Note4Students
From UPSC perspective, the following things are important :
Prelims level: Price Monitoring and Research Unit (PMRU)
Mains level: Drug prices monotoring mechanisms in India
The National Pharmaceutical Pricing Authority (NPPA) has set up price monitoring and resource unit (PMRU) in the UT of Jammu and Kashmir. With this J&K has become the 12th State/UT where the PMRU has been set up.
Price Monitoring and Research Unit (PMRU)
- It is a registered society set up for drug price monitoring.
- PMRUs have already been set up by the drug price regulator NPPA in 11 states such as Kerala, Odisha, Gujarat, Rajasthan, Punjab, Haryana, Nagaland, Tripura, Uttar Pradesh, Andhra Pradesh and Mizoram.
Its composition
- The State Health Secretary would be the Chairman of the society and the Drugs Controller would be its member secretary.
- Its members include a State government representative, representatives of private pharmaceutical companies, and those from consumer rights protection fora.
- The society would also have an executive committee headed by the Drugs Controller.
Terms of reference
PMRU offers technical help to the State Drug Controllers and the NPPA to:
- Monitor notified prices of medicines
- Detect violation of the provisions of the DPCO
- Look at price compliance
- Collect test samples of medicines, and
- Collect and compile market-based data of scheduled as well as non-scheduled formulations.
Why need PMRU?
- Pharma companies have been accused of overcharging prices of drugs in the scheduled category fixed by the DPCO and those outside its ambit too.
- The suggestion to set up PMRUs was made against the backdrop of the lack of a field-level link between the NPPA and the State Drugs Controllers and State Drug Inspectors to monitor drug prices.
Expected outcomes
- The NPPA had fixed the prices of around 1,000 drugs and the unit would track if buyers were being overcharged.
- It would also check if pharma companies were hiking the prices of non-scheduled drugs by more than 10% a year.
- It will check if there is any shortage of essential medicines.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ArogyaSetu App
Mains level: Coronovirus outbreak and its mitigation
The Government of India has launched a mobile app ArogyaSetu developed in a public-private partnership to bring the people of India together in a resolute fight against COVID-19.
AarogyaSetu App
- The App enables people to assess themselves the risk of their catching the Corona Virus infection.
- It will calculate this based on their interaction with others, using cutting edge Bluetooth technology, algorithms and artificial intelligence.
- Once installed in a smartphone through an easy and user-friendly process, the app detects other devices with AarogyaSetu installed that come in the proximity of that phone.
- The app can then calculate the risk of infection based on sophisticated parameters if any of these contacts has tested positive.
- The personal data collected by the App is encrypted using state-of-the-art technology and stays secure on the phone till it is needed for facilitating medical intervention.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-CARES fund.
Mains level: Paper 3- Concerns over PM-CARES fund.
Context
In the midst of all of this, our Prime Minister announced the creation of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES), which—if the intention is to allow funds to move fast and circumvent bureaucratic hurdles—is a great initiative.
About PM CARES Fund
- The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 28 March 2020 following the COVID-19 pandemic in India.
- The fund will be used for combating, containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
- The Prime Minister is the chairman of the trust. Members will include the defence, home and finance ministers.
- The fund will also enable micro-donations. The minimum donation accepted for the PM CARES Fund is ₹10 (14¢ US).
- The donations will be tax exempt and fall under corporate social responsibility.
- The Prime Minister had said that the PMO had received many requests to help in the war against COVID-19.
- Accordingly, the fund was set up and will be used for disaster management and research
The backdrop against which the fund was created
- The battle is a struggle for so many people. The Prime Minister called for physical distancing and the shutdown.
- But physical distancing is a luxury. Many people cannot do so, because they live in tiny homes, in close proximity to each other.
- And then there are the migrant workers who are squeezed next to each other as they struggle to head home.
- The announcement of the PM-CARES Fund will convince more people to give to the cause.
- However, certain aspects make one to look at the PM-CARES fund with mixed emotions. Here is why:
1. The government has faced challenges on the execution side
- The PM did a great job rallying the country together, but the pictures of migrants walking hundreds of miles to get to the safety of their homes are heart-wrenching.
- Criticism in hindsight: Of course, such decisions had to be made quickly, and it is easy to criticise the government in hindsight.
- Inaction could be more damaging: And sometimes there are limited alternatives when one is doing work on a war footing. Mistakes are bound to be made, and in many cases, inaction could be more damaging.
- The PM also acknowledged and apologised for these hardships in his latest Mann Ki Baat address.
2. Non-profits working on relief and rehabilitation are already struggling
- In this environment, nonprofits are already struggling on the funding side.
- Many will shut down or go into hibernation over the next three months and their employees will join the daily wage earners as workers who suddenly do not have any income.
3. Based on media reports, PM-CARES has been set up as a trust
- Legislation to ban CSR funding to trusts: Despite the fact that the government is currently pushing legislation that aims to ban Corporate Social Responsibility (CSR) funding to nonprofits set up as trusts or societies.
- Poor governance of the trusts: One of the reasons given for doing so is the alleged poor governance structure of trusts and societies when compared to Section 8 companies.
- Why then has the government set up PM-CARES as a trust aimed at targeting corporate CSR funds?
4. PM-CARES has made no announcements on governance, accountability, etc.
- No questions asked: While many donors have stepped up to fund non-profits working on covid-19 relief measures, their amounts pale in comparison to how much PM-CARES raised in its first two days.
- Moreover, donors have grilled nonprofits on how we will ensure proper delivery.
- But no such questions are being asked of the PM-CARES Fund.
- How will success be measured? What audited accounts will be given? This information has not been shared.
- So far, the success with respect to funds raised for PM-CARES is a reflection of the confidence people have in our Prime Minister.
- Problems are surfacing: However, problems are already surfacing, like reports of fake online accounts being set up to steal funds meant for PM-CARES.
- Presumably, issues will be addressed over the next few days, because everything is moving so fast and decisions are being taken on a war footing.
5. Centralised funding could hurt localised solutions
- Solution comes from decentralisation: The internet has taught us that ideas and solutions come from decentralised, empowered teams driven by big, hairy, audacious goals.
- Involving people in finding solutions: There are so many smart people across our country—in governments, research institutions and academia, the private sector, nonprofits, and civil society.
- Today, more than ever, we need to get them all involved in finding solutions. And doing so requires money.
- If a lot of funding for covid-19 gets centralised, funds to other players could get curtailed and localised solutions will die.
- Funding to innovative solutions: Here again, it is hoped that the funds collected will also be given to other groups who are coming up with innovative solutions.
6. The government needs to trust and work closely with the nonprofit sector
- The central, as well as many state governments, are talking to individuals, nonprofits, and the private sector for help to handle this pandemic.
- And they are relying on the generosity (and duty) of the citizens to come up with solutions because, as with all disasters, the state cannot handle this problem on its own.
- At the same time, the stimulus packages offered to the private sector have been very little.
- Nonprofits, most of whom are funded either by philanthropists or CSR, will, therefore, be squeezed for funding, as their donors pull back discretionary money.
- And many nonprofit professionals are worried that they may not have a job soon.
- So, on one hand, various governments rush to the private players for help, while at the same time some people in the government treat the nonprofit sector with suspicion.
