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Type: op-ed snap

  • Why our urban centres need to be better planned

    urban centres Context

    • Indian urban centres need to plan for migration, climate change. Healthcare, affordable housing, sustainability and inclusion hold the key reimagining them.

    What does urban planning mean?

    • Urban planning encompasses the preparation of plans for and the regulation and management of towns, cities, and metropolitan regions. It attempts to organize socio-spatial relations across different scales of government and governance.

    What are ‘Happy Cities’?

    • A term that follows the Green City, Sustainable City, Liveable City, in the lingo of urban planning

    urban centres What is a smart city?

    • A smart city is one that uses information and communication technologies to enhance citizen engagement. It is a neo-vision which seeks to improve the delivery of services in urban areas. The following story maps out the steps being taken by India to explore this concept in practice.

    Fast Facts -Urbanization in India

    Most Urbanized States: Tamil Nadu 43.9%; Maharashtra 4%; Gujarat  37.4%.

    3 out of world’s 21 mega cities: Mumbai (19 mill); Delhi (15 mill); Kolkata (14 mill)

    Global best practices in urban planning

    • The Garden City movement: In the West, the Garden City movement (initiated by Ebenezer Howard in 1898) sought to decentralise the working environment in the city centre with a push for providing healthier living spaces for factory workers. The ideal garden city was planned on a concentric pattern with open spaces, public parks and boulevards, housing 32,000 people on 6,000 acres, linked to a central city with over 50,000 people. Once a garden city reached maximum capacity, another city would be developed nearby.
    • Neighbourhood concept: In the US, the garden city movement evolved into the neighbourhood concept, where residential houses and streets were organised around a local school or community centre, with a push for lowering traffic and providing safe roads. London has a metropolitan green belt around the city, covering 5,13,860 hectares of land, to offset pollution and congestion and maintain biodiversity. Why can’t Indian cities have something similar, instead of ring roads and urban sprawls?
    • La ville du quart d’heure: Paris has taken this forward with the “15-minute city” (‘la ville du quart d’heure’). The idea is rather simple, every Parisian should be able to do their shopping, work, and recreational activities and fulfil their cultural needs within a 15-minute walk or bike ride this means that the number of vehicular trips gets reduced significantly.
    • Investment in pedestrian infrastructure and non-motorised transport zones: A city would then be planned for pedestrians, instead of cars and motors. This requires an extensive usage of mixed-use developments, along with investment in pedestrian infrastructure and non-motorised transport zones. Instead of widening highways, this approach would push for widening pedestrian walkways.

    urban centres

    What should be adopted for India?

    • Every Indian city should ideally have a Master Plan: A strategic urban planning document which would be updated every decade or two. The document would entail how a city is supposed to grow, vertically and horizontally, across zones, while offering a high quality of life in a sustainable manner. Such plans would also consider poverty mitigation, affordable housing and liveability for urban migrants.
    • Urban land use needs to be better: One look at satellite map imagery will show that India’s urban growth is increasingly haphazard, with informal, unplanned and sprawling neighbourhoods developing in paddy fields and along linear infrastructure (arterial roads, open spaces). India’s hidden urbanisation, driven partly by our stringent definition of the word, along with weak enforcement of building codes, has meant that the local government is often playing catch-up, unable to provide urban services and infrastructure to keep up with growth.
    • Public land availability: Meanwhile, in places where there are formally recognised towns and urban neighbourhoods, outdated planning practices have meant that land utilisation is poor. Consider the case of Mumbai, where almost 1/4th of the land is open public space while over half of it is the underutilised space around buildings, which is enclosed by walls and hived off from public access. Such open spaces, if available, would help cities like Mumbai achieve similar ratios as globally benchmarked cities (Amsterdam, Barcelona) in public land availability (typically above 40 per cent).
    • India’s urban density will also need to be thought through: Dense construction on the peripheries of our major cities (for instance, dense construction in Delhi’s suburbs, like Noida and Gurugram) will inevitably mean that public services are stretched and emissions (due to transportation to the main city) remain high. Such urbanisation will unavoidably lock India into a high emissions future while making our cities prone to extreme heat and flooding.
    • Then there is climate change: According to the World Bank, climate change may reduce India’s GDP by 3 per cent, while depressing the living standards of its citizens by 2050. Many urban experts cite technological solutions that may save our cities a chain of sea walls, river embankments and reclamations, for instance from such potential calamities. However, structural engineering simply may not be an economically and environmentally feasible option everywhere instead, our focus must be on conservation.
    • Climate resilience perspective Bengaluru, with its network of interconnected lakes, could have considered Bangkok-style ferries instead of draining out its lakes. All ongoing and upcoming urban infrastructure projects must be reconsidered from a future climate resilience perspective does the ongoing sea reclamation for the upcoming coastal road in Mumbai make sense if sea levels are rising?
    • Establishing a sense of cityhood: By making a push for a city as a co-created space will also require building up institutional capacity.
    • Addressing lack of town planning education: India would ideally require 3,00,000 town and country planners by 2031 (there are just 5,000 town planners currently). Much of this problem is fundamentally due to a lack of town planning education in the country there are just 26 institutes that provide this course, producing 700 town planners each year. We already have a shortage of 1.1 million planners. More schools are needed, with a push for local IITs and NITs to have a standalone planning department. With over 8,000 towns and cities, there is a clear unmet need.

    urban centresConclusion

    • Our policymakers also need to be cognisant of the historical context of our urban development a push for glass buildings or utilising granite may not always be suitable for our cities. Why can’t our cities look distinctly Indian, inspired by our historical architecture? Renewing our cities will require us to rethink various urban topics, including urban design, urban healthcare, affordable housing, sustainability and inclusion among others. Our urban future depends on getting this right.

