Context: 

Recently, CARE Ratings released a report titled ‘Erratic Monsoon, Food Prices, and Rural Demand’.

Highlight of Report

• Erratic Monsoon: An erratic progress of the southwest monsoon has resulted in a spike in the prices of the domestic food basket, which has a weight of about 40 per cent in the CPI inflation basket.
  • Food inflation will maintain an elevated trajectory in the coming months, gradually receding by October in conjunction with the influx of fresh harvest into the market.
  • Demand-Supply Mismatch: Irregular monsoon and lower acreage could lead to a demand-supply mismatch, increasing inflationary pressures in the food sector, with pulses and cereals already experiencing double-digit inflation.
  • Low Kharif Sowing: Kharif sowing for crops like pulses (-8.3%), jowar (-7.7%) and oilseeds (-0.9%) remains lower than last year raising concerns about agricultural productivity.
• Rural Demand and Income Concerns: A potential rise in food inflation may dampen the fragile recovery in rural demand, posing risks to income levels and consumption.
  • Stagnant Wages: Virtually stagnant wages, constituting 49% of rural household incomes, further compound the risk.
  • Government Subsidies: Budgeted cuts on subsidies introduced during the pandemic could weaken rural demand even more.
• Risk to global food prices remains elevated with recent weather-related disruptions in South Asian countries and geopolitical developments.

News Source: The Hindu

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Context: 

The United Nations Development Programme (UNDP) has developed an open-source software which allows countries to effectively manage national data and processes for trading carbon credits. 

National Carbon Registry:

• This digital platform has received accreditation as a digital public good (DPG), allowing countries to use and adapt it to their specific needs. 
• It’s designed to facilitate the tracking and management of carbon credits, which are essential in efforts to combat climate change.

Need for the National Carbon Registry:

• Carbon Credit Management: Carbon credits are a vital component of global climate change mitigation efforts. They provide a mechanism for countries and organizations to offset their carbon emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere.
• International Commitments: Many countries have made commitments under the Paris Agreement to reduce their greenhouse gas emissions. Carbon credits play a significant role in meeting these commitments by incentivizing emissions reduction projects.
• Market Mechanisms: The Paris Agreement allows for market mechanisms through provisions in Article 6. These mechanisms enable countries to trade carbon credits and promote emissions reductions globally.
  • Developing countries require significant financial investment, over $6 trillion by 2030, to meet their climate action goals as outlined in their Nationally Determined Contributions (NDCs).

Significance of the National Carbon Registry:

• Open-Source and Customizable: Being an open-source software, it can be adapted to fit the specific needs and contexts of individual countries. 
• Digital Public Good (DPG): Its recognition as a DPG underscores its value as a global resource that can be freely used and customized. This promotes collaboration and knowledge sharing among countries.
• Interoperable System: The registry is designed to integrate with national measurement, reporting and verification (MRV) systems and international digital systems, allowing for streamlined data sharing and transparency.
• Scaling Carbon Markets: By providing a platform for transparent and high-integrity carbon markets, it supports countries in increasing their climate action and ambition, aligning with global climate goals.
• Digital Public Infrastructure (DPI): The registry exemplifies the importance of building robust and interoperable digital public infrastructure (DPI) to enable the provision of vital services and data-sharing in support of climate and sustainable development goals.

News Source: UNDP

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Context: 

Recently, the Elephant Corridor Report 2023 was released by the Ministry of Environment.

Key Points from the Elephant Corridors of India 2023 Report:

• New Corridors: Centre has identified over 60 new corridors used by elephants for movement between two habitats, taking the total number of identified passages across the country to 150.
  • Previously there were 88 Elephant Corridors.
• West Bengal has the highest number (26) of identified elephant corridors in India, accounting for over 17 per cent of all the passages.
• Corridor Mapping: The report mapped 150 elephant corridors in 15 states, categorizing them into four geographic regions: northern, northeast, east-central, and southern.
  • About 84 per cent (126) of the identified elephant corridors occur within the state boundaries. 
  • About 13 per cent (19) are interstate elephant corridors that extend into two or more states. There were six transnational corridors between India and Nepal.
• Increase in Elephant Movement: Approximately 40% of mapped corridors have seen an increase in elephant movement, with some regions showing stability.
• Expansion of Elephant Ranges: Elephants have expanded their ranges in regions like Vidarbha, southern Maharashtra, Madhya Pradesh, and northern Andhra Pradesh.
• Corridor Impairment: Despite habitat rejuvenation efforts, 10% of elephant corridors have become impaired over the years, due to factors like increased human activity.
  • Loss of Functionality: 15 corridors have lost functionality due to various factors, including anthropogenic pressure.
  • Decline in Usage: 29 corridors (19% of the total) have recorded a decline in elephant usage, primarily due to encroachment, mining, and infrastructure development.

