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  • What explains the surge in FDI inflows?

    The article analyses the factors contributing to the claim of 10% rise in total Foreign Direct Investment in 2020-21 and its impact on economy.

    Making sense of increased FDI

    • Total foreign direct investment (FDI) inflow in 2020-21 is $81.7 billion, up 10% over the previous year, reported a recent Ministry of Commerce and Industry press release.
    •  The short press release highlighted industry and State-specific foreign investment figures without detailed statistical information.
    • The Reserve Bank of India (RBI) bulletin, which was released a week earlier, has the details.

    What explains increased gross inflows

    • The gross inflow consists of (i) direct investment to India and (ii) repatriation/disinvestment.
    • The disaggregation shows that direct investment to India has declined by 2.4%.
    • Hence, an increase of 47% in “repatriation/disinvestment” entirely accounts for the rise in the gross inflows.
    • In other words, there is a wide gap between gross FDI inflow and direct investment to India.
    • Similarly, measured on a net basis (that is, “direct investment to India” net of “FDI by India” or, outward FDI from India), direct investment to India has barely risen (0.8%) in 2020-21 over the last year.
    • What then accounts for the impressive headline number of 10% rise in gross inflow?
    • It is almost entirely on account of “Net Portfolio Investment”, shooting up from $1.4 billion in 2019-20 to $36.8 billion in the next year.
    • That is a whopping 2,526% rise.
    • Further, within the net portfolio investment, foreign institutional investment (FIIs) has boomed by an astounding 6,800% to $38 billion in 2020-21, from a mere half a billion dollars in the previous year.
    • This explains the surge in gross FDI inflows which is entirely on account of net foreign portfolio investment.

    How FDI is different from FII

    • FDI inflow, in theory, is supposed to bring in additional capital to augment potential output (taking managerial control/stake).
    • In contrast, foreign portfolio investment, as the name suggests, is short-term investment in domestic capital (equity and debt) markets to realise better financial returns.
    • But the conceptual distinctions have blurred in official reporting, showing an outsized role of FDI and its growth in India.

    How FPI distorted equity markets?

    • The deluge of FII inflow did little to augment the economy’s potential output.
    • It added a lot of froth to the stock prices.
    • When GDP has contracted by 7.3%  in 2020-21 on account of the pandemic and the economic lockdown, the BSE Sensex nearly doubled from about 26,000 points on March 23, 2020 to over 50,000 on March 31, 2021.
    • BSE’s price-earnings (P-E) multiple — defined as share price relative to earnings per share — is among the world’s highest, close behind S&P 500 in the U.S.

    FDI inflow’s contribution to domestic output

    • As Figure below shows, between 2013-14 and 2019-20, the ratio of net FDI to GDP has remained just over 1% (left-hand scale), with no discernible rising trend in it.
    • The proportion of net FDI to gross fixed capital formation (fixed investment) is range-bound between 4% and 6%.
    • These stagnant trends are evident when the economy’s fixed investment rate — gross fixed capital formation to GDP ratio — has plummeted from 31.3% in 2013-14 to 26.9% in 2019-20 (right-hand scale).
    • Thus, FDI inflow’s contribution to domestic output and investment remains modest.

    Conclusion

    The flood of FIIs has boosted stock prices and financial returns. These inflows did little to augment fixed investment and output growth.

  • International organizations related to environment conservation

     
    02nd June 2021

    Earth System Governance Project (ESGP)

    Established When and by Whom:  Developed under the auspices of the International Human Dimensions Programme on Global Environmental Change. It started in January 2009.

    Headquarter: The Earth System Governance Project Office is hosted at Lund University, Sweden.

    Key Functions:

    The Earth System Governance Project aims to contribute to science on the large, complex challenges of governance in an era of rapid and large-scale environmental change. 

    The project seeks to create a better understanding of the role of institutions, organizations and governance mechanisms by which humans regulate their relationship with the natural environment

    The Earth System Governance Project aims to integrate governance research at all levels. The project aims to examine problems of the ‘global commons’, but also local problems from air pollution to the preservation of waters, waste treatment or desertification and soil degradation

    However, due to natural interdependencies local environmental pollution can be transformed into changes of the global system that affect other localities. Therefore, the Earth System Governance Project looks at institutions and governance processes both local and globally

    The Earth System Governance Project is a scientific effort, but also aims to assist policy responses to the pressing problems of earth system transformation

     

    Global Environment Facility (GEF)

    Established When and by Whom: The Global Environment Facility was established in October 1991 as a $1 billion pilot program in the World Bank to assist in the protection of the global environment and to promote environmental sustainable development.

    Headquarter: Washington, District of Columbia, United States of America

    Key Functions:

    The Global Environment Facility (GEF) unites 183 countries in partnership with international institutions, civil society organizations (CSOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives.

    Today the GEF is the largest public funder of projects to improve the global environment.

    An independently operating financial organization, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants.

    Funding: The GEF also serves as the financial mechanism for the following conventions:

    • Convention on Biological Diversity (CBD)
    • United Nations Framework Convention on Climate Change (UNFCCC)
    • UN Convention to Combat Desertification (UNCCD)
    • Stockholm Convention on Persistent Organic Pollutants (POPs)
    • Minamata Convention on Mercury

    India specific trivia:

    *India has formed a permanent Constituency in the Executive Council of the GEF together with Bangladesh, Sri Lanka, Bhutan, Nepal and Maldives. 