    Mains question 

    Q. Renewing our cities will require us to rethink various urban topics, including urban design, urban healthcare, affordable housing, sustainability and inclusion among others. Elaborate.

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  • Sustainable port development promises blue economy to bloom

    Context

    • It is politically hard, but developmentally critical, to run port development projects with coastal management sustainably.

    portWhat is a port?

    • A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals.

    What is meant by port management?

    • A port management analysis involves an understanding of the port conditions, including intra-port distribution, and routes and hinterland connections outside the port.

    Why ports are important?

    • Ports infrastructure is key to the development of any nation. India has a coastline spanning about 7,500 km. around 90 percent of India’s external trade by volume and 70 percent by value are handled by ports.

    portWhat are concerns with port projects?

    • Displacement: Some 350 families that have lost homes to coastal erosion last year, and those living in makeshift schools and camps are just a foretaste of things to come if coastal erosion and extreme cyclones continue unabated.
    • Ecological impact: A further danger is an irreversibly destroyed ecology, triggering deadlier hazards of nature. Ports without adequate safeguards in a highly delicate ecology unleash destruction on marine life and the livelihoods of the local population.
    • Coastal erosion: Visakhapatnam and Chennai show how siltation, coastal erosion and accretion can be exacerbated by deepening of harbour channels in ecologically sensitive areas.
    • Oil spills: During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards.
    • Ecosystem threat: The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems
    • Impact on fisheries: Dredging cause’s environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries

    Value addition example

    A just published study shows that during 2006-20, the sea gobbled some 2.62 square kilometres or close to 650 acres from the Thiruvananthapuram coast alone.

    portSteps to take

    • Compensation: The first order of business, as in infrastructure projects worldwide, is that the project provides compensation to the displaced people and restores their rights.
    • Reversing marine damage: Second, the gross neglect of the damage to invaluable marine biodiversity must be redressed with an acceptable EIA, including inputs from experts in biology, ecology, and oceanography.
    • Safeguard to place: Third, there needs to be an independent assessment of safeguards that port authorities must put in place as a precondition for any further construction.
    • Blue Economy:Blue Economy as a concept includes all the economic activities related to oceans, seas, and coastal areas and emerges from a need for integrated conservation and sustainability in the management of the maritime domain.

    Way forward

    • Master plan: Countries should adopt a National Long-term Mater plan addressing the aspects of smarter, greener, safer sustainable port development and productivity improvement.
    • Planning: Port development and investment should be driven by setting specific and realistic goals, such as building a stable infrastructure focused on reducing trade costs and contribute to achieving sustainable transport.
    • Cooperation of multiple sectors: In order to establish a comprehensive port development master plan, cooperation with financial, environmental, technical, energy, transportation and urban development authorities is essential and must reflect the needs of users, including shippers and shipping lines.

    Conclusion

    • To address existing challenges, we should provide research, analysis and technical assistance to help ports and the maritime transport sector especially in developing countries to improve operations and become more sustainable and resilient to crises, including climate change.

    Mains question

    Q. What do you understand by sustainable port development and port productivity? Discuss the challenges in achieving the same along with way forward.

     

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  • Sports as soft power

    soft powerContext

    • Increased interest, especially by smaller nations in the world, in investing more and doing well in elite sports in international sporting events boosts a nation’s chances of attaining soft power.
    • India’s medal tally at recent International sports events demonstrate the country’s soft power on the global stage and encourage working towards the status of a great “geopolitical actor”.

    What is soft power?

    • Origin:
      • As far back as the 4th century BC, Kautilya (chankyaniti) had propounded the concept of Saam(advice or cajole),daam(pay or bribe),dand(punish),bhed(exploit secrets) which acquired western touch and can be understood by Soft power, smart power, hard power, and sharp power respectively.
      • Joseph Nye introduced the concept of “soft power” in the late 1980s. For Nye, power is the ability to influence the behavior of others to get the outcomes you want.
    • Meaning:
    • Soft power is the ability of a country to persuade others to do what it wants without force or coercion.
    • Soft power is the ability to influence the behavior of others to get the outcomes you want.

    soft powerWhy Soft power is so significant?

    Use of ‘Soft Power’ includes the number of cultural missions such as language schools, Olympic Medals and the quality of a country’s overall growth. Soft power produces following things:

    • Familiarity: If people know more about your country, culture, sports, and its talents, businesses, and resources, then soft power is enhanced.
    • Reputation: For a nation to be attractive and a role model for others, its overall reputation must be strong and positive.
    • Influence: A direct measure of the perceived presence and impact that your country has in other countries
    • Business/Innovation/Sports: The attractiveness of a country’s economic model, its digital engagement with the world, performance in sports etc.
    • Government: Showcases the ability of country’s political leadership and what it delivers to its people in different arenas.
    • Multi-Alignment: As a country rises up the ‘Soft Power’ list, more and more outside parties align themselves with the common goals of that country.

    Why the Sports being used as a tool of soft power in modern international relations?

    Sport can be used as tool of soft power both internationally and domestically.

