Context:

Amid landslides in hill states, a 2019 strategy document- National Landslide Risk Management Strategy by the National Disaster Management Authority (NDMA) highlighted issues of inadequate urban planning, absence of comprehensive land use policy.

About Landslides:

• Landslides are natural disasters that occur mainly in mountainous terrains where there are conducive conditions of soil, rock, geology, and slope.
• Causes: 
  • Natural causes that trigger landslides include heavy rainfall, earthquakes, snow melting, and undercutting of slopes due to flooding.
  • Anthropogenic activities such as excavation, cutting of hills and trees, excessive infrastructure development, and overgrazing by cattle can also cause landslides.
• Factors:
  • Lithology, geological structures like faults, hill slopes, drainage, geomorphology, land use and land cover, soil texture and depth, and weathering of rocks.
• In India, rainfall-induced landslide events are more common.

Key Highlights of NDMA’s 2019 Report:

• Non-Compliance: Most of the construction plans  do not follow standard norms. 
• Challenges in Planning, Design, and Infrastructure of Hill Towns: The document highlighted problems related to planning and design of buildings, inadequate infrastructure, in hill towns. 
• Copy from Delhi Master Plan: Existing building regulations enforced in Indian hill towns are mostly inspired from Delhi Master Plan(s), which are not appropriate to the context of hill towns, as the geo-environmental and socio-developmental context of Delhi is varied to a greater extent from that of hill towns.
• Absence of National Schemes for Landslide Risk Mitigation: On mitigation of landslides, the 2019 report underlined that no Union ministry had any scheme for landslide risk management in the country.
• Lack of Funds: Due to resource crunch, particularly Hilly States, are unable to take up mitigation, rehabilitation and reconstruction measures.
• Lax Governance: The State Municipal Acts in all the Indian Himalayan Region (IHR) and Western Ghats (WG) states are more focused on other issues than landslide problems.

Recommendations of Report:

• No construction should be ordinarily undertaken in areas having slopes above 30 degrees or areas which fall in landslide hazard zones or areas falling on the spring lines and first order streams.
• The report also emphasized the necessity of load bearing tests, hazard zonation and slope and land-use maps to guide urban planners for clearing constructions.
• It also flagged paucity of basic data (e.g., rainfall) in mountainous areas, especially in the Northeast.

News Source: The Indian Express

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Context:

According to the recent survey by Lokniti-CSDS, more than one in three (36%) Indians aged between 15 and 34 consider unemployment to be the most significant issue.

Key Findings of Lokniti-CSDS’s Latest Survey:

• Unemployment: As many as 40% of highly educated respondents (graduate and above) identified unemployment as the most pressing concern. 
  • In contrast, only 27% of non-literate individuals cited unemployment as their primary concern, likely due to their greater willingness to take on a range of jobs.
• Corruption: About 6% of respondents identified corruption as the most significant challenge; 4% each identified problems in education and high population.
• Price Rise: The share of those identifying price rise as the primary concern has increased by 7 percentage points.

Occupational Status:

• Full- Time Jobs: Almost half of respondents (49%) said they were engaged in some form of work — 40% had full-time jobs; 9% were working part-time.
• Self Employed:  Almost a fourth (23%) of youth with jobs were self-employed.
• Employment Profile:  Sixteen percent were professionals such as doctors or engineers,15% were involved in agriculture, and semi-unskilled and skilled workers made up 27% of the total. 
• Government Jobs: Only 6% were in government jobs.

Job Aspirations:

• Sector Wise Preference: The education sector was the second most preferred (14%), followed by science and technology-related jobs and starting their own businesses (10% each). 

Government Job vs Private Jobs:

• Three out of five respondents chose government jobs, and more than one out of four opted for their own business.
• The preference for setting up an own business has grown consistently over this period — from 16% in 2007 to 27% in 2023.

News Source: The Indian Express

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Context:

Recently, the first World Health Organization Global Summit on Traditional Medicine was inaugurated at Gandhinagar, Gujarat alongside the G20 Health Ministers meet.

Key Highlights of WHO’s first Global Summit on Traditional Medicine:

• Fusing Ancient Wisdom and Modern Science: By embracing ancient wisdom and modern science, the G-20 nations could collectively work towards achieving the UN’s health-related Sustainable Development Goals.
  • SDG 3 aspires to ensure health and well-being for all, including a bold commitment to end the epidemics of AIDS, tuberculosis, malaria and other communicable diseases by 2030.
• Facilitating International Dialogue: It offers an unparalleled platform for international dialogue and collaboration in traditional and complementary medicine.
• Spotlighting Contributions to Contemporary Health Challenges: The summit aspires to spotlight traditional, complementary, and integrative medicine’s key contributions to addressing contemporary health challenges.

What is Traditional Medicine?

