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  • BASIC nations oppose ‘Carbon Border Tax’

    carbon

    BASIC countries that includes India has jointly stated that carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst parties, must be avoided.

    EU proposes, BASIC opposes

    • The European Union has proposed a policy — called the Carbon Border Adjustment Mechanism– to tax products such as cement and steel that are extremely carbon intensive, with effect from 2026.
    • BASIC, a group constituting Brazil, India, South Africa and China have opposed this move.
    • These are large economies that are significantly dependent on coal, has for several years voiced common concerns and reiterated their right to use fossil fuel.

    What is Carbon Pricing?

    • Carbon pricing is an approach to reducing carbon emissions that uses market mechanisms to pass the cost of emitting to emitters.
    • Its goal is to discourage the use of fossil fuels, address the causes of the climate crisis and meet national and international agreements.
    • Well-designed carbon pricing can change the behavior of consumers, businesses and investors while encouraging technological innovation and generating revenue that can be used productively.
    • There are a few carbon pricing instruments, such as a carbon tax and cap-and-trade programmes.

    What is Carbon Border Tax?

    • A carbon border tax (CBT) is a tax on carbon emissions attributed to imported goods that have not been carbon-taxed at source.
    • The carbon border tax proposal is part of the European Commission’s European Green Deal that endeavours to make Europe the first climate-neutral continent by 2050.

    Objective:

    • To ‘incentivize’ greener manufacturing around the world and create parity with European manufacturers who are already subjected to substantial carbon levies.

    A move to benefit local EU manufacturers

    The carbon border tax has wide appeal in Europe. It is supported by the new president of the European Commission.

    • A carbon border tax is able to protect a country’s local manufacturers, motivating them to adhere to green regulations.
    • Many EU companies are at a cost disadvantage as they have been paying a carbon border tax and for carbon emissions since 2005 under the EU’s Emissions Trading System.
    • The new carbon border tax can therefore lead to a more level playing field against importers, especially those from nations with more lax environmental standards.

    What could the new proposal mean politically?

    • Notably, China’s continuing reliance on non-renewable energy to power its economy leaves it particularly vulnerable in this matter.
    • For example, given that China produces steel with blast furnaces that release a large amount of carbon, it will have to pay an additional layer of carbon border tax, which will increase its costs and its market price.
    • This will consequently reduce the competitiveness of steel produced in China, compared to steel from other countries that is made in more carbon-efficient mills that do not have to pay this additional tax.

    This suggests that the carbon border tax is also politically preferable to Europe as it slows down the gradually rising economy in China, and would therefore preserve the European countries’ competitiveness.

    How does this impact India?

    • As India’s third largest trading partner, the EU accounted for €62.8 billion ($74.5 billion) worth of trade in goods in 2020, or 11.1% of India’s total global trade.
    • India’s exports to the EU were worth $41.36 billion in 2020-21, as per data from the commerce ministry.
    • The CBT would cover energy-intensive sectors such as cement, steel, aluminium, oil refinery, paper, glass, chemicals as well as the power sector.
    • By increasing the prices of Indian-made goods in the EU, this tax would make Indian goods less attractive for buyers and could shrink demand.
    • Sadly, India’s many ‘self-reliance’ tariffs are also a contributor to this.

    Issues with CBT

    • Impact on trade: The degree of impact on industrial sectors would be largely influenced by two factors: carbon intensity and trade intensity.
    • Altering competitiveness: For companies, it will raise the administrative burden of crossing borders and increase trade frictions, especially for small businesses. That will inevitably reduce choice and raise costs for consumers.
    • Promoting protectionism: The carbon tax may end up being protectionist, and will hit emerging economies like India hard.
    • Unfair practices under WTO: Depending on their design they could fall foul of WTO measures designed to prevent importing countries from discriminating against particular exporting countries.
    • A violation of Paris Accord: CBT compels developing countries to pay the same price as the developed countries to climate change. The EU is essentially bypassing the principle of ‘common but differentiated responsibilities’ that should guide international climate action.

