Current Affairs – August 31, 2024

{GS2 – Governance – Issues} The Hidden Costs of Olympic Glory

• Context (TS): India announced its ambition to host the 2036 Olympics, exuding confidence in the nation’s capability following the successful organisation of G20 events across the country last year.

Benefits and Drawbacks of Hosting the Olympics

The Olympic Challenge for India

• Rising Costs of Hosting the Olympics: Past Olympics have seen significant budget overruns. Tokyo 2020 was initially budgeted at $7.4 billion but cost over $15 billion.
• Limited Economic Benefits of Hosting: Economic benefits are often overestimated and short-lived compared to long-term costs. Studies show that the long-term economic impact of hosting the Olympics is frequently minimal.
• Alternative Investment Opportunities: Resources could be better spent on sustainable infrastructure, education, and healthcare projects.
• Potential Negative Impacts: Hosting can lead to social displacement and environmental damage due to construction and operational activities.
• Focus on Sustainable Development: Prioritizing sustainable development in core areas like education and healthcare may offer more lasting benefits than the short-term gains from hosting the Olympics.
• Geopolitical Risks and Uncertainties: International issues can disrupt preparations for the event. Tokyo 2020 was postponed due to the COVID-19 pandemic, showing how global events can affect the Games.

{GS2 – Governance – Issues} Underperformance in Sports

• Context (TP): Despite India’s large youth population (253 million aged 10-19, UNICEF data), the nation failed to secure a gold medal at the 2024 Paris Olympics, unlike China, which excelled.

Causes for India’s Poor Performance in Sports

• Outdated Training Methods: Lagging in modern training techniques led to poor global results, exemplified by a 40-year wait for a field hockey medal after 1980.
• Coach Shortage: A shortage of world-class coaches hampers grassroots training.
• Ineffective Coaching: Coaching roles often go to famous stars over experts, leading to ineffective training, as seen in cricket and hockey.
• Training Adaptation Issues: India struggles to adapt to evolving sports demands and training systems.
• Dietary Concerns: Indian dietary habits negatively impact the development of high-energy athletes.
• Lack of Genuine Passion: Sports in India are often pursued for fame and wealth over genuine passion, reducing athlete quality.
• Poor Sports Management: Politicians without sports backgrounds lead many federations, hindering modern sports management.

Way Forward

• Implement training programs to update coaches on modern techniques and injury prevention.
• Select coaches based on their current knowledge rather than past fame.
• Replace politicians with professionals in sports management to professionalize federations.
• Promote education on modern sports practices and nutrition.
• Shift the focus from fame to genuine passion for sports.
• Educate young athletes on modern dietary habits for optimal performance.
• Expand access to high-quality training and facilities at the grassroots level.
• Fund research on sports science to keep up with global standards.

{GS2 – IR – India-Sri Lanka} India-Sri Lanka Relations

• Context (TH): Recently, the Indian External Affairs Minister met with the Sri Lankan President to discuss bilateral cooperation in various sectors.

Recent Developments in India-Sri Lanka Relations

• Maritime Rescue Coordination Centre (MRCC): Jointly commissioned with a USD 6 million grant from India. It is part of the broader initiative under the Colombo Security Conclave.
• Model Village Housing Project: Virtual handover of houses constructed by India.
• Energy Sector Initiatives: Discussed LNG supply plans, a proposed petroleum pipeline, and oil and gas exploration projects. The construction of the Sampur Solar Power Plant has been announced.
• Other Developments: Discussed projects to develop Trincomalee, expand Kankesanthurai port, and enhance Sri Lanka’s liquid milk industry and fertilizer production.
• IMF debt restructuring: India was the first to offer support for Sri Lanka’s debt restructuring.

