.
    • On the other hand, the Centre created a 10% quota for people from economically “weaker” sections (defying the sole criteria of socio-economic backwardness).

    What is the present case?

    • The Supreme Court has overruled the Andhra Pradesh government’s decision in 1988 to provide a 100% reservation to Scheduled Tribes for teacher posts in Scheduled Areas.
    • The notification to provide a 100% reservation to Scheduled Tribes (STs) for teacher posts in Scheduled Areas was issued by then governor of the erstwhile Andhra Pradesh.
    • The Fifth Schedule of the Constitution dealing with the administration of Scheduled Areas vests the Governor with legislative and administrative powers.

    Note: We shall not indulge in dicussing the pros and cons of reservations. Numerous politicians and forged bhakts are there to brainstorm them.

    Why did AP bring such a provision?

    • The scheduled areas are treated differently from the other areas in the country because they are inhabited by ‘aboriginals’ who are socially and economically rather backwards and special efforts need to be made to improve their condition.
    • Therefore, the whole of the normal administrative machinery operating in a state is not extended to the scheduled areas.
    • Then AP govt. observed that there was chronic absenteeism among teachers who did not belong to those remote areas where the schools were located.

    No 100% quota permissible

    • The apex court held that it is an obnoxious idea that tribals only should teach the tribals.
    • Merit cannot be denied in toto by providing reservation observed the judgement.
    • Citizens have equal rights, and the total exclusion of others by creating an opportunity for one class is not contemplated by the founding fathers of the Constitution of India.

    Constitutionality check: ‘Failed’

    • The Supreme Court concluded that reservation in the case violated Articles 14 (equality before law), 15(1) (discrimination against citizens) and 16 (equal opportunity) of the Constitution.
    • The Court ruled that the Governor’s powers under para 5 of Schedule V are subject to the fundamental rights guaranteed under Part III of the Constitution.
    • It observed that in this case, “there were no such extraordinary circumstances to provide a 100 per cent reservation in Scheduled Areas”.
    • The court also took note of a Presidential Order issued in 1975 under Article 371-D (Special provisions for Andhra Pradesh) of the Constitution, which said employment to people in the state were limited to only their districts.

    Other legal loopholes

    • Paragraph 5(1) of Schedule V empowers the Governor to issue a notification directing that any central or state law may not apply to a scheduled area or shall apply to the area with modifications and exemptions.
    • The then Andhra Pradesh Governor had cited this provision.
    • The government order had also cited Andhra Pradesh State and Subordinate Service Rules 1996, which provides for 6 per cent reservation for Scheduled Tribes in the State.
    • But the bench ruled that Para 5(1) of Schedule V does not allow modification of Rules.

    Invoking Indra Sawhney judgment: The 50% Cap

    • The court referred to the famous Indra Sawhney judgment (Mandal case- Indra Sawhney v. Union of India 1992), which caps reservation at 50%.
    • The court held that a 100% reservation is discriminatory and impermissible.
    • Among others, it recognized socially and economically backward classes as a category and recognized the validity of the 27 per cent reservation.
    • The concept of ‘creamy layer’ gained currency through this judgment. Those among the OBCs who had transcended their social backwardness were to be excluded from the reservation.

    Significance of the present judgement

    • The verdict quashing the 100% quota is not against affirmative programmes as such, but caution against implementing them in a manner detrimental to the rest of society.
    • However, the solution for drafting only members of the local tribes was not a viable solution.
    • As the Bench noted, it could have come up with other incentives to ensure the attendance of teachers.
    • Another aspect that the court took into account was that Andhra Pradesh has a local area system of recruitment to public services.
    • Thus, the 100% quota deprived residents of the Scheduled Areas of any opportunity to apply for teaching posts.

    Why so much confusion persists over ‘reservation’ after several Judgements?

