Daily Current Affairs - Civil Services - 15-06-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 15-06-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. World Politics - New Atlantic Charter between USA and UK - The US President and UK Prime Minister signed a new version of the 80-year old Atlantic Charter. Originally, "The Atlantic Charter" was a joint declaration released by US President Franklin D. Roosevelt and British Prime Minister Winston Churchill on 14th August, 1941 during World War II in Newfoundland. The 2021 charter is an effort towards a grand vision of global relationships of democracy and territorial integrity, and is a statement of a promise that the UK and the US would meet the challenges of today’s world. It calls for both to adhere to the rules-based international order. It also focuses on climate change and biodiversity. It highlights emerging technologies, cyberspace and sustainable global development, and calls on Western allies to oppose interference through disinformation or other malign influences, including in elections. It vows that as long as there are nuclear weapons, the North Atlantic Treaty Organisation (NATO) will remain a nuclear alliance. All this is a reversal of direction that President Trump had taken, who had questioned NATO's relevance itself.
2. Science and Technology - PASIPHAE surveying project - The Polar-Areas Stellar-Imaging in Polarisation High-Accuracy Experiment (PASIPHAE) is an international collaborative sky surveying project steered by the Institute of Astrophysics, Greece. It will be used in upcoming sky surveys to capture polarisation (B-mode signal) coming from very faint stars that are so far away that their polarisation signals haven’t been systematically studied. The distances to these stars will be obtained from measurements of the GAIA satellite. The survey will use two high-tech optical polarimeters to observe the northern and southern skies, simultaneously. By combining these data, astronomers will perform a maiden magnetic field tomography mapping of the interstellar medium of very large areas of the sky using a novel polarimeter instrument known as WALOP. As the survey will focus on sky areas where very low polarisation values (<0.5%) are expected to emerge, a polarimeter with high sensitivity and accuracy was needed, so WALOP was planned sometime in 2013. The maximum observation time offered by the smaller telescopes will be diverted for the PASIPHAE sky survey using WALOP.
3. Science and Technology - Rare Earths and US law - The U.S. Senate passed a law aimed at boosting American production and processing of rare earths. In 2019, the U.S. imported 80% of its rare earth minerals from China. These are a set of 17 chemical elements in the periodic table, specifically the 15 lanthanides plus scandium (Atomic Number 21) and Yttrium (Atomic Number 39). Lanthanide series comprises the 15 metallic chemical elements with atomic numbers 57 through 71, from lanthanum through lutetium. Scandium and yttrium are considered rare-earth elements because they tend to occur in the same ore deposits as the lanthanides and exhibit similar chemical properties, but have different electronic and magnetic properties. Cerium (AN 58) is the most abundant rare earth metal. Why these elements called as RARE? There is no shortage of rare earths. But their extraction is difficult (Requires high skill, Capital intensive, Environmental issues). 2 main ore of extractions are Monazite and Bastansite. Properties: Their colour ranges from Shiny Silver to Iron Gray. They are soft, malleable, ductile and usually reactive, especially at elevated temperatures or when finely divided. Its application ranges from civilian (smartphones, laptops, petroleum refining catalysts) to military including nuclear applications. Rare minerals that are essential to electric vehicles, wind turbines and drones. China has the largest reserve (37 percent), followed by Brazil and Vietnam (18 percent each), Russia (15 percent), and the remaining countries (12 percent). One may say that rare earths are the crude oil of China!
4. World Politics - Tigray's food crisis - The UN emergency relief coordinator Mark Lowcock said Tigray region of Ethiopia is witnessing widespread famine. According to an Integrated Food Security Phase Classification (IPC) analysis, famine conditions in Tigray are in phase 5 with 3,50,000 people out of Tigray’s 6 million population are experiencing famine. The Integrated Food Security Phase Classification (IPC), also known as IPC scale, is a tool for improving food security analysis and decision-making. It is a standardised scale that integrates food security, nutrition and livelihood information into a statement about the nature and severity of a crisis and implications for strategic response. The IPC was originally developed for use in Somalia by the United Nations Food and Agriculture Organization's Food Security Analysis Unit (FSAU). IPC scale: Phase 1: Generally Food Secure (More than 80% of households can meet basic food needs without atypical coping strategies) Phase 2: Borderline Food Insecure (For at least 20 percent of households, food consumption is reduced but is minimally adequate) Phase 3: Acute Food and Livelihood Crisis (At least 20 percent of households have significant food consumption gaps. Levels of acute malnutrition are high and above normal) Phase 4: Humanitarian Emergency (At least 20 percent of households face extreme food consumption gaps, resulting in very high levels of acute malnutrition and excess mortality) Phase 5: Famine/Humanitarian Catastrophe (At least 20 percent of households face a complete lack of food and/or other basic needs and starvation, death, and destitution are evident; and acute malnutrition prevalence exceeds 30%; and mortality rates exceed 2/10000/day)
5. Defence and Military - IDEX-DIO budget approved by DM - Defence Minister Rajnath Singh approved the budgetary support of ₹498.8 crore to Innovations for Defence Excellence (iDEX) - Defence Innovation Organisation (DIO) for the next five years. Innovations for Defence Excellence (iDEX) was launched by the Government of India in 2018. iDEX will be funded and managed by a ‘Defence Innovation Organization (DIO)’ which has been formed as a ‘not for profit’ company as per Section 8 of the Companies Act 2013 by the two founder members i.e. Defence Public Sector Undertakings (DPSUs) - HAL & BEL alongwith the Department of Defence Production (DDP). iDEX will function as the executive arm of DIO, carrying out all the required activities while DIO will provide high level policy guidance to iDEX. The iDEX framework and establishment of the DIO is aimed at promoting innovation and indigenisation in the aerospace and defence sector at the start-up level. The scheme is aimed at providing financial support to nearly 300 start-ups, MSME, individual innovators and 20 partner incubators.
6. Indian Economy - 44th GST Council Meeting recommendations - The 44th GST Council met under the Chairmanship of Union Finance Minister, and decided to reduce the GST rates on various items being used in Covid-19 relief and management till 30th September, 2021. It decided to waive the tax levied on two critical drugs against COVID-19 and mucormycosis — tocilizumab and amphotericin B — and reset the tax rate to 5% for 14 major pandemic relief items, till September 30. The 5% GST levied on vaccines was left unchanged. The GST rate on Remdesivir and anti-coagulants like Heparin has been reduced from 12% to 5%. Ambulances, which are currently taxed at 28%, will attract a GST levy of 12%, while temperature checking equipment and electric furnaces used in crematoriums will attract a 5% GST instead of 18%. For oxygen concentrators, medical grade oxygen and related devices such as ventilators, BiPAP machines, the GST rate has also been brought down to 5% from 12%. The same reduction has been approved in the levies on COVID-testing kits and pulse oximeters. The 5% rate will apply to personal imports of oxygen concentrators as well as pulse oximeters, while the 18% GST payable on hand sanitisers has been reduced to 5%.
7. Science and Technology - Various updates - (a) Microsoft employees slept in the company's data centres during the height of the coronavirus pandemic, it emerged. Officer told that "In certain countries there was huge lockdown...so we'd have our employees choose to sleep in the data centre." (b) Tesla CEO Elon Musk mocked Anonymous by tweeting a meme more than a week after the hacker group released a video warning Musk over his tweets on cryptocurrencies. The meme read "Hannah Montana is actually Miley Cyrus" in the backdrop of a photo of Anonymous. "The games you've played with the crypto markets have destroyed lives," Anonymous earlier warned Musk. (c) Christie's is to auction artwork by 18-year-old transgender artist FEWOCiOUS in the form of non-fungible tokens (NFTs). FEWOCiOUS has five auction pieces and paintings that will capture each formative year of his growth from age 14 to 18 as a young transgender artist in the digital era. They will be sold at Christie's from June 23-30 in an online auction. (d) Elon Musk, the world's third-richest person with $169 billion wealth, tweeted that he has "decided to sell" his last remaining house. This comes days after he said he's sold all houses except for one in Bay Area that's rented out for events. Musk had said he's downsizing his life to work on sustainable energy for Earth and making life multi-planetary.
8. People and Personalities - Adani stocks fall steadily - Most Adani Group stocks fell for the second day even as the group denied reports on accounts of three foreign funds being frozen. Adani Total Gas, Adani Power and Adani Transmission plunged 5% to hit lower circuit while Adani Ports & Special Economic Zone was also trading lower during intraday trade. The group's stocks fell over $6 billion on 14th June, 2021. Confusion over three Mauritius-based funds that whipsawed shares of companies controlled by Indian billionaire Gautam Adani this week has underscored a deeper risk for investors in such stocks owned by opaque entities. The Economic Times said on 14th June that the National Securities Depository Ltd. froze the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund. The Adani group soon denied the report and called it “blatantly erroneous” but clarified that three demat accounts of Cresta, Albula and APMS are “suspended for debit,” adding to the confusion over the status of the the offshore funds. But the damage was already done.
9. People and Personalities - Walmarts sell stake worth billions - The Walton family, which owns about half of Walmart, has sold around 16.7 million company shares worth nearly $2.1 billion in 2021. Over the past week, the Walton Family Holdings Trust has sold $430 million worth of Walmart stock. The family is the world's richest with an estimated combined fortune of $216 billion, according to Bloomberg Billionaires Index.  The Walton Family Holdings Trust sold $430 million worth over the past week, taking their total sales to almost $2.1 billion since Jan. 1, according to Securities and Exchange Commission filings. The notifications were filed on behalf of second-generation family members Alice, Rob and Jim Walton. Walmart has bought back $37.4 billion of shares since it started a repurchasing program in 2015.
10. Indian Politics - Covid Update - (a) India reported its lowest daily COVID-19 cases in 75 days as 60,471 tested positive, an also reported 2,726 deaths in the last 24 hours. With this, the total number of cases has reached 2,95,70,881, while the death toll has surged to 3,77,031. Active cases declined to 9,13,378. (b) Bharat Biotech has said that supply price of Covaxin to Centre at Rs 150 per dose not sustainable in the long run. This goes against its Chairman's 2020 statement that a vaccine they'll make "will be cheaper than a water bottle". (c) The pandemic has worsened corruption across the European Union, Transparency International said, with citizens at times needing personal connections to get medical care and some governments using the crisis for their own gain. The anti-graft watchdog surveyed more than 40,000 people in the EU's 27 member states between October and December 2020. (d) NUMBERS - INDIA - Total cases: 2,95,70,881; New cases: 60,471; Total deaths: 3,77,031; New deaths: 2,726.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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

