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Current Affairs – September 22-23, 2024
{GS2 – Governance – Welfare} Cess-based welfare schemes for workers
- Context (DH): With 93 per cent of employment in the informal economy, cess-based welfare schemes in India provide a practical solution for extending coverage to informal sector workers.
Cess-based welfare schemes
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Advantages
- Targeted Benefits: Cesses are tailored to the unique requirements of specific industries, ensuring that resources are allocated effectively.
- Efficiency: Administration of cess funds can be more streamlined, reducing bureaucratic costs.
- Accountability: Often comes with stricter oversight, enhancing transparency than general tax revenues.
- Revenue Generation: They can produce substantial funds for welfare programs without raising the overall tax burden.
Disadvantages
- Complexity: Cess-based schemes can be complex, especially when multiple cesses exist.
- Potential for Misuse: There is a risk of misuse of cess funds, including corruption and inefficiency.
- Limited Flexibility: Cesses may not be as flexible as general tax revenues, making adjusting benefits in response to changing economic conditions difficult.
{GS2 – IR – Canada} Changes in Canada’s work permit system
- Context (IE): Canada has announced changes to its international work permit system, aiming to reduce the number of immigrant workers in Canada.
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New restrictions
- Students to pass a language proficiency test, i.e. Canadian Language Benchmark (CLB) before applying for PGWPs. Earlier, the CLB was only needed to apply for Permanent Residency (PR).
- Graduates from programmes at public colleges will be eligible for PGWP if they graduate from a field of study connected to occupations witnessing long-term labour shortages in the country.
- Students enrolling in master’s and doctoral programs to get a provincial attestation letter (PAL). Earlier, this condition was only for undergraduate students.
Reasons for imposing curbs
- Pressure on cities’ infrastructure, higher rents and a “massive” increase in immigration.
- Use of the system to apply for asylum after arriving in Canada.
Impact on India
- Encourage Indian students to consider other emerging destinations like Germany, Singapore, Italy and Ireland, which are becoming attractive for educational purposes.
{GS2 – IR – Foreign Policy} India’s place in Russia-Ukraine peace-making
- Context (TH): The PM’s visits to Moscow and Kyiv signal a shift towards a more proactive role in diplomatic discussions rather than a non-aligned stance and strategic autonomy.
Read more > Russia – Ukraine Crisis
India’s Shifting Diplomatic Stance
- Initial Distance: India initially distanced itself from the conflict, emphasising non-alignment and the statement, “Europe’s problems are not the world’s problems.”
- Mediation Role: India aims to engage Russia and Ukraine, fostering dialogue for peace.
- Global Leadership: India’s focus on food and energy security during the G-20 reflects its intent to address Global South issues.
India’s Advantages in Global Diplomacy
- Non-Aligned Movement Legacy: India’s historical non-alignment enables unbiased engagement with multiple powers, enhancing its mediatory role.
- Diverse Relationships: Strong ties with Western nations and the Global South allow India to bridge divides and promote inclusive dialogue.
- Strategic location: India’s location at the crossroads of regions facilitates trade & cooperation.
- Soft Power: Rich cultural heritage and democratic values foster international goodwill and cooperation.
- Growing Economic Influence: India’s economic clout enhances its leverage as a fast-growing economy.
Challenges Ahead
- Entrenched Positions: Russian control over significant Ukrainian territory complicates peace talks.
- Rejection of Proposals: Both sides have dismissed each other’s peace initiatives, leading to a stalemate.
- Escalation Risks: Ukraine’s pursuit of advanced weaponry from the West raises the risk of provoking a stronger Russian response.
- Geopolitical Tensions: Geopolitical issues, like NATO’s expansion, complicate any mediator’s ability to find common ground.
- Domestic Pressures: Internal divisions in both countries affect negotiations, with strong public support in Ukraine for regaining territory and nationalistic sentiments in Russia.
- Competing Interests: Various global powers, including China, have vested interests in the conflict, complicating mediation efforts.
