Daily Current Affairs - Civil Services - 25-05-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 25-05-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. Indian Economy - India FDI inflows break record - India attracted the highest-ever total Foreign Direct Investment (FDI) inflow of $81.72 billion during 2020-21. The figure for 2020-21 is 10% more than the last financial year 2019-20 ($74.39 billion). Singapore emerged as the top investor country with 29% of the total investments, followed by the US at 23% and Mauritius at 9% for FY 2020-21. Despite the disruption caused by the Covid-19 pandemic in FY21, India attracted the highest ever total FDI inflow, which includes equity capital of unincorporated bodies, reinvested earnings, and other capital. Gujarat was the top recipient of FDI among states, with 37 per cent share of total FDI equity inflows, followed by Maharashtra and Karnataka with 27 per cent and 13 per cent, respectively. Computer software and hardware emerged as the top sector in FY21 with around 44 per cent of the total FDI equity inflow, followed by construction and infrastructure-related activities at 13 per cent, and services sector’s with 8 per cent. Govt. claimed that the boost was due to steps taken to improve ease of doing business and to attract investments into domestic manufacturing capacity and an ambitious infrastructure project pipeline.
2. Governance and Institutions - Haryana Government launches ‘Sanjeevani Pariyojana’ - Haryana has launched ‘Sanjeevani Pariyojana’. It is a supervised homecare initiative to help people in rural areas with mild to moderate symptoms access quick medical care at home. Under the initiative, they will not have to leave their homes as they will get access to medical care. The Haryana-Deloitte collaboration builds on the state’s existing telemedicine and other virtual medical care services for home treatment. “Sanjeevani Pariyojana” will also extend medical care to rural areas where awareness of the second wave of the virus and how to treat it remains low. With the right processes and care, officials believe it may be possible to support home convalescence for nearly 90 per cent of the patients.
3. Environment and Ecology - Invasive whiteflies range increasing - Researchers found that the host range of all of the invasive whiteflies was increasing due to their polyphagous nature (ability to feed on various kinds of food) and prolific breeding. Whiteflies are Hemipterans that typically feed on the undersides of plant leaves. They comprise the family Aleyrodidae, the only family in the superfamily Aleyrodoidea. In warm or tropical climates and especially in greenhouses, whiteflies present major problems in crop protection. These are one of the top ten devastating pests in the world that damage more than 2000 plant species and also function as vectors for some 200-plant viruses. Cotton is one of the worst hit crops by these. Also, Bt. cotton is not resistant against white flies. They were also found to expand their host range on valuable plants species, such as coconut, banana, mango, sapota, guava, cashew, oil palm, and ornamental plants and important medicinal plants. The whiteflies are difficult to control by using synthetic insecticides. Currently naturally occurring insect predators, parasitoids and entomopathogenic fungi (fungi that can kill insets) are being used. In India, the first invasive whitefly was reported from Kerala in 1995, but it is now spread all over the country! Most species are native to the Caribbean islands or Central America, and probably some tourist brought a nymph or baby insect along with imported plants.
4. Healthcare and Medicine - D-Dimer Test - Seeing the current trend of failed RT-PCR tests, doctors have suggested other tests when reports of patients with symptoms of coronavirus come negative. The suggested tests are D-Dimer, CRP, Interleukin-6. The latest wave has led to the new and rare symptoms such as blood clotting, in which case, the-above mentioned tests are required. D-Dimer - When a body part is damaged or is bleeding, the body tries to stop the bleeding by clumping together the cells there to make a network using fibrin protein. This makes a blood clot. When the healing is done, the body starts to degrade that clot and starts breaking down the fibrin. When the fibrin breaks down, it forms fibrin degradation products or FDPs. One of the FDP is D-Dimer. The D-Dimer test shows the presence of clots in the lung of the body when COVID becomes serious. D dimer is detectable for up to 8 hours after formation until the time the kidney clears it out. A higher level of D dimer in the body shows that there is a lot of clot in the body which can be a dangerous sign when affected with COVID. So D-Dimer test is used to assess for severity of COVID disease and if the patient is going to need oxygen in the future.
5. Healthcare and Medicine - New Corona variants escape immune response - A study found how the fast-spreading variants of the SARS-CoV-2 coronavirus carry mutations that enable the virus to escape some of the immune response created naturally or by vaccination. New variants are Brazilian variant (P.1), the United Kingdom variant (B.1.1.7), South African variant (B.135.1) and Indian variant (B.1.617). The scientists mapped how important classes of neutralising antibodies bind to the original pandemic strain of SARS-CoV-2 and how the process is disrupted by mutations found in new variants. In the study, the researchers focused mainly on three mutations in the SARS-CoV-2 spike protein: K417N, E484K and N501Y. Alone or in combination, these mutations are found in most major SARS-CoV-2 receptor binding site, where the virus attaches to host cells. Several of these mutations are clustered in one site, known as the “receptor binding site”, on the spike protein of the virus. It was seen that antibody responses to the SARS-CoV-2 receptor binding site are very potent in neutralizing the original strain, but certain new variants with mutations are able to escape the antibody responses.
6. Polity and Constitution - New action in Lakshadweep islands - Discontent started simmering in the Lakshadweep group of islands over the creation of a Lakshadweep Development Authority (LDA) by the new BJP administrator Praful Khoda Patel. Mr Patel, a BJP leader and former Home Minister of Gujarat, is the first political appointee as Administrator, a post mostly held by retired civil servants. Islanders pointed out that the legislation are out of sync with the social and environmental realities of the archipelago. The creation of the Lakshadweep Development Authority (LDA), with extensive powers, including eviction of land owners, is widely read as having been pushed by the real estate lobby and against the interest of the islanders. Hundreds of islanders have written to the administrator demanding the withdrawal of the proposed regulation, which makes provision for the orderly and progressive development of land in both urban and rural areas and to preserve and improve the amenities thereof; grant of permission to develop land and for other powers of control over the use of land; conferring additional powers in respect of the acquisition and development of land for planning.
7. World Politics - The Belarus state-sponsored hijack - Belarus's authoritarian President Alexander Lukashenko sparked international outrage after his regime forced a commercial airline flying from Greece to Lithuania to land in its territory allegedly on the pretext of a bomb scare, so it could arrest a dissident journalist on board. The journalist, Roman Protasevich, is a prominent opponent of Lukashenko, and had been living in exile in neighbouring Lithuania since fleeing his home country in 2019. Protasevich, 26, is the co-founder of the NEXTA media outlet on social media platform Telegram. In November 2020, he was charged in Belarus with inciting public disorder and social hatred. The regime has also put his name on a list of terrorists, and if convicted, he could face the death penalty. Opposition leaders have denounced the incident as an act of terrorism by the state, and infuriated Western leaders are discussing possible consequences for Belarus.
8. World Politics - India Israel agricuture cooperation - India and Israel signed a three-year work program for cooperation in Agriculture, while recognizing the centrality of agriculture and water sectors in the bilateral relationship. India and Israel are implementing the “INDO-ISRAEL Agricultural Project Centres of Excellence” and “INDO-ISRAEL Villages of Excellence”. India and Israel have had bilateral relations since 1993 in the agricultural sector. This is the 5th Indo-Israel Agriculture Action Plan (IIAP). The three-year work program (2021-2023) will aim to grow existing Centres of Excellence, establish new centers, increase CoE’s value chain, bring the Centres of Excellence into the self-sufficient mode, and encourage private sector companies and collaboration. As for the “INDO-ISRAEL Villages of Excellence”, this is a new concept aimed at creating a model ecosystem in agriculture across eight states, alongside 13 Centers of Excellence within 75 villages. The IIVOE program will focus on: (1) Modern Agriculture infrastructure, (2) Capacity Building, (3) Market linkage.
9. World Politics - Lithuania quitting China's forum - Lithuania said it was quitting China’s 17+1 cooperation forum with central and eastern European states that includes other EU members, calling it “divisive”.  Cooperation between China and Central and Eastern European Countries (China-CEE, China-CEEC) is an initiative by the Chinese Ministry of Foreign Affairs to promote business and investment relations between China and 16 countries of Central and Eastern Europe Countries (CEEC). The format was founded in 2012 in Warsaw. Earlier it was known as 17+1, but after Lithuania quits it in May 2021 it is known as 16+1. Central and Eastern Europe is a term encompassing the countries in Central Europe, the Baltics, Eastern Europe, and Southeast Europe (the Balkans), usually meaning former communist states from the Eastern Bloc and Warsaw Pact in Europe. Lithuania is a country in the Baltic region of Europe, and capital is Vilnius.
10. Indian Politics - Covid update - (a) In a distinct toning down of the second wave's ferocity, India reported only 1,96,427 new Covid-19 cases in 24 hours, taking the Covid tally to 2,69,48,874. With 3,511 deaths, death toll stood at 3,07,231. (b) Congress leader Anand Sharma said that Centre and states should fight pandemic unitedly and the PM should walk the talk. (c) Amid rising mucormycosis cases among Covid patients and those who have recovered from it, epidemiologists advised people to not get panicked by the colour of the fungus causing it, and underlined the importance of analysing the kind of infection, its causes and associated risk-factors. (d) In a strange twist, many people have started leaving their pets on the streets. Doctors have appealed people to not act on misinformation & to not forward messages on transmission of Covid-19 from pet animals to humans. (e) Pfizer was in talks with the Indian government over supplies of its Covid-19 vaccine, as New Delhi scrambles to bridge shortfalls, having pledged to fast-track approvals for overseas vaccines. India's vaccination programme has stumbled badly, with stocks running out. A total of just 19,59,99,629 vaccine shots administered till 25th May, of which only 4,20,43,135 were the second dose. NUMBERS - INDIA - Total cases: 26,947,496; New cases: 195,815; Total deaths: 307,249; New deaths: 3,498; Total recovered: 24,047,760; Active cases: 2,592,487.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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• 1. ECONOMY (Prelims, GS Paper 3, Essay paper)