    Way forward

    • Carbon taxing is just one way of holding large emitters accountable for their role in harming the environment.
    • However, fundamental changes can’t be forced by tariffs.
    • If the planet is to have any hope of meeting the Paris Agreement goals, drastic measures that consider both the economic and social wellbeing of nations’ inhabitants must be taken.
    • This should take all nations into confidence than imposing such overnight tariffs.
    • It is no doubt that India must be in the forefront in climate politics. But it must also be cautious about the negotiations in global laws to protect domestic interests.

     

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  • Supreme Court asks government to grant pension to 32 women IAF officers

    women

    The Supreme Court has ordered the government to grant pension to women officers who fought for 12 years to get reinstatement and permanent commission in the Indian Air Force (IAF).

    Women in IAF: A case for Permanent commission

    • History is replete with examples where women have been denied their just entitlements under law and the right to fair and equal treatment in the workplace.
    • The women had been fighting for 12 years for a chance to be considered for permanent commission.
    • The women pointed out to the court’s judgment in Babita Puniya Case.
    • It upheld the right of women short service commission officers to be considered for permanent commission on a par with their men colleagues.

    Why males have ever dominated the armed forces?

    • Militaries across the world help entrench hegemonic masculine notions of aggressiveness, strength and heterosexual prowess in and outside their barracks.
    • The military training focuses on creating new bonds of brotherhood and camaraderie between them based on militarized masculinity.
    • This temperament is considered in order to enable conscripts to survive the tough conditions of military life and to be able to kill without guilt.
    • To create these new bonds, militaries construct a racial, sexual, gendered “other”, attributes of whom the soldier must routinely and emphatically reject.

    Dimensions of the Issue

    • Gender is not a hindrance: As long as an applicant is qualified for a position, one’s gender is arbitrary. It is easy to recruit and deploy women who are in better shape than many men sent into combat.
    • Combat Readiness: Allowing a mixed-gender force keeps the military strong. The armed forces are severely troubled by falling retention and recruitment rates. This can be addressed by allowing women in the combat role.
    • Effectiveness: The blanket restriction for women limits the ability of commanders in theatre to pick the most capable person for the job.
    • Tradition: Training will be required to facilitate the integration of women into combat units. Cultures change over time and the masculine subculture can evolve too.
    • Cultural Differences & Demographics: Women are more effective in some circumstances than men. Allowing women to serve doubles the talent pool for delicate and sensitive jobs that require interpersonal skills, not every soldier has.

    Hurdles for Women

    • Capabilities of women: Although women are equally capable, if not more capable than men, there might be situations that could affect the capabilities of women such as absence during pregnancy and catering to the responsibilities of motherhood, etc.
    • Adjusting with the masculine setup: To then simply add women to this existing patriarchal setup, without challenging the notions of masculinity, can hardly be seen as “gender advancement”.
    • Fear of sexual harassment: Sexual harassment faced by women military officers is a global phenomenon that remains largely unaddressed, and women often face retaliation when they do complain.
    • Gender progressiveness could be an illusion: Women’s inclusion is criticized as just another manoeuvre to camouflage women’s subjugation and service as women’s liberation.
    • Battle of ‘Acceptance’: Acceptance of women in the military has not been smooth in any country. Every army has to mould the attitude of its society at large and male soldiers in particular to enhance acceptability of women in the military.
    • Job Satisfaction: Most women feel that their competence is not given due recognition. Seniors tend to be over-indulgent without valuing their views. They are generally marginalised and not involved in any major decision-making.
    • Doubts about Role Definition: The profession of arms is all about violence and brutality. To kill another human is not moral but soldiers are trained to kill.
    • Physical and Physiological Issues: The natural physical differences in stature, strength, and body composition between the sexes make women more vulnerable to certain types of injuries and medical problems. The natural processes of menstruation and pregnancy make women particularly vulnerable in combat situations.
    • Comfort Level: Most women accepted the fact that their presence amongst males tends to make the environment ‘formal and stiff’. The mutual comfort level between men and women colleagues is often very low.