Way Forward
- Develop a Comprehensive Peace Proposal: India should formulate a detailed and innovative peace framework that addresses the core concerns of both Russia and Ukraine, focusing on mutual interests.
- Strengthen Diplomatic Channels: Enhance communication with both sides to facilitate dialogue, using backchannel negotiations to build trust and understanding between the countries.
- Leverage Multilateral Platforms: Utilize international forums like the G-20 and BRICS to foster discussions on conflict resolution, emphasising cooperation among global South nations.
- Promote Humanitarian Efforts: India can lead initiatives to provide humanitarian aid to those affected by the conflict, positioning itself as a compassionate mediator.
- Engage with Global Stakeholders: Collaborate with other influential nations, such as China and the U.S., to create a unified de-escalation and conflict resolution approach.
- Balance Domestic and Global Priorities: Ensure that foreign policy aligns with domestic needs, maintaining public support while pursuing a proactive role in international diplomacy.
{GS2 – IR – Groupings} 2024 Quad Leaders’ Summit
Credits: Britannica
Major Discussions
- Need to reform the UN Security Council and make it more representative, inclusive, transparent, efficient, effective, democratic and accountable by expanding permanent and non-permanent members.
- Reaffirmed support for rules-based international order, respect for sovereignty and territorial integrity, and peaceful resolution of all disputes and free, open, inclusive and prosperous Indo-Pacific.
- Expressed concerns over the militarisation of disputed features, coercive and intimidating manoeuvres in the South China Sea, and use of coast guard and maritime militia vessels, including increasing use of dangerous manoeuvres.
Read in detail about South China Sea disputes.
Various Initiatives announced
Disease prevention
- Quad Cancer Moonshot initiative, with an initial focus on cervical cancer. India committed to providing the Indo-Pacific region with $7.5 million worth of HPV sampling kits and cervical cancer vaccines.
- To combat the Mpox outbreak, making low-cost Mpox vaccines accessible to all in Indo-Pacific.
- Quad Principles for Development and Deployment of Digital Public Infrastructure to provide equitable access and improve public service delivery at scale.
Climate and Clean Energy
- Expansion of Early Warning Systems and the Climate Information Services Initiative (CIS) to improve Pacific Island countries’ access to high-quality climate data and services and increase partners’ capacity to prepare for and respond to climate change and its impacts.
- Quad Clean Energy Supply Chains Diversification Program to support the development of secure and diversified clean energy supply chains in the Indo-Pacific region.
- India to invest around $2 million in new solar projects in Fiji, Comoros, Madagascar, and Seychelles.
- USA to extend a $250 Mn loan to construct a solar cell manufacturing facility and a $500 Mn loan to construct and operate a solar module manufacturing facility in India.
People-based initiatives
- India announces a new initiative to award fifty Quad scholarships worth $500,000 to students from the Indo-Pacific who will pursue a four-year undergraduate engineering program at a GoI-funded institution.
Maritime security & logistics network
- Regional Maritime Initiative for Training in the Indo-Pacific (MAITRI) to enable the Indo-Pacific partners to monitor and secure their waters, enforce their laws, and deter unlawful behaviour.
- India will host the inaugural MAITRI workshop in 2025.
- Quad Indo-Pacific Logistics Network pilot project: To pursue shared airlift capacity among the four nations and leverage collective logistics strengths, to support civilian response to natural disasters more rapidly and efficiently across the Indo-Pacific region.
- Quad-at-Sea Ship Observer Mission to be launched in 2025 by the US Coast Guard, Japan Coast Guard, Australian Border Force, and Indian Coast Guard in the Indo-Pacific to improve interoperability.
Navigating science and technology
- Launched two Track 1.5 dialogues on AI and Advanced Communications Technologies to promote international standardisation cooperation, including frameworks for AI conformity assessment.
- Plan to launch BioExplore Initiative, a joint effort supported by an initial $2 million in funding to use AI technology to study and analyze biological ecosystems across all four countries.