Conclusion
It is hoped that PM-CARES will help various teams in the public and private sector work together, bridging our trust deficits, to fight the virus and reduce the pain inflicted on so many vulnerable people on various fronts—physical, mental, and financial.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3-Applying ways suggested by Keynes in times pandemic. of war to deal with the covid-19
Context
We could take a leaf out of a booklet by Keynes in our effort to tackle some of the challenges posed by the covid-19 pandemic.
The Crisis-Keynesian Mode response mode to pandemic
- What is the war economy? One of the defining features of a war economy is that economic thinking is focused on quantities rather than prices.
- Much of the ongoing global response to the covid-19 pandemic is still in crisis-Keynesian mode.
- What is a crisis-Keynesian response: The nation-state has become the income supporter, financier and consumer of last resort.
- However, there are also clear signs of war economics as well.
- Signs of war economics: The decision by US President Donald Trump to use America’s Defense Production Act to force General Motors to make ventilators is one resonant example.
- Just consider some of the key questions that are being asked right now.
- How many ventilators are available? Are there ample food stocks? Can more hospital beds be made available? How many masks be produced in the next few weeks? Can the production of testing kits be ramped up? It’s all about quantities, quantities, quantities.
Historical background and impact of a shift in economic strategies
- Impact persists in subsequent decades: Such big shifts in economic strategies are usually not reversed overnight. Decisions taken in response to a particular emergency tend to remain with us in subsequent decades.
- World War II example: What happened in India during World War II is instructive. Many of the controls that were introduced during that global conflagration formed the basis of the later interventionist state that sought to control who produces how much. Here are a few examples.
1. Quantitative import controls
- One of the first moves by the colonial state was to impose quantitative import controls in May 1940.
- There were two reasons why this was done—to conserve foreign exchange as well as ensure that shipping capacity was used to bring in only what was essential to the war economy.
2. Food rationing
- Food rationing was also introduced during the war years.
- Over 700 towns were covered by some rationing scheme or the other by the end of the War.
- The government also brought in measures to buy surplus grain from farmers at administered prices.
- Various forms of rent control were also instituted. Most of these controls continued after India gained independence.
3. Balance of payment crisis in 1957
- India was hit by a balance of payments crisis in 1957.
- The massive investment thrust in the Second Five Year Plan had severely strained the country’s foreign exchange reserves.
- The Indian government, once again as a temporary measure, imposed stringent controls on imports.
- Many of these were quantitative in nature. They survived well into the 1980s.
- In fact, the entire trade policy approach since the 1957 crisis was to minimize imports in a bid to preserve foreign exchange.
Will the government opt for automatic monetisation of the deficit?
- Money creation by the RBI to fund deficit: There is now a growing consensus that the Indian government will have to fund part of its growing fiscal burden through money creation by the Reserve Bank of India.
- What about inflationary consequences? The inflationary consequences will be muted—for now—because the velocity of narrow money is most likely set to fall on account of weak demand conditions under a lockdown.
- Precedence: The automatic monetization of Indian government deficits was part of the policy playbook after the 1950s till it was thankfully discontinued in 1997.
- The main instrument for that was ad hoc treasury bills.
- These were introduced in 1954 as a temporary measure to replenish the cash balances the government maintains with the central bank.
- What was ad hoc treasury bills? Ad hoc treasury bills were not introduced through any formal law but as an arrangement between mid-level bureaucrats in New Delhi and Mumbai (i.e. RBI).
- What began as a temporary measure to smoothen government cash holdings had become a near-permanent feature of Indian macroeconomic policy by the 1970s.
The uncertain future
- Longer the war more profound will be the changes: The longer the global battle against the pandemic lasts, the more profound will be the changes across the economic landscape.
- In an insightful article in Bloomberg, Andy Mukherjee uses the lessons of history to look into the uncertain future.
- Among the possibilities he mentions are the contrasting ones of an economy run by robots and algorithms but with little labour, or an economy in which labour has clawed back the power it lost in the second age of globalization.
Managing the resources in the time of war
- Managing the resources: In 1940, John Maynard Keynes wrote a little booklet How To Pay For The War, Keynes essentially argued that the main challenge was not how to finance the war effort, but how to manage real resources to produce the arms that the UK needed to defend herself.
- Suppression of consumption: He then argued that war production would necessarily involve suppression of consumption, either through higher taxes or some scheme of deferment.
Conclusion
The war against the covid-19 pandemic is very different from the military war that Keynes was thinking about. Yet, his booklet offers useful lessons on how to think about some of our current challenges—and also about what we can expect once the situation returns to normal.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Right to Discuss, Art. 19
Mains level: Coronovirus outbreak and its mitigation
The Supreme Court has upheld the right to free discussion about COVID-19, even as it directed the media to refer to and publish the official version of the developments in order to avoid inaccuracies and large-scale panic.
Right to Discuss
- The Right to Discuss falls under the purview of the right to freedom of speech and expression.
- Article 19(1)(a) of the Constitution of India states that all citizens shall have the right to freedom of speech and expression.
- It ensures all citizens the liberty of thought and expression.
- The exercise of this right is, however, subject to “reasonable restrictions” for certain purposes being imposed under Article 19(2) of the Constitution of India.
- These restrictions are imposed in the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, defamation or incitement to an offence.
Why such a move?
- The court was responding to a request from the Central government that media outlets, in the “larger interest of justice”, should only publish or telecast anything on COVID-19 after ascertaining the factual position from the government.
- Any deliberate or inaccurate reporting by the media, particularly web portals, had the serious and inevitable potential of causing panic in a larger section of the society.
- Any panic reaction in the midst of an unprecedented situation based on such reporting would harm the entire nation.
- Creating panic is also a criminal offence under the Disaster Management Act, 2005.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- How lockdown affects the poor disproportionately and what the state must do mitigate the impact.
Context
The official strategies to deal with the virus place the responsibility on citizens, a majority without privilege, to fight the virus.
The poor disproportionately affected
- If the COVID-19 pandemic lashes India with severity, it will not be just the middle class who will be affected.
- India’s impoverished millions are likely to overwhelmingly bear the brunt of the suffering which will ensue.
- Inequality and impact of a pandemic: The privileged Indian has been comfortable for too long with some of the most unconscionable inequalities in the planet.
- But with the pandemic, each of these fractures can decimate the survival probabilities and fragile livelihoods of the poor.
Inadequate capacity of the health system
- Low investment in public health: India’s investments in public health are among the lowest in the world, and most cities lack any kind of public primary health services.
- A Jan Swasthya Abhiyan estimate is that a district hospital serving a population of two million may have to serve 20,000 patients, but they are bereft of the beds, personnel and resources to do this. Few have a single ventilator.
- The poor left with meagre services: India’s rich and middle-classes have opted out of public health completely, leaving the poor with unconscionably meagre services.
- The irony is that a pandemic has been brought into India by people who can afford plane tickets, but while they will buy private health services, the virus will devastate the poor who they infect and who have little access to health care.
No planning and preparation by the state
- Official strategies placing responsibility on citizens: Most of the official strategies place the responsibility on the citizen, rather than the state, to fight the pandemic.
- No preparation by the states: The state did too little in the months it got before the pandemic reached India for expanding greatly its health infrastructure for testing and treatment.
- This includes planning operations for food and work; security for the poor; for safe transportation of the poor to their homes; and for special protection for the aged, the disabled, children without care and the destitute.
What must be done?
- 25 day’s minimum wage: For two months, every household in the informal economy, rural and urban, should be given the equivalent of 25 days’ minimum wages a month until the lockdown continues, and for two months beyond this.
