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  • The WHO balance sheet

    The US has announced to halt the funding it gives to the WHO accusing it of mismanagement of the COVID-19 spread.

     

    WHO is facing the biggest pandemic in human history. For all the responsibility vested in the WHO, it has little power.Ā  Whatever the causes of this disaster are, it is clear that the WHO has failed in its duty to raise the alarm in time. This shortfall of WHO is failure indicative of a deeper malaise: the global institutional framework is a pawn in the hands of the great powers, cash-strapped.

    About WHO

    • The WHO is a specialized agency of the United Nations responsible for international public health.
    • It is part of the U.N. Sustainable Development Group.
    • The WHO Constitution, which establishes the agencyā€™s governing structure and principles, states its main objective as ensuring ā€œthe attainment by all peoples of the highest possible level of health.ā€
    • It is headquartered in Geneva, Switzerland, with six semi-autonomous regional offices and 150 field offices worldwide.

    Where does WHO get its funding from?

    • It is funded by a large number of countries, philanthropic organisations, UN organisations etc.
    • Voluntary donations from member states (such as the US) contribute 35.41%, assessed contributions are 15.66%, philanthropic organisations account for 9.33%, UN organisations contribute about 8.1%; the rest comes from myriad sources.
    • India contributes 1% of member statesā€™ donations.
    • Countries decide how much they pay and may also choose not to.

    Its expenditure

    • The WHO is involved in various programmes. For example, in 2018-19, 19.36% (about $1 bn) was spent on polio eradication, 8.77% on increasing access to essential health and nutrition services, 7% on vaccine preventable diseases and about 4.36% on prevention and control of outbreaks.
    • The Africa countries received $1.6 bn for WHO projects; and South East Asia (including India) received $375 mn.

    How does WHO prioritise its spending?

    • The annual programme of work is passed by the WHOā€™s decision-making body, the World Health Assembly.
    • It is attended by delegates from all member states and focuses on a specific health agenda prepared by the Executive Board.
    • The main functions of the Assembly, held annually in Geneva, are to determine WHO policies, appoint the Director-General, supervise financial policies, and review and approve the proposed programme budget.
    • The decision on which country gets how much depends on the situation in the countries.

    WHO and India

    • India became a party to the WHO Constitution on January 12, 1948.
    • The first session of the WHO Regional Committee for South-East Asia was held on October 4-5, 1948 in the office of Indiaā€™s Health Minister, and inaugurated by Prime Minister Jawaharlal Nehru.
    • The WHO India Country Cooperation Strategy (CCS) 2019-2023 has been developed jointly by the Health Ministry and the WHO India country office.
    • The CCS aims to address complex challenges such as the prevention of NCDs, the control of antimicrobial resistance (AMR), the reduction of air pollution, and the prevention and treatment of mental illnesses.
    • On the ground, the WHO has been a key partner in the immunisation programme, tackling TB and neglected diseases such as leprosy and kala azar, and nutrition programmes across states.

    Immediate reason for US withdrawal

    • The US contributes almost 15% of the WHOā€™s total funding and almost 31% of the member statesā€™ donations, the largest chunk in both cases.
    • It receives $62.2 mn for WHO projects.
    • That is where most of the WHO funding comes from and the least of it goes.

    Impact

    • For the WHO, the loss of about 15% of its total funding is bound to have an impact on the world over.
    • However, unless other countries do the same as the US, the move may not severely hamstring WHO operations.

    Also read:

    [Burning Issue] World Health Organization (WHO) And Coronavirus Handling

  • TRAI wants set top boxes to be made interoperable

    The Telecom Regulatory Authority of India (TRAI) has recommended that all set-top boxes (STBs) in the country must be interoperable, meaning that consumers should be able to use the same STB across different DTH or cable TV providers.

    The TRAI and Telecom Disputes Settlement and Appellate Tribunal are quite often seen in the news.Ā  Most recent was the dispute risen due to AGR dues.

    TRAI has a wide range of jurisdiction over Telecoms. Keep a track on all such news.

    Why such a recommendation?

