05-August-2024-Daily-Current-Affairs

ELECTION OVERHANG AND INFLATION CONCERNS

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU

The recent elections in India and subsequent heatwaves have contributed to a slowdown in industrial production, particularly in the core infrastructure sectors. This has raised concerns about inflation, which is broadening beyond food prices.

Core Sector Performance

Slowdown in Core Sectors

• The Index of Eight Core Industries (ICI) showed a significant slowdown, with growth falling to a 20-month low of 4%.
• Key sectors like refinery products and electricity generation saw declines, with refinery output contracting by 1.5% and electricity generation dropping by 3.6%.

Impact of Heatwaves

• Prolonged heatwaves, pegged at a 14-year high, negatively impacted construction and steel demand, leading to a 4% decline in steel output.

Coal as a Silver Lining

• Coal production showed a positive trend, with growth accelerating to 14.8% in June from 10.2% in May.

Manufacturing and Inflation

• The HSBC India Manufacturing PMI for July indicated a slight easing in manufacturing activity, dropping to 58.1 from 58.3 in June.
• Increased input costs led manufacturers to raise selling prices at the steepest rate in almost 11 years.

Inflation Concerns

• Rising costs of coal, packaging, paper, rubber, and steel are driving broader inflation beyond food prices.
• The Reserve Bank of India’s Monetary Policy Committee faces a challenging task in addressing these inflationary pressures.

INFLATION Inflation is the rate at which the prices of goods and services increase over a specific period, usually a year. It reflects the rising cost of living and indicates how much more expensive a set of goods and services has become. Relevance ·       Price Stability: Moderate inflation is desirable for economic stability as it encourages spending and investment. ·       Central Bank Policy: Central banks use inflation targeting as a key monetary policy tool, adjusting interest rates to achieve desired inflation rates. ·       Real Interest Rates: Inflation influences real interest rates, providing a more accurate measure of the true cost of borrowing and the return on savings. ·       Income Redistribution: Inflation can benefit debtors and disadvantage creditors, leading to shifts in wealth and income distribution. ·       Encouraging Investment: Moderate inflation can encourage investment, as individuals and businesses are more likely to spend and invest expecting higher returns. ·       Nominal Wage Adjustments: Inflation allows for nominal wage increases, helping to adjust labor market dynamics. ·       Global Competitiveness: Higher inflation can make a country’s goods and services relatively more expensive, affecting international trade. ·       Taxation Effects: Inflation can lead to higher tax revenue as individuals move into higher tax brackets, but can also cause “bracket creep.” Causes of Inflation ·       Demand-Pull Inflation: Occurs when demand for goods and services exceeds supply. ·       Cost-Push Inflation: Driven by increased production costs, such as higher raw material prices. ·       Built-In or Wage-Price Inflation: A feedback loop where higher wages lead to higher prices and vice versa. ·       Monetary Inflation: Linked to an increase in the money supply. ·       Supply Shocks: Sudden disruptions in supply cause prices to rise. ·       Built-In Expectations: Expectations of future price increases can lead to higher prices today. Measuring Inflation in India ·       Consumer Price Index (CPI): Measures changes in retail prices for a basket of goods and services. ·       Wholesale Price Index (WPI): Measures average changes in prices at the wholesale level. ·       Producer Price Index for Manufacturing (PPIM): Measures price changes received by domestic producers for manufactured goods. Impacts of Rising Inflation ·       Decreased Purchasing Power: Inflation reduces the value of money, meaning individuals can buy fewer goods and services. ·       Interest Rates and Investment: Higher inflation often leads to higher interest rates, increasing borrowing costs and potentially slowing investment and economic growth.

Conclusion

The combination of election-related spending slowdowns and extreme heatwaves has significantly impacted India’s core sectors and manufacturing. With inflationary pressures broadening, policymakers must remain vigilant to maintain economic stability.