- Pensions must be doubled and home-delivered in cash.
- There should be free water tankers supplying water in slum shanties throughout the working days.
- Double the PDS entitlement: Governments must double PDS entitlements, which includes protein-rich pulses, and distribute these free at doorsteps.
- Provide cooked and packed food: In addition, for homeless children and adults, and single migrants, it is urgent to supply cooked food to all who seek it, and to deliver packed food to the aged and the disabled in their homes using the services of community youth volunteers.
- Ensure prisons are safe: To ensure jails are safer, all prison undertrial prisoners, except those charged with the gravest crimes, should be released.
- Likewise, all those convicted for petty crimes. All residents of beggars’ homes, women’s rescue centres and detention centres should be freed forthwith.
Way forward
- Commit 3% of GDP on health: India must immediately commit 3% of its GDP for public spending on health services, with the focus on free and universal primary and secondary health care.
- Nationalise private healthcare: Since the need is immediate, authorities should follow the example of Spain and New Zealand and nationalise private health care.
- An ordinance should be passed immediately that no patient should be turned away or charged in any private hospital for diagnosis or treatment of symptoms which could be of COVID-19.
Conclusion
While one part of the population enjoys work and nutritional security, health insurance and housing of globally acceptable standards, others survive at the edge of unprotected and uncertain work, abysmal housing without clean water and sanitation, and no assured public health care. Can we resolve to correct this in post-COVID India? Can we at least now make the country more kind, just and equal?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Administrative changes in the state
- The Ministry of Home Affairs has promulgated the Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020, which comes into force with immediate effect.
- Earlier this month order for an adaptation of Central Laws was also promulgated. It ordered application of 37 central laws envisaged in the Concurrent List to the newly formed UT.
About the Order
- Issued by the Department of J&K and Ladakh Affairs, the Order stems from Section 96 of the J&K Reorganization Act, 2019.
- The Act was a consequence of the abrogation of Article 370 of the Constitution of India and it reorganized the State into two UTs.
- The Order notifies changes in the J&K Civil Services (Decentralization and Recruitment) Act (hereafter, “Civil Services Act”), which defines “domicile” for employment in the region
- Domicile Criteria
Under the newly inserted Section 3A of the Civil Services Act which is regarding domicile for purposes of appointment to any service in UT of J&K.A person will have to fulfill the following conditions to be deemed to be a domicile of the UT of J&K:
- She/he has to have resided for period of 15 years in the UT of J&K or has studied for a period of 7 years and appeared in Class 10th/12th examination in an educational institution located in the UT of J&K; or
She/he is registered as a migrant by the Relief and Rehabilitation Commissioner (Migrants) in the UT of J&K.
- Scope of Section 3A
- Children of those fulfilling the aforementioned conditions are also deemed to be included.
- Section 3A also goes on to include children of those Central Government Officials, All India Services Officers, Officials of PSUs and Autonomous body of Central Government, PSBs, etc. who have served in J&K for a total period of ten years.
- Additionally, it includes those children of such residents of UT of J&K who reside outside the UT of J&K in connection with their employment or business or other professional and vocational reasons, but the parents fulfill the conditions provided under Section 3A(1).
Job reservations
- Section 5A provides for the domicile reservation for the purpose of appointment of any post carrying a pay scale of not more than Level-04 under the UT of J&K or under local or any other (other than cantonment board) within the UT of J&K.
- Therefore, lowest level of non-gazetted rank jobs would be reserved exclusively for the Jammu and Kashmir domiciles.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Voluntary Retention Route (VRR), Fully Accessible Route (FAR)
Mains level: Not Much
The Reserve Bank of India (RBI) has introduced a separate channel, namely ‘Fully Accessible Route’ (FAR), to enable non-residents to invest in specified government bonds with effect from April 1.
Fully Accessible Route (FAR)
- The move follows the Union Budget announcement that certain specified categories of government bonds would be opened fully for non-resident investors without any restrictions.
- Under FAR, eligible investors can invest in specified government securities without being subject to any investment ceilings.
- This scheme shall operate along with the two existing routes, viz., the Medium Term Framework (MTF) and the Voluntary Retention Route (VRR).
Benefits
- This will substantially ease access of non-residents to Indian government securities markets and facilitate inclusion in global bond indices.
- This would facilitate inflow of stable foreign investment in government bonds.
Back2Basics
Voluntary Retention Route (VRR)
- RBI had announced a separate scheme called VRR to encourage Foreign Portfolio Investors (FPIs) to undertake long-term investments in Indian debt markets.
- Under this scheme, FPIs have been given greater operational flexibility in terms of instrument choices besides exemptions from certain regulatory requirements.
- The details are as under:
- The aggregate investment limit shall be ₹ 40,000 crores for VRR-Govt and ₹ 35,000 crores for VRR-Corp.
- The minimum retention period shall be three years. During this period, FPIs shall maintain a minimum of 75% of the allocated amount in India.
- Investment limits shall be available on tap for investments and shall be allotted by Clearing Corporation of India Ltd. (CCIL) on ‘first come first served’ basis.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Foreign Trade Policy 2015-20
The Union Commerce and Industry Ministry has announced changes in India’s Foreign Trade Policy (FTP). The Govt. has decided to continue relief under various export promotion schemes by granting an extension of the existing Policy.
Foreign Trade Policy 2015-20
- It provided a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in keeping with the “Make in India” vision of Prime Minister.
- The focus of the new policy is to support both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business’.
- It described the market and product strategy and measures required for trade promotion, infrastructure development and overall enhancement of the trade ecosystem.
Features of the FTP
- Goods – Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kinds of duty scrips with varying conditions attached to their use.
- Duty-free scrips are paper authorisations that allow the holder to import inputs which are used to manufacture products that are exported, or to manufacture machinery used for producing such goods, without paying duty equivalent to the printed value of the scrip.
- For instance, a duty-free scrip valued at Rupees 1 lakh allows the holder to import goods without paying duty of up to Rupees 1 lakh on the goods.
- Under the new Foreign Trade Policy, all these schemes have been merged into a single scheme, namely the Merchandise Export from India Scheme (“MEIS“) and there is no conditionality attached to scrips issued under the MEIS.
- Services – The Served From India Scheme has been replaced with the Service Exports from India Scheme (“SEIS“).
- SEIS is stated to apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
- Therefore, SEIS rewards to all service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.
- Special Economic Zones – The policy outlines extended incentives for Special Economic Zones in India
- Export Houses – The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been simplified and changed to One, Two, Three, Four and Five Star Export House.
- Status Holders – Business leaders who have excelled in international trade and have successfully contributed to India’s foreign trade are proposed to be recognized as Status Holders and given special privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.
- Resolving Complaints – In an effort to resolve quality complaints and trade disputes between exporters and importers, a new chapter on Quality Complaints and Trade Disputes has been incorporated into the Foreign Trade Policy.
- There would be no conditionality attached to any scrips issued under these schemes.
- For grant of rewards under MEIS, the countries have been categorized into 3 Groups, whereas the rates of rewards under MEIS range from 2% to 5%.
- Under SEIS the selected Services would be rewarded at the rates of 3% and 5%.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Lockdown is not an end in itself, allowing the movements of goods and operations of industrial units should be considered.
Context
Economy is a living machine — cannot be simply turned off and on. Even in lockdown, it needs to be kept alive.