    • TRAI noted that while the STBs deployed in the cable TV networks are non-interoperable, those by DTH players complied with licence conditions to support common interface module based interoperability.
    • However, in practice, even in the DTH segment the STBs are not readily interoperable.
    • The lack of interoperability of set-top boxes between different service providers deprives the customer of the freedom to change her/his service provider.
    • It also creates a hindrance to technological innovation, improvement in service quality, and the overall sector growth.

    About TRAI

    • The TRAI is a statutory body set up under section 3 of the Telecom Regulatory Authority of India Act, 1997.
    • It is the regulator of the telecommunications and its tariffs in India.
    • The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
    • TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, DTH services and mobile number portability.

  • [pib] Amendment to the Environment Impact Assessment (EIA) Notification, 2006

    To address unprecedented situation arising from the global outbreak of COVID-19 and to ramp up availability or production of various drugs, the MoEFCC has made an amendment to EIA Notification 2006.

    EIA is a process of evaluating the likely environmental impacts of a proposed project or development, taking into account inter-related socio-economic, cultural and human-health impacts, both beneficial and adverse.Ā  Its a hot topic for mains.

    What is the amendment about?

    • All projects or activities in respect of bulk drugs and intermediates, manufactured for addressing various ailments, have been re-categorized from the existing Category ā€˜Aā€™ to ā€˜B2ā€™ category.
    • Projects falling under Category B2 are exempted from the requirement of collection of Baseline data, EIA Studies and public consultation.
    • The re-categorization of such proposals has been done to facilitate decentralization of appraisal to State Level so as to fast track the process.

    Projects Categorization and Clearance under EIA

    • Environmental clearance is required in respect of all new projects or activities listed in the Schedule to the 2006 notification and their expansion and modernization, including any change in product ā€“mix.
    • Since EIA 2006 the various developmental projects have been re-categorised into category ā€˜Aā€™ and category ā€˜Bā€™ depending on their threshold capacity and likely pollution potential.
    • They require prior EC respectively from MOEFCC or the concerned State Environmental Impact Assessment Authorities (SEIAAs).
    • Where state-level authorities have not been constituted, the clearance would be provided by the MOEFCC.

    Back2Basics: Environmental Impact Assessment (EIA) in India

    • EIA is a management tool to minimize adverse impacts of developmental projects on the environment and to achieve sustainable development through timely, adequate, corrective and protective mitigation measures.
    • The MoEFCC uses EIA Notification 2006 as a major tool for minimizing the adverse impact of rapid industrialization on the environment and for reversing those trends which may lead to climate change in the long run.
    • EIA has now been made mandatory under the Environmental (Protection Act, 1986 for 29 categories of developmental activities involving investments of Rs. 50 crores and above.

    EIA stages

    • Screening: This stage decides which projects a full or partial assessment need study.
    • Scoping: This stage decides which impacts are necessary to be assessed. This is done based on legal requirements, international conventions, expert knowledge and public engagement. This stage also finds out alternate solutions that avoid or at least reduce the adverse impacts of the project.
    • Assessment & evaluation of impacts and development of alternatives: This stage predicts and identifies the environmental impacts of the proposed project and also elaborates on the alternatives.
    • EIA Report: In this reporting stage, an environmental management plan (EMP) and also a non-technical summary of the projectā€™s impact is prepared for the general public. This report is also called the Environmental Impact Statement (EIS).
    • Decision making: The decision on whether the project is to be given approval or not and if it is to be given, under what conditions.
    • Monitoring, compliance, enforcement and environmental auditing: This stage monitors whether the predicted impacts and the mitigation efforts happen as per the EMP.

  • What are MK 54 torpedoes, AGM-84L Harpoon missiles that US has cleared for sale to India?

    The US has approved a military sale to India of 16 MK 54 all round up lightweight torpedoes and ten AGM-84L Harpoon Block II air-launched missiles. India plans to use the equipment requested in both the deals on the Indian Navyā€™s Boeing P-8I maritime aircraft.

    What is ā€œTerminal High Altitude Area Defense (THAAD)ā€ , sometimes seen in the news? (CSP 2018) .

    MK 54 lightweight torpedo

    • The MK 54 lightweight torpedo is known as the Lightweight Hybrid Torpedo (LHT).
    • It weighs around 608 pounds, while its warhead weighs around 96.8 pounds and is highly explosive.
    • The primary use of this equipment is for offensive purposes when deployed by anti-submarine warfare aircraft and helicopters, and for defensive purposes when deployed by ships and against fast, deep-diving nuclear submarines and slow-moving, quiet, diesel-electric submarines.