Historical Ties

• Cultural and Religious Connections: Buddhism was introduced to Sri Lanka by Emperor Ashoka’s son, Mahinda, in the 3rd century BCE. Strong historical ties through trade and cultural exchanges.
• Colonial and Post-Colonial Relations: India and Sri Lanka gained independence from British rule in 1947 and 1948, respectively. India played a key role in helping Sri Lanka establish its democratic institutions.
• Tamil Conflict: Liberation Tigers of Tamil Eelam (LTTE) formed in 1976; involved in an armed conflict.
• The India-Sri Lanka Agreement (1987) led to the involvement of the Indian Peace Keeping Force (IPKF).

Significance of India-Sri Lanka Relations

• Regional Development: India’s growth is linked with its neighbouring nations, and Sri Lanka aims to enhance its development by integrating with South Asia.
• Reaffirmation of India’s ‘Neighbourhood First’ Policy.
• Strategic Location: Positioned near India’s southern coast across the Palk Strait, crucial for controlling major shipping lanes.
• Economic Integration & Tourism: Enhancement of digital payment systems (e.g., UPI) promotes economic integration and eases business transactions.

Challenges in India-Sri Lanka Relations

• Tamil Ethnic Issue: India’s concern over the welfare and rights of the Tamil community in Sri Lanka, particularly the implementation of the 13th Amendment.
• China’s Influence: India’s concerns over China’s investments in Sri Lanka, such as the Hambantota Port.
• Fisheries Dispute: Frequent diplomatic tussles over illegal fishing and arrests of fishermen.
• Katchatheevu Island Dispute: Dispute over ownership and usage rights, affecting fishing activities.
• Border Security and Smuggling: Porous maritime boundary leading to issues of border security and smuggling, including narcotics and illegal immigrants.

Way Forward

• Truth and Reconciliation Commission: Support the establishment of a commission to address the civil war legacy and promote healing for the Tamil community.
• Joint Maritime Patrols and Training: Enhance cooperation on maritime security by conducting joint patrols and training programs. E.g. Indo-Sri Lanka bilateral naval exercise “SLINEX“.
• People-to-People Ties: Promote cultural exchange programs and tourism to foster closer ties between the citizens of both countries. E.g. “Buddhist Circuit” tourism initiative.
• Joint Infrastructure Projects: Invest in infrastructure projects in Sri Lanka, ensuring smooth progress from planning to execution. E.g. Colombo Port.
• Economic and Trade Cooperation Agreement (ETCA) Implementation: Work towards swift and smooth implementation of the ETCA to reduce trade barriers and boost bilateral trade.
• Student Exchange Programs and Skill Development Initiatives: Establish scholarship programs for Sri Lankan students and collaborate on skill development initiatives.
• Investment in essential medicines production and other sectors to provide long-term solutions and counter China’s influence.

{GS2 – MoF – Schemes} 10 Years of Jan Dhan Yojana **

• Context (IE | IE | IE ): Pradhan Mantri Jan Dhan Yojana (PMJDY) launched on August 28, 2014, as a national mission for financial inclusion, completed 10 years.

• PMJDY holds the Guinness World Record for opening 1.8 crore accounts in a week during its launch.

Overview

• Objective: Financial inclusion through Basic Savings Bank Accounts for unbanked individuals.
• Coverage: Two phases aimed at providing banking facilities to 7.5 crore unbanked households using the JAM trinity (Jan Dhan, Aadhaar, Mobile).
• Current Target (2024-25): Open over 3 crore new accounts.
• State-wise Analysis: Highest Accounts are in Uttar Pradesh (9.45 crore) followed by Bihar(6 crore), and the fewest in Lakshadweep (9,256 accounts).
• Banking Sector Breakdown: Public Sector Banks lead with 41.42 crore accounts, followed by Regional Rural Banks (9.89 crore),  private sector banks (1.64 crore), and Rural Cooperative Banks (0.19 crore).