    Conclusion

    • Concern for equality of sexes or political expediency should not influence defence policies.
    • Armed forces have been constituted with the sole purpose of ensuring defence of the country and all policy decisions should be guided by this overriding factor.
    • All matters concerning defence of the country have to be considered in a dispassionate manner.
    • No decision should be taken which even remotely affects the cohesiveness and efficiency of the military.

    Way ahead

    • Induction of women into armed forces should be on the basis of their abilities and not on the basis of their gender.
    • The training for both women and men should be standardized to eliminate differentiation based on physical capabilities.
    • The career aspects and opportunities for women need to be viewed holistically keeping the final aim in focus.

     

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  • Old Pension Scheme and related issues

    Some political parties are promising to switch to the Old Pension Scheme in the opposition-ruled states.

    Old Pension Scheme

    • Pension to government employees at the Centre as well as states was fixed at 50 per cent of the last drawn basic pay.
    • The attraction of the Old Pension Scheme or ‘OPS’ — called so since it existed before a new pension system came into effect for those joining government service from January 1, 2004.
    • It was hence described as a ‘Defined Benefit Scheme’.
    • To illustrate, if a government employee’s basic monthly salary at the time of retirement was Rs 10,000, she would be assured of a pension of Rs 5,000.
    • Also, like the salaries of government employees, the monthly pay-outs of pensioners also increased with hikes in dearness allowance or DA.

    What were the concerns with the OPS?

    • Liability remained unfunded: There was no corpus specifically for pension, which would grow continuously and could be dipped into for payments.
    • Usual budgetary allocation: The Union budgetary allocations (Rs 3,86,001 crore in 2020-21) provided for pensions every year; there was no clear plan on how to pay year after year in the future.
    • Burden on working class: The ‘pay-as-you-go’ scheme created inter-generational equity issues — meaning the present generation had to bear the continuously rising burden of pensioners.
    • Far extended pay-outs: Better health facilities would increase life expectancy, and increased longevity would mean extended payouts.

    What was planned to address this situation?

    Ans. Oasis Project

    • In 1998, the Union Ministry of Social Justice and Empowerment commissioned a report for an Old Age Social and Income Security (OASIS) project.
    • Its primary objective was targeted at unorganised sector workers who had no old age income security.
    • The OASIS report recommended individuals could invest in three types of funds to be floated by six fund managers:
    1. Safe (allowing up to 10 per cent investment in equity),
    2. Balanced (up to 30 per cent in equity), and
    3. Growth (up to 50 per cent in equity)
    • The balance would be invested in corporate bonds or government securities.
    • Individuals would have unique retirement accounts, and would be required to invest at least Rs 500 a year.

    Alternative to OPS: New Pension Scheme

    • The New Pension System was proposed by the Project OASIS report; it became the basis for pension reforms.
    • It was originally conceived for unorganised sector workers, was adopted by the government for its own employees.
    • The NPS for Central government employees was notified on December 22, 2003.
    • Unlike some other countries, the NPS was for prospective employees — it was made mandatory for all new recruits joining government service from January 1, 2004.
    • The defined contribution comprised 10 per cent of the basic salary and DA by the employee and a matching contribution by the government — this was Tier 1, with contributions being mandatory.
    • In January 2019, the government increased its contribution to 14 per cent of the basic salary and dearness allowance.
    • Schemes under the NPS are offered by nine pension fund managers — sponsored by SBI, LIC, UTI, HDFC, ICICI, Kotak Mahindra, Aditya Birla, Tata, and Max.