    • There are many other reservation-related judgements where the SC has either read down its earlier judgments or has completely side-stepped these.
    • A fair share of the blame, however, must rest with the SC itself in 1994, in Ajay Kumar Singh SC ruled on reservations at the highest levels of education, which Indra Sawhney proscribes.
    • For instance, SC in 2018 upheld one part of the Nagaraj judgment saying that reservations can’t be allowed to affect efficiency negatively while in another judgment.
    • It is necessary to liberate the concept of efficiency from a one-sided approach which ignores the need for and the positive effects of the inclusion of diverse segments of society on the efficiency of administration.
    • Unless the apex court lays down its opinion with some degree of certitude, the reservation will likely continue in perpetuity.

    What is the remedy for such a situation?

    • B.R. Ambedkar observed during the debate in the Constituent Assembly on the equality clause, that any reservation normally ought to be for a “minority of seats”.
    • This is one of the points often urged in favour of the 50% cap imposed by the Court on the total reservation, albeit with some allowance for relaxation in special circumstances.
    • It is still a matter of debate whether the ceiling has innate sanctity, but it is clear that wherever it is imperative that the cap be breached; a special case must be made for it (as TN and MH did).
    • Such a debate should not divert attention from the fact that there is a continuing need for a significant quota for STs, especially those living in areas under the Fifth Schedule special dispensation.

    Way Forward

    • The reservation policy was introduced only for a temporary timeframe until equality reigns amongst all bases of discrimination.
    • However, the policy of reservation has been continuing for over six decades now and continues to expand. Since, Reservation is necessary to provide equality, equity, and diversity in society.
    • The Indra Sawhney judgement started a new era of reservation in India. But actual work of social upliftment is still incomplete.
    • The present system seeks to elevate a section or decelerates another regardless of merit to bring them all on the same level.
    • Still, it is the only prerogative for social upliftment of marginalized sections.
    • There is a need for rationalizing the policy so that a balance can be established between social mobility and merit.

     

     


    Back2Basics: What are Fifth Schedule Areas?

    • The Fifth Schedule of the Constitution deals with the administration and control of scheduled areas and scheduled tribes in any state except the four states of Assam, Meghalaya, Tripura and Mizoram (ATM2).

    Who can declare an area to be Scheduled Area?

    • The President is empowered to declare an area to be a scheduled area.
    • He can also increase or decrease its area, alter its boundary lines, rescind such designation or make fresh orders for such re-designation on an area in consultation with the governor of the state concerned.

    Administration of Scheduled Areas

    • The executive power of a state extends to the scheduled areas therein. But the governor has a special responsibility regarding such areas.
    • The executive power of the Centre extends to giving directions to the states regarding the administration of such areas.

    Role of Governor

    • He has to submit a report to the President regarding the administration of such areas, annually or whenever so required by the President.
    • The Governor is empowered to direct that any particular act of Parliament or the state legislature does not apply to a scheduled area or apply with specified modifications and exceptions.
    • He can also make regulations for the peace and good government of a scheduled area after consulting the tribes advisory council.

    The Tribes Advisory Council

    • Each state having scheduled areas has to establish a tribes’ advisory council to advice on welfare and advancement of the scheduled tribes.

    States having Scheduled Areas

    • At present, 10 States namely Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana have Fifth Schedule Areas.
    • Tribal habitations in the states of Kerala, Tamil Nadu, Karnataka, West Bengal, Uttar Pradesh and Jammu & Kashmir have not been brought under the Fifth or Sixth Schedule.

    Also read:

    Ninth Schedule of the Indian Constitution




    References

    https://www.civilsdaily.com/news/no-100-quota-for-scheduled-areas/

    https://theprint.in/judiciary/no-rhyme-or-reason-for-100-reservation-why-sc-quashed-2000-andhra-order-for-st-teachers/407217/

    https://www.thehindu.com/opinion/editorial/no-100-quota-the-hindu-editorial-on-overzealous-reservation/article31427747.ece

     

  • [Prelims Spotlight] Important UN Organizations in News

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

    Important UN Organizations in News


    02 May 2020

    United Nation Overview:

    • The United Nations is an international organization founded in 1945.  It is currently made up of 193 Member States.  The mission and work of the United Nations are guided by the purposes and principles contained in its founding Charter.
    • Due to the powers vested in its Charter and its unique international character, the United Nations can take action on the issues confronting humanity in the 21st century, such as peace and security, climate change, sustainable development, human rights, disarmament, terrorism, humanitarian and health emergencies, gender equality, governance, food production, and more.
    • The UN also provides a forum for its members to express their views in the General Assembly, the Security Council, the Economic and Social Council, and other bodies and committees. By enabling dialogue between its members, and by hosting negotiations, the Organization has become a mechanism for governments to find areas of agreement and solve problems together.
    • The main organs of the UN are the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice, and the UN Secretariat.  All were established in 1945 when the UN was founded.

    General Assembly

    • The General Assembly is the main deliberative, policymaking and representative organ of the UN. All 193 Member States of the UN are represented in the General Assembly, making it the only UN body with universal representation.
    • Each year, in September, the full UN membership meets in the General Assembly Hall in New York for the annual General Assembly session, and general debate, which many heads of state attend and address. Decisions on important questions, such as those on peace and security, admission of new members and budgetary matters, require a two-thirds majority of the General Assembly.
    • Decisions on other questions are by a simple majority.  The General Assembly, each year, elects a GA President to serve a one-year term of office.

    Security Council

    The Security Council has primary responsibility, under the UN Charter, for the maintenance of international peace and security.  It has 15 Members (5 permanent and 10 non-permanent members). Each Member has one vote. Under the Charter, all Member States are obligated to comply with Council decisions. The Security Council takes the lead in determining the existence of a threat to the peace or act of aggression. It calls upon the parties to a dispute to settle it by peaceful means and recommends methods of adjustment or terms of the settlement. In some cases, the Security Council can resort to imposing sanctions or even authorize the use of force to maintain or restore international peace and security.  The Security Council has a Presidency, which rotates, and changes, every month.

    Economic and Social Council

    The Economic and Social Council is the principal body for coordination, policy review, policy dialogue and recommendations on economic, social and environmental issues, as well as the implementation of internationally agreed development goals. It serves as the central mechanism for activities of the UN system and its specialized agencies in the economic, social and environmental fields, supervising subsidiary and expert bodies.  It has 54 Members, elected by the General Assembly for overlapping three-year terms. It is the United Nations’ central platform for reflection, debate, and innovative thinking on sustainable development.

    Trusteeship Council

    The Trusteeship Council was established in 1945 by the UN Charter, under Chapter XIII, to provide international supervision for 11 Trust Territories that had been placed under the administration of seven Member States, and ensure that adequate steps were taken to prepare the Territories for self-government and independence. By 1994, all Trust Territories had attained self-government or independence.  The Trusteeship Council suspended operation on 1 November 1994. By a resolution adopted on 25 May 1994, the Council amended its rules of procedure to drop the obligation to meet annually and agreed to meet as occasion required — by its decision or the decision of its President, or at the request of a majority of its members or the General Assembly or the Security Council.

    International Court of Justice

    The International Court of Justice is the principal judicial organ of the United Nations. Its seat is at the Peace Palace in the Hague (Netherlands). It is the only one of the six principal organs of the United Nations not located in New York (United States of America). The Court’s role is to settle, in accordance with international law, legal disputes submitted to it by States and to give advisory opinions on legal questions referred to it by authorized United Nations organs and specialized agencies.

    Secretariat

    The Secretariat comprises the Secretary-General and tens of thousands of international UN staff members who carry out the day-to-day work of the UN as mandated by the General Assembly and the Organization’s other principal organs.  The Secretary-General is the chief administrative officer of the Organization, appointed by the General Assembly on the recommendation of the Security Council for a five-year, renewable term. UN staff members are recruited internationally and locally, and work in duty stations and on peacekeeping missions all around the world.  But serving the cause of peace in a violent world is a dangerous occupation. Since the founding of the United Nations, hundreds of brave men and women have given their lives in its service.

