Note4Students
From UPSC perspective, the following things are important :
Prelims level: 'The Inequality Virus' Report
Mains level: Economic implications of COVID
The ‘Inequality Virus Report’ was recently released on the opening day of the World Economic Forum in Davos.
About the report
- The Inequality Virus Report was released by Oxfam.
- It inquired into different forms of inequities, including educational, gender and health during the pandemic.
Highlights of the report
‘Rise’ in wealth
- Indian billionaires increased their wealth by 35% during the lockdown to ₹ 3 trillion, ranking India after the U.S., China, Germany, Russia and France.
- The wealth of just the top 11 billionaires during the pandemic could easily sustain the MGNREGS or the Health Ministry for the next 10 years, stated the report.
- A person (no citation needed!) who emerged as the richest man in India and Asia, earned ₹90 crores an hour during the pandemic when around 24% of the people in the country were earning under ₹ 3,000 a month during the lockdown.
- The increase in his wealth alone could keep 40 crores, informal workers, out of poverty for at least five months, said the report.
Observations made
Health: Only 6% of the poorest 20% have access to non-shared sources of improved sanitation, compared to 93.4 % of the top 20 %.
Education: Till October, 32 crores students were hit by the closure of schools, of whom 84 % resided in rural areas and 70 %attended government schools. Dalits, Adivasis and Muslims were likely to see a higher rate of dropout. Girls were also most vulnerable as they were at risk of early and forced marriage, violence and early pregnancies, it noted.
Gender: Unemployment of women rose by 15% from a pre-lockdown level of 18 %, which could result in a loss of India’s GDP of about 8 % or ₹15 trillion. Women who were employed before the lockdown were also 23.5 percentage points less likely to be re-employed compared to men in the post lockdown phase.
Recommendations
- It recommended reintroducing the wealth tax and affecting a one-time COVID-19 cess of 4% on taxable income of over ₹10 lakh to help the economy recover from the lockdown.
- According to its estimate, a wealth tax on the nation’s 954 richest families could raise the equivalent of 1% of the GDP.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IGN, UNSC
Mains level: India's agenda at UNSC
Seeking urgent reform of the United Nations Security Council (UNSC), India has highlighted the failure of the Intergovernmental Negotiations (IGN) since 13 years of its establishment.
Note various countries in the various groups.
What is the news?
- India, along with Brazil, Japan and Germany are pressing for urgent reform of the UNSC and for a permanent seat in the reformed 15-member top organ of the world body.
- India has said that the UNSC is finding itself unable to act effectively to address increasingly complex issues of international peace and security.
- The UNSC lacks inclusivity of those who need to be members of the powerful organ of the world body.
What is IGN?
- The Intergovernmental Negotiations framework or IGN is a group of nation-states working within the United Nations to further reform of the UNSC.
- The IGN is composed of several different international organizations, namely:
- African Union (55 member states)
- G4 nations (Brazil, Germany, India and Japan)
- Uniting for Consensus Group (UfC), also known as the “Coffee Club” (it aims to counter the bids for permanent seats proposed by G4 nations, includes Pakistan, Turkey, Canada, Spain and Italy)
- L69 Group of Developing Countries ( it includes developing countries from Africa, Latin America and the Caribbean, Asia and the Pacific)
- Arab League (six members: Egypt, Iraq, Jordan, Lebanon, Saudi Arabia, and Syria) and
- Caribbean Community ( a group of 15 member countries called CARICOM)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: WEF
Mains level: The Great Reset
This news card is an excerpt from the original article published in The Indian Express and is articulated by C. Raja Mohan.
The Great Reset
- The Great Reset is a proposal by the World Economic Forum (WEF) to rebuild the economy sustainably following the COVID-19 pandemic.
- It was unveiled in May 2020 by the United Kingdom’s Prince Charles and WEF director Klaus Schwab.
The basis for the said reset
- It is based on the assessment that the world economy is in deep trouble.
- Schwab has argued that the situation has been made a lot worse by many factors, including the pandemic’s devastating effects on global society, the un- folding technological revolution, and the consequences of climate change.
- He demands that the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions.
- Every country must participate, and every industry, from oil and gas to tech, must be transformed.
Agenda behind
The agenda of The Great Reset touches on many key issues facing the world a/c to C Raja Mohan. Three of them stand out as:
First is the question of reforming capitalism
- The WEF has been at the forefront of calling for “stakeholder capitalism” that looks beyond the traditional corporate focus on maximizing profit for shareholders.
Second, it is certainly right to focus on the deepening climate crisis
- Climate skeptics have been ousted from Washington and President Biden has rejoined the 2015 Paris accord on mitigating climate change.
The third is the growing difficulty of global cooperation
- The era of great power harmony that accompanied the liberalization of the global economy at the turn of the 1990s has yielded place to intense contestation. The contestation is not just political but increasingly economic and technological.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Climate Risk Index 2021
Mains level: Climate change vulnerability and the economics behind
India was ranked the seventh worst-hit country in 2019 in the Global Climate Risk Index 2021.
The report holds much significance for prelims as well as mains. Just for the sake of information, we must be aware of India’s performance.
Global Climate Risk Index
- The GCRI is released annually by the environmental think tank and sustainable development lobbyist Germanwatch.
- It analyses to what extent countries have been affected by the impacts of weather-related loss events (storms, floods, heat waves etc.).
- It pushes for the need to support developing countries in coping with the effects of climate change.
Highlights of the 2020 year
Global prospects
- Mozambique, Zimbabwe and The Bahamas were the worst-affected countries in 2019.
- While hurricane Dorian ravaged The Bahamas; Mozambique, Zimbabwe and Malawi were affected by the single extreme weather event of cyclone Idai.
- Japan and Afghanistan were the other countries that fared worse than India on the Index, while South Sudan, Niger and Bolivia fared better in comparison but still made it to the top 10 worst-affected countries.
The burden of development
- Eight of the 10 countries most affected between 2000 and 2019 were developing countries with low or lower middle income per capita.