    • International platform: Sports provide a platform for countries to showcase their culture, values and tradition.
    • Puts a Better image of a country: Sports as a tool to achieve social, political, and financial goals, and improve the image of the country.
    • International exposure: The focus on culture and peaceful values in sports make it a useful tool for countries to use soft power to achieve international goals and improve their public diplomacy.
    • Reducing differences: Sports provides a platform for trust-building; and reconciliation, integration and anti-racism.
    • Learning from China’s Case:
    • Dongfeng Liu (International Professor of Sport Management) in his survey on China’s performance in the Olympics he found that a country’s Olympic achievement has a positive effect on its national soft power.
    • As china is a communist country and reputation about human rights is not good, so China uses its superiority in elite sports to build “people-to-people” relations with other countries. For example, athletes from African countries such as Madagascar are trained in swimming, badminton, table tennis, etc. in China, which helps Beijing create a positive impact on a wider population and result in better formal relations as well.
    • There is also China’s memorandum of understanding with countries such as Kenya so that Chinese runners can train with Kenyan athletes, as they are among the best in the world when it comes to long-distance running.

    soft powerIntrospection on India’s performance at recent International Sports events

    • It is being said that the golden period of Indian sports may have begun as at the Tokyo Olympics and then the Birmingham 2022 Commonwealth Games (CWG) are examples of a good performance.
    • India’s medal tally in the Tokyo Olympics Games — seven — was its most decorated Olympic Games in Indian history.
    • At the Commonwealth games (CWG) 2022, Indian athletes won 61 medals, including 22 gold.
    • India has one of the world’s poorest population-to-medal ratios when it comes to the Olympics.
    • Ensuring competent coaches, and having adequate funding and more sports academics still remain major issues even decades later
    • India spends only three paise per day per capita on sports. In contrast China spends 1 per day per capita.

    What can be done to increase the country’s sporting performance and soft power?

    • Train Indian players overseas:
    • India should concentrate on forging MoUs with nations that excel in specific sports and train Indian players overseas.
    • For example, Australia and the United Kingdom can assist us in swimming given their standing here.
    • When it comes to running, negotiating collaborative training agreements with African countries such as Kenya would be ideal.
    • No Politics over assistance:
    • There should be no politics in seeking or even offering assistance.
    • For example China has requested Indian assistance in improving cricket development in China (Chongqing city).
    • Private Investment:
    • Private investment needs to be harnessed to develop infrastructure. The better a country performs in sporting events the greater a sports person’s interest in their sports atmosphere. This also creates a huge market for private players to invest in.
    • For example, leading corporate houses in India have already shown how their active participation and investment can improve sporting performance as a result of unique corporate sports programmes.
    • Public –private partnership at grass root :
    • The Government should also work on a public-private partnership (PPP) model to create basic sporting infrastructure.
    • As recommended by NITI Aayog, at the district level too so that talent can be captured at an early stage.

    Conclusion

    • Sports as a tool of soft power had always been a key element of leadership from the ancient times. Sports provide an international platform to develop an attitude of unity in a divided multi-polar modern world.

    Mains Question

    Q. Sports provide an international platform to develop an attitude of unity and influence others in a divided multi-polar modern world. Discuss in this context that soft power is not an end but a means to an end.

     

  • Why India Inc. needs a neurodiverse workplace ?

    neurodiverseContext

    • Discrimination in employment is a worldwide phenomenon. Gender, ethnic, racist discrimination are well known but discrimination towards neurodiverse persons are hardly debated in public forums. Despite having special abilities companies are not using their potentials.

    What is neurodiversity?

    • Harvard Health Publishing defines, neurodiversity as a notion that every person interacts and experiences their surroundings differently; there is no right way of thinking, learning, or/and behaving. These differences should not be construed as defects or disorders.

    What is a neuro-diverse workplace?

    • Neurodiversity in the workplace refers to including people with neuro-divergent conditions such as attention-deficit/hyperactivity disorder, autism spectrum disorders, dyslexia, dyspraxia, dyscalculia and Asperger’s Syndrome.

    What are those Conditions that make them different from normal humans?

    • Autism: A mental condition in which a person finds it difficult to communicate or form relationships with other people. Signs of autism include not responding to their name, avoiding eye contact, not smiling when you smile at them.
    • Dyslexia: a difficulty that some people have with reading and spelling signs include confusion over letters that look similar and putting letters the wrong way round , confusing the order of letters in words, reading slowly or making errors when reading aloud
    • Asperger’s syndrome: A developmental disorder related to autism and characterized by awkwardness in social interaction, pedantry in speech, and preoccupation with very narrow interests. Less severe symptoms than Autism syndrome.
    • Dyscalculia: A brain disorder in which a wide range of difficulties with math, including weaknesses in understanding the meaning of numbers, and difficulty applying mathematical principles to solve problems.

    neurodiverseHow they can be naturally efficient and creative?

    • More efficient: Studies have shown that teams with both neurodivergent and neurotypical members are far more efficient than teams that comprise neurotypical employees alone.
    • Ability to focus: Neurodivergent individuals possess excellent attention to detail and an uncanny ability to focus on complex and repetitive tasks over a more extended period than their neurotypical peers.
    • Ability to work at faster speed: A study by the University of Montreal found that in a test involving completing a visual pattern, people on the autism spectrum could finish their task 40% faster than those who were not on the spectrum.
    • Robust spatial reasoning: People with dyslexia can think about objects in three dimensions and analyses such objects even with limited information.
    • Out of box thinking: They have problem-solving capabilities which allow them to see multiple solutions to a problem. They are often out-of-the-box thinkers with average or above-average intelligence.

    Current Status of people living with neurodivergent conditions

    • People suffer with the Condition: According to a recent report, nearly 2 million people in India suffer from this neurological and developmental disorder and are therefore identified as autistic. Another study by Deloitte estimates that nearly 20% of the world is neurodiverse. In the U.S., it is estimated that 85% of people on the autism spectrum are unemployed compared with 4.2% of the overall population
    • Discrimination at employment: Even with all the necessary skill sets and degrees, these persons are denied a job because they may react to situations differently from non-neurodiverse persons.
    • Lack of awareness: Lack of awareness about neurodivergent conditions, and how the people with condition may react and lack of and accommodating environment. Hence, there is an urgency to create a work environment that welcomes neurodiverse individuals.

    neurodiverseCurrent work profile of companies and workplaces

    • A 2019 McKinsey study revealed that companies with gender diversity were 25% more likely to have above-average profitability while those with ethnic diversity out-rival their competitors by 36%.
    • Another report titled ‘India’s Best Workplaces in Diversity, Equity & Inclusion 2021’ states that diverse teams perform better, boost leadership integrity, heighten trust in the organization’s management and multiply revenue growth.

    neurodiverseFew Examples show that things are changing

    • Competitive environment: Organisations embracing neurodiversity enjoy a competitive edge in several areas such as efficiency, creativity, and culture.
    • Various MNC’s hiring program: Companies such as Deloitte, Microsoft, SAP, JPMorgan Chase, and E&Y have introduced neurodiversity hiring programs.
    • Indian company: Indian-origin companies Hatti Kaapi and Lemon Tree Hotels have also included a neurodiverse workforce.