RBI for removing interest rate caps for microlenders

 

 

• The story: India's Microfinance institutions (MFIs) may finally get the freedom to set interest rates guided by a board-approved policy, under a Reserve Bank of India (RBI) proposal. This new rule will end the existing regulatory cap on MFI interest rates. So far, this issue was politically contentious also, as criticism of MFIs ripping off rural folk were often made.
• Details: As per the regulatory thought, the Non-banking financial company (NBFC)-MFIs, like any other NBFC, should be guided by a board-approved policy and the fair practices code, whereby disclosure and transparency would be ensured. There would be no ceiling prescribed for the interest rate. However, while doing so, they should ensure usurious interest rates are not charged. This was said by RBI in its "Consultative Document on Regulation of Microfinance". The idea is to harmonize regulations across categories of microlenders.
• The first hint: RBI had on 5 February 2021, signalled the need for a framework that is uniformly applicable to all regulated lenders in the microfinance space. While the microlending space has scheduled commercial banks, small finance banks and NBFCs, investment and credit companies, the regulatory focus has largely been on those registered as NBFC-MFIs. The discussion paper intends to facilitate a review of the applicable regulatory framework for microfinance activities undertaken by all regulated entities, and is expected to address concerns related to over-indebtedness of microfinance borrowers and to enable a market mechanism to bring down interest rates.