- Global expansion of Asia Open RAN Academy (AORA).
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Ports and Infrastructure
- Quad Ports of the Future Partnership project: To leverage Quad’s expertise to support sustainable and resilient port infrastructure development across the Indo-Pacific by collaborating with regional partners.
- Semiconductor Supply Chains Contingency Network Memorandum of Cooperation: To realise a diversified and competitive market and enhance Quad resilience in semiconductor supply chains.
Cyber security
- Quad Action Plan to Protect Commercial Undersea Telecommunications Cables to advance the Quad’s shared vision for future digital connectivity, global commerce, and prosperity.
{GS2 – IR – Groupings} IPEF
- Context (IE | PIB): India has signed agreements under the Indo-Pacific Economic Framework for Prosperity (IPEF) during PM’s visit to the U.S. for the Quad Leaders’ Summit.
IPEF Initiatives
- Upskilling Initiative
- Launched to offer digital skills training for females in emerging and middle-income IPEF countries.
- Over the past two years, 14 U.S. companies and the Asia Foundation provided 10.9 million upskilling opportunities, with India benefiting from 4 million.
- Critical Mineral Dialogue
- Mapping mineral resources across partner nations.
- Promoting trade by analysing trade flows in the region.
- Fostering technical collaboration for mineral recovery and recycling.
- Tech Council
- Sharing best practices and standards.
- Enhancing digital infrastructure resilience- Cyber Security, Undersea Cables, and Artificial Intelligence.
- Promoting investment and innovation through workforce development.
- Cooperative Work Program (CWP)
- Facilitates collaborative efforts among interested IPEF countries to advance the objectives of the Clean Economy Agreement.
- Eight CWP proposals cover hydrogen supply chains, carbon markets, clean electricity, sustainable aviation fuel, just transition, emissions accounting, small modular reactors, and e-waste urban mining.
Financial Aspects
- Investment Initiatives: The IPEF Catalytic Capital Fund has an initial grant of $33 million to stimulate $3.3 billion in private investments. The PGI Investment Accelerator received $300 million in initial funding from the U.S. International Development Finance Corporation. e.g. Sembcorp plans a ₹36,238 crore green ammonia plant in Thoothukudi, following an MoU with companies from India, Singapore, and Japan.
- Technical Assistance: The framework offers platforms for technical assistance and concessional funding to support clean energy projects and other initiatives.
Advantages for India
- Trade Opportunities: IPEF reduces trade barriers, enhances market access for Indian exporters, and expands international opportunities for Indian tech and e-commerce companies.
- Supply Chain Resilience: Promotes supply chain diversification and establishes crisis management channels, enhancing India’s global trade participation.
- Investment Opportunities: Encourages responsible FDI while enhancing funding for India’s sustainable infrastructure and climate projects.
- Technology Collaboration: Boosts India’s progress in AI, digital infrastructure & emerging technologies.
- Sustainable Economic Growth: Aligns India’s clean energy goals with IPEF’s sustainability focus while promoting FDI and providing funds for capacity building in sustainable projects.
- Geopolitical Strength: Strengthens India’s stance in the Indo-Pacific, countering challenges from dominant players like China.
{GS2 – IR – India-EU} India’s retaliation against EU tariffs
- Context (IE): India proposes a $1.1-billion retaliation against the EU for extra steel duties as it has resulted in a cumulative trade loss for India amounting to $4.412 billion.
- The safeguard duty imposed by the EU is a Tariff Rate Quota (TRQ). Recently, the EU has extended the safeguard duties on steel imports by another two years till 2026.
- Under the TRQ mechanism, every country is allocated a quota to export 26 steel products to the EU. This quota was set at 105% of the average imports from that country between 2015 and 2017. Exports beyond this quota attract an additional 25% duty.
- Under WTO rules, another safeguard measure for these categories of steel products cannot be imposed for another eight years.
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{GS2 – IR – UN} Summit of the Future
- Context (TH): At the recent United Nations “Summit of the Future,” India emphasised the need for a global shift towards sustainable living to address climate change challenges.