    The Council Meetings are held semi-annually or as frequently necessary. At each meeting, the Council elects a Chairperson from among its members for the duration of that meeting. India’s Executive Director in the World Bank represents the GEF Council from our Constituency.

    India is both a donor and a recipient of GEF. It has been a leading developing country participant in the GEF since its inception in 1991 and has played a major role in shaping the restructuring of the GEF. It had contributed US $ 6.0 million to the core fund in the GEF Pilot Phase.

    India has pledged an amount of US $ 9.0 million towards the resources of each of the Five GEF replenishments. The total funds pledged so far amounts to US$ 51 million and an amount of US$ 48.75 million has been paid by December 2012 towards GEF replenishments.

    Ministry of Finance is the political focal point while Ministry of Environment & Forests is the Operational Focal Point for the GEF Projects.

     

    Global Green Growth Institute

    Established When and by Whom: GGGI was first launched as a think tank in 2010 by Korean President Lee Myung-bak, and was later converted into an international treaty-based organization in 2012 at the Rio+20 Summit in Brazil.

    Headquarter: It is headquartered in Seoul, Republic of Korea

    Key Functions: GGGI works to produce three major outcomes: adoption and implementation of green growth plans; provision of research for policymakers; and private sector engagement in the implementation of the national green growth plans. The organization uses three approaches to achieve these outcomes: Green Growth Planning & Implementation (GGP&I), Knowledge Development & Management (KDM), and Public-Private Cooperation (PPC).

    Funding: Funds are given by Contributing members. Contributing members are defined as Member countries that make a multi-year financial contribution of core funding of no less than USD 15 million over three years. Participating members are defined as Member countries that are not contributing members.

    India specific trivia:

    GGGI has been working in India to promote green growth and sustainable development since 2013.

    GGGI has worked at national, state, and city levels to develop and implement green growth strategies that reconcile short-term priorities with long-term vision of higher economic growth, environmental sustainability, and social inclusion

    At the state level, GGGI worked closely with the governments of Karnataka, Himachal Pradesh (HP), and Punjab to develop comprehensive green growth strategies together with each.

    GGGI also supported each of the three state governments in adopting integrated analytical approaches to assess green growth challenges and prioritize opportunities across key sectors, including energy, water, agriculture, and forestry

    Building on these strategies, in 2015, GGGI supported the state governments in implementing specific green growth opportunities by formulating detailed project proposals, policy implementation roadmaps, and capacity building initiatives.

     

    KIMO (Local Authorities International Environmental Organisation)

    Established When and by Whom: KIMO was founded in August 1990 by four municipalities and from this modest start has grown in size to represent over 70 members in Belgium, Denmark, The Faroe Islands, Germany, The Netherlands, Sweden and the United Kingdom.

    Headquarter: Esbjerg, Denmark

    Key Functions:

    • KIMO is committed to the development of sustainable coastal communities by:
    • Preventing pollution of the seas and coastal waters of North Western Europe and preserving, improving and enhancing them for future generations
    • Protecting coastal communities from the impacts of marine pollution and climate change.
    • Representing its member local authorities and associated members at an international and national level.

     

    Intergovernmental Panel on Climate Change (IPCC)

    Established When and by Whom:   It was first established in 1988 by two United Nations organizations, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP), and later endorsed by the United Nations General Assembly.

    Headquarter: Geneva, Switzerland

    Key Functions:

    • The IPCC produces reports that support the United Nations Framework Convention on Climate Change (UNFCCC).
    • IPCC reports cover all relevant information to understand the risk of human-induced climate change, its potential impacts and options for adaptation and mitigation.
    • The IPCC does not carry out its own original research.
    • Thousands of scientists and other experts contribute on a voluntary basis.
    • The 2007 Nobel Peace Prize was shared, in two equal parts, between the IPCC and an American Environmentalist.

    The aims of the IPCC are to assess scientific information relevant to:

    1. Human-induced climate change,
    2. The impacts of human-induced climate change,
    3. Options for adaptation and mitigation.

    Funding: The IPCC receives funding through the IPCC Trust Fund, established in 1989 by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO).

    India specific trivia: India will have its own climate change models to project the impact of global warming over the decades and these will form part of the forthcoming Sixth Intergovernmental Panel on Climate Change Reports that is expected to be available in 2020.

     

    International Union for Conservation of Nature (IUCN)

    Established When and by Whom: The International Union for Conservation of Nature (IUCN) is the world’s oldest and largest global environmental organisation.

    Founded in 1948, today IUCN the largest professional global conservation network. IUCN has more than 1,200 member organizations including 200+ government and 900+ non-government organizations.

    Headquarter: The Union’s headquarters are located in Gland, near Geneva, in Switzerland.

    Key Functions: Conserving biodiversity is central to the mission of IUCN. The main areas of function are:

    1. Science  – the IUCN Red List of Threatened Species™.
    2. Action – hundreds of conservation projects all over the world.
    3. Influence – through the collective strength of more than 1,200 government and non-governmental Member organizations.

    Funding:  Funded by governments, bilateral and multilateral agencies, foundations, member organisations and corporations.

    More about the IUCN

    Governance by a Council elected by member organizations every four years at the IUCN World Conservation Congress.

    Observer Status at the United Nations General Assembly.