- Vulnerable people in developing countries suffered most from extreme weather events like storms, floods and heatwaves, whereas the impact of climate change was visible around the globe.
- Poorer countries are hit hardest because they are more vulnerable to the damaging effects of a hazard and have the lower coping capacity.
Data about India
- According to the Index floods caused by heavy rain in 2019 took 1,800 lives across 14 states in India and displaced 1.8 million people.
- Overall, the intense monsoon season affected 11.8 million people, with the economic damage estimated to be $10 billion (Rs.72,900 crore at $1=INR 72.9).
- A total of eight tropical cyclones meant that 2019 was one of the most active Northern Indian Ocean cyclone seasons on record. Six of them intensified to become “very severe”.
- The worst was Cyclone Fani in May 2019 which affected a total of 28 million people, killing nearly 90 people in India and Bangladesh, and causing economic losses of $8.1 billion (Rs.59,066 crore).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: G7. G8, G20
Mains level: G7 and its significance for India
The United Kingdom has invited PM Modi to attend the G7 summit that is scheduled to be held in June.
Note the members of G7 and G20. UPSC may puzzle you asking which G20 nation isn’t a member of G7. 
G7 Countries
- The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
- It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
- Initially, it was formed as an effort by the US and its allies to discuss economic issues.
- The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
- It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
- Canada joined the group in 1976, and the European Union began attending in 1977.
Evolution of the G-7
- When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
- And it was a cozy club for tackling issues such as the response to oil shocks.
- Now it accounts for about 40% of global GDP.
- Since the global financial crisis of 2007-09, it has sometimes been overshadowed by the broader g20.
- The G-7 became the G-8 in 1997 when Russia was invited to join.
- In 2014, Russia was debarred after it took over Crimea.
Significance of G7 for India
- India will get more voice, more influence, and more power by entering the G7.
- After the UN Security Council (UNSC), this is the most influential grouping.
- If the group is expanded it will collectively address the humongous issues created by the Wuhan virus,
- Diplomatically, a seat at the high table could help India further its security and foreign policy interests, especially at the nuclear club and UN Security Council reform as well as protecting its interests in the Indian Ocean.
Back2Basics: The G-20
- The G-20 is a larger group of countries, which also includes G7 members.
- The G-20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.
- Apart from the G-7 countries, the G-20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.
- Together, the G-20 countries make up around 80% of the world’s economy.
- As opposed to the G-7, which discusses a broad range of issues, deliberations at the G-20 are confined to those concerning the global economy and financial markets.
- India is slated to host a G-20 summit in 2022.
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From UPSC perspective, the following things are important :
Prelims level: Adaptation Cost
Mains level: Progress of global climate action
The United Nations Adaptation Gap Report, 2020 was recently released by the UNEP.
Must read edition: Five years of Paris Agreement
UN Adaptation Gap Report
- UN Environment Programme (UNEP) has managed the production of UN Environment’s Adaptation Gap Report series since its first edition in 2014.
- The aim of the reports is to inform national and international efforts to advance climate change adaptation.
Behind the concept: Adaptation Cost
- Adaptation Cost includes costs of planning, preparing for, facilitating and implementing the climate change adaptation measures.
- It thus derives benefits as the avoided damage costs or the accrued benefits following the adoption and implementation of adaptation measures.
Highlights of the 2020 report
- The annual cost of adaptation to the effects of climate change for developing countries is estimated to at least quadruple by 2050, according to the United Nations Adaptation Gap Report, 2020.
- The current cost for developing countries is in the range of $70 billion (Rs 5.1 lakh crore) and may rise to $140-300 billion in 2030 and $280-500 billion in 2050.
Funding gaps
- The ever-increasing adaptation cost has also outpaced the growth in adaptation finance that refers to the flow of funds to developing countries to help them tide over the damages caused by climate change.
- This, in turn, has kept the adaptation finance gap from closing with the current efforts, although the fund flow has increased, the report said.
- Adaptation costs, in actual terms, are higher in developed countries but the burden of adaptation is greater for developing countries in relation to their gross domestic product.
- These countries, especially in Africa and Asia, which are least equipped to tackle climate change will also, be the most impacted by it, the report noted.
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From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Global perception of India's image
A UK think-tank ‘Royal Institute of International Affairs’ has listed India in ‘Difficult 4’; clubs India with China, Saudi Arabia, and Turkey.
This newscard helps analyse the Western esp. that of the EU’s perception of India and its global image under the present regime.
What is the news?
- A report called ‘Global Britain, Global Broker’ has warned the UK government to consider India as more of a rival that a cooperative partner.
- It accepts the fact that India is set to be the largest country in the world by population very soon and will have the third-largest economy and defence budget at some point in this decade.
- But it cautions that gaining direct national benefit from the relationship, whether economically or diplomatically, will be difficult for the UK government.
- The report also accepts India’s importance to the UK as being “inescapable”.
The ‘Difficult Four’
- Clubbing India with China, Saudi Arabia and Turkey as the “difficult four”, the report says the Johnson government should be more realistic about developing deeper ties with India.
- They may be important to the UK’s commercial interests, but they will be rivals or, at best, awkward counterparts on many of its global goals, the report warns.
- India is now classed as a country, destined to count among the UK’s “rivals” or “awkward counterparts” as it pursues its global goals.
India has had bitter (colonial) past
- The think-tank strikes a note of caution over the two countries’ shared colonial history proving a stumbling block to the promise of a deeper relationship.
- India has a long and consistent record of resisting being corralled into a ‘Western’ camp.
- As a result, India is always on the list of countries with which a new UK government commits to engage.
- But it should be obvious by now that the idea of a deeper relationship with India always promises more than it can deliver.
- The legacy of British colonial rule consistently curdles the relationship.
Indian flaws
- The report points to India’s “complex, fragmented domestic politics”, which make it one of the countries resistant to open trade and foreign investment.