• Traditional Medicine refers to healing practices, knowledge, and approaches that have been passed down through generations within various cultures and societies. 
  • For Example: Ayurveda, Homoeopathy, Unani, Siddha, Sowa Rigpa.
• It encompasses a wide range of health and wellness practices that are rooted in traditional beliefs, experiences, and cultural heritage. 

WHO Global Centre for Traditional Medicine (GCTM)

• It  is a knowledge centre for traditional medicine located in Jamnagar, Gujarat. 
• It has a strategic focus on evidence and learning, data and analytics, sustainability and equity, and innovation and technology to optimize the contribution of traditional medicine to global health and sustainable development.

News Source: PIB    

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Context:

The UGC released draft guidelines for recognition of degrees from foreign institutions and left out degrees obtained under online or distance education mode.

About Draft Guidelines for recognition of degrees from foreign institutions:

• Recognition of Degree: A degree from a foreign higher educational institution will be recognised and granted equivalence only if a student physically attends an institute recognised by the home country. 
• Eligibility: Entry-level requirements for admission to the programme must also be similar that of a corresponding programme in India.
• Creation of Online Portal: A dedicated online portal to receive applications for granting equivalence to qualifications received from foreign institutions will be created for a smooth movement of students to the Indian setup.
•  Franchise Agreement: Programmes completed under a franchise arrangement will not be eligible for recognition.
  • Those in offshore campuses will only be recognised if they satisfy the accreditation requirements in their country of location and respective home countries.
• Affiliations from Foreign Boards: Any education from schools affiliated to foreign boards and offering a foreign system of education abroad will be recognised and granted equivalence only if the education has been pursued in a regular mode.

News Source: The Indian Express 

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Context:

• The Union Cabinet has approved proposals worth approximately 32,512 crore from the Ministry of Railways to expand the rail network in various parts of India. The Standing Committee on Railways and CAG report have provided insights into the state of finances of the railways sector.

More about the news: 

• The funds will be allocated to states like Uttar Pradesh, Bihar, Maharashtra, Gujarat, and Odisha. 
• Recent reports shed light on the operational deficiencies of the Indian Railways.

Report from Standing Committee on Railways:

• Financial assistance for pension expenses: It has restated its recommendation for railways to seek partial financial assistance from the Ministry of Finance to address pension requirements. 
• Increasing Pension obligations: It is projected to keep growing, presenting challenges for the railways. Estimated pension liabilities have risen from approximately 17,000 crore in 2011-12 to an expected payout of about 60,000 crore in 2023-24.
• Long-term sustainability: While addressing these financial needs would naturally impact railway operations, the larger concern remains the long-term sustainability. 
• Operational Deficiencies: The consistent decline in self-generated funds of railways indicates internal deficiencies in the overall planning and management of the Indian Railways. 

Report by the Comptroller and Auditor General (CAG) of India for 2021-22:

• Deterioration in Operating ratio (OR): The OR is a measure to calculate the ratio of working expenses to traffic earnings. It was 107.39 per cent in 2021-22 against 97.45 per cent in 2020-21 as the railways could not generate a net surplus.
• OR not reflecting true financial performance: If the actual expenditure on pension payments as well as expenditure on the Depreciation Reserve Fund (DRF) is taken into account,  the OR would have been higher, at 109.36 per cent. 
  • DRF is maintained for replacement and renewal of old assets. 
• Inadequate DRF Provision: It has steadily decreased in the past five years. It hindered the replacement of aging assets as well as posed serious risks to operational safety. 
• Ordinary Working Expenditure (OWE): During 2020-21, OWE increased to 98.27 per cent of the total revenue expenditure as compared to the average of 75.45 per cent during the past five years. 
  • Ordinary Working Expenditure (OWE) comprises expenditure on day-to-day maintenance and operations of the Railways. 
• Inadequate generation of internal resources: It resulted in greater dependence on Gross Budgetary Support (GBS) and Extra Budgetary Resources (EBR). 
  • During 2020-21, railways generated total internal resources of ₹ 1,40,783.55 crore against ₹ 2,25,913 crore envisaged in the budget estimates. 
  • The amount of EBR was ₹71,065.86 crore, which represented a decrease of 42.31% as compared with 2020-21.
  • The Indian Railways(IR) have been raising EBR through Indian Railway Finance Corporation (IRFC), since its inception in 1987, for procurement of rolling stock.

Fig. Share of various resources of IR during last five years

• Challenge of Cross-subsidisation: IR was unable to meet its operational cost of passenger services and other coaching services.
• • Passenger fares are cross-subsidised using profits generated on freight operations. This cross-subsidisation continues to be a concern, as railways have not been able to raise fares in the sleeper class.
  • In FY22, the railways’ loss decreased over the previous year but the entire profit of ₹36,196 crore from freight traffic was utilized to cross-subsidise and compensate the loss on operation of passenger and other coach services.