• Trust them: The proposal reflects the regulator’s faith in the ability of microfinance lenders to transparently set interest rates. RBI has reposed faith in the maturity of the microfinance sector, and it is a forward-looking step where the responsibility is of the institution to fix a reasonable interest rate on transparent terms.

1. Microlenders at present have limited freedom to set interest rates. The maximum an MFI can charge is the lower rate between the cost of funds plus a margin of 10 percentage points for NBFC-MFIs with loan portfolio exceeding Rs.100 crore and 12 percentage points for others and 2.75 times the average base rate of the five-largest commercial banks.
2. RBI believes this rate ceiling also has had an unintended consequence of creating a prescribed benchmark for other microlenders. For instance, lending rates of banks also hover around this regulatory ceiling, despite the comparatively lower cost of funds. Ultimately, borrowers are deprived of the benefits of enhanced competition and economy of scale even under a falling interest rate regime, it said.

• Things to change: The new framework suggests a common definition of microfinance loans uniformly applicable to all regulated entities to ensure target borrowers are identified with an element of certainty, irrespective of the type of lenders. Second, the maximum permissible level of indebtedness for microfinance borrowers shall be applicable to all regulated entities. Third, the current stipulation that limits lending by not more than two NBFC-MFIs to the same borrower will be removed. Other proposed changes include each regulated entity requiring having a board-approved policy for household income assessment, periodicity of repayments as per borrowers’ requirements, and all-inclusive interest rates charged to the borrowers. That apart, there should be no pre-payment penalty.

Inflation rearing a dangerous head in India

• The story: As the RBI went into an accommodative mode since 2020, after the pandemic broke, it focused on helping growth regain its feet. That may have given the monster of  inflation enough time to prepare for a comeback.

• FIT: As per the Flexible Inflation Taregting (FIT) policy, the bRBI has been tasked with maintaining retail inflation at 4 per cent with margin of 2 per cent on either side until March 2026. After five months, the CPI data in May has overshot the Reserve Bank's upper margin of 6 per cent.

1. May 2021 update CPI - India's retail inflation (measured by the Consumer Price Index (CPI)) jumped to 6.3 per cent in May on account of higher food and energy prices, as per data released by the Ministry of Statistics and Programme Implementation (MoSPI).
2. Food inflation accelerated to 5.01 per cent in May, as compared to 1.96 per cent in April.
3. The CPI inflation had eased to a three-month low of 4.23 per cent in the month of April on the back of reduction in food prices.
4. The RBI, which mainly factors in retail inflation while arriving at its monetary policy, had left the key interest rate unchanged earlier in June.
5. The central bank projected the CPI inflation at 5.1 per cent during 2021-22: 5.2 per cent in Q1; 5.4 per cent in Q2; 4.7 per cent in Q3; and 5.3 per cent in Q4 of 2021-22.

• WPI inflation: Wholesale price-based (WPI) inflation accelerated to a record high of 12.94 per cent in May. This increase was led by a base effect and rising crude oil prices, making this the fifth continuous month of uptick in WPI-based inflation. In April this year, WPI inflation had hit double digits at 10.49 per cent. The Commerce Ministry said "The high rate of inflation in May 2021 was due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared to the corresponding month of the previous year."
• An insight: A sure problem with most of the inflation numbers relating to personal care, health, recreation, transport is that once prices are increased they would not come down and hence becomes a new base. Since inflation measures the rate of increase in price over a period of one year, hence, the annual inflation itself may not be high, but that doesn’t necessarily mean that things are not expensive.

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

India claims rich nations owe billions on climate change

 

 

• The story: In June 2021, as soon as the G7 members reaffirmed their commitment to the Paris Agreement on climate change, India reminded them of their responsibilities citing their historical emissions. It said they still owe $1.1 trillion to developing countries as per what was promised 11 years ago.
• The promise made: As part of the Paris Agreement rich countries promised to provide US $100 billion a year to help developing nations combat climate change. But for the last 11 years practically nothing was done.

1. Government of India said that India's cumulative contribution to climate change (in terms of emission) in the last 200 years was just 3%. The unbridled carbon emissions particularly by Europe, US and in the last 40 years by China, caused climate change disaster.
2. These countries prospered economically but polluted the world. India was one of the suffering countries with the least contribution to climate change.
3. Now, the rich nations discuss climate change seriously because the chicken have come home to roost.

• Worries of developing nations: Developing countries are worried as to how the lack of finance will be soon a major hindrance to their decarbonisation efforts as switching over to low carbon economic growth path has a cost. The G7 countries – US, Canada, UK, France, Germany, Italy and Japan – in June once again reaffirmed the collective goal to jointly mobilise $100 billion per year from “public and private sources” in the context of meaningful mitigation actions.

1. Besides promising to accelerate efforts to achieve ‘net zero’ greenhouse gas (GHG) emissions as soon as possible and by 2050 at the latest, they also reaffirmed their existing commitment to eliminating inefficient fossil fuel subsidies by 2025.
2. As part of a fresh move towards decarbonisation, they decided to end “new direct government support” for unabated international thermal coal power generation by the end of 2021 with Canada, Germany, the UK, and the US agreeing to back a $2 billion fund to accelerate the coal transition and support ‘just transition’ for affected workers and sectors.

• Summary: Though green activists expressed their disappointment over the issue of climate finance saying the rich countries cannot simply reiterate existing obligations but must put substantial new and additional finance on the table, they appreciated the G7 members’ decision to end the public financing of coal by the end of 2021. The deal leaves China isolated as the world's biggest public backer of the dirtiest fossil fuel.

