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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020

IAS UPSC Prelims and Mains Exam – 26th February 2020 Archives (PRELIMS + MAINS FOCUS) (Cauvery Water Management Authority )CWMA drops discussion on Mekedatu dam Part of: GS Prelims –Polity and GS-II- River disputes In news: Tamil Nadu and Puducherry strongly objected to Karnataka’s bid to seek approval for the Mekedatu dam project, at the fifth Cauvery Water Management Authority (CWMA) From Prelims Point of View: Cauvery Water Management Authority (CWMA) Formed by the Centre. Under  Inter-State River Water Disputes Act, 1956  To adjudicate upon the water dispute regarding the Inter-State river Cauvery and the river valley thereof among the States of Karnataka, Kerala, Tamil Nadu and the Union territory of Puducherry. Implement the water-sharing award of the Cauvery Water Dispute Tribunal water sharing will be as modified by the Supreme Court Cauvery River The river rises on Brahmagiri Hill of the Western Ghats in southwestern Karnataka state, flows in a south easterly direction through the states of Karnataka and Tamil Nadu, and descends the Eastern Ghats in a series of great falls.  Some of its tributaries are Arkavathi, Hemavathi, Lakshmana Theertha, Shimsa, Kabini and Harangi. India, U.S. ‘Comprehensive Global Strategic Partners’, ink deals on energy Part of: GS Prelims –Polity and GS-II- International relations In news: India and the United States strengthened their partnership with agreements on healthcare and energy, and issued a joint statement that designated the two countries as “Comprehensive Global Strategic partners”. Highlights: India - US called upon Pakistan to rein in cross-border terror threats  Sought justice for the victims of 26/11 attack and the Pathankot terror attack of 2016. Called for concerted action against all terrorist groups including Al-Qaeda, ISIS, Jaish-e-Mohammad, Lashkar-e-Taiba, Hizb-ul-Mujahideen, the Haqqani Network, TTP, D Company, and all their affiliates Both India – US  recognized the efforts of the ASEAN region to create a code of conduct in the South China Sea region. Agreed to undertake development activities in third countries and intensify cooperation in the space domain U.S. and India were working to revitalise the quadrilateral initiative consisting of Japan, the U.S., India and Australia Both sides also working on cybersecurity and counter-terrorism issues. From Prelims Point of View: Quadrilateral Security Dialogue (Quad) Informal strategic dialogue between India, USA, Japan and Australia  Objective : to ensure and support a “free, open and prosperous” Indo-Pacific region First mooted by Japanese Prime Minister Shinzo Abe  In 2017, India, the US, Australia and Japan gave shape to the long-pending "Quad" Coalition to develop a new strategy to keep the critical sea routes in the Indo-Pacific free of any influence (especially China). ASEAN Association of Southeast Asian Nations is a regional organization to promote political and social stability amid rising tensions among the Asia-Pacific’s post-colonial states. Secretariat – Indonesia, Jakarta. Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020 Src: Financetwitter  Five Supreme Court judges infected with swine flu Part of: GS Prelims –Sci & Tech and GS-II- Health  From Prelims Point of View: Swine Flu Human respiratory infection caused by an influenza strain that started in pigs. First recognised in the 1919  Swine flu is caused by the H1N1 virus strain, which started in pigs. Symptoms  Fever, cough, sore throat, chills, weakness and body aches.  Spreads Airborne respiratory droplets (coughs or sneezes). Skin-to-skin contact (handshakes or hugs) Saliva (kissing or shared drinks).  Touching a contaminated surface (blanket or doorknob) Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 26th February 2020 Src: The Hindu For More information read this : https://iasbaba.com/2019/03/all-india-radio-air-ias-upsc-swine-flu-awareness-and-cure/ Hosni Mubarak, ousted by Arab Spring in 2011, dies Part of: GS Prelims –Polity and GS-II- International relations In news Egypt’s former President Hosni Mubara died  He was swept from power, like other regional potentates, by the popular uprisings of the 2011 Arab Spring. From Prelims Point of View: Arab Spring : A series of antigovernment protests, uprisings and armed rebellions that spread across the Middle East.  Reasons : Oppressive regimes and a low standard of living  Protests begin in Tunisia Revolution spread like fire to five other countries: Libya, Yemen, Egypt, Bahrain and Syria Result of the revolution: Either the regime was toppled or major uprisings or social violence occurred, including riots, civil wars, mass murdering or insurgencies. (MAINS FOCUS) Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Statutory, regulatory and various quasi-judicial bodies. Personal Data Protection (PDP) Bill, 2019 – Part II – Issues with Data localisation Click here for Part-I of the article The draft law is a comprehensive piece of legislation that seeks to give individuals greater control over how their personal data is collected, stored and used. Data localisation in draft Bil The PDP Bill enables the transfer of personal data outside India, with the sub-category of sensitive personal data having to be mirrored in the country (i.e. a copy will have to be kept in the country).  Data processing/collecting entities will however be barred from transferring critical personal data (a category that the government can notify at a subsequent stage) outside the country. Purpose of localisation Sovereignty and government functions; referring to the need to recognise Indian data as a resource to be used to further national interest (economically and strategically), and to enable enforcement of Indian law and state functions.  Economic benefits of data localisation will accrue to local industry in terms of creating local infrastructure, employment and contributions to the AI ecosystem.  Protection of civil liberties -the argument is that local hosting of data will enhance its privacy and security by ensuring Indian law applies to the data and users can access local remedies. Analysis of the provision of Data Localisation The earlier version of the bill released by the Justice Srikrishna Committee in 2018 required both personal and sensitive personal data to be mirrored in the country (subject to different conditions) – so as to serve the purposes of data localisation The liberalised provision in 2019 bill is however welcomed by business as it limits the costs of data transfer business and provides a degree of flexibility to them The changes in the 2019 draft reflect a more proportionate approach to the issue as bill provides a tiered system for cross-border data transfer based on the sensitivity/vulnerability of the data This seems to be in accord with the Supreme Court’s dicta in the 2017 Puttaswamy case, where the Court had made it clear that an interference in the fundamental right to privacy would only be permissible if inter alia deemed necessary and proportionate Data Localisation & Protection of User Privacy – Analysis Security of data is determined more by the technical measures, skills, cybersecurity protocols, etc. put in place rather than its mere location. Localisation may make it easier for domestic surveillance over citizens.  The degree of protection afforded to data will depend on the effectiveness of the applicable data protection regime. Insofar as privacy is concerned, this could be equally protected through less intrusive, suitable and equally effective measures such as requirements for contractual conditions and using adequacy tests for the jurisdiction of transfer. Such conditions are already provided for in the PDP Bill as a set of secondary conditions  Further, the extra-territorial application of the PDP Bill also ensures that the data protection obligations under the law continue to exist even if the data is transferred outside the country. The bill has also attracted criticism on other grounds such as  The exceptions created for the state The limited checks imposed on state surveillance Various deficiencies in the structures and processes of the proposed Data Protection Authority Way Ahead: Reforming surveillance related laws  Entering into more detailed and up-to-date mutual legal assistance treaties Enabling the development of sufficient digital infrastructure Creating appropriate data-sharing policies that preserve privacy and other third party rights, while enabling data to be used for socially useful purposes. Conclusion It becomes important for the joint parliamentary committee currently examining the Bill to conduct a more in-depth evaluation of the localisation provisions in the law. The joint parliamentary committee ought to, ideally, identify the need, purpose and practicality of putting in place even the (relatively liberal) measures contained in the PDP Bill. Connecting the dots Should users be given the choice to select where the data can be stored – like in a European Union or California (two jurisdictions which have strong data protection laws and advanced technical ecosystems). Science & Technology Topic: General Studies 3: Science and Technology- developments and their applications and effects in everyday life. 