Main objectives of the Summit of the Future
- To unify approaches to global issues, advocating for a new consensus to evolve the international system for future generations.
- Adopt the Pact for the Future, including a Declaration on Future Generations and a Global Digital Compact to address peace, security, and digital cooperation.
- To strengthen global governance to address challenges like climate change, pandemics, and economic instability, reinforcing multilateralism.
- To revitalise efforts toward the SDGs, which have stalled due to recent global crises.
{GS2 – Social Sector – Health – Issues} ‘Non-skippable’ Anti-tobacco Ad
- Context (TH): Health Ministry proposes mandatory 30-second non-skippable anti-tobacco ads on OTT platforms. The proposed regulations will apply to all films, both Indian and foreign, released on or after September 1, 2023. The new draft rules expand on the 2024 amendment to the COTPA 2003.
- Content Blocking: Under Section 67 of the IT Act, the government can block content that threatens public interest or national security.
- Increased Regulatory Scrutiny: Continued non-compliance may lead to stricter oversight, including mandatory audits and potential operational restrictions from regulators.
{GS2 – Vulnerable Sections – Children} Children and social media
- Context (TH): The Australian Prime Minister’s proposal for a minimum age for social media use addresses rising concerns about child safety amid increased pandemic screen time.
Challenges of Children in Social Media
- Child Safety Risks: Increased exposure to harmful content and online dangers, including cyberbullying and predatory behaviour.
- Digital Literacy Gap: Many parents lack the skills or knowledge to guide their children safely.
- Parental Responsibility: The burden placed on parents to monitor and manage their children’s online activity can be overwhelming.
- Data Privacy Issues: Concerns about children’s data being shared online and the implications of “sharenting” by parents.
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Challenges of Enforcing Age Limits
- Verification Difficulties: Establishing reliable methods for verifying a user’s age can be complex, especially in a digital environment where users can easily falsify information.
- Circumvention by Users: Children can bypass age restrictions by using tricks like identity theft or false information to create accounts.
- Lack of Consistent Standards: Different platforms may have varying age verification processes, leading to inconsistencies in enforcement and compliance.
- Resource Limitations: Many companies may lack the resources or incentive to invest in robust age verification technologies, undermining enforcement efforts.
- Impact on Accessibility: Strict age limits could inadvertently restrict access for younger users who could benefit from safe online experiences, complicating the balance between safety and accessibility.
Role of Education in Digital Literacy
- Curriculum Integration: Incorporating digital literacy into school curricula ensures students learn how to navigate online spaces safely and responsibly.
- Critical Thinking Skills: Education can equip students to assess online content critically, helping them identify misinformation and recognise safe practices.
- Online Safety Awareness: Teaching children about online risks and how to protect themselves fosters a culture of safety and resilience in digital environments.
- Parental Engagement: Schools can facilitate workshops or resources for parents, helping them understand digital tools and effectively support their children’s online activities.
- Skill Development: By focusing on practical skills such as coding, digital communication, and data privacy, education prepares students for a technology-driven future and promotes safe online behaviour.
Way Forward
- Digital Literacy Programs: Schools should implement uniform curricula focusing on online safety and responsible use. For example, Common Sense Media offers resources for educators.
- Collaborations: Governments, tech companies, and schools can work together on initiatives to improve child safety online. For example, The UK’s Age-Appropriate Design Code.
- Enhance Parental Resources: Provide accessible guidance for parents on managing their children’s online activities. For example, Parent Zone offers tools for digital parenting.
- Stronger Regulations: Laws that hold tech companies accountable for protecting minors and enforcing age verification. For example, the proposed U.S. Senate bills aim to strengthen online child protection.
- Safe Platform Design: Tech companies should prioritise features that limit harmful content exposure and enhance privacy. For example, TikTok’s parental controls and content filters for younger users.