Multiple Choice Question:

1. Consider the following statements regarding inflation:
2. Inflation refers to the general increase in prices of goods and services over a period of time.
3. Cost-push inflation occurs when there is a sudden increase in consumer demand.
4. The Consumer Price Index (CPI) measures the average change in retail prices for a basket of goods and services.
5. The Wholesale Price Index (WPI) is used by the Reserve Bank of India to control inflation.

Which of the statements given above are correct?

1. 1 and 3 only
2. 2 and 4 only
3. 1, 3, and 4 only
4. 1, 2, 3, and 4

Answer: A

Explanation:

Inflation refers to the general increase in prices of goods and services over a period of time.

Cost-push inflation occurs due to increased production costs, not an increase in consumer demand.

The CPI measures the average change in retail prices for a basket of goods and services.

The Reserve Bank of India uses the CPI, not the WPI, as a primary measure to control inflation.

STALKED BY POLIO: GAZA FACES ANOTHER SIEGE

TOPIC: (GS2) INTERNATIONAL RELATIONS – SOURCE: THE HINDU

The Gaza Strip, already besieged by conflict and inadequate infrastructure, faces a new threat from polio. This health crisis is exacerbated by the region’s dire living conditions and the devastating impact of warfare on healthcare services.

Health Crisis in Gaza

• Polio Detection: Israel’s Health Ministry detected poliovirus in Gaza’s sewage, indicating an outbreak.
• Healthcare Challenges: Only a third of Gaza’s hospitals are functional, limiting access to medical care.
• Conflict Impact: Destruction of hospitals and shelters hampers medical aid delivery.

Polio’s Nature and Spread

• Human Pathogen: Poliovirus replicates only in human cells, with no other reservoirs.
• Severity: The extent of infections remains uncertain, but the virus is likely widespread among Gaza residents.
• Vaccination Campaigns: Despite efforts to vaccinate, conditions hinder effective disease management.

Broader Implications

• Global Health: Failure to control polio in Gaza risks spreading the virus beyond its borders.
• Infrastructure Damage: The destruction of water infrastructure further exacerbates health risks by contaminating water supplies.
• International Response: The World Health Organization and other bodies are attempting to provide aid and vaccinations.

Conclusion

Gaza’s polio outbreak underscores the intersection of conflict and public health crises. Addressing this issue requires immediate and concerted international efforts to improve living conditions and ensure access to medical care.

Multiple Choice Question:

1. Which of the following statements about polio are correct?
2. Polio is caused by a virus that can lead to paralysis, and is primarily spread through contaminated water and food.
3. The World Health Organization’s Global Polio Eradication Initiative (GPEI) aims to completely eradicate polio worldwide.
4. The inactivated polio vaccine (IPV) is the only vaccine currently used to combat polio globally.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

Answer: A

Explanation:

Polio is caused by the poliovirus, which can lead to paralysis and is primarily spread through contaminated water and food.

The Global Polio Eradication Initiative (GPEI), launched in 1988, aims to eradicate polio globally.

Both the oral polio vaccine (OPV) and the inactivated polio vaccine (IPV) are used to combat polio, with OPV being more commonly used in many parts of the world due to its ease of administration and effectiveness.

MGNREGS: STATES FALL BEHIND IN PAYING UNEMPLOYMENT AID

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims to provide job security to rural workers. However, recent reports highlight the failure of many states in disbursing the mandated unemployment allowance, reflecting broader issues within the scheme.

Key Issues

• Insufficient Allowance Disbursement: In 2023-24, only ₹90,000 was released as unemployment allowance compared to ₹7.8 lakh in 2022-23, with just six states participating.
• Economic Survey Findings: The 2024 Economic Survey pointed out that the reported figures do not reflect the actual demand for work and the prevailing rural economic distress. Block-level officials often fail to register demand in real-time, skewing the data.
• Flawed Reporting System: The survey noted that work demands are only recorded when employment is provided, likely to avoid the state’s liability for unemployment allowances.

