[Mission 2023] INSIGHTS DAILY CURRENT AFFAIRS + PIB SUMMARY 15 December 2022

GS Paper 1

Syllabus: Physical Geography (Climate)

Source: IE

 Direction: The article highlights the environmental changes in the Arctic, the factors responsible for these changes, their impact and the way ahead.

Context: This year’s assessment of Arctic conditions – the Arctic Report Card, which the US NOAA has produced since 2006, has highlighted rapid environmental changes in the Arctic.

Background: Insights about the circumpolar region are relevant to the conversation about the warming of planet Earth, as the impacts of climate change have been witnessed first in polar regions.

Highlights of the Arctic Report Card:

• Temperatures in the Arctic Circle have been rising much more quickly than the rest of the planet.
• This has transformed the region’s climate into one defined less by sea ice, snow and permafrost and more by open water, rain and green landscapes.
• It has turned the Arctic to be wetter and stormier (rainier), with shifts in its climate and seasons.
• Although 2022 was only the Arctic’s 6th warmest year on record, researchers saw plenty of new signs. For example, a recent heat wave in Greenland.

Factors behind rapid Arctic environmental change:

• Warmer air can hold more moisture.
• Sea ice retreats and storms absorb more open ocean water.
• Storms are passing over warmer water before reaching the Arctic, feeding them with more energy.

Consequences of rapid Arctic environmental change: In the form of combined effects of –

• Physical conditions,
• Responses of biological resources,
• Impacts on infrastructure,
• Decisions influencing adaptive capacities and
• Environmental and international influences on economics and well-being.

Way ahead:

• Indigenous expertise needs to be augmented by scientific abilities to reconstruct past environments and to model and predict future changes.
• Decision-makers need to apply this experience and knowledge to help mitigate and adapt to a rapidly changing Arctic.

Conclusion: Addressing unprecedented Arctic environmental changes requires listening to one another, aligning values and collaborating across knowledge systems, disciplines and sectors of society.

Insta Links:

India and the Arctic

Mains Links:

Q. How does the cryosphere affect global climate? (UPSC 2017)

GS Paper 2

Syllabus: Issues relating to the development and management of Social Sector/Services relating to Health, Education, and Human Resources.

Source: DTE

 Context: According to the World Health Organization (WHO) Director-General, increasing frequency and intensity of climate-related extreme weather events continue to impact universal access to safe and sustainably managed water, sanitation and hygiene (WASH).

The GLAAS report, released by the WHO and UN-Water, provides the most up-to-date information on WASH systems in more than 120 countries, making it the biggest data collection ever.

Key highlights of the report:

• WASH and Health: Implementation of policies and plans on WASH in health care facilities and on hand hygiene is constrained by a critical lack of financial and human resources.
• Climate resilience of WASH systems: Most WASH policies/plans do not address climate-related risks to WASH services.
• Finance: Insufficient WASH funding was reported by 75% of countries.
• Leaving no one behind: Measures to reach vulnerable populations and settings with WASH services lack monitoring and financial resources.
• Human resources: Insufficient human resources are limiting WASH service delivery.
• Gender: Increased inclusion, financial support and monitoring are needed to ensure women are considered in WASH decisions and services.
• Data use: Data are not sufficiently used in decisions on planning or resource allocation for WASH.
• Regulation: Regulatory authorities often do not fully perform their functions.

Insta Links:

Wash For Healthcare

Mains Link:

Q. The provision of safe water and sanitation coupled with improvements in hygiene initiatives (WASH) can contribute significantly to ameliorating nutritional challenges and improving health outcomes. Explain.

GS Paper 2

Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

Source: The Hindu, Indian Express

 Direction: There were multiple articles on India-China relations. We have tried to club them all together.

 Context: Indian and Chinese troops clashed in Arunachal Pradesh’s Tawang sector, beating up each other with sticks and canes, in their closest encounter since the deadly Galwan incident in eastern Ladakh in June 2020.

The incident came days after China expressed objection to Operation Yudh Abhyas, an India-US joint military exercise at Auli in the Uttarakhand hills, claiming it to be a violation of 1993 and 1996 border agreements.

What is the origin of the border dispute with China?

• After the communists took over in China, they withdrew from all international agreements citing them to be “unequal treaties” imposed on it during its “century of humiliation”, and demanded a re-negotiation of all its borders.
• The LAC separates Indian-controlled territory from Chinese-controlled territory. It is divided into three sectors: the Eastern Sector (Arunachal Pradesh and Sikkim), Middle Sector (Uttarakhand and Himachal Pradesh) and Western Sector (Ladakh).
• In the Eastern Sector, the alignment of the LAC is along the McMahon Line, named after Sir Henry McMahon, foreign secretary of British India. He drew the 890-km line as the border between British India and Tibet (a part of the 1914 Shimla Convention Between Great Britain, China, and Tibet). China now doesn’t comply with this.