    What can be done to create more inclusive workplaces?

    • Creating neurodivergent friendly offices: .Many employees with neurodiversity may find the hustle and bustle of a traditional office disturbing. Therefore, neurodivergent friendly offices catering to the employees’ diverse sensory responses can help ensure that these employees are comfortable in office spaces.
    • Openness: Creating the right environment is an ever-evolving exercise that requires openness and a will to change on the employer’s part. This flexibility can result in exceptional benefit with minimal or no additional costs.
    • Wider Inclusivity: To ensure higher profitability and be respected as a responsible employer globally, companies need to widen their definition of inclusivity by providing higher participation of a neurodiverse workforce.

    Conclusion

    • Organizations must not only remove barriers that obstruct the progress of such individuals but also create conducive conditions for them to achieve their true potential and providing proper infrastructure so that they can perform at their optimal levels.

    Mains Question

    Q. People with neurodiversity are discriminated not only socially but also economically, Comment. What measures could be taken to bridge this gap within the society?

     

  • Gender pay gap in India

    women empowermentContext

    • Despite notable progress in closing the gender pay gap over time in India, the gap remains high by international standards. Asymmetries still abound in the country’s labor market stopping women empowerment .
    • Time to reassess the progress made in to close the Gender pay gap.

    Background

    • The third International Equal Pay Day is observed globally on September 18, 2022.
    • It is a United Nations-recognized event to highlight the issue of gender pay gap.
    • International Labor Organization’s “Global Wage Report 2020–21” which suggests the crisis inflicted massive downward pressure on wages and disproportionately affected women’s total wages compared to
    • This greater wage reduction for women means that the pre-existing gender pay gap has widened.

    women empowermentCovid-19 Impact

    • While it is difficult to tell exactly what the economic damage from the global covid-19 pandemic has been, it is clear that its impact has been uneven, with women being among the worst affected in terms of their income security.
    • Many women reverted to full-time care of children and the elderly during the pandemic, foregoing their livelihoods to do so.

    What is gender pay gap?

    • The gender pay gap or gender wage gap measures the difference between the average earnings of women and men in the workforce.
    • In simple term it is a measure of what women are paid relative to men.
    • Women are generally found to be paid less than men.

    Why is the gender pay gap?

    • Education: low investment o girl education, Girl children are kept out of schools, or made drop out of school at early age, girl is considered as burden on family in many societies.
    • workforce : even if they are educated they are not allowed to work by their families, very limited or no decision making power, lack of women friendly work environment, discriminatory practices at workplaces.
    • Household: early marriage , responsibilities of the household at early age , spending more times on domestic chores,
    • Healthcare: malnutrition, anemia, Maternity, child care, looking after health of the elderly family members etc.

     

    These are some of the reasons which affect education, skills, experience and the career prospectus of women as compared to men and contribute to widen the gender wage gap.

     

    women empowermentDiscrimination as factor

    • A part of gender pay gap attributed to education, skills or experience, a large part of the gender pay gap can still purely because of discrimination based on one’s gender or sex.
    • Gender-based discriminatory practices include: lower wages paid to women for work of equal value; undervaluation of women’s work in highly feminized occupations and enterprises, and motherhood pay gap lower wages for mothers compared to non-mother.

    women empowermentStatus in India

    • The gender pay gap in India is among the widest in the world.
    • Indian women earned, on an average, 48% less compared to their male counterparts in 1993-94
    • According to labor force survey data of the National Sample Survey Office (NSSO) gap declined to 28% in 2018-19.
    • Periodic Labor Force Survey (PLFS) 2020-21 show an increase in the gap by 7% between 2018-19 and 2020-21.
    • Recently, the World Economic Forum (WEF) ranked India at 135 out of 146 countries in its Global Gender Gap (GGG) Index for 2022.
    • According to the estimates of the World Inequality Report 2022, in India, men earn 82 per cent of the labor income whereas women earn 18 per cent of it.

    women empowermentSteps taken by India

    • Minimum Wages Act in 1948: It is an act of parliament, aimed at statutory fixation of minimum wages that must be paid to skilled and unskilled labours. Payment of wages below the minimum wage rate amounts to forced labour.
    • Equal Remuneration Act in 1976: This act of parliament provides for the payment of equal remuneration to men and women workers for the prevention of discrimination. It helps in bridging the gap between unequal remuneration faced by the women of our country.
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005: MGNREGA contributed to the rapid rise in overall rural and agricultural wages in the country. It benefited rural women workers and helped reduce the gender pay gap, both directly and indirectly. Directly, by raising the pay levels of women workers and indirectly to women involved in agricultural occupations through higher earnings.
    • The Maternity Benefit (Amendment) Act 2017: has increased the duration of paid maternity leave available for women employees to 26 weeks from 12 weeks for all women working in establishments employing 10 or more workers. This is expected to reduce the motherhood pay gap among mothers in the median and high end wage earners working in the formal economy also it will help in women empowerment.
    • Skill India Mission: To equip women with market-relevant skills to bridge the learning to-livelihood gap and the gender pay gap.
    • In 2019, India carried out comprehensive reforms in both the legislation and enacted the Code on Wages.