Legal Framework

• MGNREGA, 2005: Section 7(1) mandates a daily unemployment allowance if work is not provided within 15 days of application. This allowance is one-fourth of the wage rate for the first 30 days and half for the remainder of the financial year.
• Chronic Underutilization: Despite legal provisions, unemployment allowances remain underutilized due to administrative inefficiencies and state-level antipathy.

Causes and Responsibilities

• Administrative Deficiencies: States’ failure to issue demand receipts and chronic under-budgeting by the Centre contribute to the low disbursal rates.
• State Accountability: Nikhil Dey from Mazdoor Kisan Shakti Sangathan highlighted that the unemployment allowance clause is crucial for state accountability but is hindered by administrative obstacles and inadequate funding.

Parliamentary Standing Committee Recommendations

• Centre-State Coordination: The Committee recommended that the Centre address this issue at the highest level with the states to ensure compliance with statutory duties.

Conclusion

The low disbursal of unemployment allowances under MGNREGS underscores significant administrative and financial challenges. Enhanced accountability and better coordination between state and central governments are essential to fulfill the scheme’s objectives and support rural workers effectively.

Multiple Choice Question:

1. Consider the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
2. MGNREGA aims to provide at least 200 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
3. Under MGNREGA, if an applicant is not provided employment within 15 days of application, he/she shall be entitled to a daily unemployment allowance.
4. The unemployment allowance is one-fourth of the wage rate for the first 30 days and half of the wage rate for the remainder of the financial year.
5. All states in India have consistently disbursed the unemployment allowance every year since the inception of MGNREGA.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1, 2, and 3 only
4. 2, 3, and 4 only

Answer: B

Explanation:

MGNREGA aims to provide at least 100 days of guaranteed wage employment in a financial year, not 200 days.

Under MGNREGA, if an applicant is not provided employment within 15 days of application, he/she is entitled to a daily unemployment allowance.

The unemployment allowance is one-fourth of the wage rate for the first 30 days and half of the wage rate for the remainder of the financial year.

Not all states have consistently disbursed the unemployment allowance every year. There have been significant gaps in the disbursal of these allowances, as noted in recent reports.

SUPREME COURT VERDICT ON SUBSTANTIVE EQUALITY IN RESERVATIONS

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: THE HINDU

The Supreme Court’s recent verdict on the sub-classification of Scheduled Caste (SC) and Scheduled Tribe (ST) quotas has underscored the principle of “substantive equality.” This principle emphasizes that the law must account for different backgrounds and historical injustices faced by various groups.

Substantive Equality:

• The Constitution now promotes a broader understanding of equality, addressing historical and social disadvantages.
• Chief Justice D.Y. Chandrachud highlighted this shift, expanding the scope of affirmative action beyond formal equality.

Historical Context:

• Early rulings such as the State of Madras v. Champakam Dorairajan (1951) viewed reservations narrowly, as exceptions to equality.
• Over time, rulings like Indra Sawhney v. Union of India (1992) recognized reservations as necessary for substantive equality.

Legal Provisions:

• Article 15(4) of the Constitution allows special provisions for educational advancement of socially and educationally backward classes.
• The 1995 amendment introduced Article 16(4A), allowing reservations in promotions for SCs and STs to ensure “consequential seniority.”

Efficiency vs. Merit:

• The Court has balanced reservations with maintaining administrative efficiency, as per Article 335.
• CJI Chandrachud rejected the binary view of quota versus merit, arguing that securing higher marks does not necessarily equate to greater efficiency.

