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Insights SECURE SYNOPSIS: 14 June 2021

 

NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.


General Studies – 1


 

Topic: American War of Independence and Civil war

1.  “The American War of Independence “deprived Great Britain of one empire, but it strengthened the foundations of another. Examine the statement in the context of colonization of India.(250 words)

Reference:  Mastering Modern World History by Norman Lowe

Why the question:

The question is based on the theme of  American War of Independence.

Key Demand of the question:

The question expects us to examine whether the loss of British Control in America led to changes in its approach which enabled it to strengthen its hold over another empire (India). Thus we need to point out the steps British took in India post American declaration of independence that enabled it to strengthen its hold over India.

Directive:

Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction:

Start with brief history of the American war of Independence.

Body:

The answer body must have the following aspects covered:

Briefly first explain how Britain started ruling America. Discuss the causes of the American war of Independence

Explain then the significance of the war – The main significance is that the war ended the “Divine Right of Kingship”. America overturned Monarchy (rule by kings) and it became a Republic (head of the state is not hereditary).

Examine the steps taken by the British to consolidate its hold over India and the learning that British took from American Revolution which enabled it to take these steps. E.g. Pitts India act 1784, posting experience people in India like Cornwallis, Lord Wellesley’s policy of territorial expansion etc.

Mention that post American declaration of independence we lived in the era of pax Britannica which meant that Britain took learnings.

Conclusion:

Conclude with significance.

Introduction

The American war of independence (1776-1783) was concluded by which the British had to recognize the freedom of the 13 American colonies. British had lost their territories and market for their factory goods, especially the monopoly of Tea etc. They also lost their source of raw materials like cotton in America.

Body

Britain’s defeat in the American War of Independence meant the loss of the American colonies and the end of the ‘first British Empire’.

So they shifted their focus towards the east. Britain’s defeat in the American War of Independence meant the loss of the American colonies and the end of the ‘first British Empire’.

Steps taken by the British to consolidate its hold over India:

  1. Britain regarded itself as ‘ruler of the waves’. The songs ‘Rule Britannia’ and ‘Land of Hope and Glory’ show this. Many British people at the time thought that they were doing the right thing by taking the British government and Christianity to the rest of the world, ending slavery and barbaric traditions and bringing ‘civilisation’ and an international ‘Pax Britannica’, or ‘British peace’. The British generally felt that the way they lived their lives was the right way.
  2. Empire was now more than just about discovering new lands and building them up. Most of the world was now known and belonged to someone. Therefore, the British had to colonise established countries with populations and leadership systems of their own.
  3. Great Britain’s attitude toward how to build its empire changed as well. Britons began to think of colonization more in terms of conquest and annexation and, as a result, it governed its colonies in a more authoritarian manner.
  4. It led to the Pitt’s India act in 1784, by which the British government brought the East India Company’s rule in India under the control of itself. This Act provided for the appointment of a Board of Control and provided for a joint government of British India by both the Company and the Crown with the government holding the ultimate authority.
  5. It was done in the wake of fear of losing monopolies and the market of India and to prevent Indian people from revolting on the lines in America. The governor-general post was established in British India to control the administration under the crown rule directly.
  6. The new administration expended their military strength and focused on the expansion of the territory by any means. Lord Cornwallis who played in controlling the American Revolution to some extent was transferred to India to use his experience and not to repeat the mistakes which have been done earlier.
  7. Britain had to find a new market for its factory goods and raw material for their factory and to
    protect its monopoly of trade in India to compensate for the loss in America. It initiated differential trade tariffs and started building railways to give a competitive effect to their goods in the Indian market and use India as a raw material hub.
  8. It uses both expansionist tactics like subsidiary alliance and friendship to consolidate their control over the administration of the country.
  9. British also took the initiative to knock out French from India by annexing Yanam and Pondicherry and also defeated their alliance of Mysore.