Movement of goods exempted
- Essential and non-essential distinction removed: It is, welcome that the Centre has now exempted transportation of all goods from the lockdown’s provisions, without distinction of “essential” and “non-essential”.
- When goods aren’t the culprit — it didn’t make sense, in any case, to allow bureaucrats and local authorities to decide what is essential and hold up trucks carrying material deemed non-essential.
- One cannot expect officials or state border police to have intimate knowledge of production processes and inputs that go into every good, essential or otherwise.
- The purpose of a lockdown is to minimise physical human interaction and maintain social distancing even if people have to meet.
- Blocking movement of goods, far from achieving that objective, only results in overcrowding and snarls at check posts.
How allowing Industrial establishment to operate matters?
- Allowing industrial establishment to operate: There’s no reason why even industrial establishments cannot be permitted to run during the lockdown.
- Again, it shouldn’t matter whether these units are producing essential or non-essential goods. What matters is only social distancing.
- Right step by the Punjab government: The Punjab government has taken the right step of permitting all factories in the state to resume operations, subject to their being able to provide in-house lodging, food and medical facilities to workers and ensure no overcrowding at the plant.
- Mass exodus could have been avoided: Most factories today, whether in Punjab, Haryana and Delhi or Maharashtra, Gujarat and Tamil Nadu, are manned by migrant labourers from Bihar, Uttar Pradesh and other eastern states.
- Had measures to retain this workforce within or close to the premises of factories been in place — instead of a blanket order to shut down — the current situation of a mass exodus of labourers and the attendant risk of COVID-19 transmission may have been avoided.
- Difficulty in getting the labour back: It isn’t going to be easy for the closed units to get this labour back even when the lockdown ends.
Conclusion
- The economy needs to be kept alive: An economy is ultimately a living machine — one that cannot simply be turned off and on. Even in lockdown, it needs to be kept alive and whirring.
- Difficulty in resumption: The danger from mechanically ordered closure of activities is that resumption becomes difficult. Rebuilding broken supply chains is easier when things are allowed to run even if at low key so that the system can respond when demand returns.
- Lockdown is not an end in itself: Combating COVID-19 should obviously be the government’s top priority now. Lockdown is a necessary part of that strategy, but cannot be an end in itself. It is necessary primarily for social distancing, which can also be achieved without bringing the wheels of commerce to a complete halt.
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The Department of Telecommunications (DoT) has shared a Standard Operating Procedure (SOP) with all telecom service providers regarding the application called COVID-19 Quarantine Alert System (CQAS).
- CQAS collects phone data, including the device’s location, on a common secured platform and alerts the local agencies in case of a violation by COVID patients under watch or in isolation.
Quarantine Alert System (CQAS)
- Developed By: The DoT and the Centre for Development of Telematics (C-DOT), in coordination with telecom service providers, have developed and tested the application.
- Working: The CQAS prepares a list of mobile numbers, segregates them on the basis of telecom service providers, and the location data provided by the telecom companies are run on the application to create geo-fencing.
- Geo-fencing is a location-based service in which an app or other software uses GPS, RFID, Wi-Fi or cellular data to trigger a pre-programmed action when a mobile device or RFID tag enters or exits a virtual boundary set up around a geographical location, known as a geofence.
- Geo-fencing will only work if the quarantined person has a mobile phone from Airtel, Vodafone-Idea or Reliance Jio, as “BSNL/MTNL” do not support location-based services. BSNL and MTNL are government-owned.
- The location information is received periodically over a secure network for the authorised cases with “due protection of the data received”.
- The System triggers e-mails and SMS alerts to an authorised government agency if a person has jumped quarantine or escaped from isolation, based on the person’s mobile phone’s cell tower location. The “geo-fencing” is accurate by up to 300 m.
Use of Powers under the Indian Telegraph Act, 1885
- The Centre is using powers under the Indian Telegraph Act to “fetch information” from telecom companies every 15 minutes to track COVID-19 cases across the country.
- The States have been asked to seek the approval of their Home Secretaries under the provisions of Section 5(2) of the Indian Telegraph Act, 1885, for the specified mobile phone numbers to request the DoT to provide information by email or SMS in case of violation of “geo-fencing”.
- Section 5(2) authorises State or Centre to access information of a user’s phone data in case of “occurrence of any public emergency or in the interest of the public safety.”
Protection of Data
- As per the SOP, the phone number should be deleted from the system after the period for which location monitoring required is over and the data would be deleted four weeks from thereon.
- The data collected shall be used only for the purpose of Health Management in the context of COVID-19 and is strictly not for any other purposes. Any violation in this regard would attract penal provisions under the relevant laws.
Centre for Development of Telematics
- C-DOT was established in August 1984 as an autonomous Telecom R&D Centre of DoT.
- It is a registered society under the Societies Registration Act, 1860.
- It is a registered ‘public-funded research institution’ with the Department of Scientific and Industrial Research, Ministry of Science & Technology.
Global Positioning System
- The Global Positioning System is a Global Navigation Satellite System (GNSS), used to determine the ground position of an object.
- It is a US-owned utility that provides users with Positioning, Navigation, and Timing (PNT) services.
Radio-Frequency Identification
- Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object.
- A tag can be read from up to several feet away and does not need to be within the direct line-of-sight of the reader to be tracked.
Wi-Fi
- Wi-Fi is the name of a wireless networking technology that uses radio waves to provide wireless high-speed Internet and network connections.
- WiFi network enables a connection between two or more devices wirelessly for data sharing purposes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IHR- International Health Regulations.
Mains level: Paper 2- India needs to make international law a keystone of its diplomacy.
Context
A resolution has been moved in the US Senate calling on the international community to inquire into the origins of the virus in China’s Wuhan province. Delhi could learn a trick or two from Beijing on how to make international law the keystone of India’s diplomacy, especially in the multilateral domain.
Fixing responsibility for the outbreak on China
- Compensation demand: Lawyers and activists have begun to sue China in US courts demanding compensation. Politicians are not far behind.
- The U.S. Senate resolution: A resolution has been moved in the US Senate calling on the international community to inquire into the origins of the virus in China’s Wuhan province, quantify the damage inflicted on the rest of the world, and design a mechanism of reparations from Beijing.
- Basis of the demand for compensation: The case for China’s culpability is based on the principles of state responsibility and Beijing’s alleged failure to respect the obligation, under the 2005 International Health Regulations (IHR), to notify the world on the outbreak of the epidemic.
- Is the basis valid? Many international jurists dismiss these claims by citing the principles of sovereign state immunity, the lack of precedent in holding states to account for the spread of infectious disease beyond their borders and the absence of provisions for reparations under the IHR.
The interplay between legality, moralpolitik and geopolitics
- Gulliver and Lilliputs of the world: On the face of it, China is too much of a Gulliver to be tied down by legal Lilliputs.
- The Legalpolitik: Before we dismiss international law as not real law, “legalpolitik” can put some real pressure on big nations and contribute to the power play among them.
- Role of public opinion: As public opinion began to intrude into diplomacy over the last two centuries, legality and moralpolitik have become an integral part of geopolitics.
Difficulty in proving the case against China
- The cost of a pandemic: Most world leaders know, whether they say it aloud or not, the international costs of the pandemic could have been far lesser if China had acknowledged the spread of the virus from Wuhan early on and informed other countries.
- It is one thing to know but entirely another to prove it under the law.
- The pursuit of claims is a waste of time: Most governments believe the pursuit of claims against Beijing is a waste of time.