    AGM-84L Harpoon Block II air-launched missiles

    • The Harpoon missile system will be integrated into the P-8I aircraft to conduct anti-surface warfare missions in defence of critical sea lanes.
    • It uses GPS-aided inertial navigation to hit the designated target.
    • Its warhead weighs over 500 pounds and is capable of delivering lethal firepower against targets, including land-based targets, coastal defence sites, surface-to-air missile sites, exposed aircraft and industrial or port facilities.

    About P-8I aircraft

    • Boeingā€™s P-8s are designed for long-range anti-submarine warfare, anti-surface warfare and intelligence, surveillance and reconnaissance missions.
    • The P-8s India version is called the P-8I, and helps the Indian Navy carry out important maritime operations.
    • According to Boeing, the aircraft can surpass 25,000 flight hours, and gives the Navy a significant edge in the strategically important Indian Ocean.
    • India currently has eight of these aircraft and is scheduled to receive four more by 2022.

  • [Prelims Spotlight] International Organizations Regarding Environment and Conservation

    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.

    International Organizations Regarding Environment and Conservation

    16 April 2020Ā 

    Earth System Governance Project (ESGP)

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

    Headquarter:Ā 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 ā€˜global commonsā€™, 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:Ā 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:Ā 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:Ā TheĀ GEF also serves as the financial mechanismĀ forĀ 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. Indiaā€™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:Ā 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:Ā It is headquartered in Seoul, Republic of Korea

    Key Functions:Ā 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:Ā 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:Ā 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:Ā 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: Ā Ā 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:Ā 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:Ā 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:Ā 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:Ā The International Union for Conservation of Nature (IUCN) is the worldā€™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:Ā The Unionā€™s headquarters are located in Gland, near Geneva, in Switzerland.

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

    1. Science Ā ā€“ the IUCN Red List of Threatened Speciesā„¢.
    2. Action ā€“ hundreds of conservation projects all over the world.
    3. Influence ā€“ through the collective strength of more than 1,200 government and non-governmental Member organizations.

    Funding: Ā 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:Ā It was founded as a result of the UN Conference on the Human Environment (Stockholm Conference) in 1972

    Headquarter:Ā Nairobi, Kenya

    Key Functions:

    • It coordinates UNā€™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 chemicalā€™s use at gold mining operations, was developed under UNEPā€™s aegis.

    Funding: Ā 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:Ā 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 Indiaā€™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: Ā 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 :Ā 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 Ā promotes sustainable conduct as regards the natural environment, together with new, environments-friendly technologies, green economies and renewable energies.

    India specific trivia:Ā India is not a member

    World Food Programme

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

    Headquarter:Ā 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.
    • WFPā€™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: Ā The WFP operations are funded by voluntary donations from world governments, corporations and private donors

    India specific trivia:Ā 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: Ā 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 ā€˜Schedule.ā€™ Ā 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. Ā 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: Ā Financial contributions from member governments form the IWCā€™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:Ā India is a Member

    Bio-carbon Fund initiative

    Established When and by Whom: Ā 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:Ā 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:Ā Norway, the United Kingdom, and the United States together committed $280 million ā€“ up to $135 million from Norway, $120 million from the U.K, and $25 million from the U.S. ā€“ as part of their efforts to slow climate change.

     

    Arctic Council

    Established When and by Whom:Ā 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:Ā 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:Ā By member states

    India specific trivia:Ā India is an Observer State

  • Anti Defection Law

  • Economic liberalisation and its faults

    The article describes the problems economic liberalisation has created. Covid-19 has exposed these problems even as developed countries faced shortages of masks and ventilators. The focus is on Chinaā€™s dominance as a manufacturing hub and its implication for the world and India.

    Background of the end of the ā€˜Licence Rajā€™ in India

    • Manmohan Singhā€™s 1991-92 Budget speechĀ marked the beginning of the end of the ā€˜Licence Rajā€™ in India.
    • The Budget also announced the reduction of import duties and paved the way for foreign-manufactured goods to flow into India.
    • Following this, most of the manufacturing sector was opened up to foreign direct investment.
    • Indiaā€™s industrial policy was virtually junked, and policymakers and the political leadership became contemptuous of the idea of self-reliance.