- It highlights concerns raised by domestic groups as well as the UN over a “crackdown on human rights activists and civil society groups” not being actively challenged by the judiciary.
- It raises concern over India’s pursuance of extreme right-winged policies. Indian domestic politics also has entered a more ethnic-nationalist phase, the report argues.
- Against this backdrop, the report reflects on the prospect of including India within any new Democratic 10 or D10 coalition of 10 leading democracies.
Try this question from 2019 CS Mains:
Q.What are the challenges to our cultural practices in the name of secularism? (150W)
UK’s resentment
- In a critique of India’s diplomatic behaviour, the report points out that despite border clashes with China, “India did not join the group of countries that criticized China at the UN in July 2019 over HR violations in Xinjiang.
- India has also been muted in its criticism of the passage of the new national security law in Hong Kong.
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From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Persecution of minorities in neighbouring countries
Pakistan’s Hazaras finally ended a protest and agreed to bury the bodies of 11 coal miners from the community killed by the IS.
Genocide and Pakistan are the two inseparable metaphors. Pakistan’s treatment of its minorities is the least highlighted global violation of Human Rights. Hindus, Sikhs and Christians are the most persecuted communities.
Who are the Hazaras?
- Around 1773, the mountainous region of Hazarajat in modern-day central Afghanistan was annexed and made a part of the territories of the Afghan Empire under Pashtun ruler Ahmad Shah Durrani.
- The Sunni Muslim majority under the Pashtun ruler resulted in further marginalization of the Shiite Hazara community, to the extent that in the 18th and 19th century.
- They were forced to leave fertile lowlands in central Afghanistan and make the dry, arid mountainous landscape their new home.
Their persecution
- Persecution of the Shiite Hazaras is nothing new in Pakistan or neighbouring Afghanistan.
- They have been frequently targeted by Taliban and IS militants and other militant groups in both countries.
Causes of persecution: Ethnicity and Religion
- Their unique identity, ethnicity and religion always made the Hazaras stand out among the other communities.
- Hazaras speak Hazaragi, which is close to Dari Persian, the official language of modern-day Afghanistan.
- The community also shares physical similarities with the Mongols and their speech, specific terms and phrases, reflect strong Central Asian Turkic influences.
- This sets them apart from their neighbours in Pakistan and other communities within Afghanistan.
An attempted ethnic cleansing
- In the 19th century, the Hazara community constituted approximately 67 per cent of Afghanistan’s total population.
- Since then, primarily due to violence, oppression and targeted massacres, that number has come down to a little as 10 to 20 per cent of the population now.
- The attacks reached a crescendo in 2013 when three separate bombings killed more than 200 people in Hazara neighbourhoods of Quetta.
- In the aftermath of this incident, the Shia community in Pakistan had erupted in anger over the Pakistani government’s lack of protection of its minorities.
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From UPSC perspective, the following things are important :
Prelims level: UNSC
Mains level: India's agenda at UNSC
India is back as a non-permanent member on the United Nations Security Council.
Q.What objective India should pursue in its stint at the UNSC? What challenges India will face in achieving these objectives?
India at the UNSC
Take a look at its seven previous terms, and what its agenda will be amid events concerning China, Pakistan and the US:
- In 1950-51, India, as President of UNSC, presided over the adoption of resolutions calling for the cessation of hostilities during the Korean War and for assistance to the Republic of Korea.
- In 1967-68, India co-sponsored Resolution 238 extending mandate of UN mission in Cyprus.
- In 1972-73, India pushed strongly for admission of Bangladesh into the UN. The resolution was not adopted because of a veto by a permanent member.
- In 1977-78, India was a strong voice for Africa in the UNSC and spoke against apartheid. Then External Affairs Minister Atal Bihari Vajpayee spoke in UNSC for Namibia’s independence in 1978.
- In 1984-85, India was a leading voice in UNSC for resolution of conflicts in the Middle East, especially Palestine and Lebanon.
- In 1991-92, PM P V Narasimha Rao participated in the first-ever summit-level meeting of the UNSC and spoke on its role in the maintenance of peace and security.
- In 2011-2012, India was a strong voice for developing world, peacekeeping, counter-terrorism and Africa. The first statement on Syria was during India’s Presidency at the UNSC.
India’s diverse role-play
- India played an active role in discussions on all issues related to international peace and security.
- It included several new challenges which the UNSC was called upon to deal with in Afghanistan, Cote d’Ivoire, Iraq, Libya, South Sudan, Syria and Yemen.
- In view of the threat posed to international trade and security by piracy off the coast of Somalia, India promoted international cooperation against the pirates.
- At India’s initiative, the UNSC mandated international cooperation for release of hostages taken by pirates as well as for prosecution of those taking hostages and those aiding and abetting these acts.
- India also worked for enhancing international cooperation in counter-terrorism, prevention of the proliferation of weapons of mass destruction to non-state actors, and the strengthening of UN peacekeeping efforts.
Issues at UNSC: The politics within
- The seven previous terms have given Indian diplomats the experience of how diplomacy is conducted at the multilateral setting.
- There have been instances where permanent members would like the non-permanent members to be “cooperative”, and no stand in the way of major resolutions.
- Most non-permanent members get influenced by the P-5 members. They did not wish to irritate the permanent members and were keen to be perceived by them as ‘cooperative’.
- This was precisely how the permanent members would like the non-permanent members to behave.
Walk-alone moves by India
- The Indians took P5 work more seriously and consequently had to fight a lonely battle.
- This was the time when the Gulf War erupted and India voted in favour of the US-sponsored resolution in April 1991.
- India’s vote was dictated by pragmatic considerations.
- The US had made it clear to India that failure to support the resolution would make it very difficult for them to help India in the World Bank and the IMF.
- Back then, India was going through a severe balance-of-payment crisis and needed funds from these organisations.
- Also, India needed the US on its side, if and when the Kashmir issue came up.