- Political heft of China: If Beijing can make the World Health Organisation toe its line and prevent the rest of the world, including US President Donald Trump, from describing COVID-19 as the “China Virus”, it is unlikely to be impressed by a few legal impresarios from the West.
- Precedence of defying the law: After all, China had dismissed the unanimous verdict of the International Court of Justice in 2016 on Beijing’s territorial claims over the South China Sea.
- Beijing did not even bother to appear in the case filed by the Philippines.
- China had simply declared that the ICJ has no jurisdiction in the matter.
The relation between power and law in international relations
- Power prevails: That power tends to prevail over law is certainly truer in international relations than domestic politics.
- Law in the domestic domain: In the domestic domain, the state as the highest authority compels citizens to abide by the law, with force if necessary.
- Law in the international arena: In the international arena, no single actor has a monopoly over the instruments of force.
- We have multiple sovereigns but no “world government” that can compel deviant states to conform to rules.
Role of the UNSC
- In theory, the members of the UN Security Council can authorise coercion — in the form of economic sanctions or military force.
- This, in turn, involves building a consensus among major powers, including the five permanent members of the UNSC who wield a veto.
- In reality, then, the UNSC can’t act against one of the five permanent members.
- Beijing, which was so eager to get the UNSC to discuss the situation in Jammu and Kashmir since last August, has simply blocked all suggestions for a discussion on the corona crisis in recent days.
Are laws meaningless in the global arena?
- Legal narratives have the weight of their own: While outcomes in international conflicts tend to be defined by power, the international discourse on any conflict today is framed in legal terms.
- Whether it is a conversation between a state and its citizen or among governments or in a country’s outreach to the global society, legal narratives have a weight all of their own.
- Delhi, for example, has struggled in recent days to counter the global interpretation of its domestic actions.
- Importance of legal argument: Winning the legal argument, China has learnt from the history of great power relations, is very much part of great power jousting.
- The negative lessons are from the Soviet Union that dismissed the Western legal arguments during the Cold War as based on the logic of capital and empire.
- That did not convert many beyond the choir.
- The positive lessons are from Great Britain and the United States.
- The enduring Anglo-Saxon hegemony is rooted not just in economic and military power. It has always been underwritten by a powerful legal tradition that shapes the global narrative on most issues.
- China developing own narrative: As it mounts a massive propaganda offensive against the US on the corona crisis, China’s state lawyers have filed a case in the Wuhan Intermediate People’s Court last week accusing various US government agencies of covering up the origin of the coronavirus.
- China’s own narrative: It is no longer about China defending against a powerful international narrative; it is developing one of its own.
Conclusions
- 1. Make international law keystone of diplomacy: India has been at the receiving end of China’s legalpolitik — most recently on the quest for the membership of the Nuclear Suppliers Group and the constitutional changes in Kashmir.
- Delhi could learn a trick or two from Beijing on how to make international law the keystone of India’s diplomacy, especially in the multilateral domain.
- 2. Reinvest in the geo-legal arts: If China could emulate US and Britain on leveraging legalpolitik for strategic ends, India should not find it too hard to reinvest in the geo-legal arts that Delhi inherited from the Anglo-Saxons but seems to have lost along the way.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Regulation of private sector to deal with the COVID-19.
Context
The current COVID-19 crisis that India is battling has brought into sharp focus the public health system’s inadequacy to cope with it.
Contradictory scenario between public and private healthcare delivery
- The contrast between public and private: Hospitals with state-of-the-art equipment rivalling five-star hotels in their facilities are mushrooming mostly in cities even as the overburdened public hospitals are valiantly fighting to cope.
- Dismal picture in rural areas: As far as the rural areas are concerned, the community health centres and primary health centres and sub-centres present an even more dismal picture in terms of availability of medicine stock, trained para-medical staff, and doctors and nurses.
- However, it is not as if urban hospitals offer patients excellent care. A common and widely held general misperception is that the private healthcare system is better than the public one.
- Why private is not always better? Complaints of non-transparent billing, demanding exorbitant sums in advance even in a medical emergency, and cutting corners in services are all too familiar, as are cases of the denial of services.
- In semi-rural areas and towns, the private sector is not necessarily similar to hospitals in cities.
- The private hospitals in these areas are small and have basic infrastructure and limited medical and non-medical staff. Unlike the cities, the power and water supply in these areas also constitute a problem to the functioning of these hospitals.
Problems in the public healthcare system
- Within the public sector health system, there are a number of trends again that add to the dismal picture.
- A high number of patients: Doctors in the public hospitals deal with an overwhelming number of patients majorly from the poor and marginalised sections.
- Issue of contractual staff: Health activists have also pointed out that the growing trend of contractual hiring of paramedical and allied staff leads to an insecurity among them, and thus affects overall caregiving to patients.
- Consequently, the poor patients’ families, frustrated by the lack of infrastructure and services, turn their anger upon the doctors and nurses.
- What are the implications? The constant vilification of the public hospital staff coupled with starving these hospitals of resources has led to the view that the private hospitals are “much better” despite their exorbitant rates.
State-wise variation in healthcare
- States subject: Health is a state subject, and it is well known that the health delivery systems are not uniform across states.
- Kerala a role model: Kerala is often held up as a role model generally, and even now in the manner in which it has dealt with the COVID-19 crisis.
- The dismal system in North India: As it is, certain states in North India have abysmal healthcare systems, and a couple does not have any testing facilities, the media has reported.
Getting the private sector involved in COVID-19 testing
- Undoubtedly, at present, the private sector must be involved in screening, tests and treatment for COVID-19.
- The highly trained professionals in this sector can contribute enormously by helping scale up the testing efforts.
- Importance of large-scale testing: In South Korea too, it was large-scale testing that was instrumental in reducing mortality rates.
- The pricing issue: Services across sectors must not be priced differently at a time like this. The media has reported that there is a difference of opinion between the government and private sector on the price of COVID-19 tests flowing from the prices of test kits.
- Need for the protocol: A clear and non-negotiable protocol for the private sector must be established regarding the present crisis and how the government is going to help financially and otherwise in dealing with it.
Way forward
- Regulate the testing, screening and treatment facilities: The experience with the government offering subsidies to hospitals, especially in urban areas in terms of land and other concessions, has not borne out desired objectives such as better care for the poor.
- Taking a cue from this, the testing, screening, and treatment facilities must be regulated in terms of pricing and quality.
- Focus on strengthening the public health system: The Supreme Court has held healthcare to be a fundamental right under Article 21. The biggest lesson of the current crisis is that political will must focus on strengthening the public health system.
Conclusion
The finance minister has announced a package of `1.7 lakh crore to deal with this catastrophic situation. This is welcome, but long-term resource allocation to invigorate the public health system must be a continual and parallel process.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FRBM Act
Mains level: Read the attached story
Kerala CM has urged the Centre to provide Kerala with flexibility under the Fiscal Responsibility and Budget Management (FRBM) Act so as to ensure that the State’s finances are not adversely impacted.
FRBM Act
- The FRBM is an act of the parliament that set targets for the Government of India to establish financial discipline, improve the management of public funds, strengthen fiscal prudence and reduce its fiscal deficits.
- It was first introduced in the parliament of India in the year 2000 by Vajpayee Government for providing legal backing to the fiscal discipline to be institutionalized in the country.
- Subsequently, the FRBM Act was passed in the year 2003.
