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Aug 23 2023

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Short News

August 23, 2023

African Union
  • African Union suspends Niger over Coup.
  • African Union (AU):
    • AU is a continental body which consisted of the 55 member states (including Niger) that make up the countries of the African Continent.
    • Launched in 2002 as a successor to the Organisation of African Unity.
    • It aims to promote unity, cooperation and development among African nations.
  • African Union’s Peace and Security Council (PSC) 
    • It is AU permanent decision-making body for conflict prevention, management, and resolution. 
    • It is a collective security and early warning system designed to help African countries respond quickly and effectively to conflict and disaster circumstances. 
Fukushima Nuclear Plant Treated Water Disposal
  • Japan has decided to dispose of treated radioactively contaminated water from the Fukushima Daiichi Nuclear Power Plant into the Pacific Ocean.

Reasons: 

  • More than 1.3 million tonnes of radionuclide-contaminated water have been stored on-site for the past 12 years in tanks, but space was running out.
  • Nuclear Disaster: A massive earthquake and tsunami destroyed the Fukushima Daiichi plant’s cooling systems, causing three of its reactors to melt and contaminating their cooling water.
  • International Atomic Energy Agency in July concluded that the release, if conducted as designed, will cause negligible impact on the environment and human health.
  • Opposition: The move has been opposed by the country’s neighbours along with major concerns by the fishing industry over potential effects on marine life.
Coast Guards of Philippines and India to Further Bond
  • Indian Coast Guard and Philippines Coast Guard signed a Memorandum of Understanding (MoU) on enhanced maritime cooperation.
  • Aim: It aims to enhance the professional linkage between the two coast guards in maritime law enforcement, maritime search & rescue, and marine pollution response.
  • Significance: Enhancing bilateral maritime cooperation to ensure safe, secure and clean seas.
Malabar Exercise
  • Recently, the Navies of India, Japan, Australia and USA conducted the 27th edition of Malabar Exercise on the East Coast of Australia.
  • Malabar Exercise:
    • It began in 1992 between India and United States.
    • The exercise has evolved in scope and partnerships and now includes Japan and Australia.
Parboiled Rice Export
  • Recently, India clarified that no restrictions on non-basmati parboiled rice exports will be introduced.
  • Parboiled rice (Converted Rice): 
    • It is rice that has been partially boiled in the husk.
    • Parboiling rice makes it easier to remove the husk of the rice before eating it.
    • Compared to white rice, parboiled rice has fewer calories, fewer carbohydrates, more fiber, and more protein. 
Heal by India Initiative
  • The government is working on the “Heal by India” initiative to train and deploy nurses and healthcare professionals worldwide.
  • Aim: Create a pool of skilled workers and make India the Care Capital of the world.
  • Ministry Of Skills Development: It will provide training and other requirements for the movement of Indian healthcare workers abroad.
  • The National Health Authority (NHA) will provide technical support for the scheme.
  • Ayushman Bharat Digital Mission’s (ABDM) registry will provide data on healthcare personnel.
  • Verified healthcare professionals to Include: Doctors, nurses, dentists, AYUSH professionals, allied health professionals, pharmacists, etc
  • India has been ranked 10th in the Medical Tourism Index for 2020-2021 out of 46 destinations by the Medical Tourism Association.
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Debt-Fossil Fuel Trap

GS Paper III Environment and Ecology

August 23, 2023

Context:

Recently, a new report ‘The Debt-Fossil Fuel Trap’,  was published by the anti-debt campaigners Debt Justice and partners.

The “Debt-Fossil Fuel Trap”:

  • It refers to a situation where countries, particularly those in the Global South, are caught in a cycle of heavy debt burdens and continued reliance on fossil fuel industries for revenue generation. 