    Shifting of the base in developing countries

    • In the late 1980s, transnational corporations started shifting the production base to smaller companies in developing countries, especially Asia.
    • The reason for this shift was cheap labour and raw materials.
    • Developed countries supported the move because shifting the polluting and labour-intensive industries suited them as long as ownership remained with their companies.
    • Development of global supply chains: The world witnessed the development of global supply chains in many products starting with garments.

    The dominance of China in the global supply chain is at the root of trade war between the US and China. The outbreak of Covid-19 has added it a new dimension and has forced many countries to reframe their trade policies. And India is no different. This makes it an important topic for UPSC. A question can be framed from an impact angle or the US-China trade war angle.

    The emergence of China as a global manufacturing hub

    • Though many developing countries participated in the global production/value/supply
    • The substantial value addition in developing countries happened in a few production hubs, of which China emerged to be a major one.
    • Decentralised to localised production: Manufacturing shifted from a decentralised production system spread across different counties to just a few locations.
    • The countries like China defied the logic of supply/value chains ensuring substantial value addition for themselves.
    • They even carried out backward integration and thus emerged as global manufacturing hubs for certain products.
    • In the case of health products, China became the global supplier of active pharmaceutical ingredients (API), personal protective equipment (PPE), and medical devices diagnostics.

    What were the implications of Chinaā€™s dominance in a fight against Covid-19?

    • Chinaā€™s dominance has major implications for theĀ  COVID-19 outbreak.
    • The resultant loss of manufacturing base has affected the ability of many governments, including of developed countries, to put up an effective response to the crisis.
    • The U.K. Prime Minister asked the countryā€™s manufacturers to produce ventilators in order to provide care for critical COVID-19 patients.
    • Similarly, the U.S. President invoked the Defense Production Act of 1950 to ramp up N95 mask production.
    • Under this legislation, the U.S. President can direct U.S. manufacturers to produce goods according to the directions of the government.
    • Similarly, the French Health Minister stated that the country may nationalise vaccine companies if necessary.
    • Spain nationalised all its private hospitals.
    • Israel and Chile issued compulsory licences to ensure that medicines are affordable.
    • Lack of preparedness and dependence: This exposes the poor state of preparedness and dependence on imports for essential goods required to meet the challenge of any major disease outbreak.
    • This shows that what is good for the company may not be good the country in all circumstances.
    • So, the overwhelming objective of private sector-led economic growth has proved to be disastrous.

    Pay attention to the impact on India. The following two points are very important.

    How economic liberalisation affected Indiaā€™s ability?

    • In India, economic liberalisation has damaged the governmentā€™s capacity in two ways.
    • 1. It incapacitated the government to respond to emergencies based on credible information.
    • The dismantling of the ā€˜Licence Rajā€™ resulted in the elimination of channels of information for the government, which is crucial to make informed policy choices.
    • For example, it took the government several meetings to determine the production capacity of various pharmaceutical companies.
    • Similarly, there were difficulties in finding out Indiaā€™s production capacity of PPE, medical devices and diagnostics.
    • 2. The logic and policies of economic liberalisation seriously undermined the manufacturing capabilities of health products in India.
    • The short-sighted policy measures, with the objective of enhancing profitability of the private sector, allowed the import of raw materials from the cheapest sources and resulted in the debasing of the API industry, especially in essential medicine.
    • According to a report of the Confederation of Indian Industry (CII), nearly 70% of Indiaā€™s API import is from China.
    • The CII report lists nearly 58 API where the dependence is 90% to 100%.
    • The disruption in the supply of API due to the COVID-19 outbreak has impacted the production of not only medicines required for COVID-19 patients, but also of other essential medicines in India.
    • As a cost-effective producer of medicines, the world is looking to India for supply, but it cannot deliver due to its dependence on China.
    • This dependence has also forced India to impose export restrictions on select medicines.
    • Similar dependence exists with regard to PPE, medical devices and diagnostic kits.
    • The 100% dependence on Reagents, an important chemical component for testing, is limiting the capacity of the government from expanding testing because the cost of each test is ā‚¹4,500.
    • Dangers of dependence: In the name of economic efficiency, India allowed unconditional imports of these products and never took note of the dangers of dependency.