Features of the FRBM Act
- It was mandated by the act that the following must be placed along with the Budget documents annually in the Parliament:
- Macroeconomic Framework Statement
- Medium Term Fiscal Policy Statement and
- Fiscal Policy Strategy Statement
Fiscal Indicators
It was proposed that the four fiscal indicators be projected in the medium-term fiscal policy statement viz.
- Revenue deficit as a percentage of GDP,
- Fiscal deficit as a percentage of GDP,
- Tax revenue as a percentage of GDP and
- Total outstanding liabilities as a percentage of GDP
Why is Kerala seeking flexibility under the FRBM?
- Kerala was one of the earliest States to announce an economic package of ₹20,000 crore to mitigate the impact on livelihoods and overall economic activity.
- Kerala’s current fiscal position means that it can borrow about ₹25,000 crore during the financial year 2020-21.
- However the State government is understandably concerned that the stringent borrowing cap under the fiscal responsibility laws should not constrain its borrowing and spending ability over the remaining 11 months.
- This is a crucial period when the state would have to meet other expenditure for routine affairs related to the running of the State’s socio-economic programmes as well as the post pandemic recovery.
How does a relaxation of the FRBM work?
- The law does contain what is commonly referred to as an ‘escape clause’.
- Under Section 4(2) of the Act, the Centre can exceed the annual fiscal deficit target citing grounds that include national security, war, national calamity, collapse of agriculture, structural reforms and decline in real output growth of a quarter by at least three percentage points below the average of the previous four quarters.
- The ongoing pandemic could be considered as a national calamity.
- This would allow both the Union government and States including Kerala to undertake the much-needed increases in expenditure to meet the extraordinary circumstances.
When have the FRBM norms been relaxed in the past?
- There have been several instances of the FRBM goals being reset.
- But the most significant FRBM deviation happened in 2008-09, in the wake of the global financial crisis, when the Centre resorted to a focused fiscal stimulus: tax relief to boost demand and increased expenditure on public projects.
- This was aimed to create employment and public assets, to counter the fallout of the global slowdown.
- This led to the fiscal deficit climbing to 6.2%, from a budgeted goal of 2.7%.
- Simultaneously, the deficit goals for the States too were relaxed to 3.5% of GSDP for 2008-09 and 4% of GSDP for fiscal 2009-10.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sodium hypochlorite, Bleaching Powder
Mains level: Coronovirus outbreak and its mitigation
In Uttar Pradesh, migrant workers travelling to their home states, or their belongings, were sprayed with a disinfectant, apparently to sanitise them. The chemical in the spray was a sodium hypochlorite solution.
Sodium hypochlorite
- Sodium hypochlorite is commonly used as a bleaching agent, and also to sanitise swimming pools.
- As a common bleaching agent, sodium hypochlorite is used for a variety of cleaning and disinfecting purposes.
- It releases chlorine, which is a disinfectant. Large quantities of chlorine can be harmful.
- The concentration of the chemical in the solution varies according to the purpose it is meant for.
- A normal household bleach usually is a 2-10% sodium hypochlorite solution.
- At a much lower 0.25-0.5%, this chemical is used to treat skin wounds like cuts or scrapes. An even weaker solution (0.05%) is sometimes used as a handwash.
Note: The common bleaching powder is chemically referred to as Calcium hypochlorite and not Sodium hypochlorite.
Is the chemical safe?
- Sodium hypochlorite is corrosive and is meant largely to clean hard surfaces.
- It is not recommended to be used on human beings, certainly not as a spray or shower. Even a 0.05% solution could be very harmful for the eyes.
- A 1% solution can cause damage to the skin of anyone who comes in contact with it.
- If it gets inside the body, it can cause serious harm to lungs.
Does the chemical get rid of the novel coronavirus?
- The WHO recommends homemade bleach solutions of about 2-10% concentration to clean hard surfaces to clear them of any presence of the novel coronavirus.
- Cleaning hard surfaces with this solution can disinfect them not just from novel coronavirus but also help prevent flu, food born illnesses, and more.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Moratorium Option
Mains level: Not Much
The RBI has permitted banks to allow moratorium of three months on payment of instalments in respect of all loans including home, car and personal loan among others.
What exactly this moratorium means?
- Both the loan principal and interest are covered under the moratorium. This applies to all loans outstanding on March 1.
- We must note that this is a postponement, not a waiver.
- RBI’s wordings clearly say that the tenor for term loans across the board may be shifted by three months. This essentially means the loan will end 3 months later than was originally slated.
- Essentially, it means that payees won’t be treated as a defaulter even if you don’t pay your EMI till May 2020, and your CIBIL score won’t be affected.
- This moratorium period will not come free, and since the interest will continue to accrue on the outstanding portion of the loan during the moratorium period, it may increase the customers’ burden significantly.
The installments include:
- principal and/or interest components;
- bullet repayments;
- Equated Monthly installments;
- credit card dues
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Earth Hour
Mains level: Climate activism
The Earth Hour, observed annually on the last Saturday of March, was recently celebrated.
Earth Hour
- Earth Hour is a worldwide movement organized by the World Wide Fund for Nature (WWF).
- It is held annually encouraging individuals, communities, and businesses to turn off non-essential electric lights, for one hour, from 8:30 to 9:30 p.m. on a specific day towards the end of March as a symbol of commitment to the planet.
- It was started as a lights-off event in Sydney, Australia, in 2007.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- International cooperation to deal with the coronavirus is a need of the hour.
Context
The coronavirus’s flight across the world at lightning speed has exposed the total void in collective leadership at the global level.
No global plan of action to combat the virus
- No plan of action: Three months into the catastrophic war declared by an invisible virus, there is as yet no comprehensive, concerted plan of action, orchestrated by global leaders.
- The G20 meeting: The G20 has just had a virtual meeting, at the prodding of Prime Minister Narendra Modi.
- $ 5-trillion into the world economy: It is encouraging to learn that the G20 leaders have agreed to inject $5-trillion into the world economy to partially counter the devastating economic impact of the pandemic. This is indeed good news.
- Need to do more: But taking collective ownership to fight a global war against the virus will require a lot more than writing cheques.
SAARC meeting stands out in the world
- Pandemic is not treated as a common enemy: World leaders are obviously overwhelmed with their own national challenges and do not appear inclined to view the pandemic as a common enemy against mankind, which it is.
- Delay in reporting by China: China delayed reporting the virus to the World Health Organisation (WHO), and perhaps, contributed to the exacerbation of the spread of the virus across the globe.
- Unilateral suspension of flight by the US: It was reported that the Trump administration did not even inform the European Union before it shut off flights from Europe.
- Why the SAARC meeting stands out? It must be acknowledged that the initiative taken by Mr Modi in the early days to convene a meeting of South Asian Association for Regional Cooperation countries stands out in contrast to the pusillanimous leadership around the world.
Need for leaders of nations to come together for collective global action.
- Pandemic to persist: There is no evidence that, at the global level, the pandemic has abated yet and would be brought under control soon.
- Massive lockdown, not a solution: To imagine that nations would be able to tame the virus soon with massive shutdowns might be just wishful thinking.
- National shutdowns and physical distancing have been a challenge not only in the United States and some European countries, but it would also be more so in populous countries such as India.
- At any rate, such lockouts come at enormous economic and social costs.
- The utility of long suspension of international travel: As long as the virus is alive in some corner of the world, it would resume its travel across the world the moment international travel restrictions are relaxed.
- Is it realistic to imagine that international travel will remain suspended until the last virus alive on this planet is extinguished?