The learning that the British took from the American Revolution which enabled it to take these steps:

  1. American Revolution influenced even the colonial policy towards white-dominated colonies like South Africa, Canada, Australia and New Zealand. Earlier they were given the concession in course of time they were offered even dominion status. Furthermore, in the context of India, Pitt’s India act was introduced after losing America. Britain moved towards India and gave this colony higher value. After the American Revolution, the British modified its policy even to Ireland.
  2. Great Britain may have lost the thirteen colonies in America, but it still had Canada and land in the Caribbean, Africa, and India. Great Britain began to expand in these regions, building up what has been called the Second British Empire, which eventually became the largest dominion in world history.
  3. Indeed, some historians argue that support for the crown grew. Political life quickly settled into much the same patterns as before the war, albeit with a greater emphasis placed on public opinion, a stronger sense of political parties and more concern with economic reform and corruption.
  4. Demobilisation caused temporary difficulties, but low tariffs helped to stimulate trade and the economy recovered rapidly: by the 1790s, Americans were purchasing twice as much from Britain as they had as colonists in the 1760s.

Conclusion

In the end, although Great Britain suffered temporarily due to the American Revolution, it eventually became an even more powerful and expansive empire as a result of it.

 

Topic: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes.

2. What is Sea Snot? How it formed and what are the causes of its formation? Discuss its impact. (250 words)

Reference:  India Today

Why the question:

The largest Sea Snot outbreak is being witnessed in Turkey’s Marmara Sea, which connects the Black Sea to the Aegean Sea. This outbreak of mucilage is believed to be one of the largest on record, till date, and has created havoc along the country’s coastline for months.  Thus the question.

Key Demand of the question:

Discuss what Sea snot is, how is it formed and its causes of formation while explaining its impact.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Start with the definition of Sea snot. When algae are overloaded with nutrients as a result of water pollution and climate change, it begins to create a thick slimy layer on the surface of the water. This layer is colloquially known as sea snot. These algae feast and grow in warm and nutrient-rich water.

Body:

The answer body must have the following aspects covered:

What are the causes of Sea Snot? – One of the biggest causes of this layer of snot is global warming and the increasing temperature of the water bodies. The climatic conditions and the severe variations in climate change is another cause, increased water pollution etc.

Discuss its formation process.

With the increased water pollution, global warming and deteriorating climatic condition, the overall situation of water bodies across the globe are being affected. Considering sea snot, it also leaves a severe impact on marine life.

Conclusion:

Conclude with its impact.

Introduction

Sea Snot is also known as Sea Saliva or Marine Mucilage. It is a collection of thick, slimy, mucus-like substance found in the sea. It is composed of compounds secreted by marine organisms.

Mucilage is a thick, gluey substance produced by nearly all plants and some microorganisms.

Body

A ‘sea snot’ outbreak was first recorded in Turkey in 2007. Back then, it was also spotted in the Aegean Sea near Greece. But the current outbreak in the Sea of Marmara is by far the biggest in the country’s history.

Causes:

  1. It is formed when algae are overloaded with nutrients Overloading of nutrients happens because of warm weather caused by global warming, water pollution, uncontrolled dumping of household and industrial waste into the seas etc.
  2. The overproduction of phytoplankton caused by climate change. The uncontrolled dumping of household and industrial waste into the seas has also led to the present crisis in Turkey.
Impact of Sea Snot:

Marine Ecosystem:

  1. The growth of the mucilage which floats upon the surface of the sea like brown phlegm poses a severe threat to the marine ecosystem of the country.
  2. It has already caused mass deaths among the fish population and also killed other aquatic organisms such as corals and sponges.
  3. Moreover, the mucilage is now covering the surface of the sea and has also spread to 80-100 feet below the surface.
  4. If unchecked, this can collapse to the bottom and cover the sea floor, causing major damage to the marine ecosystem.
  5. Over a period of time, it could end up poisoning all aquatic life, including fishes, crabs, oysters, mussels and sea stars.