    Loss of jobs and poor working conditions

    • Destruction of manufacturing base: Global supply/production chains destroyed the manufacturing base in developed and developing countries.
    • That also resulted in the loss of jobs and poor working conditions in these sectors.
    • Developing countries were asked to ease their labour protection laws to facilitate global production and supply chains popularly known as global value chains.
    • As a result, people were forced to work in precarious working conditions without any social security net.
    • This created an unorganised army of labourers and is preventing many developing country governments from effectively offering relief.

    Conclusion

    A virus has made us rethink our obsession with the economic efficiency theory. It implores us to put in place an industrial policy to maintain core capacity in health products so that we can face the next crisis more decisively.

  • Government must fix an upper limit for fiscal deficit

    D. Subbarao in this article discusses how the government is facing the hard choice of choosing between saving lives and saving the economy. On the government’s response on economic front he argues that the government, unlike the rich countries should keep an upper limit on its spending because of the dangers involved in unrestricted spending.

    Why the dilemma is sharpest for India?

    • This dilemma is arguably the sharpest for India.
    • Because of our high population density and poor medical infrastructure, any laxity in prevention can result in a huge health disaster.
    • On the other hand, an extended lockdown will force millions into the margins of subsistence, push small and large firms alike into bankruptcy, seriously impair financial stability and land us in a humanitarian and economic disaster.

    Why is the relief package criticised as too little?

    • After the lockdown, the government announced a relief package amounting to 0.8 per cent of GDP, thatā€™s been criticised as being too little.
    • From a study of a sample of countries, the latest issue of The Economist reports that Indiaā€™s lockdown has been the most stringent while its fiscal relief package is the smallest in proportion to GDP.

    What could be the reasons for a cautious approach in the relief package?

    • A possible explanation for the governmentā€™s timid fiscal response may be the fear of spooking the market.
    • For years, every economist and analyst has been warning the government of the dire consequences of fiscal irresponsibility.
    • And that warning message must have been so hardwired into the governmentā€™s collective mind that it was unable to get over the mental overhang.

    We should be aware of the reasons from the macroeconomic point of view that force the government to limit its fiscal deficit. In this case, India government is exercising the caution owing to the same constraints.

    Uncertainties in the crisis

    • Uncertainty is a defining feature of every crisis.
    • During the global financial crisis, a big uncertainty around the world was about how much risk there was in the system, where it lay and who was bearing it.
    • The uncertainty of the corona crisis is much deeper.
    • There are far too many known unknowns not to speak of unknown unknowns.
    • Uncertainties in corona crisis: We just donā€™t know enough about the effectiveness of the lockdowns, the age and gender profile of susceptibility to the virus.
    • We also donā€™t know about the process of recovery, the tipping point if any for mass immunity, whether the virus will attack in waves.
    • And most importantly, when we might have a vaccine and a cure.
    • Governments are, for the large part, having to fly blind.

    Issues over relief and stimulus package

    • There are many issues to be decided and planned on the way forward.
    • A big issue will be an expenditure plan for relief during the crisis and stimulus after some normalcy is restored.
    • Borrow more spend more: Even the most ardent fiscal hawks are now agreed that the government needs to abandon its fiscal reticence, and borrow more and spend more.
    • Even the most extreme monetary purists are agreed that the RBI should fund the government borrowing by printing money.
    • Even the staunchest advocates of financial stability are agreed that more regulatory forbearance is necessary.
    • And virtually everyone is agreed on where additional spending should be directed.

    Debate on how much additionally the government should borrow

    • There is disagreement on how much additionally the government should borrow.
    • There are two opposing views in this regard, which are discussed below.
    • 1. Fiscal risk without preset fiscal deficit: One view is that the government should err on the side of taking a fiscal risk without any preset fiscal deficit number.
    • It should simply determine what needs to be done and borrow to that extent, acting as if there were no fiscal constraint at all.
    • In other words, act as per the diktat of the now famous three words ā€” ā€œwhatever it takesā€.
    • 2. Set a limit: An opposing view is ā€œwhatever it takesā€ is not an option for India.
    • Many analysts have estimated that just the loss of revenue due to the economic shutdown will take the combined fiscal deficit of the Centre and states beyond 10 per cent of GDP.
    • The borrow and spend programme will be in addition to the above loss.
    • Unlike rich countries, we canā€™t afford to ignore the risks of fiscal excess of that magnitude, no matter the compelling circumstances.
    • What are the risks involved? There will be a heavy price to pay down the road by way of inflation and exchange rate volatility.