Twenty years later, when India again became a non-permanent member at the UNSC, it was stronger economically but still had to negotiate politics within the Council.
Ugly faces of the council
- Most professional diplomats shed their innocence before they arrive at the horse-shoe table around which the Security Council meets.
- In the real world of foreign and security policy, decision-makers are invariably confronted by cruel choices that are equally problematic and come in various shades.
- Practitioners are acutely conscious that it is only diplomacy’s outward packaging that dwells in a commitment to a higher moral purpose.
- The shameless pursuit of narrowly defined interests is most often the motivation and seldom raises eyebrows in the world of multilateral diplomacy.
Issues before India
(A) Long slated UN reforms
- New Delhi has said it is essential that the Security Council is expanded in both the permanent and non-permanent categories.
- It says India is eminently suited for permanent UNSC membership by any objective criteria, such as population, territorial size, GDP, economic potential and ongoing contributions to UN activities.
(B) Terrorism
- The international effort against terrorism is a key priority for India in the UN.
- With the objective of providing a comprehensive legal framework to combat terrorism, India took the initiative to pilot a draft Comprehensive Convention on International Terrorism (CCIT) in 1996.
- A text of the Convention is being negotiated in the 6th Committee of the UN General Assembly.
- India worked closely to ensure the listing of Pakistan-based terrorist Masood Azhar under the UNSC’s 1267 Sanctions Committee (May 2019) concerning al-Qaida and ISIS terrorists.
(C) China challenge
- India is entering the UNSC at a time when Beijing is asserting itself at the global stage much more vigorously than ever.
- It heads at least six UN organisations — and has challenged the global rules.
- China’s aggressive behaviour in the Indo-Pacific, as well as the India-China border, has been visible in all of 2020, and New Delhi will have to think on its feet to counter Beijing.
- At Pakistan’s behest, China has tried to raise the issue of Kashmir at the UNSC — but has not found much support.
- There is some discussion among the strategic community in New Delhi on raising the issues of Taiwan, Hong Kong and Tibet at the UNSC.
Conclusion
- India will weigh the pros and cons with partners on what steps to take in this direction.
- But, the polarizing politics inside India gives a window of opportunity to its rivals and opens up the possibility of criticism — especially on human rights issues.
Back2Basics: United Nations Security Council
- The UNSC is one of the six principal organs of the United Nations and is charged with the maintenance of international peace and security.
- Its powers include the establishment of peacekeeping operations, the establishment of international sanctions, and the authorization of military action through Security Council resolutions.
- It is the only UN body with the authority to issue binding resolutions to member states.
- The Security Council consists of fifteen members. Russia, the United Kingdom, France, China, and the United States—serve as the body’s five permanent members.
- These permanent members can veto any substantive Security Council resolution, including those on the admission of new member states or candidates for Secretary-General.
- The Security Council also has 10 non-permanent members, elected on a regional basis to serve two-year terms. The body’s presidency rotates monthly among its members.
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From UPSC perspective, the following things are important :
Prelims level: Global Burden of Disease (GBD) Report
Mains level: Not Much
According to the Global Burden of Disease, nearly a quarter (24.8 per cent) of all deaths in India is due to cardiovascular diseases (CVDs).
The fastest-growing economy has some perils. In this newscard, you will get to see how CVDs are a legacy of economic growth.
Global Burden of Disease (GBD) Report
- The GBD is a comprehensive regional and global research program of disease burden that assesses mortality and disability from major diseases, injuries, and risk factors.
- GBD is a collaboration of over 3600 researchers from 145 countries.
- It is based out of the Institute for Health Metrics and Evaluation (IHME) at the University of Washington and funded by the Bill and Melinda Gates Foundation.
Indian burden of CVDs
- About a third of the senior citizens have been diagnosed with hypertension, 5.2% with chronic heart disease and 2.7% with stroke
- Even an analysis of the medical certification of cause of death (MCCD) reports points to an increase in the proportion of deaths due to CVD. It went from 20.4 per cent in 1990 to 27.1 per cent in 2004.
- According to MCCD report, 2018, CVDs accounted for more than half (57%) of the total deaths in the age group of 25–69 years.
- Case fatality due to CVD in low-income countries, including India, appears to be much higher than in middle and high-income countries.
- In India, for example, the mean age at which people get the first myocardial infarction is 53 years, which is about 10 years earlier than their counterparts in developed countries.
- About a third (32 per cent) of the senior citizens have been diagnosed with hypertension, 5.2 per cent were diagnosed with chronic heart disease and 2.7 per cent with stroke.
Women are more vulnerable
- Numerous studies have also pointed out that CVD remains the number-one threat to women’s health as more women than men die annually due to these diseases.
- A Harvard study shows low high-density lipoproteins and high triglycerides appear are the main factors that increase the chances of death from cardiovascular disease in women over age 65.
- As per the LASI report, gender differences were evident in cross-state variations.
- CVD among men was higher in Kerala (45 per cent), Goa (44 per cent), Andaman and Nicobar (41 per cent) and lower in Chhattisgarh (15 per cent), Meghalaya (16 per cent), Nagaland (17 per cent).
Why CVDs are prevalent in India?
- Epidemiological evidence suggests that CVD is associated with behavioural factors such as smoking, alcohol use, low physical activity, and insufficient vegetable and fruit intake.
- In the Indian context, poverty, maternal malnutrition, and early life changes enhance an individual’s risk of CVDs.
- Rural to urban migration that happens in distress leads to over-crowded and unclean environments in urban slums.
- Problems of inadequate housing, indoor pollution, infectious diseases, inappropriate diet, stress and smoking crop up as a result.
Need of the hour
- CVD-risk prevention is one of the important priorities among India’s sustainable development goals.
- In an earlier estimate, WHO had said with India’s present CVD burden, the country would lose $237 billion from the loss of productivity and spending on healthcare over 10 years (2005–2015).
- This is because the diseases affect the country’s working population.
Way ahead
- The government should devise an approach that can improve the efficiency of care and health system preparedness to curb the CVD epidemic currently sweeping India.