     

  • Pandemic calls for deep-set forces and scientific concepts of development for building a modern economy

    The article discusses the recovery strategies for India. There are three examples from the past from which we can draw the lessons. 1) Recovery of the US and Europe after the World Wars 2) Recovery of Japan after World War 3) China’s stimulus package after the 2008 financial crisis. In the case of the first two, climate change was not the factor. But in case of the 2008 financial package, China emphasised green technologies and was benefited from it. Drawing on China’s example, the article suggests three pronged strategy for India’s recovery taking into account the climate change factor.

    Decisions on recovery and lessons from the past recovery frameworks

    • The decisions and directions taken by states from hereon will be judged ruthlessly by historical lenses.
    • Though India has managed the pandemic with relative precision, we cannot deny an impending emergence of a new socio-economic order, where the recovery is going to be hard-earned.
    • This is not the first time the world has faced an economic crisis and won’t be the last.
    • Can a country like India, which might be one of the few countries to come out of the crisis without a recession, take lessons from past recovery frameworks?
    • Recovery frameworks: Even though the very nature of the current health crisis is much different from the past crises like World Wars and their repercussions in Europe, the US and Japan.
    • But the evidence shows that ambitious recovery plans made these nation-states more prosperous than the pre-crisis period.

    Recovery lessons form the western world after the World Wars

    • Hurt by the two World Wars and a Great Depression in between, the western world demonstrated unprecedented recovery to attain post-war full employment and stabilized income levels.
    • Almost thirty years between World War II and 1973 recession (“Glorious Thirties“), the countries like the US, Canada, Germany, and France experienced a golden period of growth.
    • In the US, the labour productivity grew at 2.82% per year which meant that productivity doubled every 25 years thanks to better machines driven by electricity and internal combustion engines, better education and massive capital investment.
    • The world wars accelerated technological innovations in energy, manufacturing and vastly improved the labour pool.

    Recovery of Japan after World War

    • Severely hit by the war, Japan’s miraculous growth from 1950 to 1990 is another example of a state using great adversity to propel itself towards prosperity.
    • Post-war liberalization was augmented by multilateral trade agreements and export promotion schemes.
    • That propelled the Japanese economy to dizzying heights making it the second-largest economy at the time.
    • Apart from fiscal stimuli, immense efforts went into strengthening human capital by promoting R&D and skilling activities.
    • Suddenly, Japan becomes one of the most ingenious economies churning out one innovative product after another in fields like electronics.
    • In addition, pioneering quality systems made Japan the first Asian economy to become a developed state.

    Recoveries based on values and technological innovations

    • All the above recoveries are rooted in modern values like create, explore and meet challenges.
    • While large investments garner a lot of attention, role played by massive skilling and resultant technological innovation should not be forgotten.
    • Skilling and innovation enabled creating goods and services of the future.

    Climate change and recovery

    • These successful recovery plans did not have the responsibility to plan for an impending climate change hanging over our head by a thread.
    • The times were different; the needs were different: more importantly, the evidences were not as irrefutable as now.
    • A 2018 study titled ‘Earth’s future’, estimated that India will lose 10% of its GDP annually in a 3°C scenario and lose 14% of its GDP annually in a 4°C scenario in the long term.
    • And the time to act is ‘now’, as consequences of inaction are existential.

    China’s stimulus after the 2008 crisis with a focus on green technologies

    • Fast-forwarding to the 21st century, the 2008–09 Chinese economic stimulus plan pumped in $586 billion to manage the crisis.
    • With serious money of $586 billion going into upgrading selected industrial sectors to firm up its presence in the global value chains (GVC).
    • Interestingly, a sizeable portion went into green technologies.
    • China understood that if the world is provided with affordable green technologies at scale, the states will incentivize the increasingly eco-aware consumers to buy these products.
    • Catalyzed by plans like “Ten Cities, Thousand Vehicles and “Thousand Talents Program (TTP)” and generous state incentives, China became a global leader in e-vehicles.
    • Chinese-made buses started roaming famous cities across the world, the roads traditionally dominated by European makers.
    • Powered by generous capital infusion, China also attained leadership in solar panels, batteries and associated supply chains in a short period setting up a sustainable growth module.
    • A lesson in fiscal prudence: The 2008–09 Chinese economic stimulus plan is also criticized for raising the Chinese debt levels, hence giving us lessons in fiscal prudence.