Ex MPC member thinks India's threshold inflation level is 6 per cent

 

• The story: The government decided to focus on inflation control as the key RBI strategy since 2016. The 'Flexible Inflation Targeting' model was adopted for 5 years, and renewed therafter for another five, till 2026. As part of it, the Monetary Policy Committee (MPC) of the RBI decides the repo rates and other policy matters, every two months. The inflation target is 4% plus minus 2%, base on CPI measure.

• Latest update: As per a research paper by former monetary policy committee (MPC) member Ravindra Dholakia, India's inflation levels may be needed to be managed at its higher end of the target band to achieve its potential growth. The threshold inflation level for India is 6 per cent.

1. This is significant as the RBI adopted FIT framework as a formal monetary policy objective since 2016, under which price stability is the prime goal of monetary policy and the government sets an inflation target for the central bank.
2. The threshold inflation for India at around 6 per cent. An inflation target that is lower than the threshold level, cannot achieve its potential output growth and the system would remain in long-run disequilibrium requiring constant policy interventions to stabilize.
3. The current target is set at 4 per cent which can range in a band of 2 per cent either ways, which was set in April 2021 when the new MPC term started.
4. The inflation targeting framework came for criticism from various quarters as CPI inflation crossed 6 per cent, beyond the upper end of the band for several months in FY'21 due to the restrictions caused by the pandemic induced nation-wide lockdown.