Suggestions: 

• Restoration Efforts for impaired corridors, including habitat enrichment, demarcation, and measures to curb human interventions.
• Periodic Monitoring: To ensure their protection, understand elephant movement patterns, and proactively address human-elephant conflicts.

News Source: New Indian Express

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Context: 

Major tech companies in Europe like Google, Facebook etc are facing a challenge in cleaning up online content as the European Union’s Digital Services Act (DSA) takes effect on August 25.About Digital Services Act (DSA):

• It was passed by the European Parliament in July 2022. 
• It is a comprehensive set of rules designed to enhance online safety and transparency for European Union (EU) users. 
• Key provisions of the DSA:
  • Content Regulation: DSA mandates online platforms to actively prevent and remove illegal or harmful content, including hate speech, terrorism, and child abuse. 
  • Targeted Advertising Restrictions: Online platforms are prohibited from using a person’s characteristics like sexual orientation, religion, ethnicity, or political beliefs for targeted advertising. 
  • Safeguarding Children: They are safeguarded from excessive or inappropriate ads through ad targeting restrictions.
  • Algorithm Transparency: Platforms must disclose how their algorithms function and impact the content they display.
  • Stricter Rules for Large Platforms: Large online platforms, reaching over 10% of the EU population must share data with researchers and authorities, cooperate in crisis responses, and undergo external audits.
  • Compliance Deadlines: Large platforms must comply with these regulations within four months of the Act’s agreement, which occurred in April.

Importance of the Digital Services Act (DSA) for India and other non-EU regions:

• Global Standard for Online Rights: The DSA serves as a potential global benchmark for safeguarding fundamental online rights, even though it’s an EU regulation.
• Balanced Liability for Intermediaries: DSA establishes a balanced approach to intermediary liability for protecting internet users’ rights and fostering responsible online behavior.
• Broad Impact on Tech Products: As evidenced by the USB Type-C port adoption in the iPhone 15 series worldwide, regulations driven by the DSA can have a broad impact on tech products and standards, even outside the EU.

News Source: The Indian Express

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Context:

India  has over half a billion Jan Dhan accounts, in less than a decade under its Pradhan Mantri Jan Dhan Yojana.

More on News:

• As a mechanism, however, Pradhan Mantri Jan Dhan Yojana most heroic role may be yet to come. 
  • As it could enable us to envision a social safety net in the form of a universal basic income (UBI).
• In 2020, Jan Dhan’s reach proved useful during the pandemic caused by Covid-19. 
  • During  the pandemic,  monthly aid of ₹500 for three months was announced for each of the 200 million odd Jan Dhan accounts held by women.
• As poverty declines and our tax base expands , UBI as a concept can be fiancially viable if the coverage is limited to those who are below the poverty line.
  • According to the UN Multi Dimensional Poverty Index , a total of 415 million people moved out of poverty in India within just 15 years from 2005/2006 to 2019/2021.

About Universal Basic Income:

• UBI is a government program in which every adult citizen receives a set amount of money regularly. This payment is intended to cover the basic needs of individuals, such as food, shelter, and clothing, and is provided without any requirement for work or means testing.
• A UBI, according to the Economic Survey 2016-17, has three key characteristics: 

• • Universality: every citizen receives cash payments, 
  • Unconditionality: a basic income should be unconditional (or it should employ conditions that do not violate inclusiveness).
  • Individuality: a basic income should be designed to cater to individuals, not households, since it is considered a truly individual right.