 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 5G- Rollout should not be in hurry Central government had set a target of 2020 for the commercial launch of 5G services, largely in line with rest of the world.  What is 5G? It is the next generation cellular technology that will deliver multi-Gbps peak rates, ultra-low latency, massive capacity, and a more uniform user experience Speed will be range of 2-20 Gigabit per second (Gbps) in contrast to 4G link speeds in averaging 6-7 Megabit per second (Mbps) in India But once 5G becomes commercial, users will be required to change their current devices in favour of 5G-enabled ones. Applications of 5G Expansion of wireless technologies —across completely new sectors of the economy from industrial (robotics) to commercial, educational, health care (Tele-surgery), agricultural (sensors), financial (block chain technology) and social sectors (climate studies). Internet-of-Things (IOT)- 5G will form the backbone of IOT. 5G will help in creating cyber-physical networks which not only interconnect people, but also interconnect and control machines, objects, and devices  Sensor-embedded network that will allow real time relay of information across fields such as manufacturing, consumer durables and agriculture.  Smart transport infrastructure -5G will enable vehicle-to-vehicle and vehicle-to-infrastructure communication, making driverless cars, among other things, a reality. Economic Impact of 5G adoption 5G is expected to create a cumulative economic impact of $1 trillion in India by 2035. 5G-enabled digitalisation revenue potential in India will be above $27 billion by 2026.  Additionally, global telecom industry GSMA has forecast that India will have about 70 million 5G connections by 2025. Major challenges of adopting 5G are  Standardisation of 5G: As it stands today, 5G is not a defined standard. Fragmentation of next generation approaches will only mean that development time and costs will increase. Thus, there is a need for standardising an approach and bringing all of the major technology partners on board Huge Investments required for enabling infrastructure: 5G will require a fundamental change to the core architecture of the communication system. Simply upgrading the existing Long Term Evolution core will not be able to support 5G A report on 5G by Deloitte stated that rolling out 5G might require an additional investment of $60-70 billion.  Pricing Issue:  There is a strong correlation between broadband price and adoption levels: for example - 1% increase in mobile broadband prices results in 0.13% decrease in adoption rates (low income) according to International Telecommunication Union And a 1% decrease in mobile broadband adoption results in 0.19% decrease in GDP per capita (low income). 5G enabled Devices & its affordability:  5G smartphone models are likely to cost much more than present phone— with enhanced features, cameras and sensors to support AR and VR applications A significant number (close to 300 million) of users are still on 2G/2.5G networks — and feature phones are widely in use. Device cost is of relevance to a price-sensitive market like India. Financial Health of Telecom Sector: By end of 2019, the industry’s cumulative debt was pegged at around ₹7 lakh crore.  Also, total mobile revenues in India have fallen by more than 20 per cent over past four years.  This restricts telecos capability to roll out 5G in a sustainable manner. Uncertainity in 5G spectrum Auction:  The COAI has also pointed out that 5G is overpriced by at least 30% to 40% compared to international standards and auction in other markets such as South Korea and the U.S.  Telecos have pointed out that the reserve price of these airwaves is very high. Besides, there are currently no India-specific use cases for deployment of 5G. Potential health hazards of tens of thousands of radiating base stations. Even technologically advanced countries like Israel are refusing to implement 5G on account of a host of unknowns like potential health impact of 5G radiations Dependence on China: Huawei which is a Chinese firm owns the majority of 5G technology in the world. However, there are concerns that dependence on China for critical infrastructure like 5Gcould compromise India's security. Conclusion Inspite of the potential benefits of 5G, India needs to be cautious while rolling out 5G. A balanced assessment of its potential applications and demand must be made. Realistic and gradual expansion up the value chain is needed. In this scheme of things, more mature policy making is expected. Connecting the dots US ban on Huawei 5G Spectrum allocation Aggregate Gross Revenue (AGR) issue of telecos and its impact on 5G rollout (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q1. Which one of the following rivers thrice forks into two streams and reunites a few miles farther on, thus, forming the islands of Srirangapattanam, Sivasamudram and Srirangam?  Cauvery  Tungabhadra Krishna  Godavari Q 2. In which of the following regions of India are shale gas resources found?  Cambay Basin Cauvery Basin Krishna-Godavari Basin Select the correct answer using the code given below.  1 and 2 only  3 only 2 and 3 only 1, 2 and 3 Q3. Which one of the following is not an ASEAN member? Cambodia  China  Laos Philippines ANSWERS FOR 25 FEB 2020 TEST YOUR KNOWLEDGE (TYK) 1 C 2 B 3 D 4 C Must Read About Rise of China : The Hindu About Rights, duties & Constitution : The Hindu About NOTA: The Hindu About Crisis in Malaysia: The Hindu

IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 25th February 2020

IAS UPSC Prelims and Mains Exam – 25th February 2020 Archives (PRELIMS + MAINS FOCUS) Rainfall to increase over next 100 years Part of: GS Prelims –Geography and GS-I- Natural phenomena  In news: IISC research tells: Indian monsoon rainfall increased from the last glacial maximum to the present How? Increasing temperatures result in increase in water vapour in the atmosphere, which causes an increase in the quantum of rainfall.  Concentration of carbon dioxide in the atmosphere going up, resulting in more water vapour, rainfall is expected to increase in the next 100 years. Karnataka and 9 other states accounts for 65% of TB cases Part of: GS Prelims –Sci & Tech and GS-II- Health In news: Assam, Bihar, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal are States where TB cases are high. The Union Ministry of Health and Family Welfare takes measures in these States to eliminate TB by 2025 ahead of the Sustainable Development Goals target year of 2030.  