    From the UPSC point of view you must pay attention to the both the arguments made here, question can be asked in UPSC based on the suggestions and their pros and cons. Both the arguments cited above have their merits and demerits.

    Way forward

    • Itā€™s important to keep in mind that we have resources and capability in the near future should there be another wave of the virus later in the year.
    • It will be advisable for the government to fix an upper bound for fiscal deficit and operate within that. For now, the borrow and spend programme should be restricted to 2 per cent of GDP.

  • Making use of technology to trace Covid-19 cases

    The article argues for the greater adoption of technology in tracing the Covid-19. Taking a cue from the success of JAM and UPI, recently launched app Aarogya Setu could also be the next game-changer in the fight against the pandemic. However, there are several challenges that are also discussed here.

    Success story of domestic digital platforms

    • The success of two domestic digital payment platforms offers us an opportunity to show how the tracing of COVID-19 cases can be done at scale and with greater speed.
    • The JAM (Jan Dhan-Aadhaar-Mobile) trinity for DBTs (Direct Benefit Transfers) and UPI (Unified Payments Interface) have made India a technology leader in money transfers.
    • The JAM has lent efficiency to the transfer of funds to the needy.
    • It was drafted into action recently to channel payments to the more vulnerable who need help in dealing with the adverse economic consequences of the lockdown.
    • The UPI is emerging as a transaction vehicle of choice for all retail payments.
    • In March, 148 banks were on the UPI platform, helping process over 120 crore transactions worth over Rs 2 lakh crore.

    The success story of the UPI and JAM is important from the UPSC point of view. Riding on the success of these two, the Aarogya Setu could also become the third and help in the fight against the epidemic. So, we should be aware of the basics of its working and problems the app could face.

    How the Aarogya Setu works?

    • Widespread adoption is required: The success of Indiaā€™sĀ Aarogya Setu mobile application will depend on its widespread adoption.
    • Based on bluetooth technology: The app relies on bluetooth technology to map and deconstruct the contact history of individuals who may have come in contact with potential carriers of theĀ coronavirus.
    • Exchange of information between apps: If two individuals are at the same place at the same time, their apps can exchange information-up to a maximum distance of about 15 feet.
    • Exchange of the above information is without the server knowing anything about it.
    • The app notifies users and authorities of individuals who are at risk.
    • Privacy safeguards: Some privacy safeguards have been put in place to ensure that individuals do not share personally identifiable information with each other but only with authorities ā€” that too, in select cases.
    • A confidence-building measure would be to release the code for public scrutiny with the aim of further bolstering privacy standards.

    What are the possible challenges in the success of Aarogya Setu?

    • The distribution of the detection framework necessitates a rethink, beyond an app.
    • Issues with app download in India: Nandan Nilekani has underlined that app downloads in India are perhaps the most expensive compared to any other developed or fast-developing nation.
    • Despite the falling cost of data, Indian users consider several factors before downloading an app such as required storage space, the potential impact on battery and data usage.
    • Given Indiaā€™s open internet, several publishers from across industries and geographies are vying for smartphone real estate.
    • Challenge involved: In such a situation, drawing attention to particular use-cases i.e. Aarogya Setu-howsoever urgent-is challenging.

    Following are the suggestions to overcome the shortcoming of the Aarogya Setu. Though they are for Aarogya Setu, we can apply these in other situations in which mobile technology bases app is used by the government in the larger public interest such as rescue operation or warnings in case of disaster.

    So, what could be the alternate strategy?