- Attempts in direction to preserve the traditional lifestyle are also necessary.
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From UPSC perspective, the following things are important :
Prelims level: FAO Food Price Index
Mains level: Poverty and Hunger
World food prices rose for a seventh consecutive month in December 2020, with all the major categories, barring sugar, said the United Nations Food and Agriculture Organization (UN-FAO).
Try this PYQ:
Q.Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’? (CSP 2019)
(a) Maintenance of law and order
(b) Paying taxes
(c) Registering property
(d) Dealing with construction permits
World Food Price Index
- The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities.
- It consists of the average of five commodity group price indices [cereal, vegetable, dairy, meat and sugar], weighted with the average export shares.
- The index has become a critical and timely monthly indicator of the state of international food markets, gauging the change in food commodity prices over time in nominal and real terms.
Why it matters?
- High food prices have contributed to a surge in inflation
- There are social and economic advantages from high food prices for example higher prices are an opportunity to improve farmers’ incomes and to stimulate investments in farming.
- For developing countries that are major exporters of food, the rise in world prices helped to bring about an improvement in the terms of trade and a strong balance of payments.
Concerns raised
- That said higher food prices for domestic consumers created fresh problems of poverty and hunger.
- Lower-income families spend a higher proportion of their budgets on food.
- Higher prices hit them hardest causing a fall in real living standards.
- This means that food price inflation can act as a tax on the poor and have a regressive effect on the distribution of income.
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From UPSC perspective, the following things are important :
Prelims level: Trade Policy Review (TPR)
Mains level: WTO and India
India’s seventh Trade Policy Review (TPR) has begun at the World Trade Organization in Geneva.
Q.In the wake of the global economic fallout of the COVID-19 pandemic, discuss the challenges ahead of WTO.
Trade Policy Review (TPR)
- The TPR is an important mechanism under the WTO’s monitoring function and involves a comprehensive peer-review of the Member’s national trade policies.
- India’s last TPR took place in 2015.
Why need a TPR?
- To increase the transparency and understanding of countries’ trade policies and practices, through regular monitoring
- To improve the quality of public and intergovernmental debate on the issues
- To enable a multilateral assessment of the effects of policies on the world trading system
India’s progress
- Since previous TPR, India has worked diligently to reform and transform the entire economic eco-system to meet the socio-economic aspirations of a billion-plus Indians.
- The introduction of the GST, the IBC, labour sector reforms, an enabling and investor-friendly FDI Policy, and various national programmes like Make in India, Digital India, Startup India and Skill were the path-breakers.
- The improvement in the economic and business environment, on account of the wide-ranging reforms, has enabled India to better its position in the World Bank’s Doing Business ranking from 142 in 2015 to 63 in 2019.
- This improvement is also endorsed by investors who continue to view India as a desirable investment destination even during the testing time of the pandemic.
- In 2019-20, India received highest ever FDI inflow of USD 74.39 billion.
A note of caution
- India’s trade policy remained largely unchanged since the previous review.
- India continues to rely on trade policy instruments such as the tariff, export taxes, minimum import prices, import and export restrictions, and licensing, WTO said.
- These are used to manage domestic demand and supply requirements, protect the economy from wide domestic price fluctuations, and ensure conservation and proper utilization of natural resources.
- As a result, frequent changes are made to tariff rates and other trade policy instruments, which create uncertainty for traders.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: OECD , various parameters mentioned
Mains level: Concerns of farmers other than MSP
The OECD (Organisation for Economic Co-operation and Development) has provided five sets of data on the issue of agriculture support and India trails on most counts:
The ongoing debate about farmers protest has brought to light some of the key support mechanisms for agriculture in India. And it is being argued that the government has preferred the welfare of Indian consumers over the Indian farmers.
Lets’ have a look at various OECD’s parameters:
(1) Producer Support Estimates (PSE)
- These are transfers to agricultural producers and are measured at the farm gate level.
- They comprise market price support, budgetary payments and the cost of revenue foregone.
(2) Consumer Support Estimates (CSE)
- These refer to transfers from consumers of agricultural commodities. They are measured at the farm gate level.
- If negative, the CSE measures the burden (implicit tax) on consumers through market price support (higher prices), that more than offsets consumer subsidies that lower prices to consumers.
(3) General Services Support Estimates (GSSE)
- GSSE transfers are linked to measures creating enabling conditions for the primary agricultural sector through the development of private or public services, institutions and infrastructure.
- GSSE includes policies where primary agriculture is the main beneficiary but does not include any payments to individual producers.
- GSSE transfers do not directly alter producer receipts or costs or consumption expenditure.
(4) Total Support Estimate (TSE)
- The TSE transfers represent the total support granted to the agricultural sector, and consist of producer support (PSE), consumer support (CSE) and general services support (GSSE).
(5) Producer protection
- Lastly, the OECD also provides data on “producer protection”.
- The PP is the ratio between the average price received by producers (measured at the farm gate), including net payments per unit of current output, and the border price (measured at the farm gate).
- For instance, a coefficient of 1.10, which China has, suggests that farmers, overall, received prices that were 10% above international market levels.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: TIbetan issue and its political recognition
The Tibet Policy and Support Act (TPSA) passed by the US Senate earlier this week, bookends a turbulent year in US-China relations.
Must read:
Tibetan Policy and Support Act (TPSA)
Do you think that India’s support for the Tibetan cause is the root cause of all irritants in India-China relations?
TPSA: A backgrounder
- The TPSA is an amended version of the Tibet Policy Act of 2002, which came into existence during the Bush Administration.
- The act once signed into law would make it the official policy of the US Government to oppose any effort by the govt. of the People’s Republic of China to select, educate, and venerate Tibetan Buddhist religious leaders in a manner inconsistent with Tibetan Buddhism.
- The proposed legislation will empower the US Government to impose sanctions on China who might try to interfere in the process of selecting the next incarnation of the Dalai Lama.