IASbaba’s Value addition: Tuberculosis: World Health Organization (WHO) has recently released 2019 Global Tuberculosis (TB) Report. TB remains the top infectious killer in the world claiming over 4,000 lives a day. Eight countries that accounted for two thirds of the global total include India (27%), China (9%) and Indonesia (8%). India (27%), China (9%) and Indonesia (8%) are in WHO’s list of 30 high TB burden countries that accounted for 87% of the world’s cases in 2018. WHO End TB Strategy: Aims to end the global TB epidemic, with targets to reduce TB deaths by 95% cut new cases by 90% between 2015 and 2035, sets interim milestones for 2020, 2025, and 2030. India: The Government has set a target of Zero-Tuberculosis deaths by the year 2025. The Ministry of Health and Family Welfare has launched the National Strategic Plan for TB Elimination in 2017.  National Strategic Plan (NSP) for TB Elimination : VISION: TB-Free India with zero deaths, disease and poverty due to tuberculosis. GOAL: To achieve a rapid decline in the burden of TB, morbidity and mortality while working towards the elimination of TB in India by 2025.  PILLARS : Detect – Treat – Prevent – Build [DTPB] Tuberculosis: Tuberculosis is a contagious airborne disease, which can be acquired from close contact with an infected person. Mycobacterium Tuberculosis Mahadayi project cost skyrockets by 1,674% since inception Part of: GS Prelims –Polity and GS-II- river dispute  In news: Kalasa-Banduri Nala project in the Mahadayi basin drags on over the inter-State river water dispute, the cost over the last 20 years has risen steeply from about ₹94 crore in 2000 to ₹1,677.30 crore now. From Prelims Point Of View Kalasa-Banduri Nala Project Undertaken by the Government of Karnataka to improve drinking water supply to the three districts of Belagavi, Dharwad, and Gadag. Involves building across Kalasa and Banduri, two tributaries of the Mahadayi river to divert water to the Malaprabha river. Malaprabha river supplies the drinking water to Dharwad, Belgaum, and Gadag districts. The Mahadayi Water Disputes Tribunal was set up in 2010. Goa, Karnataka and Maharashtra Mahadayi : The west-flowing river originates in Bhimgad Wildlife Sanctuary (Western Ghats), Belagavi Karnataka. Called as  Mandovi in Goa. Joined by a number of streams to form the Mandovi which is one of two major rivers (the other one is Zuari river) that flows through Goa. [caption id="attachment_57346" align="aligncenter" width="531"] Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 25th February 2020[/caption] Source: Change.org ASI planning barricade around famed stone chariot at Hampi Part of: GS Prelims –Art & culture and GS-I- Heritage In news: Archaeological Survey of India (ASI) is contemplating installing a wooden barricade around the stone chariot inside Vittala Temple complex at the UNESCO World Heritage site of Hampi in a bid to protect it from vandalism. From Prelims Point Of View Hampi : UNESCO world heritage site. Part of the Mauryan Empire 3rd century BC.  The capital city during the four different dynasties in the Vijayanagar city It is located near the Tungabhadra river. Hampi-Vijayanagara was the world’s second-largest medieval-era city after Beijing, Described by UNESCO as an “austere, grandiose site” of more than 1,600 surviving remains of the last great Hindu kingdom in South India. Income scheme to cover fewer farmers Part of: GS Prelims –Polity and GS-II- Policies  In news: One year after the launch of the Pradhan Mantri Kisan Samman Nidhi, the Centre has revised the farmer income support scheme’s beneficiary target down to just under 12 crore from 14 crore From Prelims Point Of View Pradhan Mantri Kisan Samman Nidhi Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal installments of Rs. 2,000 each. Expenditure :  Rs 75000 crore for the scheme will borne by the Union Government in 2019-20. (MAINS FOCUS) Environment Topic: General Studies 3: Conservation, environmental pollution and degradation, environmental impact assessment. 
 Human-wildlife conflict Context Death of four tigers in Mhadei, Goa, and the arrest of the locals who poisoned the animals after their complaints were not attended by forest authorities As a result, CM of Goa stated to demarcate and fence the borders of the wildlife sanctuaries in order to end 80 per cent of the problem. Although the intentions are good, this isn’t a solution. Some examples of human-wildlife conflict include: Predation on livestock or domestic animals by wild animals Damage to crops and fences Wildlife strewing about residential garbage Vehicle/wildlife collisions, aircraft/bird collisions Damage caused by squirrels or bats to fruit and fruit trees Bird nesting in undesirable residential locations Reasons for man-animal conflict: Expansion of human settlements into forests – expansion of cities, industrial areas, railway/road infrastructure, tourism etc. Allowing livestock to graze in forest areas Land use transformations such as change from protected forest patches to agricultural and horticultural lands and monoculture plantations are further destroying the habitats of wildlife. Unscientific structures and practices of forest management in the country Infestation of wildlife habitat by invasive exotic weeds leads to decreased availability of edible grasses for wild herbivores Decreased prey base caused by poaching of herbivores has also resulted in carnivores moving out of forests in search of prey and to indulge in cattle lifting. India’s Conservation culture Despite a billion people India still has most of our large wildlife species- India today has the largest population of the tiger, Asian elephant, leopard, sloth bear, gaur and many others Part of Culture: People have accepted coexistence of human & animals, and incorporated it in our culture. All our deities have animals associated with them; it shows the inclusion of these animals in our mind space. The Velip community in Goa worship the tigers and this practice is done even today. Animals are viewed also as renewable resource: Unlike activities such as mining, tigers are a renewable resource. They are always going to be there, and so will the rivers and the forests, giving the local people income and development — as long as there are tigers. Fencing is not the solution but alternative measures like: Inclusion of local community in forest wildlife management To ensure that money which comes in through tourism (of Tiger reserves) should be used for the development of the local villages as has been done in Tadoba tiger reserve, Maharashtra Also, compensation procedures need to be improved- In Maharashtra, a decade ago, the compensation amount was poor, and the process was cumbersome as well as time consuming. Today, a helpline has been established, compensation rates have increased vastly, and the process is under the Right to Services Act Conclusion The solutions are simple: Inclusive development with a long-term vision that cares for the environment. We need to involve local communities who will be the custodians of the tigers and tigers who can, in turn, provide the communities much-needed development in such remote areas. Did You know about these Innovative practices to minimise man-animal conflicts ? In the Western Ghats of India, a new conservation initiative has utilized texting as an early warning system to prevent human-elephant encounters. Elephant tracking collars embedded with SMS chips automatically text nearby residents, warning them of recent elephant movements. In Canada, authorities have constructed wildlife corridors, areas of preserved native habitat in human dominated regions, providing wildlife with a safe pathway as they travel between one to another. To keep elephants at a safe distance from their farms and homes, some African villagers have turned to two unlikely, all-natural solutions: bees and hot peppers. Elephants dislike the chemical capsaicin found in chili peppers, prompting farmers in Tanzania to smother their fences with a mixture of oil and chili peppers. Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Statutory, regulatory and various quasi-judicial bodies. Personal Data Protection (PDP) Bill, 2019 – Part I The bill was introduction of in Lok Sabha during the winter session of Parliament. The Bill was referred to a joint parliamentary committee, which is currently engaged in a process of public consultation. The draft law is a comprehensive piece of legislation that seeks to give individuals greater control over how their personal data is collected, stored and used.  The Bill also establishes a Data Protection Authority for the same.  Some of the other features of the bill are: Applicability: The Bill governs the processing of personal data by: (i) government, (ii) companies incorporated in India, and (iii) foreign companies dealing with personal data of individuals in India.  Obligations of data fiduciary: Personal data can be processed only for specific, clear and lawful purpose.   All data fiduciaries must undertake transparency & accountability measures such as:  Implementing security safeguards (such as data encryption and preventing misuse of data), and Instituting grievance redressal mechanisms to address complaints of individuals.   Institute mechanisms for age verification and parental consent when processing sensitive personal data of children. Rights of the individual: This includes Right to Obtain confirmation from the fiduciary on whether their personal data has been processed Seek correction of inaccurate, incomplete, or out-of-date personal data Restrict continuing disclosure of their personal data by a fiduciary Grounds for processing personal data Data Processing only if consent is provided by the individual.  However, in certain circumstances, personal data can be processed without consent.  These include:  If required by the State for providing benefits to the individual Legal proceedings  To respond to a medical emergency. Social media intermediaries: The Bill defines these to include intermediaries which enable online interaction between users and allow for sharing of information.  All such intermediaries which have users above a notified threshold, and whose actions can impact electoral democracy or public order, have certain obligations, which include providing a voluntary user verification mechanism for users in India. Transfer of data outside India:  Sensitive personal data may be transferred outside India for processing if explicitly consented to by the individual, and subject to certain additional conditions.  However, such sensitive personal data should continue to be stored in India.   Certain personal data notified as critical personal data by the government can only be processed in India.  Sharing of non-personal data with government:  The central government may direct data fiduciaries to provide it with any non-personal data and anonymised personal data (where it is not possible to identify data principal) for better targeting of services. Exemptions: The central government can exempt any of its agencies from the provisions of the Act in interest of security of state, public order, sovereignty and integrity of India and friendly relations with foreign states, Amendments to other laws: The Bill amends the Information Technology Act, 2000 to delete the provisions related to compensation payable by companies for failure to protect personal data. Part –II – Will cover the criticism of the bill with focus on data localisation Connecting the dots Justice B.N.Srikrishna Committee report EU data regulations (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q 1. For short-term climatic predictions, which one of the following events, detected in the last decade, is associated with occasional weak monsoon rains in the Indian sub-continent?  La Nina Movement of Jet Stream El Nino and Southern Oscillations Greenhouse effect at global level Q 2. According to the World Health Organisation (WHO), the disease which causes the death of the largest number of people today is  AIDS  Tuberculosis Malaria Ebola Q 3. Which one of the following antimicrobial drugs, is suitable for treatment of both tuberculosis and leprosy?  Isoniazid  P-aminosalicylic acid Streptomycin  Rifampicin Q 4. Where is the famous Vijaya Vittala temple having its carved pillars emitting musical notes and Virupaksha temple located? Belur  Bhadrachalam  Hampi  Srirangam Must Read About Syria’s Civil War : The Hindu About Judiciary : The Hindu About Sri Lanka refugees: The Hindu About Trumps Visit and Indo-US relationship: The Hindu

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Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC

Coronavirus & Impact on Economy Archives Topic: General Studies 2: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. Issues relating to development and management of Social Sector/Services relating to Health. In News: Nearly two decades have passed since a coronavirus known as SARS emerged in China, killing hundreds of people and sparking panic that sent a chill through the global economy. The virus now rampaging across China could be much more damaging. The human cost of the coronavirus outbreak is climbing across China and beyond. The economic cost is also mounting. That damage is, for the most part, not due to the virus itself, but due to efforts to prevent it from spreading.  