    India specific trivia:

    • India became a State Member of IUCN in 1969, through the Ministry of Environment, Forest and Climate Change (MoEFCC).
    • The IUCN India Country Office was established in 2007 in New Delhi.
    • IUCN India works with Members and Commissions to reduce ecosystem and species loss by providing the necessary tools and knowledge to value, conserve and use biodiversity sustainability; enhance governance and policy for better management of ecosystems and habitats, including protected areas; and address challenges related to poverty alleviation, food security and climate change.  

     

    United Nations Environment Programme (UNEP)

    Established When and by Whom: It was founded as a result of the UN Conference on the Human Environment (Stockholm Conference) in 1972

    Headquarter: Nairobi, Kenya

    Key Functions:

    • It coordinates UN’s environmental activities, assisting developing countries in implementing environmentally sound policies and practices.
    • Its activities cover a wide range of issues regarding the atmosphere, marine and terrestrial ecosystems, environmental governance and green economy.
    • UNEP has also been active in funding and implementing environment related development projects
    • UNEP has aided in the formulation of guidelines and treaties on issues such as the international trade in potentially harmful chemicals, transboundary air pollution, and contamination of international waterways
    • UNEP is also one of several Implementing Agencies for the Global Environment Facility (GEF) and the Multilateral Fund for the Implementation of the Montreal Protocol
    • The International Cyanide Management Code, a program of best practice for the chemical’s use at gold mining operations, was developed under UNEP’s aegis.

    Funding:  The three main sources of funding of UN Environment are the UN Regular Budget, the Environment Fund, the core funding that enables UN Environment to implement its global and regional work, and Earmarked Contributions.

    India specific trivia: UN Environment has sponsored the development of solar loan programs, with attractive return rates, to buffer the initial deployment costs and entice consumers to consider and purchase solar PV systems.

    The most famous example is the solar loan program sponsored by UN Environment helped 100,000 people finance solar power systems in India.

    Success in India’s solar program has led to similar projects in other parts of the developing world like Tunisia, Morocco, Indonesia and Mexico.

     

    World Nature Organization (WNO)

    Established When and by Whom:  WNO initiative was born in 2010 by states which are threatened by rising sea levels. The WNO Treaty officially entered into force on 1st May 2014.

    Location : Geneva

    Key Functions:

    • It is an intergovernmental organisation which promotes global environmental protection.
    • WNO acts as a centre of competence for environmental protection, green technologies and sustainability, and as a mediator and initiator, making available experience of practical applications and strategies, offering support on all issues related to responsible conduct as regards the natural environment and its resources and assisting States to benefit from efficient development and from scientific and technology transfer.
    • The World Nature Organization  promotes sustainable conduct as regards the natural environment, together with new, environments-friendly technologies, green economies and renewable energies.

    India specific trivia: India is not a member

    World Food Programme

    Established When and by Whom:  The WFP was formally established in 1963 by the FAO and the United Nations General Assembly.

    Headquarter: Rome

    Key Functions:

    • The WFP strives to eradicate hunger and malnutrition, with the ultimate goal in mind of eliminating the need for food aid itself.
    • WFP’s efforts focus on emergency assistance, relief and rehabilitation, development aid and special operations.  
    • WFP food aid is also directed to fight micronutrient deficiencies, reduce child mortality, improve maternal health, and combat disease, including HIV and AIDS.
    • WFP has coordinated the five-year Purchase for Progress (P4P) pilot project which assists smallholder farmers by offering them opportunities to access agricultural markets and to become competitive players in the marketplace.

    Funding:  The WFP operations are funded by voluntary donations from world governments, corporations and private donors

    India specific trivia: The World Food Programme has been working in India for over 50 years. In line with the developments in India, WFP has realigned its focus from a food aid provider to a catalytic partner to the Government of India, strengthening food-based social safety nets.

     

    International Whaling Organization

    Established When and by Whom:  The IWC was set up under the International Convention for the Regulation of Whaling which was signed in Washington DC on 2nd December 1946.

    Headquarter:

    Key Functions:

    • The preamble to the Convention states that its purpose is to provide for the proper conservation of whale stocks and thus make possible the orderly development of the whaling industry.  
    • An integral part of the Convention is its legally binding ‘Schedule.’  The Schedule sets out specific measures that the IWC has collectively decided are necessary in order to regulate whaling and conserve whale stocks.
    • These measures include catch limits (which may be zero as it the case for commercial whaling) by species and area, designating specified areas as whale sanctuaries, protection of calves and females accompanied by calves, and restrictions on hunting methods. Unlike the Convention, the Schedule can be amended and updated when the Commission meets (a change requires at least three quarters majority agreement).
    • There are a number of reasons why changes to the Schedule may be necessary.  These include new information from the Scientific Committee, and variations in the requirements of aboriginal subsistence whalers.
    • The Commission also co-ordinates and, in several cases, funds conservation work on many species of cetacean. In addition to research, this includes building an international entanglement response capacity, working to prevent ship strikes, and establishment of Conservation Management Plans for key species and populations.  
    • The Commission has also adopted a Strategic Plan for Whalewatching to facilitate the further development of this activity in a way which is responsible and consistent with international best practice.

    Funding:  Financial contributions from member governments form the IWC’s core income, but additional voluntary donations to support particular work programmes are generously made by non-governmental organisations (NGOs), industry bodies, and also by member governments.

    India specific trivia: India is a Member

     

    Bio-carbon Fund initiative

    Established When and by Whom:  The BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) is a multilateral fund, supported by donor governments and managed by the World Bank. It is has been operational from 2013.