    Risk profiles under NPS

    • NPS is now regulated under the Pension Fund Regulatory & Development Authority (PFRDA) Act, 2013.
    • The risk profiles of various schemes offered by these players vary from ‘low’ to ‘very high’.
    • The 10-year return for the NPS Scheme-Central Government floated by SBI, LIC, and UTI stood at 9.22 per cent; the 5-year return at 7.99 per cent, and the 1-year return at 2.34 per cent.
    • Returns on high-risk schemes could be as high as 15 per cent.

    Issues with OPS

    • Burden on exchequer: In 30 years, the cumulative pension bill of states has jumped to Rs 3,86,001 crore in 2020-21 from Rs 3,131 crore in 1990-91.
    • Huge share of tax receipts: Overall, pension payments by states eat away a quarter of their own tax revenues. If wages and salaries of state government employees are added to this bill, states are left with hardly anything from their own tax receipts.
    • Issue of inter-generational equity: Today’s taxpayers are paying for the ever-increasing pensions of retirees, with Pay Commission awards almost taking the pension of old retirees to current levels. It means the pension of someone who retired in 1995 may well be the same as that for someone who retires in 2025.

    Why states are reverting back to OPS?

    OPS brings state governments some short-term gains:

    • Deferment to contribution: They save money since they will not have to put the 10 per cent matching contribution towards employee pension funds.
    • Low curtailment in salaries: For employees too, it will result in higher take-home salaries, since they too will not set aside 10 per cent of their basic pay and dearness allowance towards pension funds.
    • Old age security: Some government employees are concerned that their pension may not be the same as 50 per cent of their last salary drawn (as in the OPS).

    Why need pensions at all?

    • Pension helps you accumulate a part of your income, over a long period, so that this money can be used post-retirement.
    • They provide a steady source of income when one needs the most.
    • It helps inculcate fiscal discipline.

    Conclusion

    • NPS vs. OPS will play out in the Himachal Assembly elections with freebie trending parties considering following the same trend as Rajasthan, Chhattisgarh and Jharkhand.
    • The fiscal risks involved in the transition of NPS-borne employees to OPS regime are substantive and to a great extent unsustainable keeping in view the existing share of pensionary liability in government expenditure.
    • It is estimated that the cost incurred by the government on pension is more than double the cost of NPS contribution in the long run.

     

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  • Handloom in news: Patan Patola

    patola

    At the G20 summit, Prime Minister gifted traditional artworks from Gujarat- the ‘Patan Patola’ scarf to his Italian counterpart Giorgia Meloni.

    What is Patan Patola?

    • The ancient art of double ikat or Patola woven in pure silk dates back to the 11th century.
    • The Patola fabrics bear an equal intensity of colours and design on both sides.
    • This peculiar quality has its origins in an intricate and difficult technique of dyeing or knot dyeing, known as ‘bandhani’, on the warp and weft separately before weaving.

    How is it woven?

    patola

    • Patola is woven on primitive hand-operated harness looms made out of rosewood and bamboo strips. The loom lies on a slant.
    • The other commonly worn Patola is the Rajkot Patola, woven on a flat loom.
    • The process involves warp and weft silk threads that are tied with cotton thread on portions marked with the proposed design.
    • This tied portion then remains unexposed to colours while dyeing, which is followed by tying, untying, redyeing and dyeing in different shades.
    • Single and primary colours are applied one after another as mixed shades develop by overlapping. This makes the design stand out.

    Who weaves it?

    • The last surviving family into Patola weaving is the Salvi family in Patan.
    • From the oldest 70-year-old Rohit to the youngest 37-year-old Savan, the entire nine member-family of five men and four women is engaged with this art form.
    • The Salvi family shared that before World War II, Indonesia was the major buyer of Patolas.
    • Legend has it that King Kumarpal of the Solanki dynasty invited some 700 families of Patola weavers from Jalna (Maharashtra) to settle in Patan in North Gujarat, and the Salvis are among them.
    • The family has also been honoured with several national awards.