    Should India opt for a green recovery module?

    • Can a developing India afford to allocate a significant portion of its precious resources towards a green recovery module?
    • Unbridled economic growth and sustainable development are not mutually exclusive.
    • In fact, we might not have a choice, given the movement of global supply chain towards green technologies and tightening screws around strict sustainability standards.
    • European Commission, for instance, has announced that every euro into the recovery plan will be linked to green recovery.

    A three-pronged approach is suggested for recovery

    1. Investment and incentives for green economic activities in the selected sectors

    • First, ambitious investment and incentives in catalyzing futuristic green economic activities in selected sectors.
    • Developing, manufacturing and deploying low carbon products could help India create more jobs: the kind of jobs that will survive into the future.
    • With Giga scale battery and solar manufacturing plans already underway, there is a huge demand globally for sustainable supply chain of even traditional sectors such as textiles.
    • India could choose 5 sectors where it can fill the sustainability vacuum helping the sub-continent emerge as a new global leader in those sectors.
    • India has the potential to scale-up currently ready technologies like e-VTOLs (intra-city electric aerial mobility), which will upend the global mobility modules, increasing the profitability of growing Indian e-mobility supply chain.
    • Companies like Hyundai who have already announced manufacturing of e-VTOLs should be attracted to India.
    • Crisis situations often provide policy windows, where all the stakeholders are empowered, and historically time-consuming decisions are fast-forwarded.
    • If India manages to efficiently remove regulatory bottlenecks and creates standards for e-VTOLs before anyone else, it will take a huge chunk of the global future mobility pie.
    • Similar initiatives for other strategic sectors could be carried out.

    2. Resolve regulatory and on-ground legacy issues

    • Aggressively resolving on-ground legacy issues and challenges.
    • Shackles around entrepreneurship from labour laws to clearances regimes should be broken one by one.
    • It could be done by leveraging the cooperative and competitive federalism evidenced through the crisis under the able leadership of the Hon’ble Prime Minister.
    • And the current policy window might be an ideal opportunity for Indian democracy to deliver.

    3. Focus on skilling people

    • Third, a big-ticket omni-channel skilling architecture should be instituted.
    • Universities should be empowered and enabled to come up with new-age educational programmes to serve futuristic industries.
    • A special focus should be given to develop enough trainers to train the millions of Indian youth getting ready for the labour market every year, in new-age skills.
    • Adequate online-offline training courses must be designed in a way that it does not affect daily wages drastically.
    • The big-ticket vocational programmes, specially directed at the informal sector which constitute more than 90% of the total workforce, has the potential to employ displaced and poor labourers.
    • A strategic skill committee may be empowered to dynamically identify key skills and tweak the training modules.
    • This can be integrated with the Ministry of Environment’s Green Skill Development Program to train 10 million youth by 2030.

    The issues discussed here are important for achieving sustainable and inclusive growth. A question based on this theme was asked by UPSC in 2019.

    Consider the question “It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement.”

    Conclusion

    The current pandemic calls for deep-set forces and scientific concepts of development for building a dynamic and modern economy. Green growth is one such concept that will add a new dimension to the economic dynamism of the sub-continent helping it serve the aspirations of its citizens.

  • Rethinking the role of Intellectual Property in Corona crisis

    The article discusses the idea of creating a patent pool of the patents dealing with Covid-19. Such a patent pool will be effective in avoiding the possibility of the hostile response of societies towards patent rights. And also avoid the conflict between nations. corporations and international organisations.