China has become an indispensable part of global business since the 2003 SARS outbreak. It's grown into the world's factory, churning out products such as the iPhone and driving demand for commodities like oil and copper. The country also boasts hundreds of millions of wealthy consumers who spend big on luxury products, tourism and cars. China's economy accounted for roughly 4% of world GDP in 2003; it now makes up 16% of global output. SARS sickened 8,098 people and killed 774 before it was contained. The new coronavirus, which originated in the central Chinese city of Wuhan, has already killed more than 900 people and infected over 40,000 across at least 25 countries and territories. Chinese officials have locked down Wuhan and several other cities, but the virus continues to spread. Why is China so important to the global economy? China’s extraordinary economic surge over the past 40 years has resulted in it becoming the world’s second biggest economy, with a GDP of $13.6tn (£10.4tn) (compared with $20.5tn for the US). Annualised growth of 7% and more – way beyond the capacity of developed economies – has become the norm. [caption id="attachment_57340" align="aligncenter" width="624"] Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC[/caption] China reached this position by supplanting the US as the fulcrum of global trade. Beijing is the largest trader of merchandise in the world, and is fast catching the US in commercial services following an 18% growth spurt in 2018. The long-held practice of sourcing components and widgets from Chinese companies, and the country’s vast and growing domestic market, has encouraged thousands of foreign businesses to open their own factories on the mainland, join local distribution networks and open shops. China is also central to a diverse range of global supply chains: much of the world’s raw materials travel to China before being turned into a manufactured product. Last year’s battle with the US over import tariffs on billions of dollars’ worth of goods illustrated the power of the Chinese economy to disrupt and disturb the global outlook. What is happening? Transportation There are strict restrictions on moving out of Wuhan, where the outbreak began, a city with a population of 11 million. The lockdown, also now extended to other parts of Hubei province, prevents business-related travel as well as the movement of goods and workers. The impact is not confined to China. International retailers have closed operations in China.  Several overseas airlines have stopped flights to China and international hotel chains have been offering refunds.  Supply Chain And beyond that, there is growing concern about integrated international supply chains. Hyundai, of South Korea, has suspended its car production because of problems with the supply of parts from its operation in China - an early warning sign of possible extensive disruption ahead.  Prices for key industrial raw materials such as copper, iron ore, nickel, aluminum and liquid natural gas have plummeted since the virus emerged.  And manufacturers, mining companies and commodity producers of all stripes are weighing whether they will be forced to cut back on production for fear of adding to a growing inventory glut. The woes of the commodities markets — arguably the worst-performing asset in financial markets this year — reflect the basic reality that China’s industry-heavy economy is the most important consumer of raw materials on earth. For some, the decline in copper is an ominous sign: Copper has long been considered an unofficial leading indicator of the direction of the global economy, because of its close connection to the industrial sector. Global condition Currencies of countries that export these goods at high rates, including Brazil, South Africa and Australia, are near their lowest levels in recent memory.  Debt levels have soared in the United States, Japan and key European countries including Italy, limiting the scope for a big fiscal stimulus if the world economy goes into another tailspin. Global debt, including borrowing by households, governments and companies, has jumped to more than three times the size of the global economy, the highest ratio on record, according to the Institute of International Finance. Economists say the current level of disruption is manageable. If the number of new coronavirus cases begins to slow, and China's factories reopen soon, the result will be a fleeting hit to the Chinese economy in the first quarter and a dent in global growth. If the virus continues to spread, however, the economic damage will increase rapidly. [caption id="attachment_57339" align="aligncenter" width="547"] Coronavirus & Impact on Economy – The Big Picture – RSTV IAS UPSC[/caption] Epidemic risk Economists have a hard time working out the potential costs of epidemics because of their unique characteristics. Yet diseases can be far more damaging than natural disasters such as hurricanes or a tsunami, or other unpredictable events known as "black swans."  According to a study by the World Bank, a severe pandemic could cause economic losses equal to nearly 5% of global GDP, or more than $3 trillion. Losses from a weaker flu pandemic, such as the 2009 H1N1 virus, can still wipe 0.5% off global GDP. The virus is not the driving factor behind those losses, however. Instead, it's the way consumers, businesses and governments respond to an outbreak that matters most. People are more likely to stay home during an outbreak to avoid getting sick, preventing them from traveling, shopping and working. Doing so limits demand for consumer goods and energy. Decisions by companies and governments to close shops and idle factories, meanwhile, curtail production. Is there a way ahead? China's government has moved quickly to counter the economic fallout from the coronavirus and the measures taken to contain it. The People's Bank of China cut a key interest rate and injected huge amounts of cash into markets in order to help take the pressure off banks and borrowers. Officials have also announced new tax breaks and subsidies designed to help consumers. Yet China is also more vulnerable to a crisis than it was 17 years ago when SARS broke out. It has much higher debt, trade tensions with a major trading partner and its growth has been steadily slowing down for a number of years, which gives a weak starting point to face such a crisis. Analysts at Capital Economics expect the government to announce additional measures in the coming days. If the virus keeps spreading, they believe that Beijing will have to abandon its long-running efforts to get its debt under control and pump money directly into the economy. Note: Pangolins be the source of novel coronavirus The genome sequence of the coronavirus isolated from pangolins was 99 per cent identical with that separated from infected humans. Pangolins are considered to be one of the most trafficked animals in the world and are classified as a critically endangered species People who sell pangolins can be imprisoned for a period of 10 years or morepoached every year due to their “medicinal value” and the consumption of their meat in countries such as China and Vietnam. It is believed that the novel coronavirus spread from the seafood market in Wuhan, where live animals are sold The SARS coronavirus, which was identified in 2003, is believed to have spread from bats to civet cats to human beings. Connecting the Dots: A severe pandemic would resemble a global war in its sudden, profound, and widespread impact. Explain.