Challenges faced by railway sector in India:

• Security Issues: The presence of technical malfunctions and system breakdowns leads to signaling inaccuracies, track misplacements, and other severe safety risks. Example-Balasore train incident.
• Departmentalization of the railway board: It is structured into distinct divisions such as mechanical, electrical, traffic, and finance, etc. making it an intricate, excessively departmentalized entity causing inefficiencies in the decision-making process.
• Burden of Social obligations: It is tasked with fulfilling dual roles of generating revenue and fulfilling social obligations. It is seen as a commercial entity as well as obligated to meet societal commitments.
• Over Congestion: It results in crowded trains and heightened risks. The passenger load and insufficient capacity utilization undermines safety measures and presents difficulties in handling passenger movement during emergency situations.
• Lack of modernisation: It has failed to modernize its infrastructure and services. Its equipment, procedures, and training have persisted without substantial changes over the years.
  • As per CAG’s analysis of railway accidents that took place between 2017 and 2021, . the train derailments persist as the primary cause of accidents, responsible for over 69% of the total incidents.
• Land acquisition: Delays in land acquisition leads to project delays and increased project costs. 
• Regulatory Hurdles: The projects assigned by the government for the enhancement and modernization of the railway system encounter delays due to bureaucratic obstacles, corruption, and environmental considerations.
• High freight cost: India’s freight cost is 13 to 14 percent of GDP, whereas it is 9 to 10 percent of GDP in other developed countries, 
• Absence of public-private collaborations: Private investment currently comprises merely around 15% of the overall infrastructure investment.

Government Reforms in Railway Sector:

Way Forward:

• Enhancing financial sustainability: Despite increased investments through the Union Budget, proper financial management is necessary for the railways to reach its potential in capacity creation and modernization.
• Exploring means of Revenue generation: While enhancing operational efficiency is crucial, the government needs to determine its approach to managing the railways. 
• Acknowledging the management responsibility: State of railway finances isn’t solely the railway’s responsibility. For example, the railway has limited control over passenger fares in terms of revenue, and wages and pensions on the expenditure side. 
• Diversification of freight basket: It needs to take steps to diversify its freight basket to enhance freight earnings. 
  • Currently, transportation of coal constitutes about 46 per cent of its freight earnings. 
• Renewal of Over aged assets: There is a huge backlog of renewal and replacement of over-aged assets, which needs to be replaced timely, for safe running of trains.
• Ensuring private participation: To sustain investments in India’s infrastructure environment, social acceptance and enforcement of user-pays principle as well as stricter contract enforcement will be required.
• Streamlining regulatory hurdles: The government should focus on streamlining the land acquisition process, guaranteeing equitable compensation, and providing proper rehabilitation for affected individuals.
• Minimization of operational losses: Thorough review of passenger operations as well as the implementation of necessary measures to minimize losses are needed. 
• Efficient utilisation of Rashtriya Rail Sanraksha Kosh funds(RKSK): As per the CAG report, the usage of these funds for non-priority areas and non-safety works went up in several zones to as much as 25%.
  • RKSK was introduced for renewal, replacement, and upgradation of railway safety assets.
  • Out of 1127 derailments during 2017-21, 289 derailments (26%) were linked to track renewals and the major reason was non-utilisation of RKSK funds.

Source: Business Standard

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Context: 

Recently, the Reserve Bank Governor pitched for the “expeditious completion” of the 16th general review of the quotas at the International Monetary Fund (IMF).

About International Monetary Fund (IMF):

• It was set up in 1945 out of the Bretton Woods conference. 
• Goal: To bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. 
• It evolved to be a lender of last resort to governments of countries that had to deal with severe currency crises.
• Headquarter: Washington, D.C., United States
• India is the Founding Member of IMF.

IMF Membership:

• IMF membership is a prerequisite for membership in the International Bank for Reconstruction and Development (IBRD).
• Quota Subscription: Upon joining, member countries contribute a quota subscription, determined by their economic performance and wealth.
  • Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account.
  • Quota formula includes GDP (50%), openness (30%), economic variability (15%), and international reserves (5%).
• Special Drawing Rights (SDRs):
  • SDRs are IMF’s unit of account, not a currency.
  • SDR value is based on a basket of currencies: U.S. dollar, Euro, Japanese yen, pound sterling, and Chinese renminbi (added in 2016).
  • Quotas expressed in SDRs.
• Voting Power: Voting power of members tied directly to their quotas.