Livelihood:

  1. The Sea Snot outbreak has also affected the livelihoods of fishermen.
  2. The sludge is getting collected in the fishermen’s nets making them so heavy that they break or get lost.
  3. Moreover, the mucilage coating the strings makes the nets visible to fish and keeps them away.

Diseases:

  1. Several experts have warned that the ‘sea snot’ can cause an outbreak of water-borne diseases such as cholera in cities like Istanbul.

Conclusion

Short term countermeasures include collecting it from the sea surface and laying barriers on the sea surface. Long term countermeasures include improving waste water treatment, creating marine protected areas and limiting climate change.

 

 


General Studies – 2


 

Topic: Bilateral, Regional and Global Groupings and agreements involving India

3. Highlight the challenges associated with the globalisation in the current times and explain important role G-7 can play in dealing with these challenges. (250 words)

Reference:  Indian Express

Why the question:

The article highlights the challenges associated with the globalisation and important role G-7 can play in dealing with these challenges. Thus the question.

Key Demand of the question:

Explain the challenges associated with the globalisation in the current times and explain important role G-7 can play in dealing with these challenges.

Directive:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Start by explaining the challenges associated with the globalisation in the current times.

Body:

The answer body must have the following aspects covered:

Discuss the context that makes this G-7 Summit significant. The most significant expectation of the summit is that it will help determine the shape of globalisation. The summit also seeks to redefine the broader relationship between states and markets in three ways.

Discuss the geopolitical context; there are two geopolitical “cold wars” that cast a shadow on the G-7. In the context of rising geopolitical tensions with China, greater coordination and unity of purpose amongst the G-7 will become more important.

Suggest solutions to the challenges.

Conclusion:

Conclude that if the G-7 wants to truly exercise more leadership, it will have to convince the world that all its wonderful new principles, resilience, inclusion, global public goods, are not simply ruses to serve only the interests of the developed world.

Introduction

The G-7 summit in Cornwall assumes great significance in pandemic ridden world as well as with the new US administration under Biden. Globalisation has taken a back seat and the current pandemic affected world is said to be under ‘slowbalisation’. In this backdrop, the G-7 summit is expected to throw light upon the route taken by developed nations.

Body

Challenges associated with globalisation in current times

  • The COVID-19 pandemic has ushered in a new climate of uncertainty which is fuelling protectionism and playing into nationalist narratives.
  • Globalisation is under significant threat as governments scramble to reduce their vulnerability to the virus by limiting global trade and flows of people.
  • With the imposition of border closures and strict migration measures, there have been major disruptions in global supply chains with adverse impacts on employment and poverty.
  • China’s aggressive foreign policy and its middle kingdom complex is a grave threat to international peace.
  • US-China trade war and rivalry is detrimental to world economy making nations more inward looking and protectionist. This has been touted as the new Cold War.
  • Climate Change remains the biggest challenge where in nations have not been able to cooperate either to mobilise the finances or to adhere to stricter emission control.

Role of G-7 to alleviate the challenges

  • There is great expectation that the G-7 summit at Cornwall will endorse something like a “Cornwall consensus” to displace the “Washington consensus.”
  • The most significant expectation of the summit is that it will help determine the shape of globalisation. T
  • here has been much discussion of the possibility of the G-7 pushing for global coordination on minimum corporate taxation and clamping down on tax havens.
  • The commitment of G-7 to provide one billion vaccine doses is a welcome step. But whether this crisis-driven commitment will translate into an enduring and just framework for providing global public goods on health and environment remains to be seen.
  • In the context of rising geopolitical tensions with China, greater coordination and unity of purpose amongst the G-7 will become more important.
  • Next G-7 can diffuse threat of authoritarian disruption. This comes not just from states like Russia and Belarus, but forces that might want to subvert democracy are now at the heart of many western democracies, including the US and Europe themselves.
  • Greater global disarray strengthens the possibility of giving political succour to these political tendencies. It is important, therefore, to demonstrate that the G-7 countries are part of a functional democratic civilisation.
  • G-7 nations must declare firm commitment to emissions control and climate change finances to poor nations.