    Way ahead

    • While the gender pay gap is slowly narrowing, acceleration and bold actions to prevent the widening of gender pay gap is the need of the hour.
    • Equal pay for work of equal value is necessary to close the gender pay gap.
    • Closing the gender pay gap is key to achieving social justice for working women, as well as economic growth for the nation as a whole
    • Without social justice women empowerment is a futile exercise.

     

    Mains Question

    Q. Define gender equality .Equal pay for equal work is necessary to bridge the gender pay gap India .Comment.

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  • Geopolitics follows the geoeconomics and not vice-versa

    geoeconomicsContext

    • Over the recent years India’s manoeuvres in indo-pacific have highlighted the India’s geopolitical and ambitions. Pandemic and Chinese incursion in Ladakh forced India to move fast to achieve its geopolitical ends. However missing link in India’s endeavour is geoeconomics.

    What is mean by geopolitics and geo-economics?

    • Geopolitics: is defined as the struggle over the control of geographical entities with an international and global dimension, and the use of such geographical entities for political advantage.
    • Geo-economics: is defined as the combination of economic and geographic factors relating to international trade and a governmental policy guided by geoeconomics.
    • Geopolitics and geoeconomics are sometimes used interchangeably.

    What is the strategy to pursue geopolitical goals in indo-pacific?

    • India has managed to emerge as a major pivot of the global Indo-Pacific grand strategic imagination.
    • Avoided the temptations to militarise/securitise the Quad (Australia, Japan, India and the United States).
    • Which has ensured that the Association of Southeast Asian Nations (ASEAN) states do not feel uneasy by the ever-increasing balance of power articulations in the Indo-Pacific

    geoeconomicsWhat is the missing link in India’s geopolitical strategy?

    • The missing link in geoeconomics is India’s decision to take to the Indo-Pacific and Quad in a big way.
    • While unwilling to join two of the region’s key multilateral trading agreements goes to show that geoeconomics and geopolitics are imagined and pursued parallelly in New Delhi, not as complimenting each other.
    • The most recent example is India’s refusal to join the trade pillar of the Indo-Pacific Economic Framework (IPEF) while deciding to join the three other pillars of the IPEF supply chains, tax and anti-corruption, and clean energy.

    India also withdrew from ASEAN led RCEP.

    Is the lack of geoeconomic bad for foreign policy?

    • The absence of the world’s fifth largest economy from various regional trading platforms will invariably boost China’s geo-economic hegemony in Asia.
    • Staying out of IPEF is a bad idea is because for India, it would be hard to integrate itself into the regional and global supply chains without being a part of important regional multilateral trading agreements.
    • We have no option but to address some of the deeper challenges plaguing the investment and business environment in India.
    • If India is indeed serious about its maritime grand strategy, which cannot be solely military in nature, it needs to get the states in the region to create economic stakes in India (something China has done cleverly and consistently) and vice-versa.
    • Another impact of India’s hesitation about joining regional multilateral trading arrangements is its potential regional economic isolation. The less India engages with the region economically, and the more China does so, and given the Sino-Indian rivalry, India might risk getting economically isolated in the broader region.

    Geo-economics: is defined as the combination of economic and geographic factors relating to international trade and a governmental policy guided by geoeconomics. Geopolitics and geoeconomics are sometimes used interchangeably.What can be done?

    • New Delhi should: rethink its geoeconomic choices if it is serious about enhancing its geopolitical influence in the region. Given that India has not closed the door on the trade pillar of the IPEF, we have an opportunity to rethink our position.
    • India should: also rethink its decision not to join the RECP and seek to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from which the U.S. walked out and China is seeking to join.
    • India should: also proactively lobby to become a part of the Minerals Security Partnership, the U.S.-led 11-member grouping to secure supply chains of critical minerals.

    Conclusion

    • In the words of external affairs minister Dr. Jaishankar,” geopolitics follows the geoeconomics and not vice-versa”. Geoeconomics is inclusive of geoeconomics. India should integrate itself in multilateral trading platforms and leverage its big market to bargain the best deal for itself.

    Mains question

    Q. Indias pursuit of geopolitics is futile without inclusion of geoeconomics. Comment.

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  • Electricity Amendment Bill 2022 – Addressing the transition and equity

    electricityContext

    • Concerns of states on some provisions of the new Electricity Bill are justified. But the legislation proposes welcome correctives to longstanding problems of the power sector.

    Important provisions of the bill

    • Payment security: The Bill provides that electricity will not be scheduled or despatched if adequate payment security is not provided by the discom.   The central government may prescribe rules regarding payment security.
    • Contract enforcement: The Bill empowers the CERC and SERCs to adjudicate disputes related to the performance of contracts.  These refer to contracts related to the sale, purchase, or transmission of electricity.  Further, the Commissions will have powers of a Civil Court.
    • Renewable purchase obligation: The Act empowers SERCs to specify renewable purchase obligations (RPO) for discoms.  RPO refers to the mandate to procure a certain percentage of electricity from renewable sources.  The Bill adds that RPO should not be below a minimum percentage prescribed by the central government.  Failure to meet RPO will be punishable with a penalty between 25 paise and 50 paise per kilowatt of the shortfall.
    • Selection committee for SERCs: Under the Act, the Chairperson of the Central Electricity Authority or the Chairperson of the CERC is one of the members of the selection committee to recommend appointments to the SERCs.  Under the Bill, instead of this person, the central government will nominate a member to the selection committee.  The nominee should not be below the rank of Additional Secretary to the central government.
    • Composition of Commissions and APTEL: The Bill increases the number of members (including the chairperson) in SERCs from three to four.  Further, at least one member in both the CERC and SERCs must be from law background.  Under the Act, Appellate Tribunal for Electricity (APTEL) consists of a chairperson and three other members.  The Bill instead provides that the APTEL will have three or more members, as may be prescribed by the central government.