SUBSTANTIVE EQUALITY Substantive equality and distributive justice are crucial concepts for achieving fairness and social justice. They address the root causes of inequality and aim to ensure that all individuals have equal opportunities and access to resources. Substantive Equality: ·       Beyond Formal Equality: Recognizes that treating everyone equally does not lead to equitable outcomes. ·       Addressing Differences: Acknowledges that certain groups need additional support to overcome historical disadvantages. ·       Eliminating Barriers: Aims to remove discrimination and systemic barriers. ·       Promoting Inclusivity: Ensures equal opportunities and promotes diversity and social justice. Distributive Justice: ·       Fair Distribution: Focuses on the equitable allocation of resources, benefits, and burdens. ·       Reducing Disparities: Seeks to minimize social and economic inequalities. ·       Ensuring Well-being: Aims to provide everyone with a basic level of well-being and opportunities for advancement. Conclusion: Both concepts are essential for creating a fair and just society by addressing inequalities and ensuring that all individuals have equal opportunities and access to resources.

Conclusion:

The Supreme Court’s judgment reaffirms the commitment to substantive equality, recognizing the need for reservations to address historical disadvantages. It emphasizes that reservations are not merely exceptions to equality but essential tools for achieving true social justice.

ADVANCES IN SUSTAINABLE RICE AND WHEAT CULTIVATION

TOPIC: (GS3) ECONOMY – SOURCE: INDIAN EXPRESS

The search for eco-friendly farming practices has led to significant innovations in rice and wheat cultivation. Traditional methods have a high environmental impact due to water usage and stubble burning. Recent advancements in herbicide-tolerant crops present a promising alternative for reducing these impacts.

New Technology for Weed Control

• Imazethapyr-Tolerant Crops: Recent developments focus on breeding rice and wheat varieties that can tolerate the herbicide Imazethapyr.
• This herbicide controls weeds by inhibiting an enzyme (acetolactate synthase, ALS) crucial for weed growth.
• Varieties and Hybrids: Two basmati (Pusa Basmati 1979, Pusa Basmati 1985) and two non-basmati rice hybrids (Sava 134, Sava 127) have been introduced this kharif season. Upcoming wheat varieties (Goal, Mukut) will also be Imazethapyr-tolerant.

Benefits of Imazethapyr-Tolerant Varieties

• Reduced Water Use: Direct Seeding of Rice (DSR) eliminates the need for nursery preparation, puddling, and field flooding. This method saves approximately 30% of water and reduces labor costs.
• No Stubble Burning: Zero-Tillage (ZT) wheat technologies enable sowing without burning paddy stubble or extensive land preparation. This method saves time and reduces environmental pollution.

Non-GM Status

• Genetic Modifications: The new varieties feature a mutated ALS gene, a natural gene present in rice and wheat. This modification is achieved through chemical or radiation treatments and does not involve genes from unrelated species.

Conclusion

The adoption of Imazethapyr-tolerant crops can significantly improve the sustainability of rice and wheat farming by reducing water usage, labor, and environmental pollution. These advances offer a practical solution to the challenges faced by traditional cultivation methods.

RUSSIA-US PRISONER EXCHANGE: DYNAMICS AND IMPLICATIONS

TOPIC: (GS2) INTERNATIONAL RELATIONS – SOURCE: INDIAN EXPRESS

The recent large-scale prisoner exchange between Russia and the West marks one of the most significant post-Cold War swaps. This event illustrates how prisoners are utilized as leverage in international diplomacy, revealing both historical precedents and contemporary challenges.

Details of the Exchange.Release of High-Profile Detainees:

• Evan Gershkovich: Wall Street Journal journalist, convicted of espionage, released from Russia.
• Paul Whelan: Former US Marine, also convicted of espionage, released alongside Gershkovich.
• Other Releases: Russia freed 16 individuals, including opposition figures and critics. In return, eight individuals, including notorious hitman Vadim Krasikov, were released by the West.

Historical Context

Ancient Practices:

• Early Use of Prisoners: Historically, prisoners were either executed, enslaved, or ransomed. The concept of ransom dates back to ancient Greece and medieval Europe.
• Medieval Ransoms: Captured knights’ ransoms varied based on their rank, with significant sums being paid for their release.

Modern Framework:

• Geneva Conventions: The 1949 Geneva Conventions govern the treatment of prisoners of war (PoWs) but lack effective enforcement mechanisms.
• Political Leverage: Countries like Russia have used PoWs to exert political pressure, as seen in recent conflicts.