{GS3 – Envi – Conservation} Congo Basin
- Context (DTE): Between 2017 and 2021, the Congo Basin received only 4% ($40 million) of global forestry funding, compared to $1 billion for the Amazon and Borneo-Mekong regions.
- To address this funding gap, the Wildlife Conservation Society (WCS) has proposed an innovative mechanism known as the High Integrity Forest Investment Initiative (HIFOR).
- A pilot project was launched at Nouabalé-Ndoki National Park in the Republic of the Congo.
{GS3 – IE – Banking} Reduced deposit mobilization by Banks
- Context (IE): RBI has raised concerns over slower deposit mobilisation compared to credit growth, stating that it may create structural liquidity issues.
Reasons for slower deposit mobilisation
- Slower deposit growth relative to credit growth was observed during 2018-2019, 2011-2013, and 2004-2007. Current and savings accounts, banks’ primary low-cost funding sources, account for 41% of total deposits, down from 43% in the previous year.
- Lower credit to GDP for the current per capita income level compared to other Asian peers such as Thailand, Malaysia, and China.
- Outflow of household savings from banks to capital markets adversely impacts the money multiplier and the deposit creation process. Low government spending in the run-up to the election led to an increase in government cash balances with the RBI.
{GS3 – IE – Inclusive Growth} How the South Outpaced North India ?
- Context (IE): A working paper from the EAC-PM has observed that southern states have increasingly driven India’s economic growth, while northern states like UP, Punjab, and West Bengal have declined.
- This shift highlights the impact of economic reforms and changing fiscal dynamics.
Historical Context
- Economic Dominance of Northern States: In 1960-61, states like Uttar Pradesh and West Bengal contributed significantly to India’s GDP, with UP at 14.4% and West Bengal at 10.5%.
- Punjab’s Green Revolution Impact: Punjab’s per capita income increased during the 1970s due to agricultural advancements, reaching 169% of the national average.
- Gradual Decline: Over the decades, these northern states saw a reduction in their contributions.
Current Scenario
- Southern Economic Growth Post-Reforms: The southern states seized opportunities and became significant contributors to the GDP, accounting for 30% of India’s GDP by 2023-24.
- IT & Manufacturing Hubs: Southern states dominate key sectors like IT and manufacturing, playing a major role in India’s exports.
- Northern States’ Dependence on Fiscal Transfers: UP, Bihar, and West Bengal rely heavily on fiscal transfers from the Centre, given their lower per capita incomes and limited economic growth.
Concerns
- Falling Share in Tax Pool: The southern states’ share in the divisible tax pool decreased from 21.1% (2000-05) to 15.8% (2021-26), while northern states received larger fiscal transfers.
- Political Representation Issues: Fears of the delimitation process in the Lok Sabha could lead to the southern states losing representation due to their relatively slower population growth.
- Dependence on Fiscal Transfers: Bihar and UP rely on central transfers for over 60% of their revenue, reducing self-sufficiency and growth incentives.
- Widening Income Disparities: Per capita income in West Bengal fell below the national average, increasing the gap between developed and underdeveloped regions
Way Forward
- Balanced Fiscal Policies: A more equitable distribution of fiscal resources is needed to ensure both growth and fair representation, avoiding the marginalisation of economically advanced states.
- Targeted Economic Reforms in North: Gujarat’s focused industrial policies post-2000 transformed it into an economic hub; similar targeted reforms can uplift northern states.
- Encouraging Local Revenue Generation: Kerala’s efficient tax collection and tourism-driven revenue generation model can be replicated in other states to reduce dependence on central transfers.
- Balanced Representation Through Delimitation: The German Bundestag model balances population and regional contributions to ensure fair representation without penalising lower-growth regions.
- Strengthening Federalism: Clear dialogue and cooperation between the Centre and states are essential to maintain a healthy federal system.
{GS3 – Infrastructure – Energy} Dealyed grid access to Green Energy Developers
- Context (IE): The integration of renewable energy into the power grid is being hindered by a global shortage of high-voltage transformers, delaying grid access for green energy developers in India.