Key Features

• Cost Benefits: No account opening, maintenance, or minimum balance charges.
• RuPay Debit Cards: Issued to account holders with accident insurance cover up to ₹2 lakh and an overdraft facility of up to ₹10,000.
• Integration with Other Schemes: Eligible for Direct Benefit Transfers (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and MUDRA scheme.

Impacts

• Financial Inclusion: Over 80% of adults have formal financial accounts, up from 53% in 2014 also since its launch, over 53 crore accounts have been opened.
• Gender Gap Reduction: 55.6% of accounts (29.56 crore) are held by women.
• Banking Infrastructure Expansion: Bank branches have increased by 46% and ATMs by 30% since 2014.
• Boost to Digital Transactions: UPI has facilitated 55.7 billion transactions by July 2024.
• Leakage Reduction: JAM Trinity has saved Rs 3.48 lakh crore by eliminating ineligible beneficiaries and reducing leakages.
• Behavioral Changes: Increased PMJDY usage has been linked to reduced alcohol and tobacco consumption and decreased thefts in states like UP, Maharashtra, and Haryana.
• Economic Empowerment: The scheme has enhanced financial security and independence for marginalized groups, with 66.6% of accounts in rural and semi-urban areas.
• Increase in Banking Habits: Deposits reached Rs 2.31 lakh crore, with 36.14 crore RuPay debit cards issued. The average account balance rose from Rs 1,065 in 2015 to Rs 4,352 in 2024.
• Access to Banking Facilities: 99.95% of inhabited villages have banking access within a 5-km radius.
• Social Benefits: PMJDY has facilitated direct benefit transfers, with Rs 38.49 lakh crore transferred via DBT over the past decade, as well as COVID-19 financial assistance and PM-KISAN.

Challenges and Shortcomings

• Despite a large number of accounts, a portion remains inactive (around 20 percent of PMJDY accounts).
• The push for financial inclusion has raised concerns about the potential for over-indebtedness.
• Many account holders, especially in rural areas, lack sufficient financial literacy to utilize the services.
• Some accounts have low transaction activity, indicating that they are not being effectively used.
• Despite progress, certain areas still face challenges in accessing facilities due to infrastructure gaps.
• The rapid expansion of digital financial services has outpaced the development of consumer protection frameworks, leaving some users vulnerable to fraud and exploitation.
• The scheme has primarily been driven by public sector banks, with limited involvement from private sector banks, which could affect the sustainability of financial inclusion efforts.
• The lack of customer-centric financial products tailored to the needs of economically marginalized groups has limited the scheme’s impact on long-term financial security.

Way Forward

• Strengthen Financial Ecosystem: Enhance private-sector participation in financial inclusion through partnerships and collaborations.
• Promote Financial Literacy: Focus on financial education to ensure that account holders, especially in rural areas, can effectively use banking services.
• Expand Product Penetration: Increase the availability of micro-insurance, credit, and other financial products while avoiding the risk of over-indebtedness among new entrants.
• Enhance Consumer Protection: Develop a robust consumer protection framework to safeguard users of digital financial services from fraud and exploitation.
• Customer-Centric Product Design: Tailor financial products to meet the specific needs of PMJDY account holders, considering their irregular income patterns and unique financial requirements.
• Leverage Digital Technology: Continue to integrate digital solutions like UPI and the Unified Lending Interface to make banking more accessible, efficient, and user-friendly.
• Interlink Government Schemes: Explore the integration of PMJDY accounts with other government welfare programs to ensure a comprehensive approach.
• Monitor and Activate Dormant Accounts: Implement strategies to encourage the active use of accounts, reducing the number of inactive accounts.

{GS2 – Vulnerable Sections – Women} Commodification of Women in Medieval India

• Context (TP): The commodification & trafficking of women in medieval India reveal deep-seated gender inequalities & power dynamics, whose legacy still impacts contemporary attitudes towards women.