    How costly it is?

    • While possessing and wearing a Patola is considered a matter of pride, the fabric has largely remained inaccessible to common people because of its high price.
    • The base price of a Patola saree in the Patan weave starts from Rs 1.5 lakh up and can go up to Rs 6 lakh.
    • A typical 46-inch dupatta or scarf sells in the range of Rs 80,000, depending on the intricacy of the design.

     

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  • 16th Nov 2022 | Prelims Daily with Previous Year Questions

    16th Nov 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1163]

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  • 16th Nov| Daily Answer Writing Enhancement

    Topics for Today’s questions:

    GS-1            Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.

    GS-2          Bilateral, regional and global groupings and agreements involving India and/or affecting  India’s interests.

    GS-3          Conservation, environmental pollution and degradation, environmental impact assessment.

    GS-4          Contributions of moral thinkers and philosophers from India and the world.

    Question 1)

     

    Q.1 Explain with the help of suitable examples from the Indian context, how, numismatics is a vital tool in deciphering the history of country. (10 Marks)

     

    Question 2)

    Q.2 India-US relationship is a strategic partnership based on convergence of interests and shared value; a partnership, mature enough to accommodate divergence in worldview of both the countries. Discuss. (15 Marks)

    Question 3)

    Q.3 Commenting on the approach followed by India in its Long Term – Low Emission Development Strategy (LT- LEDS) to achieve net zero emission target, highlight the key features of the strategy. (15 Marks)

    Question 4)  

    Q.4 Highlight the role played by Dr. B.R. Ambedkar in paving the way for social equality in India. Examine the reasons behind the continued presence of social inequality in the country. (10 Marks)

     

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  • Tackling the menace of Terror Financing

    Terror Financing

    Context

    • The spectre of terrorist violence looms large over the world. With the technological advancement terrorists, criminals, weapons and funds are also able to move across national boundaries easily. India is increasingly playing a leading role in curbing the terror financing.

    What is Terror Financing?

    • Terrorist financing encompasses the means and methods used by terrorist organizations to finance their activities.
    • This money can come from legitimate sources, for example from profits from businesses and charitable organizations.
    • However, terrorist groups can also get their funds from illegal activities such as trafficking in weapons, drugs or people, or kidnapping for ransom.
    • Nations like Pakistan has stated policy of supporting cross-border terrorism in India through global funding.

    What are the channels of free flow of funds?

    • The global flow of funds has three traditional channels:
    1. Direct smuggling of cash: First, direct smuggling of cash through international borders.
    2. Use of Hawala: Second, the use of hawala networks.
    3. Banking Networks: Third, banking networks including SWIFT and other international channels.
    • Use of new technologies: But now swift technological developments in areas of blockchain or cryptocurrencies which transcend national boundaries and international currency systems have emerged as a new channel for financing terrorist and other illegal activities.

    Terror Financing

    What are the identified sources of funds used by Terrorist organizations?

    • Legal financial activities: Terrorist organizations raise money through several sources like travel agencies, money changers, real estate, retail outlets, NGOs, charitable trusts and even from state sponsors.
    • Sourced form Criminal activities: Terrorists also derive funding from a variety of criminal activities ranging in scale and sophistication from low-level crime to organized fraud or narcotics smuggling or illegal activities in failed states and other safe havens.
    • For instance: Declassified files seized during the raid on Osama bin Laden’s Abbottabad hideout also revealed terror financing related documents.

    What steps could be taken to uproot terror financing methods?