US and China, today
- US-China relations have become much more difficult over the last two decades, particularly worsening in the Trump Administration.
- The matters range from the pandemic to trade tariffs and its cross-world coalition-building against Chinese superpower ambitions.
- Earlier in the year, President Donald Trump signed into law the Hong Kong Autonomy Act.
Fuelled by TPSA
- Adding much fuel to the issue, the TPSA introduces stronger provisions on Tibet, plus teeth in the form of a threat of sanctions, including travel bans on Chinese officials.
The Dalai Lama
- Among the most significant amendments is that the TSPA makes it US policy to oppose attempts by Beijing to install its own Dalai Lama in a manner inconsistent with Tibetan Buddhism.
- The legislation makes reference to the Chinese government’s ‘Measures on the Management of the Reincarnation of Living Buddhas’ in 2007.
- China had earlier insisted that the reincarnation of living Buddhas including the Dalai Lama must comply with Chinese laws and regulations.
Other provisions of TPSA
- The TPSA has introduced provisions aimed at protecting the environment of the Tibetan plateau, calling for greater international cooperation and greater involvement by Tibetans.
- Alleging that China is diverting water resources from Tibet, the TPSA also calls for a regional framework on water security, or use existing frameworks… to facilitate cooperative agreements among all riparian nations.
- While the 2002 Act said the US should establish a “branch office” in Lhasa, the TSPA ups the ante by changing that to a “consulate”.
- It recognizes the Central Tibetan Administration, whose Prime Minister Lobsang Sangay takes credit for ensuring that the Senate took up the legislation for a vote.
Chinese response to TPSA
- China had earlier said the TPSA severely breached international law and basic norms governing international relations, interfered in China’s internal affairs, and sent a wrong message to ‘Tibet independence’ forces”.
- After the passage of the Bill through the Senate, China said it “resolutely opposes” the “adoption of Bills containing such ill contents on China.
India’s present stance on Tibet
- If India is pleased with this latest US barb to China, it has not said so openly.
- India has mostly refrained from playing the Tibet card against China, and like the US, has a one-China policy.
- It was only this year, in the ongoing Ladakh standoff, that it used Special Forces made up almost entirely of Tibetan exiles to occupy strategic heights in Pangong Tso’s south bank.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GCM, Cancun COP
Mains level: 1.5 C debate
The planet will breach the threshold of 1.5 degrees Celsius above pre-industrial levels between 2027 and 2042 according to new research.
Ever wondered why is there so much of hue to halt the temperature rise at 1.5°C above pre-industrial levels, and why not 2°C? Read this newscard to get aware….
What does that mean?
- The world will heat up more than it can take much earlier than anticipated.
- The Intergovernmental Panel on Climate Change (IPCC) had estimated that breach to occur between now and 2052.
- But researchers have now claimed to have introduced a more precise way to project the Earth’s temperature based on historical climate data.
The fuss over 1.5°C threshold
- For decades, researchers argued the global temperature rise must be kept below 2C by the end of this century to avoid the worst impacts.
- The idea of two degrees as the safe threshold for warming evolved over a number of years from the first recorded mention by economist William Nordhaus in 1975.
- By the mid-1990s, European ministers were signing up to the two-degree limit, and by 2010 Cancun COP it was official UN policy.
- However, small island states and low-lying countries were very unhappy with this perspective, because they believed it meant their territories would be inundated with sea-level rise.
- They commissioned research which showed that preventing temperatures from rising beyond 1.5C would give them a fighting chance.
Why 1.5°C is preferred over 2°C?
- Global warming is already impacting people and ecosystems. The risks at 1.5°C and 2°C are progressively higher.
- There will be worse heatwaves, drought and flooding at 2°C compared to 1.5°C. It is characterized as “substantial differences in extremes”.
- Sea levels are expected to rise 10cm higher this century under 2°C of warming than 1.5°C.
- The collapse of ice sheets in Greenland and Antarctica could lead to rises of several metres.
- The quantity and quality of staple crops suffer under 2°C warming compared to 1.5C, as do livestock. That is bad for the availability of food in many parts of the world.
New model shows the breach in threshold
- The study according to which prediction model deployed reduced uncertainties by half compared to the approach used by the IPCC.
- The IPCC uses the General Circulation Models (GCM) to express wide ranges in overall temperature projections.
- This makes it difficult to circle outcomes in different climate mitigation scenarios.
What is the General Circulation Model (GCM)?
- GCM represents physical processes in the atmosphere, ocean, cryosphere and land surface.
- It is the most advanced tool currently available for simulating the response of the global climate system to increasing greenhouse gas concentrations.
- GCMs depict the climate using a three-dimensional grid over the globe, typically having a horizontal resolution of between 250 and 600 km.
- Many physical processes, such as those related to clouds, also occur at smaller scales and cannot be properly modelled.
Why GCM is tricky?
- Climate models are mathematical simulations of different factors that interact to affect Earth’s climate, such as the atmosphere, ocean, ice, land surface and the sun.
- The data is tricky, and predictions can more often than not be inaccurate.
- For example, an IPCC model would predict a temperature increase of a massive range — between 1.9oC and 4.5oC — if carbon dioxide in the atmosphere is doubled.
Back2Basics: Intergovernmental Panel on Climate Change
- The IPCC is an intergovernmental body of the United Nations that is dedicated to providing the world with an objective, scientific information relevant to understanding the scientific basis of the risk of human-induced climate change.
- It was established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP).
- Its membership is open to all members of the WMO and UN.
- The IPCC produces reports that contribute to the work of the United Nations Framework Convention on Climate Change (UNFCCC), the main international treaty on climate change.
- The IPCC’s Fifth Assessment Report was a critical scientific input into the UNFCCC’s Paris Agreement in 2015.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: TIbetan issue
The US and China sparred over Tibet and the South China Sea over the passing of the Tibetan Policy and Support Act (TPSA).