• Threshold inflation: The study shows that the threshold inflation and corresponding growth depends on the other two parameters – the ratio of fiscal deficit to GDP and current account deficit to GDP. The concept of 'threshold inflation' is linked to the level of inflation beyond which it becomes detrimental to economic growth.  The study estimated the trade-off between long run inflation and steady state growth rate. A 100 bps (one bps is 0.01 per cent) reduction in inflation from the threshold level could result in 40 bps loss in growth and 15 bps of gain in the growth for 100 bps reduction in inflation towards the threshold level.
• Impact of rate target: Policymakers can choose to set the inflation target below the threshold level only after considering the costs of sacrificing growth and implied poverty alleviation rate with likely benefits in terms of the distributional and financial stability implications which are not examined in this study.
• Summary: Clearly, the pressure to help on GDP growth is telling on the RBI policymakers. Though this is not the prime mandate of the central bank, the government is under pressure for long now, given the earlier slow growth quarters, and then the Covid-induced sharp contraction.

What exactly is the future - Bitcoin or Government Digital Cash

• The story: In 2021, Bitcoin's value fluctuated so wildly that many wondered whether it could be the centre of the cryptocurrency utopia imagined by its rebel creators. It seems more likely now that people’s power will bow to sovereigns’ might, as sovereign digital cash appears on the horizon. They may be the FedCoin, digital euro and China’s e-CNY.
• Crazy rush: The mania that gripped decentralized cryptocurrencies heightened the attraction of the coming rivals: digital cash, issued by central banks. These tokens will be staid, centralized and state-controlled. That may be what potential users desire in an Internet of Things (IoT) world where machines need to settle claims with one another all the time, without contributing to global warming. Bitcoin is criticised as emitting too much of carbon, in the mining process, to be planet-friendly.

• Official electronic coins: These will be a new type of central bank liability alongside physical cash, though they won’t be a novel asset class. The good thing about that they may not be speculators' delight. So they may make far less onerous demands on energy resources than cryptocurrencies do.

1. Since cryptocurrencies are based on blockchains, in the absence of a trusted intermediary, the “mining," or proof-of-work protocol that keeps the blockchain secure from double-spending attacks, requires hardware that consumes huge energy.
2. Both Bitcoin and Ethereum consume electricity that can light up millions of households.

• How official better than crypto: The official coins using any distributed ledgers will only be held by a select group of intermediaries with the central bank’s permission. While the Bitcoin blockchain sees a race to solve puzzles faster than malicious actors, the nodes in the government coin network can lock their own funds to back legitimate transactions.

1. This approach is the "proof-of-stake", and will need a fraction of the energy "proof-of-work" needs.
2. Ethereum may make the switch, and the cryptocurrency Ether will replace hardware and electricity as the investment needed to secure the network. Validators will earn fees by locking up at least 32 Ether as collateral ($72,000 in May 2021). So if they misbehave, go offline or fail to do their job, the processors can lose their collateral.

• Centralisation: A central authority can run such a network better. A holder’s identity is inevitably required for verification of balances on a digital ledger. And for any coin holder, the one man who has the legal identity is the government. Central banks that aren’t constrained by how much fiat money they can create out of thin air use that flexibility to do deficit financing, by printing notes (the RBI calls it the GSAP). A “bitcoin-ized" economy can be dangerous because of finite money supply. Why? Because if you fix nominal variables, real output has to adjust to absorb any economic shocks.
• Anonymity: The idea of 'perfect anonymity of cryptocurrencies' is impractical, as it comes with high risks of money laundering and terror financing. Governments do not want to keep snooping on all online transactions, but they won’t give up their right to know who is behind all those pseudonyms when they want to. So the interest worldwide in digital cash is quite high now.
• History of Bitcoin: If cryptocurrency adoption is a headache for governments, an overwhelming popularity of digital cash could also be an issue. Banks could lose deposits should customers prefer having a direct claim on their monetary authorities. Lenders financing long-term loans with short-term market liquidity might get into trouble later. Earlier, ignoring these risks led to a point where subprime mortgage-linked banking losses had to be socialized, and that brought techno-anarchists like Satoshi Nakamoto who created a payment system based on cryptographic proof instead of trust. Bitcoin was born, in 2009. In ten years, the rising influence of blockchain technology in the traditional financial system has been spectacular. Digital cash with in-built, self-executing software code will alter the future of money in a way that cryptocurrencies never could. Tokens will win, and trust won't lose.

• Knowledge centre:

1. Proof of work - Proof of Work(PoW) is the original consensus algorithm in a blockchain network. The algorithm is used to confirm the transaction and creates a new block to the chain. Instead of allowing blocks to be created freely, proof-of-work requires that CPU resources be spent on a time-consuming problem first. This process is called mining. Proof that CPU resources were spent is included in the block itself, allowing anyone to verify that work was actually done.
2. Proof of stake - The Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins they hold. This means that the more coins owned by a miner, the more mining power they have. It is a type of consensus mechanism used by blockchain networks to achieve distributed consensus. Proof-of-stake comes with a number of improvements to the proof-of-work system: (i) better energy efficiency – you don't need to use lots of energy mining blocks, (ii) lower barriers to entry, reduced hardware requirements, (iii) stronger immunity to centralization – proof-of-stake should lead to more nodes in the network, (iv) stronger support for shard chains.