Restoring 2.6 crore hectare of degraded land by 2030

 

 

• The story: At a UN dialogue in June, India's PM said that India was working towards restoring 2.6 crore hectares of degraded land by 2030 and assisting fellow developing countries to develop land-restoration strategies. India was on track to achieve the national commitment of land degradation neutrality.
• Details: The PM claimed it would contribute to India's commitment to achieve an additional carbon sink of 2.5 to 3 billion (250 to 300 crore) tonnes of carbon dioxide equivalent. Asserting that land degradation affects over two-thirds of the world today, PM Modi said if left unchecked, it will erode the very foundations of our societies, economies, food security, health, safety and quality of life.
• India's steps: India has taken the lead to highlight land-degradation issues at international forums and the "Delhi Declaration" of 2019 called for better access and stewardship over land and emphasized gender-sensitive transformative projects.

1. In India, over the last 10 years, around three million (30 lakh) hectares of forest cover had been added. This has enhanced the combined forest cover to almost one-fourth of the country's total area.
2. Restoration of land can start a cycle for good soil health, increased land productivity, food security and improved livelihoods.
3. As land degradation poses a special challenge to the developing world, in the spirit of South-South cooperation, India is assisting fellow developing countries to develop land-restoration strategies. A centre of excellence is being set up in the country to promote a scientific approach towards land degradation issues.

• Knowledge centre:

1. Land degradation - Land degradation is when the value of the biophysical environment is affected by one or more combination of human induced processes acting upon the land. It can be viewed as any change or disturbance to the land perceived to be deleterious or undesirable. Taking the form of desertification, deforestation, overgrazing, salinization, or soil erosion, land degradation can be caused by biophysical factors, such as the natural topography of an area or its rainfall, wind, and temperature; and unsustainable land management practices, such as deforestation, soil nutrient mining etc. Land degradation will remain an important global issue for the 21st century because of its adverse impact on agronomic productivity, the environment, and its effect on food security and the quality of life.
2. UNCCD - Established in 1994, the United Nations Convention to Combat Desertification (UNCCD) is the sole legally binding international agreement linking environment and development to sustainable land management. Overgrazing is the major cause of desertification worldwide. Other factors that cause desertification include urbanization, climate change, overuse of groundwater, deforestation, natural disasters, and tillage practices in agriculture that ake soils more vulnerable to wind. India is a signatory to the United Nations Convention for Combating Desertification (UNCCD). The Ministry of Environment, Forest and Climate Change (MoEFCC) is the nodal Ministry of Government of India (GoI) that oversees implementation of the Convention in the country. The 14th edition of the Conference of Parties (COP-14) to the UN Convention to Combat Desertification (UNCCD) ended on 13th September 2019 in New Delhi.

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

Asia's nuclear weapons race

 

 

• The story:  Nuclear weapons are a strange thing: some claim they have kept the world war-free for a long time, while some say they are mutually neutralised between two directly antagonistic enemies as none would dare use it. All said, nuclear weapon states are constantly upgrading their arsenal in various ways.
• Deterrence: India is confident of its strategic deterrence capability, which will get a greater punch with the ongoing induction of Agni-V missiles and Rafale fighters as well the commissioning of nuclear submarine INS Arighat in 2021, though it still lags behind both China and Pakistan in the number of nuclear warheads.
• Nuclear numbers: China possesses 350 nuclear warheads, and Pakistan has 165, compared to 156 of India, as per the Stockholm International Peace Institute (SIPRI) assessment 2021. The nine nuclear-armed countries together possess an estimated 13,080 nuclear weapons, with Russia (6,255 warheads) and the US (5,550) leagues ahead of the rest. The others are France (290), UK (225), Israel (90) and North Korea (40-50). These figures, of course, are not exact because countries by and large keep their nuclear weapons programmes shrouded in secrecy.

1. Apart from Russia and the US, all the other seven countries are also either developing or deploying new weapon systems. China is in the middle of a significant modernisation and expansion of its nuclear weapons inventory, and India and Pakistan also appear to be expanding their nuclear arsenals.
2. The report comes at a time India and China remain locked in the military confrontation in eastern Ladakh, which erupted in May 2020, with no signs of de-escalation as yet. But the fresh border ceasefire with Pakistan has held since February 2021.

• India's assessment: India says that robust delivery systems like land-based ballistic missiles and nuclear-powered submarines with ballistic nuclear missiles (called SSBNs), with “assured second-strike capabilities”, have more strategic significance rather than the actual number of warheads. Nuclear weapons are meant for deterrence, not war-fighting. Pakistan, of course, has benefitted from its nexus in nuclear and missile proliferation with China and North Korea. But India is doing fine with the development and modernisation of its indigenous credible minimum deterrence.

• India's tri-services command: The tri-Service Strategic Forces Command is now inducting the over 5,000-km range Agni-V intercontinental ballistic missile, which brings the whole of Asia and China as well parts of Europe and Africa within its strike envelope, after shorter-range missiles. The new Rafale jets have boosted the existing “air vector” for delivery of nuclear gravity bombs after some Sukhoi-30MKIs, Mirage-2000s and Jaguars were earlier modified for that role. But the third leg of the “nuclear triad” is still far from being credible. India currently has only one SSBN in INS Arihant, with 750-km range K-15 nuclear missiles. Countries like the US, Russia and China have SSBNs with well over 5,000-km range missiles.

1. India has three more SSBNs under development, with INS Arighat slated for commissioning this year after some delay. The developmental trials of K-4 missiles, with a strike range of 3,500-km, in turn, have been completed but the induction is still some distance away, as was earlier reported by TOI.
2. Pakistan as yet does not have sea-based nukes, though it has tested the 450-km-range Babur-3 cruise missiles for deployment on conventional diesel-electric submarines. China, of course, is far ahead with its Type-094 or Jin-class submarines armed with the 7,400-km JL-2 missiles.

