[Mission 2024] INSIGHTS DAILY CURRENT AFFAIRS + PIB SUMMARY 14 October 2023

GS3/GS2 Paper 

 Syllabus: Liberalization Reforms/ International Institutions

Source: HT

 Context: The G20 expert group has presented a roadmap (in its report The Triple Agenda: A Roadmap for Better, Bolder and Bigger MDBs) for enhancing the performance of Multilateral Development Banks (MDBs) to be bigger, better, and bolder by 2030. The group, led by Lawrence Summers (US treasury secretary) and NK Singh (chair of the 15th Finance Commission), has recommended several measures for MDBs.

What are MDBs?

MDB is a financial institution established by multiple member countries and falls under international law. E.g., International Monetary Fund, World Bank, Asian Development Bank etc.

Objectives of MDBs: Stabilizing the global financial system during the time of crisis; Providing long-term financing; Providing lower-cost financing

Role of MDBs in global stability and development

Despite playing a crucial role in promoting development and global stability, multilateral development banks (MDBs) face several challenges that need to be addressed

Other challenges for Reforming MDBs:

• Adapting to Global Challenges: MDBs must adapt to address emerging global issues like pandemics and conflicts, responding quickly to changing circumstances.
• Resource Constraints: MDBs face limitations in funding to meet growing demands, especially in climate change and infrastructure development.
• Mobilizing Private Sector: MDBs struggle to attract private sector investments, requiring risk mitigation and incentives.
• Addressing Climate Change: MDBs need to incorporate climate considerations into policies, strategies, and project financing for sustainable development.
• Domination by Developed Countries: Currently, MDBs are dominated by developed Countries (WB by USA, IMF by EU and ADB by Japan); they impose conditionality in loans; there is a lack of Transparency and Accountability.

Recommended steps by G20 Expert groups for better functioning of MDBs:

Other Measures to Improve MDB Effectiveness:

• Reduce Conditionalities: Simplify loan conditions to accommodate unique country circumstances.
• Stakeholder Engagement: Collaborate with governments, civil society, and the private sector for better decision-making.
• Capacity Building: Invest in local capacity and skill development for project sustainability.
• Transparency and Accountability: Enhance transparency in decision-making and clarify loan conditions.

India’s Role:

• India plays a key role in shaping MDB reforms to address global challenges.
• India is a significant borrower and beneficiary of MDBs, receiving support in various sectors.
• India is a contributor and shareholder in these institutions, supporting their operations.
• India actively participates in their governance and decision-making processes.

Conclusion

Making MDBs more relevant for addressing 21st-century challenges would contribute towards enhancing human welfare and global stability and development. Reforming MDBs requires extensive consultations and deliberations among various stakeholders to ensure that it is inclusive, participatory and future proof. India has a key role and responsibility in reforming MDBs to make them more relevant and effective for the development of the Global South.

Mains Links:

India has recently signed to become a founding member of New Development Bank (NDB) and also the Asian Infrastructure Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two Banks for India. (UPSC 2012)

Critically evaluate the working of Multilateral Development banks such as the World Bank and IMF in their efforts to promote global stability and development. Also, suggest measures to improve their effectiveness. (15M)

Prelims Links:

GS Paper 4

 Syllabus: Applications of Ethics

Source: IE, IE

Example 1: Australia: Indigenous “Voice to Parliament”

Australia is currently conducting a referendum that will determine whether the country’s indigenous peoples should have a formal voice in the law-making process. The referendum aims to alter the Constitution to recognize the Aboriginal and Torres Strait Islander people and establish an Indigenous “Voice to Parliament.”

This move is prompted by the significant disparities faced by indigenous Australians in terms of socio-economic indicators, including a life expectancy eight years shorter than non-indigenous Australians, higher disease and infant mortality rates, and a suicide rate twice as high as their non-indigenous counterparts.

Ethical values in the case:

Example 2: Abortion at 26 weeks of pregnancy

The Supreme Court is currently deliberating a case involving a 27-year-old married woman seeking an abortion at 26 weeks of pregnancy.