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• 2. ENVIRONMENT AND ECOLOGY (Prelims, GS Paper 3, Essay paper

Disaster readiness of Indian states

 

• The story: Disasters cannot be stopped, but only foretold, and planned for. In recent years, there has been a spike in extreme calamities, topped by the Covid outbreak. That shows the urgency of better disaster preparedness in Indian states. While health pandemics like Covid and climate hazards like the Uttarakhand floods or Delhi heat waves have differing origins, they spotlight common gaps in readiness. These need preparation.
• Learning from Singapore: In 2021, experts rated Singapore highest in Covid resilience, based on fatality rates, test rates and vaccination rates. Drawing on its experience with Sars and Influenza A, the Singapore government prioritized disaster preparedness in its investments. It built up digital infrastructure and engineering capabilities to deploy before, during and after calamities. For example, tools for contact tracing, like SafeEntry and TraceTogether, are enabling Singapore to respond swiftly to the spread of covid. A suite of digital tools is helping disseminate information and enabling government agencies to better coordinate and manage the crisis.
• Learning from NZ: New Zealand makes intense use of scientific expertise, spanning public health, infectious diseases, genomics, modelling and immunology. Like Singapore, New Zealand has drawn on its lessons from Sars. Among its actions during the covid pandemic, a vaccine taskforce has been made responsible for ensuring access to safe and effective vaccines as a strategy for exiting the crisis. New Zealand cancelled all international flights, while rigorously adhering to public health guidance even when its cases were only a few.
• The Indian examples: Among Indian states, Kerala stands out for its handling of recent catastrophes. Despite high levels of recorded infection rates, Kerala has a 0.3% death rate from Covid, the same as Singapore’s, which has the world’s lowest death rate. Early detection, swift isolation and speedy contact-tracing have been responsible. The use of frugal innovative methods as platforms for decision-making has been effective, as has been Kerala’s oxygen management, direct procurement of vaccines and a policy of zero vaccine wastage.
• India's overall approach: Ranked by HSBC as the most vulnerable to climate change among 67 nations, India needs to make a paradigm shift to prioritize preparedness and not just recovery. The announcement of a Coalition for Disaster Resilient Infrastructure at the United Nations Climate Action Summit in 2019 is welcome. India also has a Protocol for Disaster Risk Assessment and Reduction, based on composite methods of states and the experience of the National Disaster Management Authority in disaster management. Gap remains in implementing vital investments in infrastructure, education and health needed for disaster mitigation.
• Good examples: In Odisha, the 1999 super cyclone with windspeeds of up to 260 kilometres per hour took 10,000 lives (50,000 by an unofficial count). Cyclone Phailin in 2013 and Cyclone Fani in 2019, while comparable in intensity (windspeeds of 220 and 200kmph respectively), saw a dramatic fall in fatality to 44 and 89 respectively, thanks to the state’s investments in early warning systems and timely evacuation. (a) In Gorakhpur, local communities are using nature-based solutions to build resilience against frequent floods. Gorakhpur Environmental Action Group has come up with climate resilient methods for vulnerable communities. For example, farmers switched from mono-cropping to rotating multiple crops to improve soil health and drainage. Several adopted organic practices, which reduce harmful run-off in nearby rivers. A weather advisory group helps farmers use a text message-based early warning system to schedule irrigation and harvesting. (b) But across the country, covid has revealed glaring gaps in health systems, and, in many instances, poor governance and often a lack of trust in governments. State investments in health vary enormously. Kerala’s per capita public health expenditure, for example, is about twice that of Uttar Pradesh and Bihar.
• Time for change: Reform proposals and actions often follow calamities. In Australia, following its deadly bushfires of 2018 and 2019, Insurance Australia Group recommended that government funding prioritize risk reduction, lessening the need for spending on disaster recovery. To aid in better preparedness, the Australian Natural Disaster Resilience Index now assesses the risk profiles and resilience of communities faced with bushfires. Following the Great East Japan Earthquake and the 2011 tsunami, Japan continues to strengthen its most important disaster preparation capabilities. In India, it would pay to establish inter-state pooling of technical capabilities, supplies and staff power to manage deficits and gaps.
• Summary: The big lesson for the Indian states and the Centre is to make more and better investments in health, education and social safety nets. Governments must act in anticipation of emerging calamities rather than scramble to respond after they strike

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• 3. FOREIGN AFFAIRS (Prelims, GS Paper 3, Essay paper)