Key Takeaways from ‘The Debt-Fossil Fuel Trap’ report:

Global South:

  • The term “Global South” refers to a group of countries described  as ‘developing’, ‘less developed’, or ‘underdeveloped’.
  • It refers to countries in Asia, Africa and South America.
  • Debt-Reliant Economies and Fossil Fuel Dependence:Poor countries burdened with heavy debts are compelled to rely on fossil fuel revenue to repay loans borrowed from wealthier nations, multilateral creditors like the World Bank and IMF, or private lenders.
    • For Example: Argentina  has been supporting fracking projects in the Vaca Muerta oil and gas field in Northern Patagonia to generate revenues to ease the country’s debt crisis. Notably, the IMF has also backed these projects.
  • Surging External Debt Payments in Global South:The external debt payments of Global South countries have surged by 150% between 2011 and 2023, reaching the highest levels in 25 years.
  • Debt Crisis and Constrained Public Spending:Around 54 countries are facing a debt crisis, resulting in reduced public spending during the pandemic to meet loan repayment obligations.
  • Climate Challenges Amplify Borrowing in Global South:Many of these indebted countries lack adequate resources for climate adaptation, mitigation, and addressing loss and damage, forcing them to borrow more money.
  • Natural Disasters Escalate Debt-to-GDP Ratio:After events like natural disasters, countries can see their debt as a percentage of GDP rise significantly, such as Dominica’s experience after Hurricane Maria in 2017.
  • Unfulfilled Pledges: Despite promises to discontinue investing in fossil fuels in Global South countries, richer nations and lenders continue to finance fossil fuel projects through loans, perpetuating fossil fuel production.
  • Resource Backed Loans (RBLs):Resource backed loans (RBLs) are a mechanism through which repayment is tied to natural resources or future income streams derived from those resources.

Recommendations for a Sustainable Path Forward:

  • Implementing ambitious debt cancellation for countries in need without economic conditions
  • Rejecting repayments from fossil fuel projects.
  • Aligning bilateral and multilateral finance with a 1.5-degree warming scenario while avoiding fossil fuel financing.

News Source: The Indian Express

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Bharat New Car Assessment Programme (Bharat NCAP)

GS Paper II Indian Polity and Governance

August 23, 2023

Context:

The Union Minister of Road Transport and Highways launched the Bharat New Car Assessment Programme (Bharat NCAP).

About Bharat NCAP:

  • Aim: To improve road safety by raising the safety standards of motor vehicles up to 3.5 tonnes in India.
  • Under this programme, car manufacturers can voluntarily offer their carsto be  tested as per Automotive Industry Standard (AIS) 197.
    • AIS are the technical automotive standards for India. 
    • The India Central Motor Vehicles Rules (CMRV) provide the basis for the conditions under which automotive products in India can obtain a Type Approval Certificate for the Indian market. 
  • Based on the performance of the car in the tests, the car will be awarded star ratings for Adult Occupants (AOP) and Child Occupant (COP).
  • Potential car customers can refer to these star ratings to compare the safety standards of different vehicles and accordingly make their purchase-decision.
  • Benefit:
    • Bharat NCAP will provide a tool to the car customers to make a comparative assessment of crash safety of motor vehicles available in the market.

News Source: Livemint

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Liberalised Remittance Scheme

GS Paper III Indian Economy

August 23, 2023

Context: Outward remittances under the Reserve Bank of India’s (RBI’s) liberalised remittance scheme (LRS) surged by 50.64 per cent to $9.1 billion in the April-June quarter of 2023–24.                        

About Liberalised Remittance Scheme(LRS):

  • LRS is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India. 
  • It was introduced by the Reserve Bank of India  in 2004.
  • Amount allowed: Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year (April – March). This can be for any permissible current or capital account transaction, or a combination of both.
  • The Scheme is not available to:
    • Corporations, Partnership Firms, Hindu Undivided Family (HUF), Trusts etc.
Hindu Undivided Family (HUF):

  • Under Hindu Law, a HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
  • Remitted Money can be used for:
    • Expenses related to travelling (private or for business), medical treatment, study, gifts and donations, maintenance of close relatives and so on.
    • Investment in shares, debt instruments, and to buy immovable properties in the overseas market.
    • Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the scheme.
  • Prohibited Items:
    • Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
    • Remittance for trading in foreign exchange abroad.
    • Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
    • Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
What has changed with the RBI’s circular Dated 22.06.2023?