Conclusion

It is reassuring to see the G-7 think in the right direction. But if the G-7 wants to truly exercise more leadership, it will have to convince the world that all its wonderful new principles, resilience, inclusion, global public goods, are not simply ruses to serve only the interests of the developed world. Or that important gestures like providing vaccines are not just one-off interventions in the aftermath of a crisis. Only then will the Cornwall consensus be more than a nice alliteration.

 

Topic: India and its neighborhood- relations.

4. Discuss the Lord Curzon’s conceptualization of India’s neighbourhood and emphasis on frontiers and explain in what way the integration he fore saw is still relevant and can serve as a template for both India and India-US partnership. (250 words)

Reference:  Hindustan Times

Why the question:

The opinion in the newspaper explains the Curzonian imprint on Indian foreign policy.

Key Demand of the question:

Discuss in what way the Lord Curzon’s conceptualization of India’s neighbourhood and emphasis on frontiers and explain in what way the integration he fore saw is still relevant and can serve as a template for both India and India-US partnership.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Start with the current context of the question.

Body:

Explain that more than any other figure from India’s recent history, Curzon grappled with the geopolitical complexities of the Indian subcontinent and its neighbourhood. That he did so as a foreigner makes these insights no less “Indian”—for the substrate of his reflections was not nationality or ideology, but geography and the permanent interests that it produces for any power looking at the game board from India’s position.

Curzon recognized that India’s security depends upon its ability to exercise influence over a defined geopolitical space beyond India’s own shores. Curzon recognised that India’s main landward attention must be directed to its frontiers — namely, to the task of maintaining viable buffer states in adjacent regions.

Take hints from the article and explain.

Conclusion:

Conclude with relevance of his ideas even in today’s context.

Introduction

More than any other figure from India’s recent history, Curzon grappled with the geopolitical complexities of the Indian subcontinent and its neighbourhood. The substrate of his reflections was not nationality or ideology, but geography and the permanent interests that it produces for any power, looking at the gameboard from India’s position.

Body

Three tenets of Curzon’s thinking seem especially relevant for India as it finds itself confronted with an aggressive China.

Conceptualization of India’s neighbourhood: Lord Curzon

  • First, Curzon recognised that India’s security depends upon its ability to exercise influence over a defined geopolitical space beyond India’s own shores.
  • He identified this space as extending from the Gulf of Aden in the West to the Strait of Malacca in the East.
  • Whereas the Mughals tended to see India as an extension of the geopolitics of Central Asia, Curzon understood that India’s security and greatness were intimately tied to the maritime routes and chokepoints connecting it to Europe and the Far East.
  • Lose control of these, and India would be hostage to its strongest landward neighbour.
  • Second, Curzon recognised that India’s main landward attention must be directed to its frontiers — namely, to the task of maintaining viable buffer states in adjacent regions.
  • Third, Curzon understood that building influence in these neighbouring spaces required India to offer an attractive commercial and strategic alternative to the charms of its rivals.
  • This required an active rather than passive policy aimed at the integration of neighbouring states into the Indian economy and infrastructure. Eg: Neighbourhood first policy