- This is a war. A good war against a bad enemy, and a common enemy, that respects no borders.
- It is a global challenge to be fought by collective global leadership: If this global challenge is not a battle to be fought by a collective global leadership, nothing else is.
- And yet, the typical response by all affected nations has been to impose ‘National distancing’ by closing borders.
- While this is no doubt, a most appropriate response, there is a much bigger and emergent need for leaders of nations to come together for collective global action.
Two reasons for the lack of collective global action
- 1. Right-wing nationalism: The swing towards right-wing nationalism, as a guiding political ideology, in large swathes of the world, particularly in the U.S.
- This ideology posits ‘global good’ being in conflict with and inimical to national interests.
- 2. Ineffectiveness of the multilateral institutions: The United Nations was the outcome of the shared vision of the world leaders after World War II, that collective action is the only way forward to prevent the occurrence of another war.
- That institution has notoriously failed to live up to its expectations to maintain peace among nations in the nearly 80 years since its formation.
- Its affiliate organisations have, in several ways, failed to deliver on their lofty missions.
- In particular WHO has proven to be too lethargic in reacting to pandemics in the past.
- Its responses to COVID-19 has come under the scanner, not merely for incompetence, but also for lack of intellectual integrity.
G-20 offers hope
- A nimble outfit, not burdened with bureaucracy, is required to manage a global crisis of the nature that we are confronted with, today.
- The G20, with co-option of other affected countries, itself might serve the purpose for the present.
- What the global leadership must acknowledge: What is important is for the global leaders to acknowledge what every foot soldier knows: winning a war would require the right strategy, rapid mobilisation of relevant resources and, most importantly, timely action.
- The following actions should come out of such a collective-
- 1. Dealing with the shortages: The collective should ensure that shortages of drugs, medical equipment and protective gear do not come in the way of any nation’s capacity to contain or fight the pandemic.
- Assistance from other countries: It is very likely that some nations that have succeeded in bringing the pandemic under control, such as China, Japan or South Korea, might have the capability to step up production at short notice to meet the increasing demand from other countries which are behind the curve.
- Development of information exchange: This would typically involve urgent development of information exchange on global production capacity, present and potential, demand and supply.
- This is not to mean that there should be centralised management, which is not only infeasible but counterproductive, as the attendant bureaucracy will impede quick action.
- A common information exchange could restrain the richer countries from predatory contracting of global capacities.
- 2. Protocol among participant countries: Protocols might need to be put in place among participating countries to ensure seamless logistics for the supply chain for essential goods and services to function efficiently.
- This might be particularly necessary in the context of controls on international traffic and national shutdowns.
- There would need to be concomitant accord to eliminate all kinds of tariff and non-tariff barriers.
- 3. Exchange of information: There needs to be an instantaneous exchange of authenticated information on what clinical solutions have succeeded and what has not.
- A classic example is an issue relating to hydroxychloroquine, which is being used experimentally, bypassing the rigours of randomised clinical trials.
- While there is no substitute to classic clinical proof, the more field-level information is shared within the medical community, the better will be the success rates of such experimentation.
- 4.Cross country collaboration on the trials: This is a time to have cross-country collaboration on laboratory trials and clinical validation for vaccines and anti-viral drugs.
- It must be acknowledged that WHO has already moved on this issue, although, perhaps, belatedly.
- The best way to ensure speedy research is to pool global resources.
- This attempt to collaborate might also bring in its wake an acceptable commercial solution that adequately incentivises private research while ensuring benefits being available to the entire world at affordable costs.
- Such a framework might be necessary for sustained collaborations for future challenges.
- 5. Easy movement of trained health professionals: There is a need to facilitate easy movement of trained health professionals across the world to train others and augment resources wherever there are shortages.
- In other words, nations should come together to organise a global army to fight the pandemic, equipped with the best weapons and tools.
- 6. The anticipation of food shortages: We must anticipate food shortages occurring sooner or later, in some part of the world, consequent to the national shutdowns.
- Ironically, while we might have saved lives from the assault of the novel coronavirus, we might run the risk of losing lives to starvation and malnutrition, somewhere in the world if we do not take adequate precautions.
- This requires not only coordinated global action; it would also turn out to be the test of global concern for mankind in general.
Reconstruction of the global economy
- Devastation no less than after the world war: Eventually, there is no doubt that human talent will triumph over the microscopic virus. But the economic devastation, that would have been caused as a result will be no less than the aftermath of a world war.
- What should the reconstruction of economy involve? An orderly reconstruction of the global economy, which is equitable and inclusive, will eventually involve renegotiating terms of trade among key trading blocs, concerted action among central bankers to stabilise currencies, and a responsible way to regulate and manage global commodity markets.
Conclusion
Does India have the power to awaken the conscience of the Superpowers and catalyse collective global action? Remember, historically, it is always the weakling or the oppressed, who have caused transformational changes in the world order.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Essential Services Maintenance Act.
Mains level: Paper 3- Managing the agriculture and livestock sector.
Context
Amid lockdown, we need an action plan to manage our agriculture, livestock sectors.
Need for an immediate action plan to manage the agriculture and livestock sector
- The country produces around 52 crore litres of milk daily.
- There are also 80 crore-odd live poultry, both broilers and layers, at any given time, supplying meat and eggs to consumers.
- Link with the other producers: These birds and animals, in turn, support the livelihoods of poultry and dairy farmers, as well as those producing maize, soybean, mustard, groundnut, cotton and other coarse grains that are ingredients for livestock feed.
- It is the government’s responsibility to ensure that farmers are able to keep their animals alive and market the crop that has been, or will be, harvested during the lockdown period.
- We need an immediate action plan to manage our agriculture and livestock sectors in the interest of both producers and consumers.
Issue of implementation
- Ensuring free movements: The first thing is to ensure free movement of farm produce, livestock feed and veterinary medicines.
- Implementing the already taken decision: It is obvious that not all issues can be addressed overnight. But the minimum the government can do is to ensure ground-level implementation of already-taken decisions.
- The problem of implementation: Many essential services, for instance, were kept out of the purview of the lockdown. Food, feed and agricultural inputs have been specifically notified as essential services.
- But there are several problems at the level of implementation that are coming to notice.
- The Centre has issued various directives/notifications, many of them brief and general in nature.
- Many of these have either not reached the local authorities and police personnel or are not clearly worded. As a result, the smooth movement of essential items has been affected.
- There are also reports of conflict between the police and citizens, including people involved in the transportation and delivery of food as well as inputs to farms.
- Why good food supply line matters? The government must do to ensure that people don’t go hungry and the measures it must take to make sure people don’t crowd a few outlets, increasing the chances of the virus spreading.
- The government has announced that the beneficiaries of the public distribution system can avail three months’ ration at one go.
- The challenge of delivery: The challenge is to ensure that fair price shops deliver the provisions in an orderly manner and their supply lines remain intact.
Issue of poultry and maize farmers
- Sharp fall in poultry items: In such times, prices of essential food items are known to shoot up. But in India, prices of food items like chicken meat and eggs have registered a sharp fall.
- In Delhi’s Gazipur Mandi, for example, the price of broiler chicken has fallen from Rs 55/kg in January 2020 to Rs 24/kg in March.
- This has also pushed the maize prices down as poultry is largely fed packaged maize.
- The government may have to think of compensating poultry and maize farmers in due course.