  • As per the Circular dated 22.06.2023, the RBI has allowed the authorized persons to facilitate remittances by resident individuals for payment of fees to foreign universities or foreign institutions in Indian Financial System Code( IFSCs) for pursuing specified courses. 
  • This remittance will be treated as remittance under the purpose ‘studies abroad’ as mentioned in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

News Source: Business Standard

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Methylotuvimicrobium Buryatense 5GB1C

GS Paper III Science and Technology

August 23, 2023

Context:

According to a new study Methylotuvimicrobium Buryatense 5GB1C could potentially remove methane from major emission sites such as landfills, paddy fields, and oil and gas wells.

Key takeaways of Study:

  • The bacterial strain Methylotuvimicrobium buryatense 5GB1C consumes methane , which is over 85 times more potent than carbon dioxide (CO2) on a 20-year timescale and responsible for nearly 30 percent of the total global warming
  • Harnessing this bacteria on a large scale can keep 240 million tonnes of methane from reaching the atmosphere by 2050.
  • Global average temperature rise can be reduced 0.21-0.22 degree Celsius by removing 0.3-1 petagrams of methane by 2050.
    • Petagram: A unit of mass equal to 10^15 grams. 

Methanotrophs:

  • Methane-eating bacteria, also known as methanotrophs, are a group of microorganisms that have the unique ability to utilize methane as their primary source of carbon and energy.
  • They play a crucial role in mitigating the impact of methane emissions by converting methane into carbon dioxide (CO2), which is a less potent greenhouse gas.
  • Habitat: Methanotrophs are found in various environments, including wetlands, soils, oceans, and even within the digestive systems of some animals.

News Source: DTE

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Young Indians, Aging Workforce

GS Paper I Indian Society

August 23, 2023

Context:

  • An analysis of India’s workforce, sourced from Centre for Monitoring Indian Economy(CMIE)Economic Outlook data reveals that despite having the largest youthful population, the workforce is undergoing a significant aging process. 

More about the news: 

  • Increase in Youth Population: The segment of the population categorized as youth increased in size from 35.49 crore in 2016-17 to 38.13 crore in 2022-23. 
  • Decline in Young Workforce: However, there has been a consistent decline in the overall number of people within this age group who are employed.
    • In 2016-17, there were 10.34 crore people under the age of 30 years in the workforce. By the end of 2022-23, this number had fallen by over 3 crores to just 7.1 crore.
Centre for Monitoring Indian Economy (CMIE):

  • It is an independent private limited entity that serves both as an economic think-tank as well as a business information company. 
  • CMIE research group built databases on the Indian economy and private companies. CMIE provides this information in the form of databases and research reports.

Highlights from the CMIE Survey: 

  • It has divided the workforce into three groups
    • Young age: Those aged 15 years or more but less than 30 years
    • Middle Age: Those aged 30 years or more but less than 45 years, and
    • Old Age: Those aged 45 years and older
  • Decrease in young age workforce: The share of India’s youth has fallen from 25% in 2016-17 to just 17% at the end of the last financial year in March. 
  • Decrease in Middle Age: The share of those in the middle age group has fallen from 38% to 33% over the same period.
  • Increase in ageing population: The oldest age category has grown its share from 37% to 49%.
    • In the previous seven years alone, the workforce has experienced significant aging, with the portion of those aged 45 and above rising from around one-third to nearly half.
    • The increase of 60+ population in a 50-year time span, i.e. from 2011 to 2061, is expected to be more than 320 million. 

Composition of the workforce by age group in India:

23.4

  • Employment rates: The youth in India witnessed a substantial 31% decrease in employment over the past seven years. 
    • 15 to 30 age range:  Seven years ago, 29 out of every 100 individuals within the 15 to 30 age range used to be employed. Presently, the figure has dwindled to 19 out of every 100.
    • 25 to 29 age range: The age range of 25 to 29 years displays an upward trend in employment rate over the last seven years. However, the increase in the Employment Rate is attributed to a significant decrease in the overall population of the age group.
    • 45 years and older: Employment rates have declined the least for the oldest age group. This is the only age group where the absolute number of people with jobs has actually grown. 
What is meant by an aging workforce?

  • An aging workforce in India signifies a decrease in the proportion of young employed individuals and a simultaneous increase in the percentage of those nearing 60 years of age.

Demographic dividend: 

  • Demographic dividend is said to be occurring when the ratio of the working-age population is high and the dependency ratio in terms of the proportion of children and elderly people is low. 
  • This advantage can create the resources needed to increase investments in enhancing human capabilities, which, in turn, can have a positive influence on the growth and development of the society and the country. 