    Headquarter: USA

    Key Functions:

    • It seeks to promote reduced greenhouse gas emissions from the land sector, from deforestation and forest degradation in developing countries (REDD+), and from sustainable agriculture, as well as smarter land-use planning, policies and practices.
    • The initiative will be managed by the BioCarbon Fund, a public-private program housed within the World Bank that mobilizes finance for activities that sequester or conserve carbon emissions in forest and agricultural systems.
    • The new Initiative for Sustainable Forest Landscapes seeks to scale up land-management practices across large landscapes, including improved livestock management, climate-smart agriculture, and sustainable forest management, with a focus on protecting forests and greening and securing supply chains.
    • It will engage a broader range of actors, including the private sector, initially through a portfolio of four to six programs in Africa, Asia, and Latin America.

    Funding: Norway, the United Kingdom, and the United States together committed $280 million – up to $135 million from Norway, $120 million from the U.K, and $25 million from the U.S. – as part of their efforts to slow climate change.

     

    Arctic Council

    Established When and by Whom: The Arctic Council was founded on the initiative of the Government of Finland in September 1989 where officials from the 8 Arctic Countries met in Rovaniemi, Finland, to discuss cooperative measures to protect the Arctic environment.

    Headquarter: The location of the Secretariat was rotated biennially with the Chairmanship of the Arctic Council.

    Key Functions:

    The Arctic Council is an intergovernmental forum promoting cooperation, coordination, and interaction among the Arctic States, Arctic indigenous communities and other Arctic inhabitants on common Arctic issues, in particular on issues of sustainable development and environmental protection in the Arctic.

    The main focus areas of the Arctic Council are:

    1. The Environment and climate change
    2. Bio-diversity
    3. Oceans
    4. The indigenous Arctic peoples

    Funding: By member states

    India specific trivia: India is an Observer State

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  • Afraid to fail your exam? What if you knew this?

    Afraid to fail your exam? What if you knew this?

    Click here to fill the Samanvaya form for 1-1 mentorship. We will call you within 24 hours.(Also provided at the bottom of the article)

    Finding success in the UPSC journey requires every aspirant to identify their “weak” areas and rectify them.

    I think my number of revisions of the syllabus is still less.

    Why are my marks stagnant in the mock test? Do I need a new book?

    Should I change the optional subject?

    At one point during preparation days, these questions cross every aspirant’s mind. While it is important to have the right technique aka “smart study” strategy for this examination but is that enough?

    What about that crazy SELF-DOUBT VOICE in the head? What about those SLEEPLESS ANXIETY-filled nights? What about those LACK OF SUPPORT LOOKS you get when you did not clear prelims for the 3rd time? What about that FEELING OF GUILT that prevents you from having a day off? And finally what about the SUFFOCATION you feel carrying so much mental stress on your shoulders?

    Click here to fill the Samanvaya form for 1-1 mentorship. We will call you within 24 hours.(Also provided at the bottom of the article)

    MENTAL HEALTH as an issue has always carried a sense of stigma in Indian society. So, why should the stress and anxiety associated with UPSC preparation be treated any differently!

    Even if you are one of those courageous extroverts who speak about these mental challenges, you always have that one friend who sends you a motivational quote to get you over your MOOD SWINGS with some extra advice to memorize the quote as it can be helpful for GS 4 and essay.

    Honestly, sometimes you need more than a motivational quote. In our interaction with some 1000+ students, even the smallest act of acknowledging an aspirant’s anxiety and stress can go a long way in maintaining the right frame of mind during preparation.

    Emotional Stability is crucial to remain sane during this preparation and also to enjoy the whole process. The first step towards a balanced approach is to identify that as a human having lows and highs is pretty much normal. If you are not able to finish the decided target, then it is alright to feel bad and push yourself a little extra for the next day. What you need to avoid is “unhealthy behaviour”. For example, putting yourself under so much pressure that your performance starts to deteriorate or belittling yourself that it starts to affect your confidence.

    We are not here to diagnose any clinical conditions. But as former aspirants and gaining years of experience through mentorship, we are a big advocate of people’s interaction for healthy minds.

    Sometimes, in this preparation, all you need is a person to hear you out and understand you. And unfortunately, some of us are not able to find that one person in our family or friends. There is no shame in asking for emotional help. It helps if you have a person who can listen to your worries and reduce some of your pressure. Talking to your mentor can make you feel supported in the toughest times. The worst part of silo preparation is that aspirants tend to create the idea that all these emotional upheavals are exclusive to them. Trust us this is not true!

    A holistic UPSC preparation includes the right technique to complete your syllabus, revisions and mock test and a healthy mindset.

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  • Growth of farm sector during COVID-19 Pandemic

    2020-21 saw the Indian economy register its worst-ever contraction since Independence and also the first since 1979-80. There has been recording economic contraction, however, the farm sector actually grew by 3.6%.

    Growth in Farm Sector

    There are two main reasons why agriculture didn’t suffer the fate of the rest of the economy last year.

    (1) Better monsoon and yields

    • 2019 and 2020, by contrast, were above-normal monsoon years, with the country receiving an area-weighted rainfall.
    • It led to the filling of reservoirs and recharging of groundwater tables and aquifers, unlike after the deficient monsoons of 2014 and 2015 and the near-deficient one of 2018.
    • Not surprisingly, 2019-20 and 2020-21 produced back-to-back bumper harvests.