Key Issues
- Global Demand Surge: Rising demand for high-voltage transformers is driven by efforts to integrate renewable energy, straining supply chains globally.
- Delays in Renewable Projects: Grid access for projects in key states like Rajasthan and Gujarat faces delays, with evacuation systems potentially not ready until 2029.
- Limited Domestic Production: India’s reliance on three domestic manufacturers, all multinational-owned, is slowing down infrastructure development.
- Legal and Land Hurdles: These challenges further exacerbate delays in transmission infrastructure.
- Strain on Supply Chains: The global shortage emphasizes the need to strengthen supply chains and enhance production capacity.
Way Forward
- Boost Domestic Manufacturing: India can incentivise manufacturers like Bharat Heavy Electricals Limited (BHEL) to expand production of high-voltage transformers to reduce reliance on imports.
- Adopt Programme-Based Ordering: Similar to Europe’s “Fit for 55” strategy, implement programme-based ordering for transformers to provide manufacturers with better demand forecasts.
- Address Legal and Land Issues: Reforms like the National Land Monetization Corporation (NLMC) introduction can help expedite land acquisition for renewable energy.
- Strengthen Supply Chains: Form strategic partnerships with countries like Japan and South Korea, which have advanced transformer manufacturing capabilities.
- Encourage Innovation: The National Smart Grid Mission (NSGM) can foster innovation in energy equipment, ensuring India meets future grid demands with efficient, locally developed technologies.
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{Prelims – In News – Defence} Exercise Eastern Bridge VII
- Context (PIB): The Indian Air Force (IAF) has completed Exercise Eastern Bridge VII with the Royal Air Force of Oman (RAFO) at the RAFO airbase in Masirah.
- Objectives: To enhance military ties and operational coordination between India and Oman through air combat drills and mission scenarios.
Other Joint exercises between India and Oman
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{Prelims – In News} Global Food Regulators Summit 2024
- Context (PIB): Global Food Regulators Summit 2024 was hosted by the Food Safety and Standards Authority of India (FSSAI).
- The summit gathered food regulators from over 70 countries to discuss residue monitoring, food-testing innovations, hidden hunger fortification, and animal feed impacts.
Key Outcomes and Initiatives
- Food Import Rejection Alerts: Online portal for notification of food import rejections at Indian borders.
- FICS 2.0: an advanced website for the Food Import Clearance System.
- ‘Flavours of Shree Anna – Sehat aur Swaad Ke Sang’ – a millets recipe show.
- State Food Safety Index 2024: Annual report evaluating the food safety of Indian states and UTs.
Food Insecurity in India
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{Prelims – PIN India} Pallikaranai Marsh
- Context (TH): A bathymetric study in Pallikaranai marshland aims to enhance ecological functions and prevent encroachments, guided by National Green Tribunal.
Pallikaranai Marsh
- It is a freshwater marsh near Chennai adjacent to the Bay of Bengal.
- Notable species: Russell’s viper, glossy ibis, and Pheasant-tailed jacana.
- In April 2022, Pallikaranai Marsh was designated a Ramsar site. It has 65 wetlands that enhance biodiversity, with Okkiyam Madavu and Kovalam Creek serving as key outlets to the Bay of Bengal.
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{Prelims – PIN World – Europe} Pokrovsk
- Context (TH): The Russian Army is advancing in Pokrovsk to conquer the whole Donetsk region.
- Dubbed as “gateway to Donetsk“ by Russia, control over the city would allow Moscow to disrupt Ukrainian supply lines along the eastern front and boost its campaign to capture the city of Chasiv Yar, which sits on higher ground, offering potential control of a wider area.
Credits: TH
- Pokrovsk, part of Donetsk, lies on a key road used by the Ukrainian military to supply other embattled Ukrainian-held outposts, such as the towns of Chasiv Yar and Kostiantynivka in the Donetsk region.
- It has emerged as a coking coal producer and a vital logistical hub.