Negotiation Dynamics

Varied Costs of Freedom:

• Profile of Detainees: The release price depends on the detainee’s significance and the geopolitical leverage of the holding country.
• Pressure and Diplomacy: High-profile cases, like Gershkovich’s, attract significant diplomatic efforts and public attention, influencing negotiation outcomes.

Notable Examples:

• Powers-Abel Swap (1962): The exchange of U2 pilot Francis Gary Powers for KGB agent Rudolf Abel illustrates the high stakes of such negotiations.
• Nazanin Zaghari-Ratcliffe (2022): Her release involved the UK settling a £400 million debt with Iran, demonstrating the financial leverage involved in some cases.

Controversies and Criticisms

Precedents and Impact:

• Setting Bad Precedents: Large payments or exchanges involving controversial figures can set troubling precedents, encouraging further arbitrary detentions.
• Criticism of Recent Swaps: Recent exchanges, such as those involving Viktor Bout and Britney Griner, have faced criticism for the perceived value and ethics of the traded individuals.

Future Implications:

• Increased Risk: High-profile prisoner swaps may encourage adversarial states to capture individuals to extract concessions, raising concerns about the potential for unjust detentions.

Conclusion

The recent Russia-US prisoner exchange underscores the strategic use of detainees in international diplomacy. It highlights the complex interplay between historical practices and contemporary political negotiations, illustrating both the benefits and ethical dilemmas of using prisoners as diplomatic leverage.

DISCONTINUED OLYMPIC SPORTS: A HISTORICAL OVERVIEW

TOPIC: (GS3) MISCELLANOUS – SOURCE: INDIAN EXPRESS

The Olympic Games have seen a variety of sports and events come and go over the years. The 2024 Paris Olympics features 32 sports, but many past events have been removed from the schedule. Here are five notable sports that were once part of the Olympics but are no longer included.

1. Live Pigeon Shooting (1900)

• Description: Competitors aimed to kill the maximum number of live pigeons released into the air.
• Details: Held only once at the 1900 Paris Olympics. Nearly 300 pigeons were killed.
• Outcome: Leon de Lunden of Belgium won the gold medal.
• Current Status: Replaced by clay pigeon shooting to avoid the use of live targets.

2. Hot Air Ballooning (1900)

• Description: A demonstration sport with contests for distance traveled, altitude reached, and best photograph taken.
• Details: Took place over several months at the 1900 Paris Games.
• Notable Achievement: Henry de La Vaulx won the distance race by flying from Paris to Poland.
• Current Status: No longer part of the Olympics.

3. Tug-of-War (1900-1920)

• Description: Teams of eight pulled on opposite ends of a rope to move the other team six feet.
• Details: Featured in five Olympic Games, with a controversy at the 1908 London Games over equipment.
• Current Status: Discontinued after the 1920 Olympics.

4. Plunge for Distance (1904-1908)

• Description: Athletes dove into a pool from a standing position and drifted underwater as far as possible without moving.
• Details: Competitors’ distance drifted was measured after they floated to the surface or 60 seconds had passed.
• Notable Achievement: E. Dickey won in 1904 with a distance of 62 feet, 6 inches.
• Current Status: Removed from the Olympics after 1908.

5. Running Deer Shooting (1908-1924)

• Description: Competitors shot at a moving wooden target shaped like a deer on a rail track from 100 meters away.
• Details: Each shooter had 4 seconds to hit the target as it moved.
• Notable Achievement: Oscar Swahn of Sweden won silver in 1920, becoming the oldest Olympic medallist at 72.
• Current Status: Eliminated after the 1924 Games.

Conclusion

These discontinued sports reflect the evolving nature of the Olympic Games, showcasing how the event’s focus and values have shifted over time. The removal of these sports highlights changes in public sentiment and advancements in Olympic standards and practices.