What is China’s so-called claim on Arunachal Pradesh, and on what grounds?

• China claims around 90,000 sq km of Arunachal Pradesh — the entire state — as its territory. It calls the area “Zangnan” in the Chinese language and makes repeated references to it as “South Tibet”.

Issue of recent Cyber-attack:

• The probe into the cyberattack on some servers at AIIMS in Delhi has found that the IP addresses of two emails, originated from Hong Kong and China’s Henan province.

India’s reaction:

• China’s latest transgression on the Line of Actual Control in Arunachal Pradesh led to calls for snapping trade ties to teach Beijing a “lesson”, but official data show that India’s imports from the country have jumped to a record high over the last 30 months.

India and China have taken different paths to development

Recent divergences

• Development Diplomacy vs Debt trap diplomacy
  • China is often accused of “debt-trap diplomacy” – strategically trapping recipient countries with loans they can’t repay. When recipients default, China can seize strategic assets, thus extending its leverage E.g. Sri Lanka’s Hambantota Port.
  • India is using soft power and developmental assistance. It is steering more than 500 development projects across 64 countries focusing on the empowerment of local communities through capacity building.
• China following 9 – dash lines vs India’s call for open and free navigation.

Rising Influence of China in the region:

• China has invested hugely across the IOR littoral states to secure its own interest through various projects like the Belt and Road Initiative, ‘Maritime Silk Road’, and String of Pearls.
• Economic Investment: Pakistan and Sri Lanka are seeing a rising inflow of Chinese FDI.
• Comprehensive strategic partnerships with Thailand, Myanmar, Mozambique, and South Africa.
• Asian Infrastructure Investment Bank (AIIB) platform for financing infrastructure construction in Indian Ocean countries.
• Military Base– China is building a military base at Gwadar in Pakistan, a naval base
  at Cox Bazaar Bangladesh, based in Djibouti.
• Mineral Exploration– China-Africa Cooperation (investments in mineral smelters)
• Military exercises– China participates in various joint military exercises in IOR.
  China, Russia and Iran held naval exercises.

Impact on Indian Interest

• Regional Maritime Security.
• Affects India’s Neighborhood first policy
• Disruption of international shipping lanes
• Economy & trade in the Indian Ocean
• Threatens Energy Security
• Loosing strategic projects-
  ü India’s failure to develop the Chabahar port project in Iran might be China’s gain.
  ü Lost Hambantota Port to China.
• Minerals, Metals and Ores– Ocean drilling, seafloor resources exploration and
  development can be affected.

Way forward:

The Global balance of power has shifted to the east in recent years. The concept of the Asian Century gained credence following the rapid economic growth of China and India since the 1980s, which propelled both of them to the ranks of the world’s largest economies. Thus, a rules-based Multi-Polar World Order creates an enabling ecosystem.

Insta Links:

India China Relations

Mains Link:

Q. ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’. In light of this statement, discuss its impact on India as her neighbour. (UPSC – 2017)

GS Paper 3

Syllabus: Indian economy and related issues.

Source: TH

 Direction: The article highlights the main reasons behind the declining exports and areas where the Indian economy is doing well.

 Context: According to the Ministry of Commerce, India’s exports declined by about 16.7 (sixteen point seven) % in October compared with the year earlier.

Background:

• This is the first slide reported for any month since February 2021.
• The October imports rose at a much milder pace than earlier, most likely because of softening commodity prices worldwide, resulting in the widening of the trade deficit by 50%.

Main reason for this performance of the export sector:

• Engineering goods (the backbone of India’s merchandise exports previously), fell by 21%. The Engineering Export Promotion Council of India attributed the slowdown to –
  • High inflation in developed regions,
  • Falling demand in China,
  • The slowdown in the EU and the U.S. and
  • The Russia-Ukraine war.
• In October, a decline of $2 billion worth of exports was seen in steel and allied products.
  • Due to the export duty levied on these products to help increase local availability.
  • The government has since removed this duty.
• The Diwali festive season prompted workers to take leave, thus impacting output.

How have the other exporting nations performed?

• Vietnam, an export-dominated country, recorded a 4.5% growth and in the Philippines, it grew by 20%.
• China is an exception this year (registering a decline in export growth) due to harsh lockdowns affecting its manufacturing output.