Was Novel Coronavirus lab-made or lab-released - Theories flourish

• Wuhan virus lab: A Wall Street Journal (WSJ) report in May 2021 said that some researchers at the Wuhan Institute of Virology in China fell ill with symptoms "consistent with both Covid-19 and common seasonal illness" in the fall of 2019. Then came a major statement on the origins of the coronavirus by infectious diseases guru Dr Anthony Fauci, in contrast to his earlier stand (that the virus was natural). All this has turned the spotlight once more on China and its possible culpability in letting loose a pandemic on the world.
• The suspicion: The Wall Street Journal reported that the three Chinese researchers sought hospital care a month before China disclosed the first Covid-19 cases in December 2019, although it cited caveats from unnamed US sources that the matter required "further investigation and additional corroboration." The claim was largely trashed by the US scientific establishment. Later, a joint study into the origins of Covid-19 by WHO and China published at the end of March 2021 said it was "extremely unlikely" that SARS-CoV-2 virus had escaped from a lab.
• Dr Fauci's volte face: Scientists are now starting to push back against the WHO and China conclusion that ruled out a lab leak, given Beijing's resistance to releasing lab records and allowing independent investigations. Dr Fauci has gone back from his original dismissal of the lab-leak theory in recent days, and is now saying that he is "not convinced" that Covid-19 developed naturally!
• President Biden: The Biden administration has taken the cue and said there are "serious questions" about the earliest days of the Covid-19 pandemic, including its origins, and disclosed that the US government is working with WHO and other member states to support an expert-driven evaluation of the pandemic's origins "that is free from interference or politicization." The politicisation though is inevitable given the polarisation in the US between globalists and nativists imbued with a deep suspicion of Beijing. Trashed by the US scientific establishment, several prominent Trump supporters are striking back, questioning American collaboration with China.
• Allegations by American right-wing: Many Republican lawmakers wrote to Dr. Francis Collins, Director of the National Institute of Health (NIH), requesting details about US funding so-called "gain of function research" in which viruses are manipulated in a lab to become more transmissible and harmful -- amid angry denunciation from the right wing of the so-called demigods of science. One accused Dr Fauci, who some on the right say is the "father of the virus," of playing word games in his rejection that US funded the Wuhan lab's gain of function research, alleging money from NIH was routed indirectly to WIV through another US organisation whose lead scientist played a prominent role in discrediting the lab leak theory. Calls are growing to follow the money trail.
• China remains recalcitrant: China has continued denying any responsibility for the pandemic, accusing the US of continuing to hype up the lab leak theory and distracting attention from tracing the virus origin. China suggested the virus did not originate in Wuhan and might have even entered China from another country via imported frozen food shipments or wildlife trading, without offering any credible evidence for the claim.
• Knowledge centre:

1. Dr Anthony Fauci - Dr. Fauci is an American physician-scientist and immunologist. He served the American public health sector in various capacities for more than 50 years, and has acted as an advisor to every U.S. president since Ronald Reagan. Dr. Fauci made important scientific observations that contributed to the understanding of the regulation of the human immune response and is recognized for delineating the mechanisms whereby immunosuppressive agents adapt to that response. He developed therapies for formerly fatal diseases such as polyarteritis nodosa, granulomatosis with polyangiitis, and lymphomatoid granulomatosis. He contributed to the understanding of how HIV destroys the body's natural defense system, progressing to AIDS. In 2003, the Institute for Scientific Information stated that from 1983 to 2002, "Fauci was the 13th most-cited scientist among the 2.5 to 3.0 million authors in all disciplines throughout the world who published articles in scientific journals."
2. Wuhan Institute of Virology - The WIV was founded in 1956 as the Wuhan Microbiology Laboratory. It is a research institute on virology, run by the Chinese Academy of Sciences (CAS). It reports to the State Council of the China. It is located in Wuhan, Hubei. Mainland China's first biosafety level 4 (BSL–4) laboratory was commissioned here. The institute has links with the Galveston National Laboratory in the United States, and was an active research center for the study of coronaviruses. In December 2019, cases of pneumonia due to an unknown coronavirus were reported to health authorities in Wuhan. The institute checked its coronavirus collection and found the new virus had 96% genetic similarity to RaTG13, a virus its researchers had discovered in horseshoe bats in southwest China. During the COVID-19 pandemic, the laboratory has been the focus of various conspiracy theories.

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• 4. GOVERNMENT SCHEMES (Prelims, GS Paper 2, Essay paper)

Crypto volatility is not an isolated phenomenon

• The story: Several times in its journey, the Bitcoin value in crypto exchanges has fluctuated wildly. But May 2021 saw the worst swings of all time, with the crypto asset slumping by upto 40% in a single day, and then recovering somewhat. Bitcoin being the biggest, its volatility rubs off onto others too.
• Crypto contagion: With the volatility of cryptocurrencies likely to not end anytime soon, investors are thinking if this will mean trouble for other financial assets such as stocks and bonds. There is a ‘crypto contagion’ question in investor mind now.

• Possibilities: Speaking straight, this may not lead to any contagion immediately. But if the cross-ownership of assets, leverage and market functioning is seen, the there are other possibilities. Here are four -

1. Crypto volatility continue or not - It is likely to continue. In 2021, there have been competing pulls between and within the private and public sectors. While the private sector was pushing an accelerating process of broader adoption of Bitcoin as a form of payment and store of value, Elon Musk in February 2021 said that Tesla had invested some of its cash in Bitcoin and would also accept it as payment for cars. That encouraged many companies to follow suit, pushing Bitcoin prices higher. With non-traditional crypto trading platforms prospering as a result, such as Coinbase’s direct listing on Nasdaq, more traditional broker-dealers looked to participate. But as the enthusiasm of Musk and Tesla came into question, and a public-sector pushback that's growing in scale emerged, the ground looked shaky.
2. Are there national security risks - Many governments (and their central banks) are asking questions pertaining to links between cryptos and national security and economic and financial stability. These focus on concerns like (i) the facilitation of illicit payments, (ii) weak investor protection, (iii) the possibility of eroding the effectiveness of monetary policy and (iv) the loss of the seigniorage that comes with the widespread issuance and use of competing currencies. China and the UK are now considering central bank digital currencies, or centralized cryptos. The more they advance, the greater their desire will be to crush the decentralized variants (bitcoin). This may explain China’s May 2021 anti-Bitcoin actions.
3. Are cryptos and regular asset classes linked - In general, not at all. Based on fundamentals, cryptos are neither physical nor financial substitutes for stocks, bonds and commodities. Supporters highlight their role as a decentralized global currency that will proliferate in the payments and savings ecosystems. But that needs maturity and price stability, and many years! And cryptos need a solution to the problem of high energy consumption. (due to proof-of-work related heavy mining needs)
4. Can contagion spread informally - As traders' leverage rises, why not! With government bonds offering low yields, as well as asymmetrical and unfavourable price prospects, investors have seen cryptos as a way to diversify assets for their much larger equity and equity-like exposures. Contagion risk increases as cross-holdings expand in more investor portfolios, especially when trades are levered. Financial history is full of examples of how investors who are unable to sell what they want, to protect portfolios, raise cash or both, often end up selling other holdings. This is the risk of financial spillovers.
5. The scale of contagion risk, small or big - It is not earth-shaking as of now, as Bitcoin holdings are not sufficiently institutionalized to constitute a stand-alone systemic risk. Many banks have little balance-sheet exposure. Any spike in volatility would have few direct spillover effects.