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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 24th February 2020

IAS UPSC Prelims and Mains Exam – 24th February 2020 Archives (PRELIMS + MAINS FOCUS) Regional integration pegged to SAARC revival Part of: GS Prelims –Polity and GS-II- International relations In news: Sri Lanka’s former Prime Minister Ranil Wickremesinghe said : Postponement of the Kathmandu SAARC Summit in 2017 due to heightened tensions between India and Pakistan had brought the regional grouping “to a standstill”. Successful regional integration both economic and security depends on SAARC becoming fully functional at the highest levels BIMSTEC is not a substitute for SAARC Proposed  an ‘Economic Integration Road Map (EIRM)’ : a “sub-region”, consisting of the five southern States of India, Sri Lanka (Population of 300 million people and a combined GDP of over $500 billion) From Prelims Point of View: South Asian Association for Regional Cooperation (SAARC) Established with the signing of the SAARC Charter Dhaka  Headquarters and Secretariat Kathmandu, Nepal. Framework of the SAARC: Respect for the principles of sovereign equality, territorial integrity, political independence, non-interference in the internal affairs of other States and mutual benefit. SAARC comprises of eight member States Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka Observers to SAARC, are: (i) Australia; (ii) China; (iii) the European Union; (iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the United States of America. BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional multilateral organisation. Members:    Bangladesh Bhutan India Nepal Sri Lanka Myanmar Thailand Features Connects South and Southeast Asia Connects ecologies of the Great Himalayas and the Bay of Bengal. Aims To create an enabling environment for rapid economic development Accelerate social progress , Promote collaboration on matters of common interest in the region. Sub-regional organization came into being in 1997 through the Bangkok Declaration Creating an enabling environment for the rapid economic development of the sub-region. Encouraging the spirit of equality and partnership. Promoting active collaboration and mutual assistance in the areas of common interests of the member countries Accelerating support for each other in the fields of education, science, and technology, etc. Malai Mahadeshwara Wildlife Sanctuary to be a tiger reserve Part of: GS Prelims –Environment  and GS-II- Conservation In news: Approval from the NTCA (National Tiger Conservation Authority) is expected to notify the Malai Mahadeshwara Wildlife Sanctuary as a tiger reserve. From Prelims Point of View: Project Tiger: Launched in 1973 with 9 tiger reserves Currently, The Project Tiger coverage has increased to 50 tiger reserves are constituted on a core/buffer strategy. Centrally Sponsored Scheme of the Ministry of Environment, Forests and Climate Change providing central assistance to the tiger States National Tiger Conservation Authority (NTCA) : Statutory body by 2006 amendment of Wildlife (Protection) Act, 1972. Launched in 2005ecommendations of the Tiger Task Force.  Supervisory/coordination role, performing functions as provided in the Wildlife (Protection) Act, 1972 M-STrIPES (Monitoring System for Tigers - Intensive Protection and Ecological Status) is an app based monitoring system, launched across Indian tiger reserves by the NTCA in 2010. Two tamers, including student, killed in jallikattu events in Tamil Nadu Part of: GS Prelims –Culture and GS- I- Festival  From Prelims Point of View: Jallikattu is referred to as bull taming event  Practiced in Tamil Nadu as a part of Pongal  ‘jallikattu' is derived from Tamil words Jalli refers to gold or silver coins ,Kattu means 'tied'. Found mentioned in the Sangam literature (2500 years ago). Controversial : Because the sport often results in major injuries and even deaths of both bulls and humans. Law: Supreme Court in 2014 banned Jallikattu in response to Animal Welfare Board of India (AWBI) and People for Ethical Treatment of Animals (PETA) petitions citing cruelty to animals. The article 51A of the constitution states that citizens should safeguard the wildlife and forests and have compassion for living creatures. (MAINS FOCUS) Governance Topic: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Issues related to Health Swachh Bharat Mission and Jal Jeevan Mission Context India participated in ministerial round table discussion on “Scaling Up Sanitation in Africa” held at Addis Ababa One of the biggest hurdles African ministers faced in replicating the SBM model in their countries was that they were not able to convince their finance ministries to invest heavily in sanitation like India has done since 2014. Some of the reasons which has led to success of SBM in India are: Political Will especially from the very top. Prime Minister of India provided leadership to the movement and made SBM one of the government’s flagship programme. Large investment on sanitation through public financing:  the central and state governments have invested in excess of one lakh crore on sanitation over 2014-19 period Civil Society movement: Media and NGOs realized the socio-economic significance of sanitation. These groups owned up the scheme and made it into social movement which led to behavioural changes at ground level. Community Ownership: The scheme relied upon the community owning up the scheme (through rankings of cities, declaration of ODF villages) instead of government bureaucracy led scheme. This led to sustenance of progress made during initial period. 95% of people with access to toilets in rural India used them regularly, Returns on these investments in sanitation (through SBM): UNICEF estimated that investments in sanitation in India are yielding a 400 per cent return  Each rural household in an open-defecation-free village saving Rs 50,000 on account of avoided medical costs and time savings. The Toilet Board Coalition has estimated that the sanitation infrastructure and services market in India will be worth over $60 billion by 2021 –creating many jobs even in the rural parts of the country. A study by UNICEF has estimated that SBM resulted in creating over 75 lakh full time equivalent jobs over the past five years, giving the rural economy a major boost. On October 2, 2019, PM Modi commemorated the ODF declaration by all states and stated that the focus in future has to be on sustaining the success and moving towards ODF++ strategy The next Critical service area which government considers as key pillar for broader rural development is Water. As a result, Government announced Jal Jeevan Mission on August 15th 2019. The goal of JJM is to ensure piped water supply for all households of India by 2024 with commitment of Rs 3.6 lakh crore of central and state funds for the scheme. In the Union budget for 2020-2021, the government has already allocated Rs 11,500 crore for JJM, with an additional Rs 12,000 crore being made available through extra budgetary resources In addition, a huge impetus to the rural water supply and sanitation sector is the earmarking of 50% of the Rs 60,750 crore grant for rural local bodies provided under the 15th Finance Commission for drinking water and sanitation.  This ensures that the scheme is driven by local bodies and are sufficiently financed by the government to make it a success Conclusion Investment in sanitation and water is actually a facilitator for broader economic, health and social gains as indicated in UNICEF studies. Government should replicate the model of sanitation, which has led to its success, in the area of water also to bring inclusive development in the country. Connecting the dots NITI Aayog’s Composite Water Management Index Ministry of Jal Shakti (merging of two ministries and reasons) Do you know? ODF protocol - Not a single person is found defecating in the open. ODF+ protocol- Not just open defecation but also no public urination. Additionally, all community & public toilets need to be functional and well-maintained. ODF++ protocol adds the condition that faecal sludge/septage and sewage is safely managed and treated, with no discharging and/or dumping of untreated faecal sludge/septage and sewage in drains, water bodies or open areas. International Affairs Topic: General Studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests India- US relationship: Trump Visit to India Context During Mr. Trump’s visit to India on Feb 24-25, there is the prospect of more cooperation on trade and tariffs and also the possibility of major defence deals. US-India Trade U.S.-India trade in goods and services has grown at a steady clip from $16-billion to $142-billion during 1999-2018. However, the trade growth is not without wrinkles. U.S. and Indian officials have disagreed for years on tariffs, foreign investment limitations, agricultural trade, medical devices, digital economy and IPR issues At the heart of Trump’s foreign policy strategy are concerns about the trade deficit that the U.S. has with its economic partners worldwide, although India does not rank among the top 10 in this regard. In 2019 India’s trade deficit with the U.S. of $23.3-billion is dwarfed by China’s corresponding figure of $346-billion Chronology of U.S.-India trade squabbles In March 2018, the Trump administration slapped “national security” tariffs of 25% on $761-million worth of steel and of 10% on $382-million of aluminium imported from India Trump administration ended a year-long review of the U.S. Generalised System of Preferences (GSP) in June 2019 by removing India from the tariff concession system.  