    (2) Ease during lockdowns

    • The second reason had to do with agriculture being exempted from the nationwide lockdown that followed the first wave of Covid-19.
    • Lockdown restrictions only spared PDS ration shops and other stores selling food, groceries, fruits & vegetables, milk, meat and fish, animal fodder, seeds and pesticides.
    • But within days, an addendum was issued, extending the lifting of curbs to fertilizer outlets, all field operations by farmers and farmworkers, intra- and inter-state movement of agricultural machinery, sale of produce in wholesale mandis and procurement.

    Inherent resilience of India’s farm sector

    • Simply put, farmers made sure they did not waste a good monsoon, finding ways to even mobilize harvesting and planting labor during peak lockdown.
    • The inherent resilience and adaptability of rural economic actors — meant that the farm sector was relatively insulated from lockdown-imposed supply-side

    What were the issues faced?

    • The problems agriculture encountered due to the lockdown had more to do with the demand
    • The closure of hotels, restaurants, roadside eateries, sweetmeat shops, hostels, and canteens — and no wedding receptions and other public functions — resulted in a collapse of out-of-home consumption.
    • This was demand destruction not from rising prices — “movement along the demand curve”.
    • Instead, it was from forced consumption reduction, translating into lower demand for farm produce even at the same price — “a leftward shift in the demand curve”.

    Various successes

    (1) Success of MSP procurement

    • MSP procurement was effective largely in crops and regions where the institutions undertaking such operations — be it the Food Corporation of India, NAFED, Cotton Corporation of India or even cooperative dairies.
    • These all were active and could stem price declines during the period of demand destruction.
    • Such intervention wasn’t possible in non-mainstream produce (vegetables, fruits, poultry, fish, flowers, spices, etc) and regions (maize in Bihar), where the corresponding institutional mechanisms were non-existent.
    • The demand situation improved, though, with the gradual lifting of lockdown restrictions and also the recovery in global agri-commodity prices.

    (2) MGNREGA

    • While agriculture grew amid an unprecedented economic contraction, 2020-21 was also notable for the record person-days of employment generated under MGNREGA.
    • This flagship employment scheme was yet another source of liquidity infusion and, again, a pre-existing program that the government could deploy to support rural incomes during a crisis.
    • Rural consumption, in turn, provided some cushion to the economy and preventing a bad situation from turning much worse.

    Prospects for this Year

    The one obvious difference between now and last year is Covid-19 cases. Covid’s impact on agriculture per se would depend on the spread, intensity, and duration of the infection.

    • Rural areas were mostly unaffected by the pandemic’s first wave.
    • Farm-related activities could, then, go on relatively unhindered, which government policy, whether to do with lockdown or public procurement, also facilitated.
    • That situation has changed with the second wave and rising share of rural districts in total cases, even without factoring in the higher probability of underreporting in these places.

    What next?

    • While fear of the virus may induce precautionary behavior and economic growth, it is unlikely to affect normal agricultural operations.
    • And if last years’ experience is any guide, the adaptability of farmers and myriad rural economic agents should not be underestimated.

    (1) The first factor to be considered is the monsoon. The good news this time is that there is no El Niño.

    • There are increasing chances of a La Niña — El Niño’s counterpart that is associated with above-normal rains and lower temperatures in India — for the autumn and winter months.
    • El Nino is the abnormal warming of the tropical central and eastern Pacific Ocean surface waters, resulting in increased evaporation and cloud-formation activity around South America and away from Asia.

    (2) Uncertainty is prices

    • Global prices — be it of wheat, maize, soybean, palm oil, sugar, skimmed milk powder or cotton — have scaled multi-year highs in the recent period, helping India’s agri-commodity exports.
    • But export demand alone cannot sustain prices, especially in a scenario where job and income losses, accelerated post the pandemic that has severely dented domestic purchasing power.
    • Diesel prices alone have gone up by over a third in the last year; so have that of most non-urea fertilizers.

    Way forward

    • The real challenge for Indian agriculture and farmers will be on the demand side.
    • That is specifically going to come from declining real incomes and particularly affecting demand for milk, pulses, egg, meat, fruits, vegetables and other protein/micronutrient-rich foods.
    • While rising rural wages and overall incomes is what propelled the demand for these foods in the past — in turn, contributing to dietary and cropping diversification — the ongoing slide presents a frightening proposition.

  • Lawsuit against 5G and the debate around

    A notable actor has filed a lawsuit in the Bombay High Court against the 5G telecom technology up-gradation, trial runs for which have started in India now.

    What is 5G technology?

    • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
    • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

    Issues with the rollout

    • However, 5G and its rollout in many countries have been hampered due to fears over health concerns even some conspiracy theories as well, which have tried to link it with the coronavirus among other things.
    • The recent lawsuit is asking questions around the overall impact of 5G and low intensity radiofrequency (RF) electronic magnetic field (EMF) radiation on human health, and its environmental impact as well.
    • These concerns, while not yet proven, have been raised by various scientists before too.

    Arguments raised in the lawsuit

    • It has stated that the ‘radiation’ it will emit will be “extremely harmful and injurious to the health and safety of the people”.
    • While using wireless devices one is in a constant dilemma about “RF radiation from wire-free gadgets and network cell towers”.
    • There is sufficient reason to believe that the radiation is extremely harmful and injurious to the health and safety of the people.
    • It wants the concerned department to certify that 5G technology is safe for humans and also animals and birds.