Historical References

• Antagada-Dasao: Early Jain text mentions enslaved women from Greece and Persia, indicating early slave trade networks.
• Herodotus: This Greek historian’s accounts suggest Persian raids captured Greek women for slavery, supporting their trafficking through Persia to India.
• Sanskrit Eulogies: 7th-century eulogies celebrate conquests with sexual and territorial imagery. Kings Vikramaditya I and Krishna I used such language to describe their victories.
• Lekhapaddhati: A 13th-century Sanskrit text from Gujarat details individuals involved in capturing and selling enslaved girls.
• Hero Stones: Medieval inscriptions record abductions of women, reflecting their vulnerability and the prevalence of such practices.

Contemporary Reflections

• Historical Roots: These medieval practices have deeply influenced contemporary gender inequalities.
• Enduring Biases: Historical gender biases shape modern attitudes and systemic issues.
• Cultural Continuity: Modern gender inequalities often reflect historical misogynistic attitudes.
• Impact on Legal Frameworks: Influenced current legal and social structures related to gender.
• Comparative Progress: Examining gender equality advancements in other societies highlights the potential for change and the need for reform.
• Modern Challenges: Contemporary efforts to improve women’s rights must address the historical legacies affecting societal attitudes.
• Need for Acknowledgment: Understanding historical gender inequality is essential for addressing and overcoming ongoing issues.

{GS3 – Envi – CC} Turning Climate Research into Action **

• Context (TH): India is increasingly facing diverse and severe climate risks hence effective disaster management requires translating climate research into practical solutions.

• Extreme weather events like heatwaves, floods, and wildfires are becoming more frequent and severe due to climate change.
• Population growth and economic development increase exposure to climate risks, worsening vulnerabilities in urban and rural areas (as seen in Wayanad).

Existing Challenges

• Forecast Limitations: Weather forecasts are often too broad, lacking the local detail needed for effective disaster management.
• Insufficient Skills: There is a shortage of trained professionals to interpret and apply climate data.
• Operational Gaps: Tools like irrigation advisories and urban flood predictions are not fully implemented or accessible for widespread use.
• Knowledge Transfer Issues: Effective translation of research into practical applications is hindered by gaps in communication and implementation strategies.
• Fragmented Efforts: Climate research and disaster management efforts are often siloed, preventing cohesive application of findings.
• Inadequate Infrastructure: Poor infrastructure and a shortage of trained personnel and inadequate training programs for effective climate data management increase vulnerabilities.

Way Forward

• Sector-Specific Extension Agents: Develop roles dedicated to translating climate research into practical applications for specific sectors and regions.
• Enhanced Forecast Downscaling: Improve the accuracy of forecasts by downscaling them to hyperlocal levels to inform disaster preparedness.
• Invest in Training: Build capacity by training professionals and extension agents to use climate data effectively and communicate in local languages.
• Streamline Data Integration: Improve mechanisms for integrating climate data into decision-making processes in agriculture, urban planning, and disaster management.
• Strengthen Collaboration: Foster partnerships between academic institutions, government agencies, and local organizations to ensure timely and effective use of climate research.

{GS3 – Envi – Conservation} Andhra Pradesh’s New Green Strategy

• Context (TH): The Andhra Pradesh forest department aims to increase the state’s green cover to over 33% of its geographical area and advocates planting indigenous trees amidst the ongoing Public Interest Litigation (PIL) that questions the negative effects of specific exotic species.

Concerns related to exotic tree species

• Groundwater Depletion: Exotic species like Conocarpus erectus may use excessive groundwater, leading to shortages. Conocarpus erectus can reduce water availability in dry regions.
• Health Issues: Trees such as Alstonia scholaris can cause health problems like gastrointestinal issues. Alstonia scholaris has been linked to stomach irritations in nearby communities.
• Cyclone Vulnerability: Exotic trees like Terminalia mantaly are less resilient to cyclones, causing damage. Terminalia mantaly may break or fall during storms, posing hazards.
• Disruption of Local Ecosystems: Exotic species can outcompete native plants, harming local biodiversity. Conocarpus erectus can overshadow native plants, reducing habitat for local wildlife.
• Increased Allergic Reactions: Exotic trees can increase allergens, worsening respiratory issues. Terminalia mantaly can produce pollen that aggravates allergies.