    State apprehensions of the bill

    • Multi state license: The clause pertaining to applicants seeking a distribution licence in more than one state. It states that the Central Electricity Regulatory Commission (CERC), and not the SERC, will grant the licence. This is problematic because a SERC is likely to be more aware of the field-level conditions in a state than its central counterpart.
    • Centre can bypass state: The Bill has a provision empowering the Centre to give directions directly to the SERCs. Till now, the CERC received instructions from the Centre and the SERCs were under the state. The new Bill enables the Centre to bypass state governments. It’s not surprising that this is a matter of concern for the states.
    • Direct appointment by centre: The Bill states that the SERC chairperson will now be a nominee of the central government and will be an additional secretary-level official. This gives the impression that the Centre is trying to control the appointments to the SERCs.

    electricity

    Why the bill is important?

    • Compensation clause: The Bill states that if power purchase agreement PPAs are renegotiated, the affected party has to be compensated within 90 days from the date of submission of the petition.
    • Uniformity in tariffs revision: New tariffs have to be made applicable from the beginning of the financial year. New tariffs often come into force in the middle of the financial year (due to delays in the issuing of orders by SERCs). This means that discoms do not earn their full revenues leading to cash flow problems.
    • Easy tariff petition processing now: The Bill has proposed a reduction in the time for processing tariff petitions from 120 days to 90 days.
    • Suo moto jurisdiction: Regulatory commissions have been given suo motu jurisdiction if tariff petitions are not filed within 30 days of the stipulated time. This too is a step in the right direction.
    • More teeth to load dispatcher: the Bill proposes to give more teeth to the national load dispatcher. We need to strengthen the load dispatcher for the smooth functioning of the grid, especially with a huge renewable capacity where intermittency of generation is a major issue in the offing.

    Conclusion

    • The rollout of the proposed amendments through a consensus-based approach would go a long way in overhauling the weakest link in the nation’s power supply chain.

    Mains question

    Q. Electricity Bill 2022 is a remedy worse than the disease afflicting India’s power sector. Critically analyse.

     

     

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  • Backsliding on climate action

    Context

    Europe is staring at a recession and its appetite for climate action is waning.

    Developed countries moving away from commitment

    • Countries in Europe led by Germany, Austria and the Netherlands are cranking up their coal plants again.
    • Fossil fuels are making a comeback and countries are rejecting the European Union (EU)’s plan to reduce natural gas consumption by 15%. Dutch, Polish and other European farmers are protesting against emission cuts from agriculture.
    • In the U.S. too, the Senate and the Supreme Court have struck blows to climate action.
    • And in the U.S. too, prices of fuel started increasing last year, not just this year.
    • Fossil fuels are making a quiet comeback, since the strength of the U.S. is its oil and gas industry.
    • That is why we have just witnessed a ‘re-calibration’ of U.S. policy towards the Gulf.
    • Coal, oil and gas are not going anywhere in the developed world; they are, in fact, making a comeback.
    • The West had rushed to draw down on fossil fuels even before technology for renewables were in place.

    Global peaking issue

    • Article 4 of the Paris Agreement defines ‘Global Peaking’ thus: “In order to achieve the long-term temperature goal set out in Article 2, Parties aim to reach global peaking of greenhouse gas emissions as soon as possible, recognizing that peaking will take longer for developing country Parties.”
    • The developed countries, given their historical emissions, will have to peak first.
    • That’s why the reference is to ‘global peaking’ and not ‘individual peaking’.
    • From this, it logically follows that when developing country parties peak later than developed countries, they will also achieve net zero later than developed countries.
    • Consequently, it is the logical conclusion of the Article 4 of the Paris Agreement that when we consider net zero, we should only consider ‘global net zero’ and not ‘individual net zero’ for 2050.
    • The statement calls on developed countries to do a net negative on mitigation by 2050 rather than just “net zero”, if they are serious about fighting climate change.
    • In effect, the West needs to do a net minus and not just net zero.
    • Thanks to the efforts of India, the phrase used in the 2021 summit-level declarations at both G-20 and Quad is ‘global net zero’. We need to build on this understanding.
    • India stands as beacon of hope in renewables.
    • It is time for all developing countries, especially the small island developing states, to make sure that the developed world doesn’t backslide on its commitments on mitigation yet again.

    Way forward for developing countries

    • With countries of the developed world almost sure to renege on their 2030 Paris Agreement commitments, countries of the developing world must do everything to hold the countries of the developed world to their commitments.
    • The Western nations have already started reinterpreting the Paris Agreement and look to downgrade their commitments.
    • The concept of net zero is being cleverly misinterpreted.
    •  To bring this to the attention of the Global South, India, China and eight other countries from Africa, Asia and Latin America made a cross-regional statement on ‘global net zero’ on June 7 at the UN on World Environment Day.

    Conclusion

    COP 27 in Egypt gives us that opportunity to hold their feet to the fire. It is time for the developed world to make net minus pledges. If we don’t collectively push for it, we will be collectively pushed back.

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  • RBI’s attempt to manage currency could prove to be a costly mistake

    currencyContext

    • A currency defence will also impose costs on the economy.

    Why in news?

    • Legally, the Reserve Bank of India is mandated to target an inflation rate. But with the global economic environment taking a turn for the worse, the central bank has also been targeting the exchange rate. This could prove to be a costly mistake.

    What is a simple definition for inflation?

    • Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

    What is exchange rate?