The 2021 Atlantic Charter

• The story: The second world war saw the creation of one of the world's most important charters, across the Atlantic ocean. In 2021, the US President and UK PM renewed the deal, and the 80-year old Atlantic Charter got a new lease of life. President Trump had tried to undo decades of trans-Atlantic relationship-building, by questioning the very basis of NATO itself.
• Points to note: The Atlantic Charter was a joint declaration released by US President Franklin D. Roosevelt and British Prime Minister Winston Churchill on 14th August, 1941 (during World War II) following a meeting of the two heads of government in Newfoundland. It was later incorporated by reference in the Declaration of the United Nations in 1942. The World War II was a conflict that involved virtually every part of the world during the years 1939–45. The Major belligerents were (i) Axis powers: Germany, Italy, and Japan, and (ii) Allies: France, Great Britain, the United States, the Soviet Union, and, to a lesser extent, China.
• What it provided: The Atlantic Charter provided a broad statement of US and British war aims such as:

1. They desired no territorial changes without the free assent of the peoples concerned
2. They respected every people’s right to choose its own form of government and wanted sovereign rights and self-government restored to those forcibly deprived of them
3. They would try to promote equal access for all states to trade and to raw materials
4. They hoped to promote worldwide collaboration so as to improve labour standards, economic progress, and social security
5. The destruction of “Nazi tyranny,” (Germany) they would look for a peace under which all nations could live safely within their boundaries, without fear or want
6. Under such a peace the seas should be free. Pending a general security through renunciation of force, potential aggressors must be disarmed.

• New Atlantic Charter (2021): The new charter, a 604-word declaration, is an effort to stake out a grand vision for global relationships in the 21st century, just as the original was a declaration of a Western commitment to democracy and territorial integrity just months before the US entered World War II. It is a statement of principles, a promise that the UK and the US would meet the challenges of their age together. It calls for both countries to adhere to the rules-based international order.

1. The new charter focuses on climate change and the need to protect biodiversity. With references to emerging technologies, cyberspace and sustainable global development.
2. It calls on Western allies to oppose interference through disinformation or other malign influences, including in elections.
3. It ranks the threats to democratic nations in a technological era.
4. It vows that as long as there are nuclear weapons, North Atlantic Treaty Organisation (NATO) will remain a nuclear alliance.

• India: The old Atlantic Charter alienated Indian nationalism from the West but the new Charter and the rebooting of western institutions should be a productive phase of India’s cooperation with the US and its allies. In 1941, the UK insisted that the principle of self-determination highlighted in the charter did not apply to India. But the presence of India and South Africa along with Australia and South Korea (as guests) at the G-7 summit 2021 is a recognition of the urgent imperative to widen the basis of the West in dealing with global challenges. The current Anglo-American effort to institutionalise western consultations with India is a long overdue correction.

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

"GST Council has turned authoritarian"

 

• The story: India launched its biggest indirect tax reform in July 2017, when states voluntarily gave up a large part of their taxation powers in return for a centrally-mandated GST regime, that promised "One Nation, One Tax". Things have not been as smooth as promised back then by the FM late Shri Arun Jaitley.

• Details: Some opposition-rules states now allege that the Goods and Services Tax Council (GSTC), driven by consensus earlier, has become authoritarian and majoritarian in approach. West Bengal's finance minister Amit Mitra said bureaucrats had taken over key committees which result in undermining the powers of the elected members of the Council. This clearly indicates the widening political rift within the federal tax body.

1. Many now say that states gave up 70% of their taxation rights to embrace GST as consensus was the approach for decision making earlier.
2. There was a "dramatic shift from consensus mechanism to authoritarian and majoritarian approach in the GST Council", "destroying the only federal institution in the country."

• Why the concern: Latest concerns are linked to the non-acceptance by the Council of demands for zero GST rate on key medical supplies needed for Covid management or subjecting them to a token 0.1% both of which would have enabled tax reduction to consumers as well as availability of tax credits to producers. The demand for full tax relief is also shared by some of the other opposition ruled states such as Kerala and Punjab. The Council, however, preferred to keep most of the items at 5% rate.

1. It announced reduction of taxes on several medical supplies, including oxygen, ventilators and testing kits from 12% to 5%, ambulances from 28% to 12%, furnaces for crematoriums from 18% to 5% and two drugs from 5% to zero. Several states including West Bengal have been asking for full tax waiver on covid-related medical supplies.
2. Mr Mitra pointed out that for FY21, states revenues have contracted by 3% and hence they should be compensated by a further Rs.63,000 crores. The earlier compensation calculations were based on much more optimistic assumptions.
3. He pointed out that a panel of officials led by a central government official which was set up to take care of procedural matters — GST implementation committee or GIC - is now amending important rules which are only placed before the Council for reporting purposes, not for ratification. The GIC was formed of officers only for procedural issues but it decided on amending rules dealing with GST registration and suspension and the Council is only informed about it. This is grossly improper.

• Fitment Committee: The fitment committee of officials which recommends tax rate changes sends detailed proposals only close to the Council meeting which leaves ministers with little time to examine them. The schism between central government and opposition ruled states is widening at a time central and state authorities are faced with revenue shortage and higher spending requirements.
• Summary: It is clear that with every passing fiscal year, the centre and state rift is widening. This is an ominous signal for the health of a federal taxation system, and in light of the economic stress plaguing the economy, can have serious consequences.