• Summary: The rise in Bitcoin prices, still up more than 250% in the last 12 months despite the decline in the last five weeks from $63,000 to less than $40,000, is part of an ‘everything rally’ powered by central banks’ continued liquidity push. With margin debt growing rapidly at the same time, the risk of a financial accident exists.

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• 5. POLITY AND CONSTITUTION (Prelims, GS Paper 2, GS Paper 3)

Centre-state relations in India - Flow of authority

 

 

• The story: The constitution envisages India as a 'union of states' with unitary bias. The Supreme Court's 'basic structure doctrine' says that federalism is an inalienable feature of Indian constitutional scheme.
• The issue: The Centre should ideally not bypass state level political leadership, but it is seen that Centre issued direct instructions to district level officials functioning under elected State regimes. That raised concerns of bypassing federalism.
• Structure: As said, India is a ‘federal country with strong centralising features.’ A key responsibility for the Centre is to maintain the balance, as well as mutual respect, between political structures at the central and State levels. It is the Centre's duty to refrain from bypassing the elected leadership while dealing with States.
• What went wrong: The PM held two virtual meetings with district magistrates (DMs) and State officials to review the COVID-19 situation. Then, the Union Education Minister Ramesh Pokhriyal held a virtual meeting with State Secretaries in charge of education, on the National Education Policy (NEP), and related matters such as the conduct of Class XII examinations. Such meetings are usual and help get some feedback from the field across India. It is however, unusual for leaders in the central political executive to bypass their counterparts in the States. (a) The Tamil Nadu Minister for School Education did not depute any official to represent the State in Mr. Pokhriyal’s interaction. He said that the local Minister ought to have been included in a discussion on the NEP. (b) The West Bengal CM Mamata Banerjee highlighted that Chief Ministers felt humiliated when all of them were not allowed to speak to the PM in a virtual interaction.
• Rajiv Gandhi's case: Is Narendra Modi's interaction the first such? No. Former PM Rajiv Gandhi addressed the heads of the district administration in Uttar Pradesh on the issue of Panchayati Raj. The logic then was that such direct interactions were permissible under the Constitution, citing Articles 256 and 257. These provisions stipulate that the States are obliged to comply with laws made by Parliament, and allow some directions from the Union government.
• The worry: There is scope for resentment that the elected representatives of the States are being bypassed. In a politically polarised environment that exists in India, where every election is turned into a do-or-die battle, such transgressions are not viewed kindly by state politicians.
• Summary: In a pandemic, the centre plays a major role. The Disaster Management Act has been invoked to specify guidelines on lockdowns and relaxations and to ensure smooth medical supplies. But it would be better if events and discussions are held without undermining the political structures at the States. That alone can ensure whole-hearted participation of all.

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• 6. SCIENCE AND TECHNOLOGY (Prelims, Various GS Papers)

Genetically modified mosquitoes released in US

 

 

• The story: In May, mosquito eggs placed in the Florida Keys were expected to hatch tens of thousands of genetically modified mosquitoes, a result of the first U.S. release of such insects in the wild. A biotechnology firm called Oxitec delivered the eggs in late April 2021 as part of a federally approved experiment to study the use of genetic engineering, rather than insecticides, to control disease-carrying mosquito populations.

• Why do it: The move targets an invasive species, called Aedes aegypti, that carries Zika, dengue, chikungunya, yellow fever and other potentially deadly diseases, some of which are on the rise in Florida. The experiment relies on a genetic alteration that will be lethal to a large number of future offspring.

1. In this case, male mosquitoes have been modified to carry a gene that makes their female progeny dependent on the antibiotic tetracycline, and thus fated to die in the wild. As the mating cycle repeats over generations, female numbers are depleted, and the population is suppressed. The modified insects eventually die off, making this approach self-limiting (so the entire species won't die down).
2. Oxitec overcame significant regulatory hurdles before getting the go-ahead from the U.S. Food and Drug Administration in 2016 and then the Environmental Protection Agency in 2020.
3. If the current pilot effort is successful, the firm is set to release as many as 20 million more males in the prime of Florida’s mosquito season later in 2021. The results of the experiment could ultimately help address concerns about releasing genetically modified organisms into the wild.