Signs of relief for the Indian economy:

• Resilient local demand: The investment cycle will spur growth and job creation in the coming days.
  • The private sector capital expenditure, on track to touch six lakh crores this fiscal, would be the highest in the last six years.
  • The private Capex typically depends on credit or loans, from the banking system
• Inflation has been driven by local factors: Including higher food prices, than imported reasons. However, retail inflation, which has been consistently above 7% in the past few months, stood at 6.8% in October
• Easing international commodity prices and the arrival of the Kharif crop.

Conclusion: Whether the above indicators (positive and negative) signify a temporary or permanent trend, remains to be seen over the coming months.

Insta Links:

Exports cross $400 billion annual target as goods shipments jump

Mains Links:

Q. How would the recent phenomena of protectionism and currency manipulations in world trade affect the macroeconomic stability of India? (UPSC 2018)

GS Paper 2

Syllabus: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

Source: IE

 Direction: The article discusses that India needs a newly reformed pension system, instead an NPS vs OPS debate.

 Context: Instead of discussing the issue of the old pension scheme (OPS) versus the new pension scheme (NPS), there is a need to revisit the idea of reforming the pension system in the country.

Need to reform the pension system:

• According to the World Economic Forum, people aged 65 and above outnumber children aged five or younger. Though India is at a low risk now, the country may face a longevity risk.
• Longevity risk points to a scenario where rising life expectancy could result in pension and insurance companies needing more cash.

India’s pension system standing in the global context:

• According to the Mercer CFA Institute Global Pension Index 2022, which tracks –
  • Adequacy: What benefits are future retirees likely to receive?
  • Sustainability: Can the existing systems continue to deliver, notwithstanding the demographic and financial challenges?
  • Integrity: Are the private pension plans regulated in a manner that encourages long-term community confidence?
• India’s pension system is ranked 41 out of 44 countries.

Gross inadequacy of India’s pension architecture:

• At least 85% of current workers are not members of any pension scheme and are likely to remain uncovered or draw only social pension in their old age.
• Of all elderly, 57% receive no income support from public expenditure and 26% collect a social pension as part of poverty alleviation.
• The system for old age income support entailed 5% of public expenditure and state governments bear more than 60%.
• Contributory program funds invested in government securities corner 40% of all interest payments of state governments.

Comparing the Indian scenario with the WB pension framework:

• In 1994, the World Bank provided a 5-pillar (0, 1, 2,3, 4) framework:

• This framework is modified by the National Institute of Public Finance and Policy (NIPFP) – an autonomous research institute under the Ministry of Finance, to suit Indian circumstances.

• • It is noteworthy that the OPS falls under Pillar 1 and the NPS falls under Pillar 2.
  • Pillar 1, where the government-funded pension schemes to a small percentage of the elderly accounts for almost 62% of all public expenditure.
  • Pillar 0, possibly the most essential one, gets just 4% of the total outgo.

What can be concluded from above?

• India’s pensions system is in a dire need of reform and doing so will be both good politics and good economics.
• Merely fluctuating between OPS and NPS is not a reform.

Conclusion: It is time for India to relook at its pension system and for the current debate to be broadened to look at pension requirements for the whole set of elderly.

Insta Links:

National Pension Scheme

Prelims Links: (UPSC 2021)

GS Paper 3

Syllabus: Liberalization/ Parliament-Structure, functioning and conduct of business, Competition Commission of India etc.

Source: Economic times

 Context: The Parliamentary Standing Committee on Finance, has suggested that the government extend the provision of settlement under the Competition Amendment Bill 2022 to cartels so as to make the initiative more pragmatic.

• The amendment to the competition act broadens the scope of ‘anti-competitive agreements’ to catch entities that facilitate cartelization even if they are not engaged in identical trade practices.

Further suggestions of the Committee:

• It recommended some changes to the transaction value threshold prescribed in the draft bill to prevent certain mergers and acquisitions (M&As) from coming under the ambit of the Competition Commission of India (CCI). However, it didn’t suggest any change in the value of the threshold set at Rs 2000 Crores.
  • The Amendment Bill makes it mandatory to notify the Commission of any transaction with a deal value in excess of ₹2,000 croresand if either of the parties has ‘substantial business operations in India’.
• Don’t reduce the timeline as there is a shortage of staff
  • The new Bill seeks to accelerate the timeline from 210 working days to only 150 working dayswith a conservatory period of 30 days for extensions to approve the merger.
• The Commission should have at least one judicial member

What are Antitrust laws?

They are regulations that encourage competition by limiting the market power of any particular firm

 Note: Further information about the Bill and related Questions have already been dealt with here. Please go through it once.