    • Identifying the funding requirements: The first step in identifying and forestalling the flow of funds to terrorists is to understand the funding requirements of modern terrorist groups.
    • Understanding the ideology: The costs associated not only with conducting terrorist attacks, but also with developing and maintaining a terrorist organisation and its ideology are significant. Funds are required to promote a militant ideology, pay operatives and their families, arrange for their travel, train new members, forge documents, pay bribes, acquire weapons and stage attacks.
    • Tracing the methods of fund flow: Terrorists use a wide variety of methods to move money within and between organisations, including the financial sector, physical movement of cash by couriers, and movement of goods through the trade system. Charities and alternative remittance systems have also been used to disguise terrorist movement of funds.
    • Monitoring the ambiguous financial intelligence: Only accurate and well linked financial intelligence can reveal the structure of terrorist groups and also the activities of individual terrorists. Of late, such financial intelligence from the private sector has also given significant clues to foil terrorist acts.

    Terror Financing

    How India is leading the battle against terror financing?

    • India’s continues efforts: Prime Minister Narendra Modi has in all his international speeches spoken at length on this. India’s efforts in taking this momentum forward need to be appreciated.
    • India actively providing platform for various assemblies: Recently, the 90th Interpol General Assembly held in New Delhi, followed by a special session of UN Security Council’s Counter Terrorism in late October. In the third week of November, India will host another global conference focussed only on Countering Financing of Terrorism (CFT).
    • CTC adopted Delhi Declaration: The Counter-Terrorism Committee (CTC) unanimously adopted the Delhi Declaration on countering the use of new and emerging technologies for terrorist purposes. The declaration aims to cover the main concerns surrounding the abuse of drones, social media platforms, and crowdfunding, and create guidelines that will help to tackle the growing issue.
    • India will host ‘No Money for Terror’ Conference: The Ministry of Home Affairs will organise the Third Ministerial ‘No Money for Terror’ Conference. where participants from 75 countries expected to attend the conference. The conference that was first held In Paris in 2018, followed by Melbourne in 2019.

    Terror Financing

    What are the international efforts to tackle the menace of terror financing?

    • Foundation of FATF: Financial Action Task Force (FATF) was formed in 1989 as a means of bringing order and implementing standards to the monetary system in the world with regard to terror finance and money laundering.
    • Adopting the resolutions with time: It was the 2001 terrorist attacks that changed the way security agencies looked at terror financing. The UNSCR resolution 1267 in 1999 and UNSCR resolution 1373 in 2001 formed the bedrock of the financial sanctions’ regime for terrorist organisations and individuals.
    • FATF’s Grey listing: One of the key reasons for Pakistan being placed on the FATF Grey List from 2018 to 2022 was its open defiance of those designations. Only after the FATF’s grey listing open terrorist activities stop and the terrorist infrastructure in Pakistan declined to some extent.
    • UNSC sanctions and designations: It is pertinent to understand that the FATF has developed its entire paradigm around the word risk. It used the United Nations Security Council sanctions against terrorists and terrorist organizations to begin to evolve a complex body of documentation in order to assess technical compliance and effectiveness of countries in implementing those UN designations. Eight of the nine UN designated terrorists were arrested and convicted in a major testimony to the success of the UN sanctions regime.

    Conclusion

    • The UN Security Council has sought to increase efforts against terror financing. It is only through inclusive efforts that this complex issue can be addressed. India’s hosting of the “No money for terror” conference later this month should go a long way in focusing on the issue of state sponsored terror financing.

    Mains Question

    Q. With the technological advancement terrorists, criminals, weapons and funds are also able to move across national boundaries easily. Discuss what steps can be taken at national and international level to curb the menace of terror financing?

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  • Delhi HC fumes over Compensation delay to kin of sewer death victims

    sanitation

    “My head hangs in shame,” said the Chief Justice of Delhi High Court while condemning the Delhi Development Authority (DDA) for not paying ₹10 lakh each as compensation to the family of person who died after inhaling toxic gases inside a sewer.

    Why such criticism by the Delhi HC?

    • Cleaning of sewers and septic tanks has led to at least 351 deaths since 2017.