• Current and future methods: The current method of controlling this species is to use insecticides, but they don’t really work well. There is resistance in the field, so new technologies are needed. The firm Oxitec’s technology for releasing genetically modified insects has been tested in other places. Given its prior testing in Brazil, the firm feels this experiment in the US is likely to work and to suppress A. aegypti populations. Hopefully it will directly translate into an epidemiological impact, effectively reducing disease transmission.
• Safety of this genetic technology: The firm says it is extremely safe. The real question here is: What are the existing control mechanisms that are in place? This mosquito has been controlled using many different broad-spectrum insecticides in Florida, including pyrethroids that also kill honeybees, ladybugs, dragonflies and other insects. By comparison, the new technology is only going to target A. aegypti, and will use the mosquito to control the mosquito.
• No out of control scenario: It’s a misconception that this process could get rid of all mosquitoes. There are more than 3,500 different species of mosquitoes on earth. A handful of them transmit pathogens. The firm is not trying to eliminate all mosquitoes. The mosquito species — A. aegypti — is invasive and doesn’t have a purpose in this environment. The first requirement for use of the technology in other areas later, will be success with the current experiment in Florida.
• Possible limitations: The basic question is of scalability. Can it be scaled to eliminate this pest from all of America? Or is it only useful in small communities? Also, species-specific technology is a double-edged sword. On the one hand, you’re only targeting one species. On the other hand, there are often multiple species transmitting a pathogen. For example, in Brazil, two different species that transmit dengue virus — A. aegypti and Aedes albopictus. That’s also the case in Florida. So if science get rid of one of them, the other is still out there.
• Global interest: The firm Oxitec has received approvals to do releases of its modified A. aegypti mosquitoes in the Cayman Islands and Panama. It is doing trials in India — genetically modified mosquitoes are released into cages with wild-type mosquitoes to mate and then compared with cages without the modified insect. With global warming, the habitable range of A. aegypti mosquitoes is expanding. The species now is present in many U.S. states, whereas 10 years ago it wasn’t.
• Summary: There is also a new CRISPR-based technology that can be used to eliminate A. aegypti populations, and it’s also self-limiting. Clearly, genetic engineering is now entering real world applications, and one can only hope that it doesn't run out of control. The fear is real, as the Chaotician in movie Jurassic Park beautifully said, "life always finds a way, and cannot and will not be contained".

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• 7. SOCIAL ISSUES (Prelims, GS Paper 2)

India second Covid wave - When is the peak

 

 

• Covid-19 deaths in India: The second Covid-19 wave has been more deadly, with over 1.4 lakh deaths happening in the less than two months. Yet there are signs of an approaching peak, including a dipping weekly case fatality ratio.

• Numbers: As on 23-May, the death count had reached 3,03,720. Nearly half of them, close to 1.5 lakh deaths, happened during the second wave, starting from the second week of February. An overwhelming number of these, more than 1.4 lakh deaths, have been reported in the seven weeks after March.

1. India already has the world’s third largest death count. Only the United States, which has recorded over 5.84 lakh deaths, and Brazil, which has seen 4.48 lakh deaths, have a higher death count. India now accounts for 16% of the global confirmed cases, and 9% of global deaths.
2. Is death count peaking? The daily count of cases in India peaked on May 6. That day, more than 4.14 lakh cases were discovered. There has been a steady decline in the detection of new cases after that. Since the trend in death numbers usually has a two-week lag, it might be the time that the death count begins to decline as well.
3. However, the seven-day moving average of daily death counts is still rising, although considerably slower than a few weeks ago, and with dips in between. In the last two weeks, this seven-day average has increased from 4,000 a day, to 4,190 a day.

• A sad month: May was the deadliest month of the epidemic for India so far. It has already seen the deaths of close to 92,000 people so far, almost twice the number for April. The hope is that a lot of deaths being reported now are from past weeks during which they had remained unaccounted for. Almost half of Maharashtra’s daily death count includes the deaths that happened more than two weeks ago. The same thing is happening in Karnataka and Tamil Nadu as well, the two states that are contributing very large number of deaths right now.
• Delayed reporting: This phenomenon of delayed reporting of deaths is not new, however. There has always been a long time lag in reporting of deaths. In fact, Karnataka is still reporting a few deaths from March. And, it is possible that some of the deaths happening now will get counted only two to three weeks later. However, the proportion of older deaths in the daily count being reported these days is significantly higher. What that means is that once the states clear their backlog, there is likely to be a sharp decline in the daily death counts in the coming days.
• Falling CFR: Because the number of deaths are no longer increasing as quickly as they were a few weeks ago, there has been a steady decline in the current (weekly) case fatality ratio (CFR) in the last 10 days. The weekly CFR is calculated by weighing the number of deaths in any seven-day period against the case count in the seven-day period two weeks earlier. It shows the current trends in mortality rates. The weekly CFR had begun to rise around the middle of March, peaked around the end of April, and has been declining ever since. Its peak around end-April coincides with the most chaotic phase of the epidemic in India. Several people had died of Covid-19 caused because of lack of hospital beds, oxygen, or ICUs.

• How it evolved: For the two-week period in the second half of April, the weekly CFR actually surpassed the overall CFR. Overall CFR is calculated by measuring the total number of deaths for the entire pandemic period against the total number of cases as it stood two weeks earlier. But it has gone well below the overall CFR now. As on Sunday, the weekly CFR was 1.07% while the overall CFR, which has been showing a much slower decline, was 1.34%. It means that in the previous one week, 107 persons out of every 10,000 people who got infected succumbed to the disease. However, if we consider the deaths from the beginning of the epidemic, 134 people out of every 10,000 confirmed infections have died. The weekly CFR is low right now because the daily deaths are still being measured against very high case counts that existed two weeks earlier.

1. In the subsequent days, however, there has been a rapid decline in the daily case count. Against a daily case count of about 3.9 lakh on an average at that time, only about 2.5 lakh cases are being discovered these days.
2. If the death numbers do not decline in the next few days, the weekly CFR would begin to increase once again due to a reduction in the denominator.

• The states: Several states, which were reporting a very high number of deaths until two weeks ago — Chhattisgarh, Delhi, Uttar Pradesh, even Uttarakhand — have seen their death counts go down. That was compensated by the sharp rise in death figures of Tamil Nadu and Karnataka, while Maharashtra has been consistently reporting between 800 and 1,000 deaths every day. Kerala has reported 634 deaths in the last three days, which is close to 10% of its entire death toll.