Key Functions of the IMF:

• Provision of Financial Assistance: The IMF extends financial aid to member countries grappling with balance of payments challenges.
  • Its assistance aims to restore currency stability, reinforce international reserves, and foster economic growth.
• Surveillance by the IMF: The IMF exercises diligent oversight over the global monetary system.
  • It meticulously monitors the economic and financial policies pursued by each of its 190 member nations.
• Capacity Development Initiatives: The IMF offers a spectrum of technical assistance and training to bolster various economic institutions.
  • This support benefits central banks, finance ministries, and other pertinent bodies, facilitating modernization initiatives.
  • Moreover, these endeavors align with advancing the realization of the Sustainable Development Goals (SDGs).

How does the IMF use Quotas?

• Resource Contribution: Quotas determine the maximum amount of financial resources a member is obliged to provide to the IMF.
• Voting Power: Quotas are a key determinant of voting power in IMF decision.
• Access to Financing: Quotas determine the maximum amount of loans a member can obtain form the IMF under normal access.
• SDR Allocations: Quotas determines a member’s share in a general share in a general allocation of SDRs.

How does the IMF help countries? 

• Special Drawing Rights: The IMF basically lends money, often in the form of special drawing rights (SDRs), to troubled economies that seek the lender’s assistance. 
• Other lending methods: The IMF carries out its lending to troubled economies through a number of lending programs such as the extended credit facility, the flexible credit line, the stand­by agreement, etc. 

Concern raised by RBI Governor:

• Urgent Quota Review: He emphasized the need for the speedy completion of the 16th general review of quotas at the IMF. 
  • He suggested that this completion would enable the IMF to better support distressed countries.

• Funding Conditions Concerns: He criticized the IMF’s funding conditions, which often discourage countries in urgent need due to the associated conditions, requirements, and stigmas.
• Alternative Sources Due to Stigma: He noted that poor countries facing financial difficulties often seek support from entities other than the IMF due to perceived stigma or limited access.
• Limitations of Funding Mechanisms: The Governor pointed out the limitations of the IMF’s funding methods. 
  • He discussed how precautionary programs and stand-by arrangements may not be suitable for countries with varying macroeconomic fundamentals.
    • The Stand-by Arrangement (SBA) provides short-term financial assistance to countries facing balance of payments problems. It has been the IMF lending instrument most used by advanced and emerging market countries.
    • IMF’s precautionary programmes such as the precautionary lending line are available for countries with sound macro-fundamentals.
• Other Concern: 
  • Delays in Funding Approval: IMF funding serves as a crucial financial lifeline for countries facing severe debt crises.
    • Delays in obtaining this funding can intensify economic challenges, straining government finances, impacting businesses, and adversely affecting populations.
    • Countries like Sri Lanka and Ghana, facing shortages of essential resources and requiring significant reforms to manage debt crises, are particularly vulnerable to funding delays.
  • Governance Imbalance: The practice of having a European lead the IMF and an American lead the World Bank is criticized for perpetuating a lack of representation for emerging economies.
    • During the pandemic, the wealthy Group of Seven nations, with a population of 772 million, received the equivalent of $280 billion from the IMF while the least developed countries, with a population of 1.1 billion, were allocated just over $8 billion.
  • Intrusive Conditions and Sovereignty Concerns: Critics argue that the conditions attached to IMF loans are too intrusive and often compromise the economic and political sovereignty of borrowing countries.
    • Stringent conditions, known as “conditionality,” can impose policies that turn loans into tools for enforcing specific economic and policy changes.
  • Policy Imposition without Local Context: The IMF has been criticized for imposing policies on countries without fully understanding their unique economic and social circumstances.
  • Quota Reforms: Each member country is assigned a quota proportional to its economic size globally. Quotas determine voting power and borrowing capacity.
    • This system has led to overrepresentation of wealthy nations in decision-making and rule-setting processes.

Way Forward:

• Governance Reform: The IMF should reform its leadership selection process to ensure equal representation and voice for emerging economies, breaking away from traditional Western dominance.
• Address Underrepresentation: Special attention should be given to addressing the underrepresentation of economically growing countries, such as the BRICS nations, by ensuring their quotas and voting power align with their increasing economic significance.
• Local Context: Policymaking should be more inclusive, involving local experts and considering a nation’s specific economic, social, and political factors to develop strategies that align with domestic realities.
• Recommendation by RBI Governor: 
  • Timely and Non-Stigmatized Measures: He stressed the importance of implementing corrective measures, including financing, in a timely and non-stigmatized manner. This would require a stronger IMF capable of managing country risks effectively.
  • Link between Support and Quota Size: The Governor explained that the IMF’s support is linked to the quota size of member countries. Hence, reforms in the IMF’s quota system would enhance the organization’s legitimacy in overseeing the international monetary and financial system.
  • Reducing Conditionalities: He suggested that IMF programs could be designed with fewer conditionalities for countries with reasonably resilient macro-fundamentals that aren’t heavily affected by balance of payments stress.

News Source: The Hindu

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