    Manual sanitary works in India

    • Manual scavenging is the practice of removing human excreta by hand from sewers or septic tanks.
    • India banned the practice under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (PEMSR).
    • The Act bans the use of any individual for manually cleaning, carrying, disposing of or otherwise handling in any manner, human excreta till its disposal.
    • In 2013, the definition of manual scavengers was also broadened to include people employed to clean septic tanks, ditches, or railway tracks.
    • The Act recognizes manual scavenging as a “dehumanizing practice,” and cites a need to “correct the historical injustice and indignity suffered by the manual scavengers.”

    Why is it still prevalent in India?

    • Low awareness: Manual scavenging is mostly done by the marginalized section of the society and they are generally not aware about their rights.
    • Enforcement issues: The lack of enforcement of the Act and exploitation of unskilled labourers are the reasons why the practice is still prevalent in India.
    • High cost of automated: The Mumbai civic body charges anywhere between Rs 20,000 and Rs 30,000 to clean septic tanks.
    • Cheaper availability: The unskilled labourers, meanwhile, are much cheaper to hire and contractors illegally employ them at a daily wage of Rs 300-500.
    • Caste dynamics: Caste hierarchy still exists and it reinforces the caste’s relation with occupation. Almost all the manual scavengers belong to lower castes.

    Various policy initiatives

    • Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2020: It proposes to completely mechanise sewer cleaning, introduce ways for ‘on-site’ protection and provide compensation to manual scavengers in case of sewer deaths.
    • Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013: Superseding the 1993 Act, the 2013 Act goes beyond prohibitions on dry latrines, and outlaws all manual excrement cleaning of insanitary latrines, open drains, or pits.
    • Rashtriya Garima Abhiyan: It started national wide march “Maila Mukti Yatra” for total eradication of manual scavenging from 30th November 2012 from Bhopal.
    • Prevention of Atrocities Act: In 1989, the Prevention of Atrocities Act became an integrated guard for sanitation workers since majority of the manual scavengers belonged to the Scheduled Caste.
    • Compensation: As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan vs Union of India case, a compensation of Rs 10 lakh is awarded to the victims family.
    • National Commission for Safai Karamcharis (NCSK): It is currently a temporary non-statutory body that investigates the conditions of Safai Karamcharis (waste collectors) in India and makes recommendations to the Government.

     Other initiatives for sanitation workers

    • The ministry now has proper distinction between sanitation work and manual scavenging.
    • The practice of manual scavenging no longer takes place in the country as all manual scavengers had been accounted for and enrolled into the rehabilitation scheme, said the ministry.
    • The enumeration of sanitization workers is soon to be conducted across 500 AMRUT (Atal Mission for Rejuvenation and Urban Transformation) cities, as a part of National Action Plan for Mechanised Sanitation Ecosystem (NAMASTE).
    • The NAMASTE scheme aims to eradicate unsafe sewer and septic tank cleaning practices.

    Way forward

    • Regular surveys and social audits must be conducted against the involvement of manual scavengers by public and local authorities.
    • There must be proper identification and capacity building of manual scavengers for alternate sources of livelihood.
    • Creating awareness about the legal protection of manual scavengers is necessary.

     

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  • Is climate change affecting global health?

    A recent report by Lancet, has traced in detail the intimate link between changing weather events and their impact on the health of people.

    What is the news?

    • The 2022 Lancet Countdown on Health and Climate Change: Health at the Mercy of Fossil Fuels points out that the world’s reliance on fossil fuels increases the risk of disease, food insecurity and other illnesses related to heat.

    Impact of climate change on health

     (1) Extreme Events

    • Heatwaves: The Lancet report indicates that rapidly increasing temperatures exposed vulnerable populations (adults above 65 years old and children younger than 1) to 3.7 billion more heatwave days in 2021 than annually in 1986–2005.
    • Shift in patterns: There is no doubt that events such as floods, droughts and recurrent cyclones are direct outcome of climate change.