Benefits of Universal Basic Income(UBI):

• Safety Net: UBI envisages an uncompromised social safety net, a concept that is expected to gain traction due to uncertainties on account of globalization, technological change, and automation.
  • For example: In eventuality of  job losses due to the advent of Artificial Intelligence, UBI could provide a safety net.
• Checking leakage: The effectiveness of the targeted schemes such as the Public Distribution System run by central and state governments have always been in question due to corruption.
  • UBI could prove to be a game changer through its direct cash transfer approach.
•  Envisaging Right to a Minimum Income: UBI gives concrete expression to the idea that we have a right to a minimum income, merely by virtue of being citizens. 
  • This right requires that the basic economic structure be configured in a way that every individual gets basic income.
• Better Coverage: UBI, universality circumvents the contentious issue of exclusion and inclusion errors that are inherent in needs-based targeting. 

• Labor Compatible: A universal transfer would be more labor compatible than most programs, as it removes the price effect of transfers (i.e., the reduction in labor supply to avoid a reduction in benefits).
• Poverty Reduction: If the basic income were set above the poverty line, it should theoretically lead to the complete elimination of absolute poverty.

Challanges:

• Moral Hazard: Another argument against UBI is the moral hazard one propounded by Gandhiji against charity – free money makes people lazy and they drop out of the labor market.
• Implementing  in Highly Disparate Income Societies: None of the places where UBI has been tried have levels of income disparity that exist in India. So, while the idea might work in Sikkim, it might not in, say, Bihar.
• Counterproductive Approach: According to economist Bhalchandra Mungekar, replacing schemes such as Mid day Meals, and PDS with cash transfers could be counterproductive.
  • As, the Mid-Day Meal Scheme provides hot, cooked meals and plays a crucial role in improving children’s nutrition and incentivizing school attendance, particularly for underprivileged sections.
• Burden on Public Exchequer: Implementing UBI on a large scale can be expensive, and funding sources need to be identified to cover the costs without destabilizing the economy.
  • For Example: The Economic Survey of 2016-17 estimated that a UBI of Rs. 7,620 per year for every Indian would cost about 4.9% of GDP, which is more than the combined expenditure on food, fuel, and fertilizer subsidies.
• Inflation: Concerns have been raised that injecting a large amount of money into the economy through UBI could lead to inflation, potentially eroding the purchasing power of the basic income.
• Implementation Challenges: Distributing UBI effectively and fairly requires robust administrative systems and may face political and logistical hurdles.
  • For Example: According to the World Bank, there are only around 20 ATMs for every 100,000 adults in India, compared to 70 in South Africa and 114 in Brazil (Zhong, 2017). 

Way Forward:

• Gradualism: The UBI must be embraced in a deliberate, phased manner. A key advantage of phasing would be that it allows reform to occur incrementally – weighing the costs and benefits at every step.
• Data-Driven Approach: Utilize data analytics to identify the regions that would benefit most from UBI. This ensures that the program is directed toward the areas with the highest poverty rates and income disparities.
• Monitoring and Evaluation: Regular assessments can help identify areas for improvement and ensure that the program is achieving its intended goals.
• Rollout on Pilot Basis:  Although maximum coverage is the conceptual aim of a UBI, its beneficiary list need not strictly be ‘universal’. The well-off would certainly have to be kept out in the initial phase of rollout.
• Comprehensive Development Programs: Integrate UBI with complementary programs that address structural disparities. 
  • For example: Allocate resources for quality education, healthcare, skill development, and infrastructure improvement in economically weaker areas.

News Source: Livemint

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Context: 

Recent research from various agencies such as S&P global found that in India’s 50 largest firms, two-thirds have fewer than 20% women employees.

More on the News

• Lack of Diversity: Research on Diversity, Equity, and Inclusion in the Indian context reveals that male employees represent 78%, female employees represent 18% and transgender employees represent only 4% of the working population in India.
• Gender Bias: According to Confederation of Indian Industry (CII), women hold only 14% of the top executive positions in India’s Top 500 companies by market capitalisation. 
• Male Skewed: Corporate landscape in India remains skewed towards male employees. 
  • According to the Deloitte report, females hold only 17.1% of the board seats in Indian companies and 5% of the CEO positions.
• Preference to Male Candidate in Promotion: Despite being more educated than men and constituting nearly half of the workforce, women are promoted at work far less often than men.
  • Six in every 10 jobs prefer male candidates to women.