Challenges with aging workforce:

  • Lack of elderly care structure: India currently lacks a comprehensive infrastructure for elderly care and a viable social support system for senior citizens. 
    • Only one-third of the elderly in India receive some sort of pension.
  •  Huge burden on state exchequer: A significant portion of state governments’ revenues is currently being consumed by pension expenses which will lead to a crisis sooner or later.
    • In Gujarat, the pension bill was 159 per cent of the expenditure on salary and wages.
  • Quick pace of ageing: While the older population took 110 years and 80 years to double its share (from 7% to 14%) in France and Sweden respectively, it is projected to take only 20 years in India to double. 
  • Increased poverty among the aged: A 2012 study by the United Nations Population Fund shows that poverty rates are higher among older persons, with a large proportion of them being economically fully dependent (52%) and partially dependent (18%) on others for livelihood. 
    • 9.3 million individuals aged 61 and older availed work benefits under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in 2019-20.
  • Poor social security coverage: 90% of the workforce in India is in the informal sector, which has poor social protection for older persons, compounded by their relatively low savings.
  • Poor access to health services: India’s expenditure on health as a proportion of GDP was only 0.95%, compared to 3% in China and 8.5% in the US. It’s lower than the average for low-and-middle income countries (2.8%) and Sub-Saharan Africa (1.9%). The number of doctors per 10,000 people was only 7.8 in India compared to 17.9 in China and 81.9 in Cuba
  • Tokenistic government schemes: Numerous programs targeting the elderly exist, but they tend to be symbolic and lack the necessary depth and financial backing required to create substantial and significant outcomes.
Government Initiatives towards welfare of elderly in India:

  • Atal Vayo Abhyudaya Yojana (AVYAY): It takes care of the safety/protection and general wellbeing of the elderly beginning from awareness generation and sensitization of the society.
  • Scheme of Integrated Programme for Senior Citizens (IPSrC): Setting up of Homes to improve the quality of life of the Senior Citizens, by providing basic amenities like shelter, food, medical care and entertainment opportunities and by encouraging productive and active ageing.
  • State Action Plan for Senior Citizens (SAPSrC):  Each State/UT is expected to plan and strategize taking into account their local considerations and frame their own State Action Plans for the welfare of their senior citizens.
  • Rashtriya Vayoshri Yojana’ (RVY): It provides physical Aids and Assisted living devices to Senior Citizens.
  • Senior Able Citizens for Re-Employment in Dignity (SACRED) Portal: It brings the Senior Citizen employment seekers and the employment providers together.

Way Forward:

  • Differentiated approach to planning for older persons: The percentage of the overall population occupied by older individuals varies across different states. It’s lower in the north-central states and higher in the southern states. 
    • This emphasizes the necessity for tailoring distinct strategies for planning based on the specific circumstances of each state.
  • Increased spending on human development: Increasing government spending on health, education and other social sectors will be crucial to realizing the potential dividend from India’s ageing demography. 
    • Investment will be particularly helpful for states such as Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh and Chhattisgarh, which have a growing young population but lag in human development.
  • Increasing the retirement age: Progressively increase the retirement age, helping governments in keeping the pension system solvent while ensuring continued engagement and participation of seniors in the workforce. 
  • Re-employment:  India needs to harvest the financial potentials the elderly hold and empower them at the same time, through re-employment or employment in alternative roles.
    • Japan, for example, introduced a voluntary re-employment system for retirees who can join back the workforce as part-time employees with different work hours and wages. 
  • Silver economy refers to that segment of the economy that is involved in the creation and transaction of products and service solutions designed for use by people of old age groups.
  • ASHA for elderly: A network of caregivers and facilities dedicated to elder care needs to be established.This would involve engaging unemployed working-age adults in providing services to the elderly.
  • Reaping the benefits of the silver economy: Companies need to develop a more holistic approach to address the needs of older workers and ensure that they are able to continue working and contributing to the economy.
  • Promoting inclusivity:  Issues such as ageism and discrimination need to be addressed and  greater inclusion and diversity in the workplace needs to be promoted.

News Source: Indian Express

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