Relevance for India-USA relations

  • USA needs India to become more active in the region that matters most for the US (the Western Pacific), in reality, what would benefit America most is an India that is capable of consistently projecting power and influence in its own, home region.
  • This would entail a combination of localised naval and littoral land strength and deep politico-economic relations with the smaller nearby States.
  • India has a major role in USA’s Asia Pivot Policy where it is trying to counter China’s dominance. India can become a great power and counter Chinese Aggression which has increased in the recent times.
  • This also means USA needs to work on the framework of India-USA relations.
  • That could include creating a legal category that would allow for technology-sharing and deepening of defence ties without “major non-NATO ally” status (which India does not perfectly fit).
  • It could include waiving US sanctions for certain Indian military and commercial activities that runs afoul of US sanctions on, say, Moscow but is necessary for activating New Delhi’s resistance to Beijing.
  • And it could include coordinating regional aid, investment incentives, and political priorities in places such as Myanmar or even deferring to India’s lead when a more prominent US role would be counterproductive.
  • But making the most of the US-Indian relationship to thwart China’s advance is not a one-way street; it will also require India to continue taking on greater burden and risks than it became accustomed to in the Cold War and its immediate aftermath.

Conclusion

If anything, Curzon’s vision is more relevant for an independent India that is motivated to act on its own, unalloyed self-interests. America and India both stand to gain from India’s realisation of that vision.

 

 


General Studies – 3


 

Topic: Awareness in the fields of IT, Space, Computers, robotics, Nano-technology, biotechnology and issues relating to intellectual property rights.

5. Data localisation is undoubtedly a black dot on the idea of flawless concept of the internet as a borderless world. In this context, discuss the scope and extent of Data-localisation. (250 words)

Reference:  Indian Express

Why the question:

Several big websites around the world went down for about half an hour because of a major issue with the content delivery network (CDN) of American cloud computing services provider Fastly.

Key Demand of the question:

Discuss the scope and extent of Data-localisation.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Data localization is the act of storing data on any device that is physically present within the borders of a specific country where the data was generated.

Body:

The answer body must have the following aspects covered:

Explain why Data Localisation is Important? – To protect the personal and financial information of the country’s citizens and residents from foreign surveillance and give local governments and regulators the jurisdiction to call for the data when required.

Storing of data locally is expected to help law enforcement agencies to access information that is needed for the detection of a crime or to gather evidence. This gets significant importance due to increasing relevance of technology in nature as well as the resolution of crimes.

Data localisation is undoubtedly a problem on the face of the idealized conception of the internet as a borderless world.

And though this idea of the borderless internet has lost some of its sheen in recent years, it’s hard to deny that it has been one of the main reasons for explosive digital growth.

Conclusion:

Conclude with importance.

Introduction

Data Localisation means storing the data within the territorial boundaries of the country. In June 2019, RBI gave clarifications regarding the rules stating that in case the processing is done abroad, the data should be brought back to India in not later than 24 hours, and also the data should be deleted elsewhere. And in the case of cross-border transactions, a copy of data can be stored abroad.

Body

Issues with data localisation

  • At present, India does not have the well-developed infrastructure to ensure the security of data.
  • On the other hand, developed countries already have an efficient infrastructure. So, rushing towards data localisation may not be a wise step. Because without efficient infrastructure, the data is prone to cyber-attacks.
  • And the risk is severe here because it is financial data. But as the laws are made, it is a big challenge to develop efficient infrastructure at a faster pace.
  • Storing data in India means higher operational costs for payment system operators. Because in other countries they have cheaper alternatives. And also, for cross-border transactions, they have to store the data in two places, which increases costs. There is a probability that these extra costs may pass on to the consumers.
  • And there is no guarantee that they will delete the data elsewhere. They may continue to store and analyse the data for their own advantage.
  • We are in a globalised world. At present, the world is running on the free flow of people, goods, services and data. Data localisation laws seem to be a part of protectionist policies, which is a threat to the free flow of data.
  • The base of the internet is the free flow of data. Data localisation is also a threat to the main essence of the internet.
  • US is against to the data localisation laws. Its stance is natural because it increases the operational costs of US companies. India-US bilateral relations are important for both countries because we are intertwined in export and import of IT services, professionals and goods etc. So, imposing data localisation laws without threatening the Indo-US relations is another challenge.
  • Innovation thrives when there is no much financial burden. And hence data localisation laws may threaten the innovation attempts in the digital payments industry.
  • If the processing of the payment transactions is done in another country, that country may ask these companies to submit the data. So, asking them to delete the data in 24 hours may interfere with the laws of the country where the processing is done.
  • Data localisation may result in government surveillance of its citizens.
  • It is also against intellectual property rights because they use their intelligence to form systems that can benefit from the data it generates, but in the end, they are deprived of these benefits and someone else may use this data in their favour.