These measures are said to have impacted nearly $5.8 billion of India’s exports, or more than 12% of exports to the U.S. in 2017. India immediately imposed higher retaliatory tariffs on 28 U.S. products including almonds, walnuts, cashews, apples, chickpeas, wheat, and peas. U.S. also recently changed the status of India, among other countries, to a “developed” country, to further reduce trade concessions that it could receive from the U.S. India has expressed its concern regarding restrictions on visas for highly skilled professionals seeking to take up employment in the U.S, even though laws that brought in restrictions, for example by imposing higher visa fees, were passed before Mr. Trump entered office. Hope for a positive announcement on trade? There were initial signs that a “limited trade deal” might be hammered out when Mr. Trump and Mr. Modi meet.  However, the aspiration of trade deal fell through when it became clear that nothing on that scale would be finalised until after November 2020 US Presidential elections. There is however possibility of a “mini trade deal” or more simply a smaller trade package announcement. This might include an increase in India’s LNG imports from the U.S. An MoU for India’s gas importer Petronet to invest $2.5 billion in U.S. company Tellurian Inc’s LNG project, that was signed during Mr. Modi’s visit to Houston, is likely to be formalised during Mr. Trump’s visit India – US defence prospects (during Trumps Visit) There is more positive news on the defence cooperation with the likely announcement during the visit of Mr. Trump of a deal for 24 Lockheed Martin-built MH-60R Seahawk Multi-Role Helicopters for the Indian Navy. These 24 helicopters, said to be worth $2.4-billion, are likely to be procured through the Foreign Military Sales route of the U.S. government. India’s Cabinet Committee on Security has cleared their purchase  India and the U.S. are also said to be in negotiations regarding India’s potential purchase of drones, additional P-8I long-range, multimission maritime patrol aircraft and also Raytheon intelligence, surveillance, target acquisition and reconnaissance (ISTAR) aircraft. India – US Strategic prospects (during Trumps Visit) Trump has reiterated his promise withdraw US troops in Afghanistan with the prospects of US- Taliban deal This might lead to revival of the Taliban’s influence, Pakistan-based terror elements or Pakistan’s ISI gaining a stronger foothold in the power vacuum that will inevitably develop there. This could compromise Indian interests considerably Way forward India should come out with well defines Strategic Policy in its western sphere, which includes maritime arena also (Western Indian Ocean). India should improve the competitiveness of its own industries to make its products & services attractive to consumers so that they are able to overcome obstacles imposed temporarily by foreign governments. Connecting the dots US-China Trade war India not joining RCEP trade deal Indo-US 2015 joint Vision of Indo-Pacific (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q 1. Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC? Nepal, Bhutan, Thailand and Singapore Nepal, Bhutan, Malaysia and Maldives Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan Nepal, Bhutan, Singapore and Sri Lanka Q 2. Consider the following statements:  M-STrIPES is launched by the Environment (Protection) Act, 1986. National Tiger Conservation Authority is a statutory body. . National Tiger Conservation Authority is chaired by the Prime Minister. Which of the statements given above is/are correct? 1 only  2 and 3 only 2 only  1, 2 and 3 Q 3. The term M-STRIPES' is sometimes seen in the news in the context of  Captive breeding of Wild Fauna Maintenance of Tiger Reserves Indigenous Satellite Navigation System Security of National Highways ANSWERS FOR 22 FEB 2020 TEST YOUR KNOWLEDGE (TYK) 1 B 2 B Must Read About inequality & resource distribution : The Hindu About Youth being advantage for India : The Hindu About downtrodden & affirmative action: The Hindu

Motivational Articles

Creative Guidance – Balanced Life – Inspirational Educative Articles

Balanced Life: No matter what you achieve, there will always be someone who will be one step ahead of you. This is especially true today, when things are changing so quickly. In just a few years, people are accomplishing what took prior generations ten, fifteen, or twenty years to accomplish. Future generations might look at your whole life’s work and say, “What nonsense is all this? All this effort was not even necessary.” With advancements in technology and the awareness of what is happening in the world, future generations can erase your entire life’s work in a snap. This is why you need to have a balanced understanding of life. This balance should start from within, and not from the outside. You should be your first priority. How you understand and take care of yourself is the most important thing; spirituality is all about you. Spirituality should neither be taken as seriously as religion or as casually as a hobby. It is simply an adventurous journey you undertake to recognize the fact that you are the center of your life, and everything else is secondary. Spirituality is all about rearranging your house; the house where your Self resides. Everything you need is already in your house. Your mind and body contain answers for all the questions of your life, but you have lived your life so unconsciously, so chaotically, that nothing within you is organized. Within this house, you don’t know where things are, what their real meanings are, or what their purposes are. Your internal landscape is a jumbled mess of experiences. Spirituality is a process of entering this house and rearranging everything so that you can make sense of your life. “This article is a part of the creative endeavor of Meditation Farm and IASBABA.”

IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 22nd February 2020

IAS UPSC Prelims and Mains Exam – 22nd February 2020 Archives (PRELIMS + MAINS FOCUS) Pakistan retained on ‘grey list’ and Iran in ‘black list’ of FATF Part of: GS Prelims –Polity and GS-II- International organization In news: Pakistan has been retained on the ‘grey list’ of the Financial Action Task Force (FATF) To complete the 27-point action plan it has been given by June 2020 or face being put on the ‘black list’ FATF placed Iran on its blacklist after it failed to comply with international anti-terrorism financing norms, a move that will deepen the country’s isolation from financial markets. FATF summary report states that Pakistan must work on eight specific areas: Identifying and investigating ”terror-financing activities Freezing the funds of all designated terrorists  “effective, proportionate and dissuasive sanctions” against all terror entities Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 22nd February 2020 Source: The Hindu From Prelims Point of View: Financial Action Task Force (FATF)  Inter-governmental body  Established in 1989 during the G7 Summit  Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris. Works to set standards and promote effective implementation of legal, regulatory and operational measures  Combats money laundering, terrorist financing ,related threats to the integrity of the international financial system. Grey list : A country is put on the grey list when it fails to curb terrorism financing and money laundering Blacklist : Putting a country on the blacklist means shutting all doors to international finance for that country. Scientists oppose study into ‘qualities’ of indigenous cow Part of: GS Prelims –Sci & Tech and GS-III- conservation In news: Many scientists have petitioned the Department of Science & Technology (DST) to withdraw a proposal that solicits research into indigenous cows. Concerns  The research programme appeared to endorse the belief that indigenous cows had “special” and “unique” qualities  Possibility of money being “wasted to investigate imaginary qualities derived from religious scriptures”.  Programme did not encourage fair comparison with other breeds of cows around the world or other bovine species within India  Proposal was drafted unscientifically From Prelims Point of View: Background: Government has recently unveiled a programme to research on ‘indigenous’ cows. (SUTRA PIC or Scientific Utilisation Through Research Augmentation-Prime Products from Indigenous Cows) led by the Department of Science and Technology  Aims  To perform scientific research on complete characterisation of milk and milk products derived from Indian indigenous cows  Scientific research on nutritional and therapeutic properties of curd and ghee prepared from indigenous breeds of cows by traditional methods; development of standards for traditionally processed dairy products of Indian-origin cow India, Maldives agree to take on terrorism, radicalisation In news: Home Minister Amit Shah met his Maldivian counterpart : Discussed bilateral cooperation in the fields of counter-terrorism and counter-radicalisation, among other things. From Prelims Point of View: India-Maldives Relation India first to recognize the Maldives after its independence in 1965  India established its mission at Malé in 1972. Maldives archipelago comprising 1200 coral Islands lies next to key shipping lanes which ensure uninterrupted energy supplies to countries like China, Japan, and India. More than 97% of India’s international trade by volume and 75% by value passes through the region.  Maldives member of SAARC Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 22nd February 2020 Source : World Atlas (MAINS FOCUS) Governance and Economy Topic: General Studies 2: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. 