Ecological Benefits and Adaptability of local species

• Support for Local Wildlife: They provide essential habitat and food for local animals. Mango trees offer fruit and shelter for birds and insects, supporting local biodiversity.
• Enhanced Soil Health: They improve soil structure and fertility through natural processes. Neem trees enhance soil health by fixing nitrogen and adding organic matter through leaf litter.
• Adaptation to Local Climate: They are well-adapted to local climatic conditions, requiring less water and maintenance. Tamarind trees thrive in hot, dry climates and are drought-resistant, making them ideal for arid regions.
• Erosion Control: Local trees stabilise soil and prevent erosion through their root systems. Pongamia pinnata (Pongam) has deep roots that help prevent soil erosion in sloped areas.
• Pollination and Seed Dispersal: They often support local pollinators and assist in natural seed dispersal. Mimusops elengi (Mimusops) attracts bees and butterflies, facilitating pollination and seed spreading.
• Cultural and Economic Value: They often hold cultural significance and provide economic benefits to local communities. Mango trees are culturally valued and economically important for their fruit, which supports local economies and traditions.

Read more > Afforestation

{GS3 – Envi – Conservation} Indian Carbon Market **

• Context (TH): The Finance Minister announced a shift from energy efficiency to emission targets, aligning with India’s climate and development goals.

• Polluting industries such as iron, steel, and aluminum will be required to meet these emission targets.
• The transition involves moving from the ‘Perform, Achieve, and Trade’ (PAT) scheme to an ‘Indian Carbon Market’.

PAT vs. Emissions Trading

Proposed Carbon Market Model

• The 2021 Bureau of Energy Efficiency draft outlines two mechanisms:
  • Phase 1: Voluntary market with a domestic project-based offset scheme (carbon offset mechanism).
  • Phase 2: Compliance market with mandatory participation for regulated entities (carbon credits trading mechanism), targeted for 2026.
• India’s model will reflect its unique development priorities and Nationally Determined Contributions (NDCs) under the Paris Agreement.

India’s Climate Commitments

• Clean Development Mechanism: India became the second-largest supplier of Certified Emission Reduction Units globally as of 2011.
• PAT Scheme: Launched in 2012 as part of the National Action Plan on Climate Change.
• NDCs: India’s NDC consists of eight targets, two of which relate to the energy sector.
  • Reduce emissions intensity of GDP by 45% below 2005 levels by 2030.
  • Achieve 50% cumulative electric power capacity from non-fossil fuel sources by 2030.

Challenges

• The proposed transition requires aligning industrial growth with climate commitments.
• The iron and steel industry, essential for industrialization faces significant emission challenges.
• The International Energy Agency (IEA) suggests a low probability of iron and steel projects meeting net zero emissions by 2050.
• India’s lack of binding GHG targets necessitates a tailored carbon market approach.

Way Forward

• Develop and implement a comprehensive roadmap for transitioning from the PAT scheme to the Indian Carbon Market, with clear milestones and timelines.
• Engage key stakeholders, including industry leaders and policymakers, to gather input and consensus.
• Strengthen emission monitoring and reporting by updating and standardizing measurement methodologies to ensure accuracy and transparency.
• Provide financial and technical support to industries, particularly iron and steel, to help them meet emission targets and encourage the adoption of cleaner technologies through incentives.
• Start with the voluntary market phase to allow industries to adapt and gradually transition to the compliance market, ensuring flexibility for different sectors.
• Align India’s carbon market with international best practices while addressing local development priorities, and monitor global trends to adjust as needed.
• Raise public awareness about the new system and provide educational resources to stakeholders.
• Establish a framework for periodic evaluation of the market’s effectiveness and adopt policies based on performance data and evolving climate goals.
• Support research and development of new technologies and encourage innovation through grants and partnerships with research institutions.