Do you think that India’s support for the Tibetan cause is the root cause of all irritants in India-China relations?
About TPSA
- The TPSA once signed into law would make it the official policy of the US Government to oppose any effort by the govt. of the People’s Republic of China to select, educate, and venerate Tibetan Buddhist religious leaders in a manner inconsistent with Tibetan Buddhism.
- The proposed legislation will empower the US Government to impose sanctions on China who might try to interfere in the process of selecting the next incarnation of the Dalai Lama.
Why such a law?
- Tibetans were concerned over the possibility of the Chinese Government making an attempt to install someone loyal to it as the 15th Dalai Lama after the death of the incumbent.
- The PRC could use him as a puppet to fizzle out the global campaign against its occupation of Tibet.
- The incumbent and the 14th Dalai Lama have been living in exile in India ever since his 1959 escape from Tibet, which had been occupied by the Chinese People’s Liberation Army (PLA) in 1950-51.
- He has been leading the movement for “genuine autonomy” for Tibet and the Tibetans.
Significance of TPSA
- The TPSA acknowledged the legitimacy of the Tibetan Parliament in Exile elected by the exiled community as well as the CTA.
- It seeks to introduce key provisions aimed at protecting the environment and water resources on the Tibetan Plateau.
- In an aggressive move, the PRC government has forced resettlement of the nomads from grasslands.
- TPSA recognizes the importance of traditional Tibetan grassland stewardship in mitigating the negative effects of climate change in the region.
- In addition, it calls for greater international cooperation to monitor the environment on the Tibetan plateau.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: WTO
Mains level: WTO
The next Director-General of the organization will have to navigate through a slew of thorny issues in WTO.
WTO to lead by a woman for the first time
- For the first time in its 25-year history, the World Trade Organization (WTO) will be led by a woman.
- The D-G’s job will require perseverance and outstanding negotiating skills for balancing the diverse and varied interests of the 164 member countries, and especially, for reconciling competing for multilateral and national visions, for the organization to work efficiently.
- The next D-G will have to grapple with the global economic fallout of the COVID-19 pandemic and work towards carrying out reforms of the multilateral trading system for reviving the world economy.
- On all these issues, her non-partisan role will be watched carefully.
Practice Question: In the wake of the global economic fallout of the COVID-19 pandemic, discuss the challenges ahead of WTO.
Tussle between developed and developing countries
- The current impasse in the WTO negotiations has led member countries to believe in the necessity of carrying out urgent reforms, which is likely to throw up some difficult choices for developing countries like India.
- At the core of the divide within the WTO is the Doha Development Agenda, which the developed countries sought to move in favour of a new agenda that includes, amongst others, e-commerce, investment facilitation, MSMEs and gender.
- Salvaging the ‘development’-centric agenda is critical for a large number of developing countries as they essentially see trade as a catalyst of development.
- Restoring the WTO dispute settlement mechanism, especially the revival of its Appellate body, is also crucial for the organization’s efficient functioning.
Definition of ‘Developing Country’ – a contentious issue
- The push for a change in the definition of “developing country” under the principle of special and differential treatment (S&DT), aimed at upgrading certain developing countries, will deeply affect the status of emerging economies such as India, China, South Africa, Turkey, Egypt, etc.
- The assumption that some countries have benefited immensely from the WTO rules since its formation in 1995 is flawed, at least in the case of India. And even if there may be no consensus of views on measuring ‘development’, India will remain a developing country no matter which parameter is used.
- The way out for India could be to negotiate a longer phase-out period or an acceptable formula based on development indices, etc.
Fisheries subsidies negotiations
- Among the current negotiations at the WTO, the fisheries subsidies negotiations command the highest attention.
- India can lead the way in finding a landing zone by urging others to settle for the lowest common denominator while seeking permanent protection for traditional and artisanal farmers who are at the subsistence level of survival.
- The danger lies in seeking larger carve-outs, which could result in developed countries ploughing precious fisheries resources in international waters.
Lessons from COVID-19
- The COVID-19 crisis has revealed the urgent and enduring need for international cooperation and collaboration, as no country can fight the pandemic alone.
- The D-G can help mitigate the effects of the pandemic by giving clear directions on ensuring that supply chains remain free and open, recommending a standard harmonized system with classification for vaccines, and by the removal of import/export restrictions.
- Voluntary sharing and pooling of Intellectual Property Rights (IPR) is required for any global effort to tackle the pandemic, but with the fear of vaccine nationalism looming large, several countries are seeking to secure the future supply of leading COVID-19 vaccines.
- India’sreiteration that its vaccine production and delivery capacity will help the whole of humanity will require the D-G to play a responsible role in removing barriers to intellectual property and securing a legal framework within the WTO TRIPS Agreement.
- This can be done by lending salience to the effective interpretation of Articles 8 and 31 of the Agreement, that allow compulsory licensing and agreement of a patent without the authorization of its owner under certain conditions.
Way Forward
- The consensus-based decision-making in the WTO, which makes dissension by even one member stop the process in its track, gives developing countries some heft and influence at par with developed countries.
- The D-G would need to tread cautiously on this front, as some will allude to the successful implementation of the Trade Facilitation Agreement in 2017 that allowed member countries to make commitments in a phased manner in accordance with their domestic preparedness.
- Most imminently, the next D-G will need to build trust among its members that the WTO needs greater engagement by all countries, to stitch fair rules in the larger interest of all nations and thwart unfair trade practices of a few.
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From UPSC perspective, the following things are important :
Prelims level: HDI
Mains level: Human Development
India dropped two ranks in the United Nations’ Human Development Index this year, standing at 131 out of 189 countries.
Try this PYQ:
Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
(a) Maintenance of law and order
(b) Paying taxes
(c) Registering property
(d) Dealing with construction permits
Human Development Index (HDI)
- HDI is a statistical tool used to measure a country’s overall achievement in its social and economic dimensions.
- It is one of the best tools to keep track of the level of development of a country, as it combines all major social and economic indicators that are responsible for economic development.