WazirX, Indian crypto traders, and ED notice

 

 

• The story: The Enforcement Directorate (ED) of India issued a notice to cryptocurrency exchange WazirX for violating the Foreign Exchange Management Act (Fema), 1999, for transactions worth ₹2,790.74 crore. Mint explains what this means for investors.
• Details: The ED suspects that operators of fraudulent Chinese investment apps used WazirX to transfer Rs.57 crore abroad. The operators allegedly converted rupees to USD-Tether (USD-T), a crypto pegged to the dollar, and transferred it to wallets of Binance, the parent cryptocurrency exchange of WazirX registered in the Cayman Islands. The notice also mentions a transfer of around Rs.1,400 crore from WazirX accounts to Binance accounts, and Rs.880 crore from Binance to WazirX. WazirX has denied receiving any such notice, and said it has complied with all KYC and anti-money laundering rules.
• Grey zone: This is a legal grey zone, since India has not passed any law on cryptocurrency. However, certain types of cryptocurrency transactions have a higher risk of attracting penalties. These include transferring money abroad using cryptocurrency. Investors should avoid transferring money to a cryptocurrency exchange outside India or transact directly with users outside the country. If you cannot ascertain the location of the wallet you are transacting with, avoid such a transaction, until more regulatory clarity emerges. Keep records of all your transactions.
• Trading: Indian crypto exchanges were already facing an unofficial banking squeeze, with many exchanges suspending the direct acceptance of rupee deposits from users. Banks were also sending warning emails to customers seen to have crypto-related payments in their accounts. Banks may take a cue from the ED notice and extend the squeeze possibly affecting withdrawals.
• Stay or leave: While the ED notice is a cause for concern, WazirX may be able to convince ED or courts that it has not contravened Fema. The ED action also does not affect investors directly. But liquidity can dry up on the back of this action, making transactions difficult or in the worst case, leaving investors stranded with illiquid assets. Investors should maintain records of their transactions and pay tax on their gains. Depending on the frequency of trading, the gains can either be treated as business income (in case of frequent transactions) or capital gains. The gains may have occurred even if they have not been converted into Indian rupees.

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

I-Familia: Global Database to Identify Missing Persons

 

• The story: In June 2021, the Interpol launched a new global database named “I-Familia” to identify missing persons through family DNA.

• Details: The INTERPOL applied cutting-edge scientific research and used the DNA of relatives to identify missing persons or unidentified human remains around the world. DNA kinship matching is used mostly in cases where a direct sample of the missing person is not available. It is the first global database to automatically control for such differences without requiring knowledge of the missing person’s genetic ancestry.

1. It provides standardised guidelines on what constitutes a match, and is a pioneering new service that can perform complex DNA kinship calculations on profiles stored in the system.
2. It is powered by Bonaparte, a forensic DNA matching software system developed by SMART Research.

• Significance: It will help the police solve cold cases in member countries, and can perform millions of calculations in a short space of time which is then interpreted by forensic DNA experts at the INTERPOL General Secretariat. It is the result of scientific research, state-of-the-art software development and extensive validation tests. The driving principle behind I-Familia is humanitarian which aim is to reunite loved ones or to bring closure to cases and allow families to rebuild their lives.

• Working: It has three components:

1. A dedicated global database to host the DNA profiles provided by relatives, held separately from any criminal data;
2. DNA matching software called Bonaparte, developed by Dutch company Smart Research; and
3. Interpretation guidelines developed by Interpol.
4. The Bonaparte technology uses advanced statistical algorithms to calculate the probability of a match compared against an interpretation table.

• Knowledge centre:

1. Types of DNA Identification - (i) DNA identification through direct matching - A direct DNA sample from the missing person can be compared to the DNA from an unidentified body or human remains to see if a match can be found. (ii) DNA identification through kinship matching - Biological relatives share a percentage of their DNA, depending on their relationship. In the event that a DNA sample from the missing person cannot be obtained for direct matching, DNA from close family members (parents, children, siblings) can also be compared.
2. INTERPOL: The International Criminal Police Organization (INTERPOL) is an international organization that facilitates worldwide police cooperation and crime control. It is an inter-governmental organization with 194 member countries, and in each member country, an INTERPOL National Central Bureau (NCB) provides the central point of contact for the General Secretariat and other NCBs. The Central Bureau of Investigation (CBI) is designated as the National Central Bureau of India. The headquarters in Lyon (France) coordinates much of the policing expertise and services we provide to member countries.

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

3D-printed masks to attack Corona

 

 

• The story: An anti-viral mask that can attack coronavirus has been created by a Pune-based startup in collaboration with Technology Development Board (TDB) of the department of science and technology (DST).This cost-effective 3D-printed mask is coated with anti-viral agents known as virucides. They attack the coronavirus when viral particles come in contact with it. The coating has been tested and shown to inactivate SARS-CoV-2 virus.
• Details: The project to develop virucidal masks received financial support from TDB in May 2020 as part of its search for novel solutions to fight Covid-19. Thereafter, an agreement was signed on July 8, 2020 for developing virucidal masks. Pune-based Thincr Technologies India Private Ltd, which developed these virucidal masks, claims that the masks are more effective in checking the spread of Covid-19 than ordinary N-95, 3-ply and cloth masks as they give an additional anti-viral protection beyond the shield provided by filtration mechanisms.
• Evolution: Thincr Technologies has now applied for a patent for the product, whose commercial production has started. Around 6,000 of such masks have been distributed by an NGO to four government hospitals in Nandurbar and Nashik in Maharashtra and Bengaluru for use by healthcare workers. The virucidal masks have also been distributed to a girls’ school and college in Bengaluru.
• Face masks everywhere: The firm sensed that use of face masks will become nearly universal as the most important tool to prevent infection. But it realised that most masks which were then available (when the pandemic started) and within the reach of common people were homemade and of relatively low quality. It is this need for high-quality masks which led us to undertake a project to develop and commercialise cost-effective and more efficient virucidal-coated masks, as a better approach to reduce the spread of infection
• Summary: The mask was developed with support from Merck Life Sciences located in Nerul, Navi Mumbai, whose research facility was used for the purpose. The coated layer can be incorporated as an additional layer in N-95 masks, 3-ply masks, simple cloth masks, 3D printed or other plastic cover masks along with reusable filters to provide extra protection. The material used for coating on the mask is a sodium olefin sulfonate based-mixture. It is a soap forming agent with hydrophilic and hydrophobic properties. When it comes in contact with enveloped viruses, it disrupts the outer membrane of the virus. The ingredients used in the coated layer are stable at room temperature and are widely used in cosmetics.