    (2) Impact on health

    • Infectious diseases: The changing climate is affecting the spread of infectious disease, raising the risk of emerging diseases and co-epidemics. For instance, coastal waters are becoming more suited for the transmission of Vibrio pathogens.
    • More vector borne diseases: The number of months suitable for malaria transmission has increased in the highland areas of the Americas and Africa.
    • More lives loss: The WHO has predicted that between 2030 and 2050, climate change is expected to cause approximately 2,50,000 additional deaths per year, from malnutrition, malaria, diarrhoea and heat stress.
    • Others: Low air quality, Rise in zoonotic diseases.

    (3) Food security

    • Crop loss: Higher temperatures threaten crop yields directly, with the growth season shortening for many cereal crops.
    • Supply chain disruptions: Extreme weather events disrupt supply chains, thereby undermining food availability, access, stability, and utilisation.
    • Malnutrition: The prevalence of undernourishment increased during the COVID-19 pandemic, and up to 161 million more people faced hunger in 2020 than in 2019.

    Way forward

    • Health-centred response: A health-centred response to the coexisting climate, energy, and cost-of-living crises provides an opportunity to deliver a healthy, low-carbon future.
    • Realization of the problem: The governments’ commitment to assess and address the threats from climate change, are positive signs, the report stresses.
    • Holistic approach: This is the way a health-centred response would work – it would reduce the likelihood of the most catastrophic climate change impacts, while improving energy security and creating an opportunity for economic recovery.
    • Shift in dietary patterns: The report also calls for an accelerated transition to balanced and more plant-based diets, as that would help reduce emissions from red meat and milk production, and prevent diet-related deaths.
    • Easing the healthcare: The report emphasizes reducing the strain on health-care providers, and leading to more robust health systems.

     

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  • In news: Vostro Accounts

    vostro

    Russian banks have been permitted by the RBI to open special Vostro accounts to pave the way for rupee-based export-import transactions.

    Why such move?

    • Logged out of SWIFT -the messaging service to facilitate and confirm cross-border payments – most Russian banks are looking for alternative ways.
    • India and several other countries too want a way out so that trade can continue.
    • India and Russia are now exploring to directly trade in rupee-ruble.

    And this is where Nostro and Vostro may come into play.

    What is a Vostro Account?

    • A Vostro account is defined as an account that a correspondent bank holds on behalf of another bank.
    • Vostro is a Latin word that means “your”, therefore, a vostro account implies that it is “your account”.
    • An example of such an account would be HSBC vostro account is held by SBI in India.

    Understanding a Vostro Account

    • The banks are acting in a fiduciary relationship and they share a principal-agent relationship.
    • The correspondent foreign bank is a financial intermediary in the transactions that they are involved in.
    • The foreign bank acts as an agent that provides services such as executing wire transfers, performing foreign exchange, enabling deposits, enabling withdrawals, expediting international trade on behalf of the domestic bank.
    • It is most used in settlement of foreign exchanges or foreign trade.
    • No interest will be paid on the vostro account maintained, as per the directives that have been issued by the RBI in India.
    • An overdraft facility can only be availed if it is specifically sanctioned.

    Other related terms: Nostro and Loro Accounts

    • Vostro and Nostro accounts are often confused to be the same.
    • While in essence, it is the same account that is being spoken about, the perspective from which it is being seen matters.
    • In a vostro account, it is the correspondent foreign bank point of view, whereas in a nostro account, it is the point of view of the domestic bank.
    • Vostro accounts are maintained in the domestic currency whereas, nostro accounts in foreign currency.
    • A Loro account is a current account that is maintained by one domestic bank for another domestic bank in the form of a third party account, unlike nostro and vostro which is bilateral correspondence.

    Why is it used?

    • This account serves as an economic way for small domestic banks to access the financial resources and services of a larger foreign bank.
    • Enables one to offer international banking solutions to a customer without opening a bank branch in a foreign nation.
    • It minimizes the time for transfer of funds.
    • Closely monitored nostro accounts can be used for better reconciliation of statements.

     

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