    Purpose of patent rights

    • The purpose of creating and recognising patent rights is for the common public good, i.e., innovation should be made public in exchange for a limited monopoly.
    • Thus, patents need to be disclosed to the public in order to enable further research.
    • Should pandemics such as COVID-19be an exception to this?
    • With the outbreak of COVID-19, there are several innovations.
    • All these innovations may be the subject matter of patent applications around the world.
    • It will be a few years before patents are even granted.
    • However, friction already exists among various stakeholders.
    • For instance, one country made attempts to obtain exclusive rights to a vaccine being developed.
    • On the other hand, there are also collaborations taking place.
    • However, the spirit of collaborative solutions is only on the anvil.
    • The question that arises is whether the exclusivity that is recognised by patent rights will be detrimental to society.
    • Will patents create roadblocks or is there a solution?

    Possibility of conflicts over patent rights

    • Governments and international organisations need to arrive at a consensus in advance to ensure that the system is ready.
    • Procrastination would be disastrous.
    • Creating hindrances through exclusivity claims, in the wake of a pandemic, will result in dividing countries, corporations and international organisations.
    • This will not benefit patients and the world as a whole.
    • If patent owners create impediments on the strength of patent rights, the world will start despising patents and that is not a situation IP owners ought to be in.
    • Under the TRIPS (Trade-Related Aspects of Intellectual Property Rights) regime, there are several tools such as compulsory licensing that are available to ensure access to medicines.
    • However, beyond the laws, society needs to respect innovation.
    • To protect the sanctity and integrity of patent systems, and in order to ensure that an anti-IP sentiment is not generated globally, answers need to be found within the existing regime.
    • In exceptional circumstances such as these, there is a likelihood that societies may resort to extreme steps to protect themselves.
    • Before such ideas are floated, solutions should be created.

    The idea of creating a patent pool

    • One method by which aggregation and dissemination of innovative products can be ensured is by creating a patent pool.
    • Patent pools are usually effective in aggregating, administering and licensing patents related to specific areas of technology.
    • Such pools are usually managed by a central agency and the patents which become part of the pool are readily made available for licensing.
    • Some pools even publish the royalty rates payable for such licences.
    • Anyone who wishes to obtain a licence will be able to approach the pool, agree to the terms, and begin to manufacture and sell the products.
    • Such pools are prevalent in, for instance, standard essential patents related to telecom and digital innovations.
    • At the moment, individual efforts are being made by research organisations to create their own pools.
    • A more fruitful endeavour would be to create a global pool of COVID-19-related innovations, or innovations related to rare pandemics, in respect of vaccines and medicines.
    • This could be managed by a trustworthy international organisation.
    • All countries ought to have the right to implement these innovations without further permission from the patent-holders.
    • This would not require countries resorting to provisions such as compulsory licensing, state acquisition, etc.
    • Even if royalties are at a minimal level, the revenues would still be in billions of dollars owing to the large swathes of the population affected by the pandemic, who will need to be administered these products.

    Way forward

    • Creation of a pool and immediate licensing will ensure that there are hundreds of manufacturers across the world.
    • As a result, vaccines and medicines will be quickly available.
    • Such a pool needs the cooperation of not just countries and international organisations but also the hundreds of researchers, innovators, companies and universities involved.
    • Doha Declaration: Pooling of patent resources is also in line with the Doha Declaration on Public Health which is a part of the TRIPS agreement.
    • This declaration recognises the need for taking measures to ‘protect public health’ and ‘promote access to medicines’.

    A direct question on the issue can be asked by the UPSC, for ex-“Though IPRs have been provided to respect and protect the innovations and ideas, but in the wake of corona crisis, some strict provisions need to be changed. In light of the above statement, discuss the limitations of the exclusivity clause under the patents rights. And how can it be overcome in emergency situations?”

    Conclusion

    Public-private partnerships (PPP) need to be scaled up. Creation of the ‘PPP-pandemic patent pool’ at a global level, to pool all innovations, is the way forward. Let us not wait any longer.

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