    • An exchange rate is a rate at which one currency will be exchanged for another currency. Most exchange rates are defined as floating and will rise or fall based on the supply and demand in the market. Some exchange rates are pegged or fixed to the value of a specific country’s currency.

    What is monetary policy?

    • Monetary policy is the control of the quantity of money available in an economy and the channels by which new money is supplied. Economic statistics such as gross domestic product (GDP), the rate of inflation, and industry and sector-specific growth rates influence monetary policy strategy.

    What is fixed exchange rate in simple words?

    • A fixed exchange rate is a regime applied by a government or central bank that ties the country’s official currency exchange rate to another country’s currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency’s value within a narrow band.

    currencyWhat is a simple definition of capital?

    • Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual.

    What is meant by the impossible trinity?

    • Many economists think of possible policy responses to capital flows in terms of the so-called “impossible trinity,” or “policy trilemma”, according to which, with an open capital account, a central bank cannot simultaneously exercise monetary control and target the exchange rate.

    A currency defence will impose costs on the economy?

    • Little economic gain: Some may believe that a stronger currency gives the impression of economic stability and generates confidence in the economy. But there is an inherent contradiction between artificially propping up the rupee and the country’s growth prospects. Very little economic gain will accrue from turning the currency’s value into a political issue.
    • Inflation should be tackled through monetary policy: Understandably, a depreciating currency leads to concerns over higher imported inflation. But inflation should be tackled through monetary policy, while exchange rate management should be linked to growth. Not the other way around.

    Significance of currency defence for foreign exchange reserves

    • Decline by 10 per cent: A large part of the current relative strength of the rupee vis-à-vis other currencies is due to the sale of dollars by the RBI  it has lost more than 10 per cent of its foreign reserves in the space of about nine months.
    • Why country needs foreign exchange: A developing economy needs foreign exchange to finance its international transactions for both the current account (goods and services) and capital account (assets) transactions.
    • Cost involved: The benefits of this stock are obvious, but there are also costs associated with the holding of these.

     

    https://www.civilsdaily.com/burning-issue-global-trade-in-rupees/We should follow Tenfold Path to manage Exchange Rate Volatility rather monetary policy path

     

    (1) Selling dollars

    • The first course of action has been selling dollars in the spot forex market.
    • This is fairly straightforward, but has limits as all crises are associated with declining reserves.
    • While this money is meant for a rainy day, they may just be less than adequate.
    • The idea of RBI selling dollars works well in the currency market, which is kept guessing how much the central bank is willing to sell at any point of time.

    (2) NRI deposits

    • The second tool used is aimed at garnering non-resident Indian (NRI) deposits.
    • It was done in 1998 and 2000 through Resurgent India bonds and India Millennium Deposits, when banks reached out asking NRIs to put in money with attractive interest rates.
    • The forex risk was borne by Indian banks.
    • This is always a useful way for the country to mobilize a good sum of forex, though the challenge is when the debt has to be redeemed.
    • At the time of deposits, the rates tend to be attractive, but once the crisis ends, the same rate cannot be offered on deposit renewals.
    • Therefore, the idea has limitations.

    (3) Let oil importers buy dollars themselves

    • The third option exercised often involves getting oil importing companies to buy dollars directly through a facility extended by a public sector bank.
    • Its advantage is that these deals are not in the open and so the market does not witness a large demand for dollars on this account.
    • It is more of a sentiment cooling exercise.

    (4) Let exporters trade in dollars

    • Another tool involves a directive issued for all exporters to mandatorily bring in their dollars on receipt that are needed for future imports.
    • This acts against an artificial dollar supply reduction due to exporter hold-backs for profit.

    (5) Liberalized Exchange Rate

    • The other weapon, once used earlier, is to curb the amount of dollars one can take under the Liberalized Exchange Rate Management System.
    • This can be for current account purposes like travel, education, healthcare, etc.
    • The amounts are not large, but it sends out a strong signal.

    (6) Forward-trade marketing

    • Another route used by RBI is to deal in the forward-trade market.
    • Its advantage is that a strong signal is sent while controlling volatility, as RBI conducts transactions where only the net amount gets transacted finally.
    • It has the same power as spot transactions, but without any significant withdrawal of forex from the system.

    (7) Currency swaps

    • The other tool in India’s armoury is the concept of swaps.
    • This became popular post 2013, when banks collected foreign currency non-resident deposits with a simultaneous swap with RBI, which in effect took on the foreign exchange risk.
    • Hence, it was different from earlier bond and deposit schemes.
    • Most preferred options by the RBI
    • Above discussed instruments have been largely direct in nature, with the underlying factors behind demand-supply being managed by the central bank.
    • Of late, RBI has gone in for more policy-oriented approaches and the last three measures announced are in this realm.

    (8) Allowing banks to work in the NDF market

    • First was allowing banks to work in the non-deliverable forwards (NDF) market.
    • This is a largely overseas speculative market that has a high potential to influence domestic sentiment on our currency.
    • Here, forward transactions take place without real inflows or outflows, with only price differences settled in dollars.
    • This was a major pain point in the past, as banks did not have access to this segment.
    • By permitting Indian banks to operate here, the rates in this market and in domestic markets have gotten equalized.

    (9) Capital account for NRI deposits

    • More recently, RBI opened up the capital account on NRI deposits (interest rates than can be offered), external commercial borrowings (amounts that can be raised) and foreign portfolio investments (allowed in lower tenure securities), which has the potential to draw in forex over time.
    • Interest in these expanded contours may be limited, but the idea is compelling.

    (10) Settlement in Rupees

    • RBI’s permission for foreign trade deals to be settled in rupees is quite novel; as India is a net importer, gains can be made if we pay in rupees for imports.
    • The conditions placed on the use of surpluses could be a dampener for potential transactions.
    • But the idea is innovative and could also be a step towards taking the rupee international in such a delicate situation.
    • Clearly, RBI has constantly been exploring ways to address our forex troubles and even newer measures shouldn’t surprise us.