Arguments in favour of data localisation

  • In India’s draft Data Protection Bill, there are broadly three sets of arguments advanced in favour of imposing stringent data localisation norms.
  • Sovereignty and government functions; referring to the need to recognise Indian data as a resource to be used to further national interest (economically and strategically), and to enable enforcement of Indian law and state functions.
  • The second claim is that economic benefits will accrue to local industry in terms of creating local infrastructure, employment and contributions to the AI ecosystem.
  • Finally, regarding the protection of civil liberties, the argument is that local hosting of data will enhance its privacy and security by ensuring Indian law applies to the data and users can access local remedies.

Conclusion

Data localisation is relatively a new concept.  With time, we will know the real consequences of these laws. However, taking steps towards ensuring the privacy and security of the citizens’ data is a very progressive step.

 

Topic: Science and Technology- developments and their applications and effects in everyday life. Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

6. Bitcoins have seen better validation and mainstreaming in the last one year. In this context, explain how Cryptocurrencies like Bitcoins work? Why are governments and central banks suspicious of them? Explain. (250 words)

Reference:  The Hindu

Why the question:

El Salvador became the world’s first sovereign nation to adopt bitcoin cryptocurrency as legal tender. Thus the question. 

Key Demand of the question:

Explain how Cryptocurrencies work and why the governments are suspicious about them.

Directive:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

A cryptocurrency is a digital asset designed to work as a medium of exchange. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. Cryptocurrencies are built on the back of blockchain technology, a system of distributed, cryptographically-secured account keeping. Bitcoin is the first decentralized cryptocurrency.

Body:

The answer body must have the following aspects covered:

Present the status of Cryptocurrencies across the world first.

Explain how they work.

Highlight the concerns associated with them; Discuss the measures being taken to mitigate some of the challenges.

Conclusion:

Conclude with way forward.

Introduction

A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database.

It uses strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.

Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.

Body

Significance of Cryptocurrencies

  1. Corruption Check: As blocks run on a peer-to-peer network, it helps keep corruption in check by tracking the flow of funds and transactions.
  2. Time Effective: Cryptocurrencies can help save money and substantial time for the remitter and the receiver, as it is conducted entirely on the Internet, runs on a mechanism that involves very less transaction fees and is almost instantaneous.
  3. Cost Effective: Intermediaries such as banks, credit card and payment gateways draw almost 3% from the total global economic output of over $100 trillion, as fees for their services.
  4. Integrating blockchain into these sectors could result in hundreds of billions of dollars in savings.

Concerns over Cryptocurrencies

  1. Sovereign guarantee: Cryptocurrencies pose risks to consumers.  They do not have any sovereign guarantee and hence are not legal tender.
  2. Market volatility: Their speculative nature also makes them highly volatile.  For instance, the value of Bitcoin fell from USD 20,000 in December 2017 to USD 3,800 in November 2018.
  3. Risk in security: A user loses access to their cryptocurrency if they lose their private key (unlike traditional digital banking accounts, this password cannot be reset).
  4. Malware threats: In some cases, these private keys are stored by technical service providers (cryptocurrency exchanges or wallets), which are prone to malware or hacking.
  5. Money laundering: Cryptocurrencies are more vulnerable to criminal activity and money laundering.  They provide greater anonymity than other payment methods since the public keys engaging in a transaction cannot be directly linked to an individual.
  6. Regulatory bypass: A central bank cannot regulate the supply of cryptocurrencies in the economy.  This could pose a risk to the financial stability of the country if their use becomes widespread.
  7. Power consumption: Since validating transactions is energy-intensive, it may have adverse consequences for the country’s energy security (the total electricity use of bitcoin mining, in 2018, was equivalent to that of mid-sized economies such as Switzerland).