    • The alternative strategy involves using the reach of the other famous apps (for ex. Paytm) to do what we want to do i.e. tracing by delinking.
    • Delinking involves separating the technology we want to use for tracing (the backend) from the channels (the front end).
    • A fine-tuned backend can be pushed to, and used by, publishers (other apps) who already have the reach.
    • Similarity with UPI: This is akin to the UPI being used by several banks and technology firms for payment.
    • The government did build its frontend in the form of the BHIM (Bharat Interface for Money) app but mostly for signalling purposes.
    • In the current context, the government can consider using its own app for tracing and for additional use-cases such as passes and approvals for movement when the lockdown is gradually eased out.
    • It could even host other health-related features.
    • Expanding its ambit and making it a conduit like JAM will likely increase the incentive for people to embrace it.

    Limitations of using GPS and Bluetooth for tracing in India

    • Another area where improvisations are called for is the tooling for tracking.
    • While reports have indicated that the developers are using bluetooth for tracing and are also capturing GPS coordinates, both users and device manufacturers limit their usage of these technologies in favour of other optimisations.
    • Users are concerned with both data and battery usage while device manufacturers kill background jobs even if the publishers have sought and secured permissions from users.
    • These tendencies are pronounced onĀ Android, the dominant mobile operating system in India.
    • What are the other options? In such a scenario, developers ought to think about using other techniques.
    • For instance, using cell tower data and WiFi identifiers to bolster tracing efforts.
    • This is especially important in a context where only a third of our population has smartphones and even fewer people have devices with bluetooth capability.
    • Even the recently announcedĀ Google-Apple partnership may not have meaningful results in this setting.

    Conclusion

    With the potential ramifications of COVID-19ā€™s spread in India and across the globe, the nationā€™s recent history of technological successes and a government committed to agile governance, theĀ pandemicĀ presents an opportunity for the country to show its people and the world how technology is a force of good.

  • Ambedkar and the Poona Pact

    Yesterday was the birth anniversary of Dr B.R. Ambedkar, the chief architect of our constitution. On that occasion, author of the news (originally published in TH) highlights the significance of Poona Pact in the formation of our Constitution.

    The Poona Pact of 1932 is a landmark event in India’s struggle for independence. It marked the start of social justice movement in the country under the leadership of Dr. Ambedkar.

    What is Poona Pact?

    • In late September 1932, B.R. Ambedkar negotiated the Poona Pact with Mahatma Gandhi.
    • The background to the Poona Pact was the Communal Award of August 1932, which, among other things, reserved 71 seats in the central legislature for the depressed classes.
    • The Award was made by then British PM Ramsay MacDonald on 16 August 1932 to extended separate electorate.
    • It aimed to grant separate electorates in British India for the Forward Caste, Lower Caste, Muslims, Buddhists, Sikhs, Indian Christians, Anglo-Indians, Europeans and then Untouchables.
    • Gandhi, who was opposed to the Communal Award, saw it as a British attempt to split Hindus, and began a fast unto death to have it repealed.

    How Poona Pact defeated the Communal Award?

    • Reserved seats: In a settlement negotiated with Gandhi, Ambedkar agreed for depressed class candidates to be elected by a joint electorate.
    • More representation: On his insistence, slightly over twice as many seats (147) were reserved for the depressed classes in the legislature than what had been allotted under the Communal Award.
    • Doors opened for Public Services: In addition, the Poona Pact assured a fair representation of the depressed classes in the public services while earmarking a portion of the educational grant for their uplift.
    • Social acceptance: The Poona Pact was an emphatic acceptance by upper-class Hindus that the depressed classes constituted the most discriminated sections of Hindu society.
    • Increased political say: It was also conceded that something concrete had to be done to give them a political voice as well as a leg-up to lift them from backwardness they could not otherwise overcome.

    Significance of the pact

    • The concessions agreed to in the Poona Pact were precursors to the worldā€™s largest affirmative programme launched much later in independent India.
    • It would also not have been lost on him that Muhammad Ali Jinnah, with the separatist tendencies strongly backing him, was watching and waiting to take advantage of the evolving situation.
    • A slew of measures was initiated later to uplift Scheduled Castes and Scheduled Tribes.

    Major outcomes

    • The Poona Pact emphatically sealed Ambedkarā€™s leadership of the depressed classes across India.
    • He made the entire country, and not just the Congress Party, morally responsible for the uplift of the depressed classes.
    • Most of all he succeeded in making the depressed classes a formidable political force for the first time in history.

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