Sky survey by PASIPHAE

• The story: The Wide Area Linear Optical Polarimeter (WALOP), a vital instrument for the PASIPHAE Project, is being developed at Inter-University Centre for Astronomy and Astrophysics (IUCAA), India. The Polar-Areas Stellar-Imaging in Polarisation High-Accuracy Experiment (PASIPHAE) is an international collaborative sky surveying project.
• Astronomical Polarimetry: Polarimetry, a technique to measure the polarisation of light, is a powerful tool that allows astronomers to infer information about celestial objects, from passing comets to distant galaxies, that can not be obtained using other techniques. Polarization is a property of light that represents the direction that the light wave oscillates. Two decades ago, an Indian astrophysicist Sujan Sengupta, said that the light emitted by a cloudy brown dwarf, or reflected off an extrasolar planet, will be polarised. That gives a forensic tool to investigate.

• PASIPHAE Survey: It is an opto polarimetric survey aiming to measure the linear polarization from millions of stars. The survey will use two high-tech optical polarimeters to observe the northern and southern skies, simultaneously.

1. It will be conducted concurrently from the South African Astronomical Observatory in Sutherland, South Africa in the southern hemisphere, and the Skinakas Observatory in Crete, Greece, in the north.
2. It will focus on capturing starlight polarisation of very faint stars that are so far away that polarisation signals from there have not been systematically studied.
3. The distances to these stars will be obtained from measurements of the GAIA satellite. GAIA is on a mission to chart a three-dimensional map of our Galaxy, the Milky Way, in the process revealing the composition, formation and evolution of the Galaxy. It is a European Space Agency astronomical observatory mission.
4. Scientists from the University of Crete, Greece, Caltech, USA, IUCAA, India, the South African Astronomical Observatory and the University of Oslo, Norway, are involved in this project, steered by the Institute of Astrophysics, Greece.

• Significance: Since its birth about 14 billion years ago, the universe has been constantly expanding, as evidenced by the presence of Cosmic Microwave Background (CMB) radiation which fills the universe. The Milky Way Galaxy contains a lot of dust clouds that are present in the form of clusters. When starlight passes through these dust clouds, they get scattered and polarised. The PASIPHAE polarimetric map will be used to perform magnetic tomography of the Milky Way Galaxy. It will deduce the 3-dimensional structure of the magnetic field and the dust that resides in our own Galaxy. This map will provide invaluable information for future CMB B-mode experiments searching for inflationary gravitational waves.
• Technicals: As per the theory of inflation, the early Universe expanded exponentially fast for a fraction of a second after the Big Bang. Beyond studies of the early Universe, the survey will lead to leaps forward in some of the most actively pursued areas in Astrophysics, including high-energy astrophysics, stellar astrophysics, and interstellar medium dynamics.
• Wide Area Linear Optical Polarimeter (WALOP): It was planned in 2013 after the success of the RoboPol experiment survey during 2012-2017. WALOP and its predecessor RoboPol share the photometry (measurement of the brightness of celestial objects) principle. But the WALOP will be capable of observing hundreds of stars concurrently present both in the northern and the southern skies as opposed to RoboPol, which has a much smaller field of view in the sky. A WALOP each will be mounted on the 1.3-metre Skinakas Observatory, Crete, and on the 1-metre telescope of the South African Astronomical Observatory located in Sutherland.

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

Pandemic is widening international inequalities

 

 

• The story: Human life on planet Earth today totally depends on "where" one lives. The poorest of the poor in the US earn and consume more than the average (median) individual in India, clearly explaining the rush to foreign shores.
• Details: Nearly eight in ten Indians lie below the global median income level while all Americans lie above it. This is as per research by Branko Milanovic, an experts on global inequality. Even if you are among the top 10 percent urban Indians in terms of income, you are still only at the 69th percentile globally. If you are among the top 10 percent rural Indians, you are just above the global median (50th percentile).

• Pandemic's impact: But Milanovic’s estimates do not take into account the impact of the pandemic. It is evident that the pandemic has widened both the extent and the nature of these inter-country differences.

1. An overwhelming majority of those in developing countries are unvaccinated, and are likely to remain so at least for the next few months, despite promises by the G-7 group of economies to help bridge this gap. Where you live has become much more important than it was ever before.
2. The wide divergence in vaccination rates has in turn led to widely divergent patterns of economic recovery across the globe. The US and the UK are experiencing a faster-than-anticipated rebound in economic activity after successfully vaccinating a large share of their population. Developing countries such as India and Indonesia are witnessing growth downgrades as they struggle to ramp up their vaccination programs.

• Income divergence: The latest projections from the World Bank suggests that the pandemic scars are likely to be deeper, and last longer, in the developing world. The poorest countries will experience the biggest drops in average (per capita) incomes in the next couple of years, data from the Bank’s Global Economic Prospects report show.
• Since 1800s: Since the industrial revolution, the West has grown at a faster pace than most of the developing world, widening the gap between the rich and poor nations. But since the mid-1990s, developing countries started growing faster, closing some of the gap with richer countries. The pandemic threatens to undo those gains. Developing countries are likely to grow much slower than advanced economies in the coming years, widening the gap between rich and poor nations once again, the latest World Bank projections suggest.
• India-China gap: Within the group of emerging and developing economies, one big outlier is China. China’s growth bounce-back has been sharper than much of the rich world, and with higher vaccine coverage than most other developing countries, China is expected to continue growing faster in the coming months and years. Even as China closes the gap with other large emerging markets (such as Brazil and Turkey, which are a part of the G-20 group), the gap between India and the rest will widen. This means that the income gap between India and China will widen in the coming years, posing both an economic and strategic challenge for India. As last year’s events showed, a widening power gap between the two countries can invite trouble along the India-China border. The widening power gap will also limit India’s ability to effectively counterbalance China in the Indo-Pacific region.
• Mass poverty: The other striking contrast between India and China has been in their ability to protect their poor and vulnerable sections. While India saw a sharp rise in the ranks of the poor last year, China saw only a marginal rise in poverty, estimates from the Pew Research Centre show. The extent to which the middle class shrank was also much higher for India than for China. The Pew estimates don’t take into account the devastation of the second wave. The continuing lockdowns across most of the country, for a second year in a row, are likely to extract a much heavier toll in the world’s second most populous country than what the Pew report suggests.