    Why is 5G essential?

    • 5G promises to revolutionize mobile broadband and is a big generational leap over the existing 4G technology.
    • This new technology will be capable of not just ensuring fast internet on our phones, but also help power IoT (Internet of Things) networks to run connected cars and homes smarter.
    • It will also support the streaming of rich media.

    Rollout status in India

    • 5G has not yet been rolled out in India though some companies have been given a trial spectrum to test 5G technology in the country.
    • Once this is over, it is expected that networks will go live with the 5G bands by the end of this year.
    • The 5G rollout is expected to gather pace in the country by 2022.

    Fear around the impact of 5G radiation on human health

    • The claim is that the more powerful 5G waves will emit more radiation and cause harm to humans as well as other living beings.
    • Also, 5G will require more towers in order to ensure better connectivity, and since it will power more than just our smartphones, it will increase human exposure to such radiation in general.
    • This is an extension of the idea that cellular towers, which emit low-level RF-EMF radiation, are in general damaging our bodies.
    • But radiation from cellphone towers, mobile phones, WiFi routers is typically called non-ionizing radiation like radio waves, microwaves, and optical radiation.
    • RF fields have been classified by WHO’s International Agency for Research on Cancer (IARC) as possibly carcinogenic to humans (Group 2B).

    Layman understandings over such radiations

    • There’s no doubt that radiation at very high levels, also referred to as ionizing radiation, heats up our tissue and can eventually lead to cancer.
    • This applies to medical devices such as a CT-scan machine or X-ray machine, which emit high-level ionizing radiation.
    • That’s exactly why doctors don’t recommend that you go get a CT scan for every health issue because it does increase unnecessary exposure to radiation.
    • But there are increasing concerns that our smartphones, other WiFi-ready devices such as laptops, and mobile phone towers which also emit low-level RF radiation are damaging our bodies given the constant exposure.

    What WHO has to say?

    • On its page on 5G, the World Health Organization (WHO) says “no adverse health effect has been causally linked with exposure to wireless technologies.”
    • But it also states that “only a few studies have been carried out at the frequencies to be used by 5G.”
    • Given the growing concerns, the WHO is conducting “a health risk assessment from exposure to radio frequencies, covering the entire radiofrequency range, including 5G.”
    • This study will be published by 2022.

  • International Nitrogen Initiative (INI)

    The United Nations (UN) Sustainable Development Goals (SDGs) are the main focus of the eighth triennial conference of the International Nitrogen Initiative (INI) being held virtually this week.

    International Nitrogen Initiative

    • INI is an international program, set up in 2003 under the sponsorship of the Scientific Committee on Problems of the Environment (SCOPE) and from the International Geosphere-Biosphere Program (IGBP).
    • The key aims of the INI are to:
    1. optimize nitrogen’s beneficial role in sustainable food production, and
    2. minimize nitrogen’s negative effects on human health and the environment resulting from food and energy production.

    Answer this PYQ in the comment box:

    Q.Which of the following adds/add nitrogen to the soil?

    1. Excretion of Urea by animals
    2. Burning of coal by man
    3. Death of vegetation

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2, and 3

    Why nitrogen?

    • Reactive nitrogen compounds like NOx, ammonia and the greenhouse gas nitrous oxide impact air, water and soil quality, health, biodiversity and climate change, among others.
    • These compounds are lost from fertilizers, manures, and sewage as well as from fuel burning in transport and industry.
    • Assessing and managing them sustainably will be crucial to achieving the 17 UN SDGs targeted for 2030.

    Also read:

    [Burning Issue] Nitrogen Pollution in India

    Back2Basics: Nitrogen Pollution

    • While nitrogen is the dominant gas in the atmosphere, it is inert and doesn’t react.
    • However, when it is released as part of compounds from agriculture, sewage and biological waste, nitrogen is considered reactive.
    • It may be polluting and even exert a potent greenhouse gas effect.
    • Nitrous oxide (N2O) is 300 times more potent than carbon dioxide but isn’t as prevalent in the atmosphere.
    • Other than air pollution, nitrogen is also linked to the loss of biodiversity, the pollution of rivers and seas, ozone depletion, health, economy, and livelihoods.
    • Nitrogen pollution is caused, for example, by emissions from chemical fertilizers, livestock manure and burning fossil fuels.
    • Gases such as ammonia (NH3) and nitrogen dioxide (NO2) contribute to poor air quality and can aggravate respiratory and heart conditions, leading to millions of premature deaths across the world.
    • Nitrate from chemical fertilizers, manure, and industry pollute the rivers and seas, posing a health risk for humans, fish, coral, and plant life.

  • 2nd June 2021 | Prelims Daily with Previous Year Questions

    [WpProQuiz 660]

    [WpProQuiz_toplist 660]

  • Child labour in India

    The article highlights the risk posed by pandemic to the gains made by India on reducing the child labour in India.

    Child labour in India

    • A Government of India survey (NSS Report No. 585, 2017-18) suggests that only 79.6%. of the children in the age group of 14-17 years are attending educational institutions (formal and informal).
    • The Census of India 2011 reports 10.1 million working children in the age group of 5-14 years.
    • Out of whom 8.1 million are in rural areas mainly engaged as cultivators (26%) and agricultural labourers (32.9%).
    • UNESCO estimates based on the 2011 Census record 38.1 million children as “out of school” i.e.18.3% of total children in the age group of 6-13 years.
    • A Rapid Survey on Children (2013-14), jointly undertaken by the Ministry of Women and Child Development and UNICEF, found that less than half of children in the age group of 10-14 years have completed primary education.