Suggestions for improving the implementation issue
- Issue a single notification: The Centre must issue a single notification relating to food items in a standard format and uniform language so that all ambiguities are removed.
- This needs to be finalised after consultations with the stakeholders and the state governments can release it to officials working at the grassroots.
- The focus should be to address the problems arising from restrictions on the transport — between and within states — of agri-produce and inputs related to them.
- Invoke the ESMA: Another suggestion is that the Essential Services Maintenance Act (ESMA) be invoked for the delivery of all essential services relating to food to prevent disruption of supplies.
- Home delivery option: Home (street) delivery of these provisions, to avoid crowding, is a good option.
- Roping in civil society: This is also an occasion to rope in civil society. NGOs, resident welfare associations, religious organisations and paramilitary forces can be engaged for orderly and safe distribution of food — both pre-cooked and fresh.
- NGOs with experience in food preparation and distribution, such as Akshaya Patra, could guide local authorities.
- People involved in this endeavour should be provided with safety gears.
- The challenge of supplying perishables: These perishables-like fruits, vegetables and milk- must be sold in a packaged form in mobile vans. The weekly markets need to be temporarily suspended lest they spread the virus.
- Vegetable vendors can work with civil society organisations as well as e-commerce players to do this job in a safe manner.
- Retail distribution lines: Retail distribution lines need to be seamlessly linked to wholesale supply lines.
- How to manage rabi season procurement? Procurement operations for rabi crops are around the corner.
- Training and safety measures: The FCI and other procuring agencies need to be trained about safety measures and supplied safety gear.
- Providing incentives to farmers for staggered selling: Farmers could be given Rs 50/quintal per month as an incentive to stagger bringing their produce to the market — say after May 10.
- They will also need to be screened, given training and equipped with safety gear.
Suggestions to prevent post-lockdown chaos
- What will happen after the lockdown ends? Many plants are now shut or working at low capacity utilisation. Consumption by hotels and other institutions, too, is low. Nor is any export or import happening. But once the lockdown ends, there will be a rush to procure raw material, trucks and rail rakes.
- Smooth recovery: Smooth recovery from the lockdown is as important as managing supplies during the lockdown.
- Here are a few suggestions to ensure that the common man does not have to suffer hardships during and after the lockdown:
- First– Place all food items, agri-inputs, packaging material and transport services under ESMA for a six-month period to prevent profiteering.
- The MRP that was applicable in February should remain till October.
- In the case of farm produce, it helps that we are looking at a bumper crop, which makes it all the more necessary to ensure its smooth marketing.
- Second-Suspend APMC (agricultural produce market committee) laws for the next six months.
- Traders with APMC licence are bound to act as cartels during rush hour, which will hurt both farmers and consumers.
- Third-ESMA should apply to all utilities and transport services. State governments can make exemptions on a case to case basis: These exemptions should be subject to public scrutiny under the Right to Information Act.
- The government should announce the above measures well in advance.
Conclusion
The government must start planning now to prevent post-lockdown chaos, especially profiteering in the event of shortages. Smooth recovery from the lockdown is as important as managing supplies during the lockdown.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Ensuring the food supply lines are not disrupted in the lockdown and suggestions to ensure it.
Context
The government must ensure that people don’t go hungry and take measures to make sure that people don’t crowd a few outlets, increasing the chances of the virus spreading.
Need for the package to compensate losses
- Welfare package: The government has announced relief measures. Last week, the Finance Minister announced a welfare package of Rs 1.7 lakh crore.
- This is too small to cope with the onslaught of the virus.
- How much a comprehensive package would cost? A package to compensate all losses, including business losses, should amount to at least Rs 5 to 6 lakh crore, if not more.
- How will the government find funds for this package?
- Funds accrued as a result of oil price crash: The windfall gains that have accrued to it as a result of the crash in crude oil prices could come in handy.
- Diver all the subsidies and development funds: The government could divert all subsidies and some development funds to fund this package and ask the country’s corporate leaders to help with funds.
- Issue clarion call for voluntary donation: The prime minister could even issue a clarion call to those with a fixed income (say above Rs 50,000/month) to voluntarily donate at least 10 per cent of their salaries to fund the battle against the virus.
Focus on supply lines of food and ways to achieve it
- Why good food supply line matters? The government must do to ensure that people don’t go hungry and the measures it must take to make sure people don’t crowd a few outlets, increasing the chances of the virus spreading.
- The government has announced that the beneficiaries of the public distribution system can avail three months’ ration at one go.
- The challenge of delivery: The challenge is to ensure that fair price shops deliver the provisions in an orderly manner and their supply lines remain intact.
- Home delivery option: Home (street) delivery of these provisions, to avoid crowding, is a good option.
- Roping in civil society: This is also an occasion to rope in civil society. NGOs, resident welfare associations, religious organisations and paramilitary forces can be engaged for orderly and safe distribution of food — both pre-cooked and fresh.
- NGOs with experience in food preparation and distribution, such as Akshaya Patra, could guide local authorities.
- People involved in this endeavour should be provided with safety gears.
- The challenge of supplying perishables: These perishables-like fruits, vegetables and milk- must be sold in a packaged form in mobile vans. The weekly markets need to be temporarily suspended lest they spread the virus.
- Vegetable vendors can work with civil society organisations as well as e-commerce players to do this job in a safe manner.
- Retail distribution lines: Retail distribution lines need to be seamlessly linked to wholesale supply lines.
- Buffer stocks: The government godowns are overflowing with wheat and rice — about 77 million metric tonnes (MMT) on March 1, against a buffer stock norm of 21.4 MMT on April 1.
- How to manage rabi season procurement? Procurement operations for rabi crops are around the corner.
- Training and safety measures: The FCI and other procuring agencies need to be trained about safety measures and supplied safety gear.
- Providing incentives to farmers for staggered selling: Farmers could be given Rs 50/quintal per month as an incentive to stagger bringing their produce to the market — say after May 10.
- They will also need to be screened, given training and equipped with safety gear.
Challenge of mandi operations for fresh produce in large mandis
- This pertains to mandi operations for fresh produce in large APMC mandis like Azadpur in Delhi and Vashi near Mumbai.
- These mandis are usually overflowing with fruits and vegetables and the labour force at these centres usually handles the produce without safety gears.
- The challenge of screening and providing safety kits to these workers is doubly daunting. The country is not fully prepared in this respect.
- The safety of workers in mandis — and other workers who handle agricultural produce — should be accorded as much priority as the safety of frontline health warriors.
- Suspend the APMC Act: We should also use this opportunity to suspend the APMC Act and encourage NGOs, civil society and corporate houses to directly procure from farmers.
Issue of poultry and maize farmers
- Sharp fall in poultry items: In such times, prices of essential food items are known to shoot up. But in India, prices of food items like chicken meat and eggs have registered a sharp fall.
- In Delhi’s Gazipur Mandi, for example, the price of broiler chicken has fallen from Rs 55/kg in January 2020 to Rs 24/kg in March.
- This has also pushed the maize prices down as poultry is largely fed packaged maize.
- The government may have to think of compensating poultry and maize farmers in due course.
Conclusion
When things settle, it will be worth knowing how the virus spread from Wuhan to Iran, Italy, Washington, India and other parts of the world. Which organisation or nation failed to blow the whistle and alert the world in time? Was it China’s failure? Or that of WHO? Or was it the failure of all governments around the world to respond quickly to the outbreak? We need better global governance for pandemics to avert the next crisis.
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