 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Crop Insurance Context Flagship Crop insurance schemes of Central government are: RWBCIS -Restructured Weather Based Crop Insurance Scheme  PMFBY - Pradhan Mantri Fasal Bima Yojana Centre decided to restrict its premium subsidy in PMFBY and RWBCIS to 30% for unirrigated areas and 25% for irrigated areas (from the existing unlimited) Also, it decided to make enrolment of farmers in these schemes as voluntary from the 2020 Kharif season. About PMFBY Launched in 2016 after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). Premium: Farmers need to pay uniform premium of only 2% of insured amount for Kharif crops, 1.5% for Rabi crops and 5% for horticulture crops.  The remaining part of actuarial premium (charged by insurance companies) will be shared equally between Central and State government (with no upper limits) The scheme is mandatory for farmers who have taken institutional loans from banks.  It’s optional for farmers who have not taken institutional credit. If a farmer’s Kharif crop was insured for Rs 1,00,000 and the rate of actuarial premium was 40%, then the  Old Regime:  Premium paid by the farmer was 2% - Rs 2,000 Premium paid by the Centre was 19% -Rs 19,000 Premium paid by the Centre was 19% -Rs 19,000 Under New Regime - the Centre will give subsidy for premium rates up to 30%.  This means that the Centre will have to pay premium at the rate of 14% (out of 30%, the farmer’s share is 2%, and the Centre’s and state’s 14% each) The state has to bear the entire burden of the premium subsidy in cases where the rate of premium goes beyond the threshold of 30%. Premium paid by the farmer was 2% - Rs 2,000 Premium paid by the Centre -Rs 14,000 Premium paid by the State – Rs 14,000 + remaining Rs 10,000 A second interpretation is that the Centre may stop supporting insurance of certain crops in certain areas where the rate of premium is more than 30% Why the changes to restrict the premium subsidy? While the average premium rate under PMFBY and RWBCIS at the national level was 12.32% for 2018-19, for some crops in certain districts, the rate of premium has been higher than 30% in recent years.  For example: the rate of premium for Kharif groundnut has reached 49% in Rajkot of Gujarat, and the rate for Rabi paddy crop Ramnathapuram (Tamil Nadu) has reached 42%. By capping the subsidy for premium rates up to 30%, the Centre wants to disincentivise certain crops in such areas where growing these crops involve high risks in terms of crop insurance premiums. Implications of Capping premium amount Increased States Share: After the new changes come into effect, the share of the states is expected to go up in those states in which such crops are cultivated. Additional Financial burden on States: The states are already defaulting on their share of premium, and the Centre’s new cap will increase fiscal pressure on them  Delay in claim settlement: For example Madhya Pradesh has not paid its share of premium even for Kharif 2018, which comes to Rs 1,500 crore. As a result, farmers have not got their claims. Implication on making insurance schemes voluntary Making the scheme voluntary is expected to increase the disposable incomes of farmers which will help in fuelling rural demand. The area covered under insurance and the number of enrolled farmers are expected to come down significantly as it is now made voluntary In such a scenario, the rate of premium of certain crops in some areas may go beyond 30%. It will further make farmers vulnerable to crop failures thus impacting their income security. The other changes in crop insurance schemes The government has given flexibility to states/UTs to implement PMFBY and RWBCIS It also gives States the option to select any number of additional risk covers/features like prevented sowing, localised calamity, mid-season adversity, and post-harvest losses. Earlier, these risk covers were mandatory.  Impact of these changes This may bring down the rates of overall premium as the state governments now will not be required to invite bids factoring these risks. It will make these schemes less attractive for farmers. Do You Know? During 2018-19, about 5.64 crore farmers are enrolled with PMFBY for an insured sum of Rs 2,35,277 crore, and 30% of the gross cropped is insured. During 2018-19, an amount of Rs 29,105 crore was collected as gross premium under PMFBY and RWBCIS, which included farmers’ share of Rs 4,918 crore and share of Rs 12,034 crore each by Centre & States Connecting the dots! Social Security & Insurance for crops Food Productivity and Biotechnology (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q 1. Consider the following statements about Financial Action Task Force (FATF) The Financial Action Task Force (FATF) is an inter-governmental body established by World Economic Forum. It is a policy-making body and promotes operational measures for combating money laundering and terrorist financing. Which of the above statements is/are correct? only 1 only 2 Both 1 and 2 Neither 1 nor 2 Q 2. Consider the following statements about the Financial Action Task Force (FATF):  It is an inter-governmental body established in 1989 by G -20 It sets global standards to tackle the problem of money laundering Pakistan has an observer status in FATF Which of the above statements is/are correct? 1 & 2 Only 2 Only 1, 2 & 3 2 & 3 Only  ANSWERS FOR 21 FEB 2020 TEST YOUR KNOWLEDGE (TYK) 1 D 2 B 3 A Must Read About Clashes between Brus and non-tribal Bengalis : The Hindu About Criminalisation of Politics : The Hindu About Terror in Germany: The Hindu About Road accidents: The Hindu

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