The Medical Termination of Pregnancy Act (MTP Act) in India allows abortion in various stages of pregnancy, and the court has previously permitted terminations beyond 26 weeks in certain circumstances.

However, in this case, there is consensual conception, as it is not a result of forced pregnancy.

Ethical Dilemmas in this case are:

Overall, the ethical considerations in this context encompass women’s autonomy, the rights of the unborn child, and the need for clarity and updated legislation in cases of late-stage abortions.

Content for Mains Enrichment

Source: PIB

 Context: UNICEF’s Passport to Earning (P2E) Initiative has achieved a significant milestone by certifying over one million young people in India in the areas of financial literacy and digital productivity.

About the initiative:

P2E is an e-learning solution, launched in 2022, by UNICEF India, YuWaah and partners. This initiative aligns with the National Education Policy and provides free access to certificate courses in relevant skills. It aims to empower 5 million youth between the ages of 14-29 with skills (by 2024) and connect them to job and self-employment opportunities to achieve financial independence.

• 62 per cent of all young learners who benefitted from P2E courses in India are adolescent girls and young women.
• It was celebrated during an event on the UN International Day of the Girl Child (11^th October)

 Usage: The example can be used in Economy (Skill Development)/ Social Justice etc.

Facts for Prelims (FFP)

Source: TH

 Context: In the Global Hunger Index (GHI) 2023, India has been ranked 111th out of 125 countries, indicating a serious level of hunger.

• The GHI score is based on four indicators, including under-nourishment, child stunting, child wasting, and child mortality.
• India’s progress in combating hunger has almost come to a halt since 2015, and this trend is consistent with global findings.

Key Findings:

• India’s GHI score is 28.7 on a 100-point scale, where lower scores represent less hunger, and higher scores indicate more severe hunger. This categorizes India’s hunger severity as “serious.”
• Globally, the 2023 GHI score is 18.3, considered moderate.
• The report highlights that South Asia and Africa South of the Sahara have the highest hunger levels, with GHI scores of 27.0 each.
• Latin America and the Caribbean are the only regions where GHI scores worsened between 2015 and 2023.
• East and Southeast Asia, led by China, have the second-lowest 2023 GHI score, while Europe and Central Asia have the lowest score

Facts for Prelims (FFP)

Source: Economic Times

Context: The Union Cabinet has granted approval for the establishment of “Mera Yuva Bharat” (MY Bharat).

MY Bharat, an autonomous body will benefit youth in the age group of 15-29 years, in line with the definition of ‘Youth’ in National Youth Policy.

• The primary objective of MY Bharat is to serve as a comprehensive platform for youth development across the government.
• It is set to be dedicated to the nation, in honour of Sardar Vallabhbhai Patel’s birth anniversary.
• This platform will function as a one-stop solution for engaging with youth and promoting initiatives designed to benefit them.

Facts for Prelims (FFP)

Source: TH

Facts for Prelims (FFP)

Source: Business Line

 Context: Trinity Saioo, the 2021 Padma Shri winner known as the “Turmeric Trinity,” who was recognized for her work in promoting Lakadong turmeric cultivation in Meghalaya, is now focusing on promoting the unique “Makhir” ginger of the state.

• Makhir ginger is known for its distinct pungency and medicinal properties.

Meghalaya is home to two popular types of ginger, Makhir and Nadia, both known for their health benefits despite their small size.

About Lakadong turmeric:

• Under the “One District One Product” scheme, Lakadong turmeric gained recognition in the West Jaintia Hills district.
• It is distinguished by its high curcumin levels and antioxidant properties.

Sports

Source: TH

Mapping

Source: BBC

 Context: Finland is investigating potential sabotage of the Baltic-connector gas pipeline that connects it with Estonia.

The pipeline is crucial for Finland’s gas supply, but alternative sources are available to ensure energy security.

The Baltic Sea is an arm of the Atlantic Ocean that is enclosed by Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Russia, Sweden and the North and Central European Plain.  It separates the Scandinavian Peninsula from the rest of continental Europe.