Read more > UNFCCC, Kyoto Protocol (UNFCCC Summit 1997), Carbon Trading

{GS3 – IE – Development} Indian Economy: Growth, Challenges and Future Prospectus

• Context (TS): India has experienced impressive economic growth in recent years, driven by various factors, including strong domestic demand, increased investment, and a favourable global environment.

Factors of the Growth

• Strong Domestic Demand: Growth in retail, e-commerce, and organised retail due to rising incomes and consumer spending.
• Infrastructure Investment: Government investments in roads, railways, ports, and airports improve connectivity and economic activity.
• Services Sector Growth: Robust growth in IT and IT-enabled services.
• Increased Investment: Significant inflows into manufacturing, technology, and retail sectors.
• Business Environment: Improved infrastructure and government efforts attract both foreign and private sector investments.
• Favorable Global Environment: Increased economic activity and lower commodity prices benefit India, and contributions from overseas Indians support economic growth.
• Young Population: A significant working-age demographic boosts productivity and economic growth.
• Structural Reforms: Simplified tax system and labour and tax reforms improve business efficiency.
• Technological Advancements: Promotion of digital technologies increases efficiency and innovation through digital India and growth in digital technologies and online platforms.
• Government Policies: For example, Aatmanirbhar Bharat Campaign to promote domestic manufacturing and reduce import reliance.

Challenges

• Inadequate Infrastructure: Poorly maintained roads and outdated power grids can disrupt business operations and slow economic growth.
• Inefficient Logistics: Logistics inefficiency increases transportation costs and delays supply chains, impacting overall economic productivity.
• Urbanisation Challenges: Rapid urban growth leads to infrastructure bottlenecks and inadequate planning, causing traffic congestion and strain on services.
• High Unemployment and Skill Mismatch: Elevated youth unemployment and skill mismatches contribute to joblessness, while many are engaged in informal, insecure jobs.
• Income Inequality and Persistent Poverty: Growing income disparities and persistent poverty in rural areas highlight significant socio-economic inequalities and lack of access to essential services.
• Environmental Challenges: Pollution and deforestation pose serious threats, with the need to balance economic development with environmental sustainability.

Future Prospectus

• Resilient and Diverse Economy: India’s ability to weather global economic shocks, its diverse economy with growing services and expanding manufacturing sectors demonstrate strong fundamentals.
• Financial Stability: A robust banking system and well-regulated capital markets contribute to overall financial stability.
• Demographic Dividend: A large, young population boosts labour force participation and productivity and fosters innovation and entrepreneurship.
• Growing Global Influence: India’s expanding economic power and strengthened international partnerships enhance its global role and attractiveness to foreign investors.
• Technological Advancements: Rapid digital transformation and a vibrant start-up ecosystem drive innovation and improve efficiency across various sectors.
• Policy Reforms and Infrastructure Development: Continued economic reforms and investment in infrastructure improve the business environment, reduce costs, and create new opportunities.

{Prelims – S&T – Defence} INS Arighaat

• Context (TH): India’s second nuclear-powered ballistic missile submarine, INS Arighaat, was commissioned into service at Visakhapatnam.

• INS Arighaat will further strengthen India’s nuclear triad, enhance nuclear deterrence, establish strategic balance and peace and play a decisive role in the country’s security.
• It retains the same reactor and dimensions of INS Arihant, but has technological upgrades with systems and equipment conceptualized, designed and manufactured indigenously.
• It can travel at a maximum speed of up to 24 knots when submerged and 1215 knots on a surface level.
• It can carry twelve K-15 Submarine Launched Ballistic Missiles (SLBM) with a range of over 3500 kms.
• It is propelled by 83 MW pressurized light-water reactors and can be submerged for extended periods.