    How policies and initiatives helped reduce child labour in India (2001-11)

    • Child labour in India decreased in the decade 2001 to 2011.
    • Policy interventions such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, the Right to Education Act 2009 and the Mid Day Meal Scheme have paved the way for children to be in schools along with guaranteed wage employment (unskilled) for rural families.
    • Efforts towards convergence of government schemes is also the focus of the implementation of the National Child Labour Project.
    • Ratifying International Labour Organization Conventions Nos. 138 and 182 in 2017, the Indian government further demonstrated its commitment to the elimination of child labour.
    • The Ministry of Labour and Employment-operated online portal allows to share information and coordinate on child labour cases at the national, State and local levels for effective enforcement of child labour laws.

    Challenges ahead

    • The economic contraction and lockdowns have worsened the situation, posing a real risk of backtracking the gains made in eliminating child labour.
    • With increased economic insecurity, lack of social protection and reduced household income, children from poor households are being pushed to contribute to the family income.
    • With closure of schools and challenges of distance learning, children may drop out leaving little scope for return unless affirmative and immediate actions are taken.
    • As many schools and educational institutions are moving to online platforms for continuation of learning, the ‘digital divide’ is a challenge that India has to reconcile within the next several years.
    • The NSS Report titled ‘Household Social Consumption on Education in India’ suggests that in 2017-18, only 24% of Indian households had access to an Internet facility.
    • The Annual Status of Education Report (ASER) 2020 survey highlights that a third of the total enrolled children received some kind of learning materials from their teachers during the reference period (October 2020) as digital mode of education was opted for.

    Way forward

    •  It is through strategic partnerships and collaborations involving government, employers, trade unions, community-based organisations and child labour families that we could make a difference building back better and sooner.
    • We need a strong alliance paving our way towards ending child labour in all its forms by 2025 to achieve Sustainable Development Goal 8.7.

    Consider the question “What are the policy measures and programmatic intervention implemented to reduce the child labour in India. How Covid-19 threatens the gains made on reducing the child labour?”

    Conclusion

    To deal with the child labour challenge, we need the right level of commitment among all the relevant stakeholders and the right mix of policy and programmatic interventions are present.

  • Afraid to fail your exam? What if you knew this?

    Afraid to fail your exam? What if you knew this?

    Click here to fill the Samanvaya form for 1-1 mentorship. We will call you within 24 hours.(Also provided at the bottom of the article)

    Finding success in the UPSC journey requires every aspirant to identify their “weak” areas and rectify them.

    I think my number of revisions of the syllabus is still less.

    Why are my marks stagnant in the mock test? Do I need a new book?

    Should I change the optional subject?

    At one point during preparation days, these questions cross every aspirant’s mind. While it is important to have the right technique aka “smart study” strategy for this examination but is that enough?

    What about that crazy SELF-DOUBT VOICE in the head? What about those SLEEPLESS ANXIETY-filled nights? What about those LACK OF SUPPORT LOOKS you get when you did not clear prelims for the 3rd time? What about that FEELING OF GUILT that prevents you from having a day off? And finally what about the SUFFOCATION you feel carrying so much mental stress on your shoulders?

    Click here to fill the Samanvaya form for 1-1 mentorship. We will call you within 24 hours.(Also provided at the bottom of the article)

    MENTAL HEALTH as an issue has always carried a sense of stigma in Indian society. So, why should the stress and anxiety associated with UPSC preparation be treated any differently!

    Even if you are one of those courageous extroverts who speak about these mental challenges, you always have that one friend who sends you a motivational quote to get you over your MOOD SWINGS with some extra advice to memorize the quote as it can be helpful for GS 4 and essay.

    Honestly, sometimes you need more than a motivational quote. In our interaction with some 1000+ students, even the smallest act of acknowledging an aspirant’s anxiety and stress can go a long way in maintaining the right frame of mind during preparation.

    Emotional Stability is crucial to remain sane during this preparation and also to enjoy the whole process. The first step towards a balanced approach is to identify that as a human having lows and highs is pretty much normal. If you are not able to finish the decided target, then it is alright to feel bad and push yourself a little extra for the next day. What you need to avoid is “unhealthy behaviour”. For example, putting yourself under so much pressure that your performance starts to deteriorate or belittling yourself that it starts to affect your confidence.

    We are not here to diagnose any clinical conditions. But as former aspirants and gaining years of experience through mentorship, we are a big advocate of people’s interaction for healthy minds.

    Sometimes, in this preparation, all you need is a person to hear you out and understand you. And unfortunately, some of us are not able to find that one person in our family or friends. There is no shame in asking for emotional help. It helps if you have a person who can listen to your worries and reduce some of your pressure. Talking to your mentor can make you feel supported in the toughest times. The worst part of silo preparation is that aspirants tend to create the idea that all these emotional upheavals are exclusive to them. Trust us this is not true!

    A holistic UPSC preparation includes the right technique to complete your syllabus, revisions and mock test and a healthy mindset.

    Reach out to us if you feel like nothing is going right in your preparation. Talk to our mentors about your emotional worries, and remove the burden of anxieties from your preparation.