Cryptocurrencies in India:

  1. In 2018, The RBI issued a circular preventing all banks from dealing in cryptocurrencies. This circular was declared unconstitutional by the Supreme Court in May 2020. Recently, the government has announced to introduce a bill; Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, to create a sovereign digital currency and simultaneously ban all private cryptocurrencies.
  2. In India, the funds that have gone into the Indian blockchain start-ups account for less than 0.2% of the amount raised by the sector globally. The current approach towards cryptocurrencies makes it near-impossible for blockchain entrepreneurs and investors to acquire much economic benefit.

Issues Associated with Banning Decentralised Cryptocurrencies

  1. Blanket Ban: The intended ban is the essence of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It seeks to prohibit all private cryptocurrencies in India.
  1. However, categorising the cryptocurrencies as public (government-backed) or private (owned by an individual) is inaccurate as the cryptocurrencies are decentralised but not private.
  2. Decentralised cryptocurrencies such as bitcoin aren’t or rather, can’t be controlled by any entity, private or public.
  1. Brain-Drain: Ban of cryptocurrencies is most likely to result in an exodus of both talent and business from India, similar to what happened after the RBI’s 2018 ban.
  1. Back then, blockchain experts moved to countries where crypto was regulated, such as Switzerland, Singapore, Estonia and the US.With a blanket ban, blockchain innovation, which has uses in governance, data economy and energy, will come to a halt in India.
  2. Deprivation of Transformative Technology:A ban will deprive India, its entrepreneurs and citizens of a transformative technology that is being rapidly adopted across the world, including by some of the largest enterprises such as Tesla and MasterCard.
  3. An Unproductive Effort:Banning as opposed to regulating will only create a parallel economy, encouraging illegitimate use, defeating the very purpose of the ban.
    1. A ban is infeasible as any person can purchase cryptocurrency over the internet.
  1. Contradictory Policies:Banning cryptocurrency is inconsistent with the Draft National Strategy on Blockchain, 2021 of the Ministry of Electronics and IT (MeitY), which hailed blockchain technology as transparent, secure and efficient technology that puts a layer of trust over the internet.

Way Forward

  1. Regulation is the Solution: Regulation is needed to prevent serious problems, to ensure that cryptocurrencies are not misused, and to protect unsuspecting investors from excessive market volatility and possible scams.
    The regulation needs to be clear, transparent, coherent and animated by a vision of what it seeks to achieve.
  2. Clarity on Crypto-currency definition: A legal and regulatory framework must first define crypto-currencies as securities or other financial instruments under the relevant national laws and identify the regulatory authority in charge.
  3. Strong KYC Norms: Instead of a complete prohibition on cryptocurrencies, the government shall rather regulate the trading of cryptocurrencies by including stringent KYC norms, reporting and taxability.
  4. Ensuring Transparency: Record keeping, inspections, independent audits, investor grievance redressal and dispute resolution may also be considered to address concerns around transparency, information availability and consumer protection.
  5. Igniting the Entrepreneurial Wave: Cryptocurrencies and Blockchain technology can reignite the entrepreneurial wave in India’s start up ecosystem and create job opportunities across different levels, from blockchain developers to designers, project managers, business analysts, promoters and marketers.

Conclusion

India is currently on the cusp of the next phase of digital revolution and has the potential to channel its human capital, expertise and resources into this revolution, and emerge as one of the winners of this wave. All that is needed to do is to get the policymaking right.

Blockchain and crypto assets will be an integral part of the Fourth Industrial Revolution, Indians shouldn’t be made to simply bypass it.