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

India's GI certified ‘Jardalu’ mangoes exported

 

• The story: Bihar has exported the first commercial consignment of GI certified Jardalu mangoes from Bhagalpur to the United Kingdom. Jardalu mangoes from Bhagalpur district were given GI certification in 2018.
• Key points: The Agricultural and Processed Food Products Export Development Authority, (APEDA) in collaboration with Bihar government, Indian High Commission & Invest India, exported Jardalu mangoes. Mangoes were packed and treated at APEDA packhouse in Lucknow.

• APEDA's role: It initiated measures to boost mango exports from non-traditional regions, and has been conducting virtual buyer-seller meets and festival in a bid to promote mango exports. It organised mango festival in Berlin, Germany and in Japan in collaboration with Indian embassies, and also organised a week-long Indian mango promotion programme in Bahrain in which 16 varieties of Mango including three GI certified varieties (Khirsapati & Lakshmanbhog from West Bengal and Jardalu from Bihar) were displayed.

1. In May 2021, APEDA in association with Indian embassy, Seoul and Indian Chamber of Commerce in Korea, organised a Virtual Buyer Seller Meet to provide a platform for exporters & importers of mangoes from India and South Korea.
2. Thus, Mangoes are processed by APEDA packhouse facilities and exported to several countries viz, Middle-east, USA, European Union, Japan and South Korea.

• Mango production: Mangoes are referred to as king of fruits. They are also referred to as Kalpavriksha (wish granting tree) in ancient scriptures. Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, Karnataka have a major share in total production of Mango.

The 'Great Indian Bustards' are taking wind out of wind power's sails

• The story: The beautiful, giant and endangered Great Indian Bustards are slow to manoeuvre while flying. They have poor frontal vision and a habit of scanning earth while flying over flat grasslands across western borders of India. As a result, they often collide with power lines. That is creating a new challenge for renewable developers.
• The problem: Wide-open regions are home to Indian Bustard, as these regions are also an ideal location for wind and solar projects. As a result, Indian Bustard are coming in way of renewable energy sources. Efforts to save bustard could set back India’s climate goals, which depend heavily on availability of such wasteland.
• WII survey: As per Wildlife institute of India (WII), 80 kilometres of power lines across Thar desert region Rajasthan had led to death of four bustard deaths during a single year because of high-transmission wires. Birds died because of impact of collision or electrocution.
• SC’s order: In a bid to protect great Indian bustard from flying into power lines, of 20 gigawatts of awarded solar & wind projects, Supreme Court had asked the companies to install these powers lines underground. But this directive would cost an extra expense of $4 billion.
• Great Indian bustards: In Old French, Great Indian Bustards means “slow bird”. They are heaviest flying creatures on earth. They are 1 meter tall with a wing span of about 2 meters. They weigh about 18 kilograms. They are found on Indian subcontinent. As per an estimate their number has reduced from 250 in 2011 to 150 in 2018. Thus, they have been listed in “critically endangered” species by birdlife international and are protected under Wildlife Protection Act 1972 of India.

India Interagency Expert Committee on Malaria and Climate (IEC)

 

 

• The story: The India Meteorological Department (IMD) and Indian Council of Medical Research (ICMR) have partnered with “Malaria No More” which is a non-governmental organisation.
• Points to note: The IMD & ICMR launched an expert committee to explore and advance climate-based solutions to eliminate malaria in India, in collaboration with “Malaria NO More”. The Committee is being called as “India Interagency Expert Committee on Malaria and Climate (IEC)”.

• About IEC: It is part of a global initiative called “Forecasting Healthy Futures” which seeks to develop data-informed strategies & policies to improve health outcomes. It will focus on improving models to combat Malaria. IEC will comprise of leading experts & researchers from health, climate and technology fields. They will help in defining and operationalizing sophisticated climate-based malaria prediction tools. These tools will be tailored to Indian context in order to boost progress toward India’s goal of eliminating malaria by 2030.

1. The committee will help in combining meteorological information with information from health sector to examine micro-trends and predict malaria patterns.  This can strengthen India’s efforts.
2. Role of ICMR - It will provide scientific information to develop robust and scalable use cases to combat vector borne diseases.
3. Role of “Malaria No More” - Malaria No More will help in producing data-driven solutions, through its weather-based prediction model, to plan for national malaria prevention campaigns, test and treatment.

World Giving Index 2021

 

 

• The story: According to World Giving Index 2021 report, India is 14th most charitable country across the world.
• Points to note: As per the report, COVID-19 pandemic has further increased the ‘giving’ trends worldwide. This report is released by Charities Aid Foundation (CAF). The 2021 survey highlights the impact of lockdowns on charitable giving.
• Key findings: India is among Top 20 most generous countries across the globe, and its rank improved from its earlier 10-year global rank of 82. Australia and New Zealand maintained their top 10 rankings. Report highlights that communities across the world mobilised to help fellow citizens during covid-19 pandemic. It resulted in highest ‘helped a stranger’ numbers since 2009. About 3 billion people, which accounts for 55 percent of world’s adults, reported helping someone they didn’t know in 2020. The score of India has rapidly improved between 2017 & 2019 and continued to improve during 2020. This improvement in India was observed across all age groups and both the genders. According to the report, 61 percent of Indians helped strangers, 34 per cent volunteered for good cause while 36 percent donated money.
• World Giving Index (WGI): It is a global survey, and interviewed more than 1.6 million people since 2009. It conducts surveys by asking three questions: have they helped a stranger, given money, or volunteered for good cause in recent month.

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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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