Need of Gender Equity

• Inclusive Development: A more gender-diverse corporate landscape will not only benefit companies, but will also help drive innovation, and create a more inclusive society for all.
• Improve a company’s overall performance: A report by McKinsey & Company found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile.
• Innovative Approach: By encompassing a wider range of perspectives, gender-diverse teams fuel creativity and strategic thinking, giving businesses a competitive edge in today’s dynamic market.
• $5 Trillion Target: According to McKinsey, by offering equal opportunities to women, India could add US$ 770 billion to its GDP by 2025. 
  • International Monetary Fund also estimates that India could increase its GDP by nearly 27 percent by achieving more equitable participation of women in the workforce.
• Achieving SDG: Addressing gender-related impacts in connection with business may contribute to the achievement of an array of Sustainable Development Goals, such as SDG 5.

Challenges in Achieving Gender Equity 

• Cultural Attitudes and Biases: In many parts of India, women are still expected to prioritize their familial responsibilities over their careers, leading many to opt for part-time or low-paying jobs. 
• Gender Roles: Women who have a spouse or a partner are less likely to be employed in a paid job or be actively looking for one.
  • This can often arise from the economic stability of a partner’s income that can reinforce the “male breadwinner” bias in some marital arrangements.
• Work-family balance: Work such as childcare, cleaning and cooking is necessary for a household’s welfare – and therefore for the well-being of societies as a whole – but women still shoulder the brunt of this often invisible and undervalued workload.
  • According to the National Sample Survey, women spend 299 minutes a day on unpaid domestic services for which men spend only 97 minutes. 
• Unconscious Biases: There is a pervasive belief that women are not as competent as men, which makes it difficult for women to break into more senior positions.
  • Only 22% of women aged 15-59 years were engaged in paid work in comparison to nearly 71% of men.
• Lack of Financial Support: India is the 3rd largest ecosystem in terms of Startups in the world and also, the 3rd largest in the Unicorn community. However, only 10% of them have been led by women founders. 
• Pandemic Crisis:  India’s gender gap has widened by 4.3%, owing to the dipping economic opportunities for Indian women, leading to a decline in their participation in the formal workforce. 
  • Gender parity will not be attained for the next 99.5 years at the given rate of progress that has been worsened by the Covid-19 crisis as the most recent Global Gender Gap Report 2022 estimates that it will take 132 years to reach full parity,
• Women In Top B-School: Under-representation of women students in most top Indian business schools, reflect the systemic barriers that hinder women’s entry into business education and their subsequent ascension to leadership roles.
  • India had the most unequal cohorts of MBA aspirants for gender, with only 19 per cent women applicants and 20 per cent enrollees in 2021.

Way Forward

• Responsibility of Employer: To create an inclusive culture, companies can implement flexible working hours and remote work policies to accommodate women who need to balance their careers with their familial responsibilities. 
  • Establish mentorship programs and training initiatives to help marginalised genders develop the skills and knowledge they need to succeed in the workplace. 
  • Promote healthy discussions around the topic of LGBTQ+ which will allow employees to be aware of sensitive topics and communicate better with their colleagues. 
• Role of Government: They must play a more active role in promoting gender diversity by creating policies and programs that support marginalised genders in the workplace.
  • Adoption of the 3Rs approach: Recognising, Reducing and Redistributing the unpaid care work done by women in all areas of policymaking. 
• Promoting Care Economy: The government needs to conceptualise a strategy and action plan for improved care policies, care service provisions and decent working conditions for care workers.
  • Currently, India spends less than 1 percent of its GDP on the care economy.
  • investment in public-sector care infrastructure, of just 2 percent of India’s GDP, could generate 11 million jobs and increase women’s economic and social welfare as they venture out into formal work.
• Financial Support: To provide easier access to banks and other financial institutions, as well as tax incentives.
  • To encourage and support women entrepreneurship in India. 

Conclusion

• Women empowerment with gender equality is the key to fundamental human rights and is pivotal in our journey towards a more peaceful, progressive and sustainable world. 
• Evolving and closing gender divide is inevitable and is being made possible through equal opportunities and equal representation for women.

News Source: HB

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