 

Topic: Disaster and disaster management.

7. The incidence of overlapping hazards in the country must drive the Government of India to focus with urgency on long-term preparedness along with multi-disciplinary approach. Elucidate. (250 words)

Reference:  Indian Express

Why the question:

Cyclones along the Western and Eastern coasts amidst the pandemic alert us to the need for year-long preparedness, approaching a multi-disciplinary approach to averting disasters, reducing vulnerabilities. Thus the question.

Key Demand of the question:

Discuss the need and urgency for the government of India to come up with a long term plan along with multi-disciplinary approach to prevent and cure the incidence of overlapping hazards in the country.

Directive:

Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Start with brief background of the question.

Body:

Within a span of a week, first the Western Coast (Gujarat in particular) and then the eastern coast (Odisha and West Bengal) were battered with cyclones —Tauktae in the west and Yaas in the east. While cyclones and storms are not unusual on the Eastern coast (we have witnessed Aila, Bulbul, Amphan in the past), what was unique this time was that an environmental hazard happened in the middle of another mega hazard – the Covid-19 pandemic.

Explain that amidst such conditions the disaster risk reduction activities need to be geared towards first an interdisciplinary diagnosis of various risk drivers.

Take cues from the article and explain.

Conclusion:

Conclude with suggestions and solutions to address the issue.

Introduction

Cyclones along the Western and Eastern coasts amidst the pandemic alert us to the need for year-long preparedness, approaching a multi-disciplinary approach to averting disasters, reducing vulnerabilities.

When overlapping hazards take place, with each hazard having their own character, the final shape of the hazard is often a product of these individual characters.

Body

Within a span of a week, first the Western Coast (Gujarat in particular) and then the eastern coast (Odisha and West Bengal) were battered with cyclones —Tauktae in the west and Yaas in the east. While cyclones and storms are not unusual on the Eastern coast, but this time it was an environmental hazard happened in the middle of another mega hazard – the Covid-19 pandemic. Moreover, while the Yaas cyclone caused immediate damage, the flooding it induced took the adversity to a different scale altogether.

We need to take cognisance of the fact that such overlapping hazards could be a recurrent phenomenon.

Accordingly, the disaster risk reduction activities need to be geared towards first an interdisciplinary diagnosis of various risk drivers.

  1. Focus on building resilience at the individual and community level.
  2. Vulnerability also emerges from underlying socio-economic-political conditions. Often the (socially, economically and politically) marginalised population have to reside in such precarious areas. The same has to be addressed.
  3. Limiting the exposure, either through zoning or planned retreat, becomes an important way of reducing this biophysical vulnerability.
  4. Early Warning system: need to be strengthen to predict the intensity and accuracy of event as precise data help in making better decisions.
  5. Strengthen buffer zones: avoid infrastructure construction in estuaries or marshes areas which to absorb the shock of cyclones.
  6. Increased resilience of critical infrastructure: such as school, colleges, hospitals, roads, mass transportations etc.
  7. NDRF: need to increase the number of personal with adequately equipped to deal any kind of disaster including
  8. Proper drainage system throughout the city to discharge the water as soon as possible to avoid flood like conditions
  9. NDMA empowered: NDMA need to be autonomous to increase the accountability and decision making capability of the body.
  10. Awareness about natural disaster: Perception of people decides the intensity of disaster. If people take necessary proactive steps to deal with disaster then even the severe disaster can be dealt with minimum damage.

Conclusion

Only through a combination of these strategies can the otherwise vulnerable population have the capacity to absorb, recover, adapt and transform even in the face of overlapping hazards. Only then will resilience be built. This would require a multidisciplinary approach to risk reduction, where each of the risk drivers is subject to interdisciplinary deliberation by a multiple set of institutions followed by a preparation of a plethora of thematic interventions planned round-the-year which would reduce the intensity of the risk drivers.


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