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• 8. MISCELLANEOUS (Prelims, GS Paper 1, GS Paper 2)

MS Internet Explorer to retire

 

 

• Enough of it: Microsoft announced that Internet Explorer 11 desktop browser will be retired on June 15, 2022, for some versions of Windows 10. However, Internet Explorer-based websites and applications will continue to work on new Microsoft Edge (Internet Explorer) mode till 2029.
• Why retiring: The firm is retiring Internet Explorer (IE) because it has been working over “Microsoft Edge with IE mode” to replace Internet Explorer 11 desktop application. Microsoft edge will help in providing more secure, faster and modern browsing experience. Compatibility issues related with Internet Explorer based websites and applications will also be resolved.
• Who will be affected: According to Microsoft, MSHTML (Trident) engine, Windows 10 LTSC and Server Internet Explorer 11 desktop applications will not be affected by retirement of IE. Windows 7 Extended Security Updates, Windows 8.1, Windows 10 Server- both SAC & LTSC etc will continue having IE 11 desktop application.
• Significance of Microsoft Edge with IE mode: The firm claims it is more secure, faster, and modern, and built on Chromium project. It provides dual-engine support for modern as well as legacy Internet Explorer-based websites.
• Microsoft Edge: It enables users to enjoy modern features such as browser tab management including Sleeping tabs feature, Vertical tabs, Edge Collections for favourites etc. It enhances browser security against malware or phishing attacks by issuing security patches. The Internet Explorer was launched in 1995 by Microsoft, as a web browsers operating on Windows. It destroyed the then-prevailing market leader Netscape Navigator, and landed Microsoft into an anti-trust battle with US Department of Justice.

CPEC is an economic initiative - China

• The story: Amid allegations and criticism, China has defended its China-Pakistan Economic Corridor (CPEC) project, by terming it an economic initiative.
• Details: The CPEC is a USD 60 billion project of China, running through Pakistan. India does not support the project as it passes through Pakistan-occupied Kashmir (PoK) region of India, China has repeatedly disregarded India’s protests stating that project has not affected its principled stand on Kashmir issue.
• The CPEC: The China–Pakistan Economic Corridor (CPEC) project, launched in 2013, comprises several infrastructure projects which are under construction throughout Pakistan. CPEC projects were worth $62 billion project as of 2020. The CPEC was launched to rapidly upgrade required infrastructure in Pakistan and strengthen its economy by constructing modern transportation networks, energy projects, and special economic zones.
• India's opposition: India opposes CPEC project because of upgradation works to Karakoram Highway are happening in Gilgit-Baltistan which is contested between India and Pakistan. India did not object to Chinese construction of Karakoram Highway during 1959 and 1979. It also did not object to major upgradation works to Karakoram Highway by China after 2010 earthquake. India started objecting Chinese construction works in Gilgit-Baltistan in 2011 after China complained about the Indian-Vietnamese oil exploration project in disputed South China Sea.

Merger of DCCBs with StCBs

 

 

• The story: India's Reserve Bank of India will consider merger of District Central Co-operative Banks (DCCBs) with State Cooperative Banks (StCBs) if the concerned state government will make any proposal.
• Details: The RBI notified the guidelines for merging DCCBs with StCBs as two-tier Short-term Co-operative Credit Structure (STCCS). Banking Regulation (Amendment) Act, 2020 has also been notified in effect from April 1, 2021 for these banks. Merger of such banks will be finally be sanctioned by Reserve Bank of India.
• Guidelines: As per the guidelines, RBI will consider proposals of merger “when state government will make it” after studying detailed legal framework. The guidelines mention that there should be an additional capital infusion strategy and assurance with respect to financial support. The business model should be projected with clear profitability. It also proposed governance model for merging bank.
• Approving the merger: The scheme of amalgamation will be approved by requisite majority of shareholders. NABARD in association with RBI will also examine and recommend proposals made by state government. Approval will be given in two-stages:
• First Stage: ‘In-principle’ approval will be given after completing certain conditions. Later, processes for amalgamation will be initiated.
• Second Stage: NABARD and RBI will be approached for final approval along with compliance report.

Sniffer dogs spotting Covid virus 

 

• The story: A study found sniffer dogs could be helpful in preventing spread of Coronavirus by detecting SARS-CoV2.
• Details: The study was conducted by scientists of London School of Hygiene & Tropical Medicine and Durham University. They believe that dog screening and swab testing can pick up 91 percent of infections. Dogs can detect the virus in seconds! Traditional COVID tests requires 15 minutes to give result. Thus, in half an hour, dogs can screen 300 people together! Perhaps sniff tests can be a suitable method for mass screening.
• How dogs identify the virus: Canine screening trial over specialist medical sniffer dogs detecting coronavirus in humans started in 2020. During the trial, six dogs were trained to recognise smell produced by people with COVID-19 which were undetectable to human nose. Dogs were given worn socks, face masks and t-shirts to recognise the smell.
• Are dogs reliable: People in negative group who had common cold viruses, were also made part of the trial to ensure that the dogs were able to distinguish COVID from other respiratory infections. The dogs detected the disease even when it was caused by different variants.

9.1 Today's best editorials to read

• We offer you 7 excellent editorials from across 10 newspapers we have scanned. 

CLICK HERE TO OPEN AND READ!

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• SECTION 3 - MCQs (Multiple Choice Questions)

Solve the online quiz given, right now. Check scores, and relative performance!

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