    Way ahead

    • The RBI (which is in charge of monetary policy) should focus on containing inflation, as it is legally mandated to do.
    • The government (which is in charge of the fiscal policy) should contain its borrowings.
    • Higher borrowings (fiscal deficit) by the government eat up domestic savings and force the rest of the economic agents to borrow from abroad.
    • Policymakers (both in the government and the RBI) have to choose what their priority is containing inflation or being hung up on exchange rate and forex levels.
    • If they choose to contain inflation (that is, by raising interest rates) then it will require sacrificing economic growth. So be prepared for that.

    Mains question

    Q.What do you understand by the term impossible trinity? How should RBI respond to manage currency exchange rate? Discuss.

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  • Democracy Report 2022

    democracyContext

    • G7 nations and partner countries including India recently signed “2022 Resilient democracies statement”-We, the Leaders of Germany, Argentina, Canada, France, India, Indonesia, Italy, Japan, Senegal, South Africa, the United Kingdom, the United States of America, and the European Union, affirm our commitment to strengthening the resilience of our democracies and to working towards equitable, inclusive and sustainable solutions to global challenges, including climate change and the COVID-19 pandemic, and reaffirm our commitment to the rules-based international order.

    How we define Democracy?

    • “Government of the people, by the people and for the people” the words used by Abraham Lincoln in the year 1863 while talking about democracy.

    Purpose of democracy

    • Cornerstones of democracy include freedom of assembly, association, property rights, freedom of religion and speech, inclusiveness and equality, citizenship, consent of the governed, voting rights, freedom from unwarranted governmental deprivation of the right to life and liberty, and minority rights.

    Democracy Report 2022

    • The study, titled ‘Democracy Report 2022: Autocratisation Changing Nature?’ states that more than twice as many countries are undergoing Autocratisation as are witnessing democratization.
    • The conceptual scheme takes into account not only the electoral dimension (free and fair elections) but also the liberal principle that democracy must protect “individual and minority rights”
    • The V-Dem report classifies countries into four regime types based on their score in the Liberal Democratic Index (LDI): a)Liberal Democracy b)Electoral Democracy c)Electoral Autocracy and d)Closed Autocracy

    democracyWhere do the Reports and Indices put India?

    • Sweden based Sweden-based V-Dem Institute was harsher in its latest report on democracy. It said India had become an “electoral autocracy”
    • US-based non-profit Freedom House downgraded India from a free democracy to a “partially free democracy”.
    • India, described as a “flawed democracy”, slipped two places to 53rd position in the latest Democracy Index published by The Economist Intelligence Unit.

    Status of Supporters of Democracy

    • Decolonised African Countries:
    • The number of African countries that have adopted democratic systems of government has grown since decolonisation, the collapse of communism and the ending of a number of civil wars.
    • Some countries, such as Ghana, are seen as resilient democracies, while for others the democratic transition is more fragile, after months of pro-democracy protests in 2019 in Sudan, a civilian-led transitional government is now paving the way for democracy after decades of military rule.
    • India as example:
    • India is the world’s largest democracy. India is staying as one unit despite having vast no of cultures, languages and religions. This is possible because of the democracy in India.
    • Minorities and disadvantaged sections are represented in parliament which enabled inclusive growth.
    • When India got independence, its economy was in shambles. Extreme poverty, unemployment, food insecurity were the major problems before Indian government. But India’s democratic constitution successfully balanced development and welfare of the country.
    • Now, India is one of the fastest growing economies in the world.

    What critics arguing?

    • Democracy in crisis: Democracy is more in crisis than ever before, with the onset of centralisation of power, with a foreign policy defying public opinion, with the media centralised, and with corporate control of the economy tighter than ever.
    • Increasing polarity: Threatening world order is emerging, which seeks to abrogate all individual rights and divide us along the extremist polarities that we thought had been neutralised.
    • Global Crisis: We move into this new stage of conflict carrying the risk of a nuclear tragedy, further exacerbated by the collective buttressing of a global crisis of the novel coronavirus pandemic, uncontrollable ecological disasters, and food and water deficiency.
    • Populism: Blatant fascist leanings of the so-called “democracies”, and escalating hunger and disease in Africa and other parts of the under-developed world give enough evidence that democracy faces serious issues of populism.
    • Other global problems: Growing economic discrimination, overpopulation and environmental degradation, Misgivings about moral progress, about mutual understanding, exacerbate the dismal situation that faces humanity.

    democracyWhat can be done to strengthen the democracies further?

    • Strengthening public support: To protect freedom domestically and build support for a foreign policy that protects democratic rights and values abroad, it is essential to foster a stronger public understanding of democratic principles, especially among young people. civic education is necessary.
    • Rule of law: In order to maintain trust in public institutions, the principles of legality, legal certainty and prohibition of arbitrariness of the executive powers, judicial independence, impartiality, and equality before the law need to be respected.
    • Individual rights: Democracy entails the right of individuals to participate in and influence the development of society, with free and fair elections at its core. Without an active turnout in elections and proper mechanisms for participation, the essence of democracy can be lost.
    • Free speech: Free speech guard the freedom of expression and opinion, and affirmation of commitment to the very idea of democracy and a move towards opposing oppression and violence

    Conclusion

    • Democracy is always a work in progress. The key ingredients of democracy are effective and accountable institutions, and leadership. Institutions build resilience by embedding norms and standards and bridging periods of weak leadership.

    Mains Question

    Q.Do you think Democracy is the best solution to tackle the growing fault lines between the communities? What makes India as the best example of Democracy to the world? Discuss.

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