- Pakistani economist Mahbub-ul-Haq created HDI in 1990 which was further used to measure the country’s development by the United Nations Development Program (UNDP).
- Every year UNDP ranks countries based on the HDI report released in their annual report.
Various indicators under HDI
- Calculation of the index combines four major indicators: life expectancy for health, expected years of schooling, mean of years of schooling for education and GNI per capita for the standard of living.
For the first time: PHDI
- For the first time, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
- This is Planetary Pressures-adjusted HDI or PHDI.
- It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.
- The report found that no country has yet been able to achieve a very high level of development without putting a huge strain on natural resources.
Highlights of the 2019 Report
- Norway, which tops the HDI, falls 15 places if this metric is used, leaving Ireland at the top of the table.
- In fact, 50 countries would drop entirely out of the “very high human development group” category, using this new metric PHDI.
- Australia falls 72 places in the ranking, while the US and Canada would fall 45 and 40 places respectively, reflecting their disproportionate impact on natural resources.
- The oil and the gas-rich Gulf States also fell steeply. China would drop 16 places from its current ranking of 85.
Indian scenario
- If the Index were adjusted to assess the planetary pressures caused by each nation’s development, India would move up eight places in the rankings.
- China’s net emissions (8 gigatonnes) are 34% below its territorial emissions (12.5 gigatonnes) compared with 19% in India and 15% in Sub-Saharan Africa.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Paris Agreement
Mains level: Progress of global climate action
This week marks the fifth anniversary of the Paris Agreement, where formidable climate diplomacy ushered 196 rich and poor countries into a legally binding treaty seeking to hold global heating below 2°C at this century’s end.
Try this PYQ first, then head with the news:
Q.With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
- The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
- The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 20C or even 1.50C above pre-industrial levels.
- Developed countries acknowledged their historical responsibility in global warming and committed to donate S 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
The Paris Agreement
- The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
- Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
- To achieve this long-term temperature goal, countries aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century.
- It is a landmark process because, for the first time, a binding agreement brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects.
How does it function?
- Implementation of the Paris Agreement requires economic and social transformation, based on the best available science.
- The Agreement works on a 5- year cycle of increasingly ambitious climate action carried out by countries.
- By 2020, countries submit their plans for climate action known as nationally determined contributions (NDCs).
NDCs
- In their NDCs, countries communicate actions they will take to reduce their Greenhouse Gas emissions in order to reach the goals of the Paris Agreement.
- Countries also communicate in the NDCs actions they will take to build resilience to adapt to the impacts of rising temperatures.
Long-Term Strategies
- To better frame the efforts towards the long-term goal, the Paris Agreement invites countries to formulate and submit by 2020 long-term low greenhouse gas emission development strategies (LT-LEDS).
- LT-LEDS provide the long-term horizon to the NDCs. Unlike NDCs, they are not mandatory.
- Nevertheless, they place the NDCs into the context of countries’ long-term planning and development priorities, providing a vision and direction for future development.
India’s commitment
In 2015, ahead of the UN significant climate conference in Paris, India announced three major voluntary commitments called the Nationally Determined Contributions (NDC):
- Improving the emissions intensity of its GDP by 33–35% by 2030 over 2005 levels
- Increasing the share of non-fossil fuels-based electricity to 40% by 2030 and
- Enhancing its forest cover, thereby absorbing 2.5 to 3 billion tonnes of carbon dioxide
A success (?)
- The Environment Minister said that we have achieved 21% of its emissions intensity reduction target as a proportion of its GDP in line with its pledge to a 33-35% reduction by 2030.
- India was the only major G20 country that was on track towards keeping to its nationally determined commitments to halt runaway global warming.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CITES
Mains level: Exotic species trade
Last month, the Supreme Court upheld an Allahabad High Court order granting immunity from investigation and prosecution if one declared illegal acquisition or possession of exotic wildlife species.
Q.What are Zoonotic Diseases? Discuss how the illicit trade in wildlife has resulted in the spread of zoonotic diseases of the scale of the ongoing COVID-19?
Voluntary disclosure scheme
- The MoEFCC has come out with an advisory on a one-time voluntary disclosure amnesty scheme.
- It allows owners of exotic live species that have been acquired illegally, or without documents, to declare their stock to the government between June and December 2020.
- The scheme aims to address the challenge of zoonotic diseases and regulate their import. In its current form, however.
- It shall develop an inventory of exotic live species for better compliance under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
- However, the amnesty scheme is just an advisory, not a law
What kind of exotic wildlife is covered?
- The advisory has defined exotic live species as animals named under the Appendices I, II and III of the CITES.
- It does not include species from the Schedules of the Wild Life (Protection) Act 1972.
- So, a plain reading of the advisory excludes exotic birds from the amnesty scheme.
Why need such a scheme?
- The Directorate of Revenue Intelligence (DRI), which enforces anti-smuggling laws, says India has emerged as a big demand centre for exotic birds and animals.
- There has been an increase in smuggling of endangered species from different parts of the world.
- Most of these exotic wildlife is imported through Illegal channels and then sold in the domestic market as pets.
- The long international border and air routes are used to source consignments from Bangkok, Malaysia and other top tourist destinations in South East Asia, as well as from Europe into India.
Back2Basics: CITES
- CITES stands for the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
- It is as an international agreement aimed at ensuring “that international trade in specimens of wild animals and plants does not threaten their survival”.
- It was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.
- It entered into force on July 1, 1975, and now has 183 parties.
- The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.
- India is a signatory to and has also ratified CITES convention in 1976.
CITES Appendices
- CITES works by subjecting international trade in specimens of selected species to certain controls.
- All import, export, re-exports and introduction from the sea of species covered by the convention has to be authorized through a licensing system. It has three appendices:
- Appendix I includes species threatened with extinction. Trade-in specimens of these species are permitted only in exceptional circumstances.
- Appendix II provides a lower level of protection.
- Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling trade.
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