    Fill up the SAMANVAYA form and we will reach out to you.

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    Before we end this, here is a video testimonial about one of our student from MENTORSHIP PROGRAM.

    Sweety Raj joined the Ultimate Assessment Program (mentorship program) in October 2020. She works in a Bank as a Probationary Officer. Over time she has shown the quality of perseverance as despite having a job and responsibilities of being a mother of 2, she studies for 6-7 hrs a day.

    Due to a lack of proper direction and perfect micro as well as macro strategy, she couldn’t get the expected results. Then, Sweety joined Ultimate Assessment Program-2021, and in this time span of 7-8 months, she started scoring well in prelims and mains answer writing also improved exponentially. Mentorship program became the savior for her.

  • COVID diplomacy 2.0, a different order of tasks

    The article highlights the contrast in India’s diplomacy during the first wave of the pandemic and the second wave. It also discusses the challenges ahead for India.

    India’s diplomatic structure in two Covid waves

    •  In the past month, the focus for the Ministry of External Affairs (MEA) and Missions abroad has shifted.
    • During the first wave of the pandemic, focus was on coordinating exports of COVID-19 medicines, flights to repatriate Indians abroad through the ‘Vande Bharat Mission’ after the lockdown, and then exporting vaccines worldwide- ‘Vaccine Maitri’.
    • After the second wave, Covid Diplomacy 2.0 has a different order of tasks, both in the immediate and the long term.
    • The immediate imperative was to deal with oxygen and medicine shortages that claimed the lives of thousands.
    • The Ministry of External Affairs has had to deal with internal health concerns while galvanising help from abroad for others.
    • Despite difficulties, the Ministry of External Affairs has completed the task of bringing in supplies in a timely manner, and with success.

    Dealing with vaccine shortage

    • Companies manufacturing AstraZeneca and Sputnik-V are stretched as far as future production is concerned.
    • The Chinese vaccines are out of consideration given bilateral tensions.
    • So, it is clear that India is looking to the U.S. to make up the shortfall.
    • This could be done in the following ways:
    • 1) Requesting the U.S. to share a substantial portion of its stockpile of AstraZeneca.
    • The U.S. government is holding up its AstraZeneca exports until its own United States Food and Drug Administration approves them.
    • 2) Asking the US to release more vaccine ingredients which are restricted for exports.
    • 3) To buy more stock outright from the three U.S. manufacturers, Pfizer, Moderna and Johnson & Johnson, and to encourage production in India of these vaccines.
    • Production of Johnson & Johnson single-dose vaccines in India, as had been announced during the Quad summit, will take some time.
    • The U.S. companies seem set on getting both an indemnity waiver from India as well as Emergency Use Authorisation prior to supplying them.
    • The Government may also need to make a change to its publicly announced policy that States in India will need to negotiate purchases directly, as the U.S. manufacturers want centralised orders, with payments up-front.

    2) Patent waiver

    • The promise of patent waivers, from India’s joint proposal at the World Trade Organization (WTO) will not reap early benefits.
    • Even though it has received support from world leaders such as the U.S., Russia and China.
    • Many countries including Japan, Australia, Brazil and EU are still holding out on the idea of freeing up intellectual property rights on vaccines for three years.
    • That could ultimately hold up proceedings at the WTO, as it works by consensus.

    3) Diplomatic fallout of vaccine collapse

    • The Government has defended its decision to export more than 66 million vaccines doses to 95 countries between January and April this year.
    • All exports were stopped as soon as cases in India began to soar.
    • Both India’s neighbours and partners in Africa as well as global agencies depending on India for vaccines have been left in the lurch by the Government’s failure to balance its vaccine budget.
    • For example, once India completed delivery of the first batch, of 550,000 Covishield doses, Bhutan completed the administration of the first dose to 93% of its population in a record 16 days.
    • Two months later, Bhutan does not have any vaccines to complete the second dose and has been left requesting other countries for vaccines.
    • It is no surprise that each of India’s neighbours has now sought help from China and the U.S. to complete their vaccination drives.

    4) Tracing virus pathways

    • India, as one of the worst pandemic-hit countries, must be at the forefront of demanding accountability on the origin of the virus.
    • The World Health Organisation (WHO) which studied “pathways of emergence” of SARS-CoV2 in Wuhan, listed four possibilities:
    • 1) Direct zoonotic transmission.
    • 2) An intermediate host.
    • 3) Cold chain or transmission through food.
    • 4) A laboratory incident.
    • China appears adamant on blocking these studies.
    • Even the U.S. appears to have dragged its feet on a conclusive finding, possibly because the U.S. National Institutes of Health had funded some of the Wuhan Institute’s research.

    Way forward on virus pathways

    • India must call for a more definitive answer and also raise its voice for a stronger convention to regulate any research that could lead, by accident or design, to something as the current pandemic.
    •  It is necessary to revamp the 1972 Biological Weapons Convention to institute an implementation body to assess treaty compliance, and build safer standards for the future.

    Consider the question “How different was the impact of two Covid-19 waves on India’s diplomacy? What are the challenges India faces in the near future in dealing with the fallout of the pandemic?”

    Conclusion

    With its seat at the UN Security Council as non-permanent member and its position on WHO’s Executive Board, India could seek to regain the footing it has lost over the past few months of COVID-19 mismanagement, by taking a lead role in ensuring the world is protected from the next such pandemic.

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