October 15, 2024

Current Affairs

Nobel Prize in Economics 2024

Context: The Royal Swedish Academy of Sciences on Monday awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2024 to three US-based economists “for studies of how institutions are formed and affect prosperity”. The Nobel citation states the three economists “have helped us understand differences in prosperity between nations”.

The Big Question?

Nobel Prize in Economics 2024 - Daron Acemoglu, Simon Johnson, James Robinson

Why are some nations rich and others poor? Why do some nations fail while others succeed in achieving prosperity? These are questions that have puzzled economists for decades.
- For instance, the richest 20% of the world’s countries are now around 30 times richer than the poorest 20%.
- Moreover, the income gap between the richest and poorest countries is persistent.
- Although the poorest countries have become richer, they are not catching up with the most prosperous.
Over the years, many explanations have been put forward — everything from biology to geographical location to climatic conditions to evolution has been offered as the reason why some nations have done better than others.

Answer to this Inter-Nation Inequality

This year’s laureates in the economic sciences have demonstrated the importance of societal institutions for a country’s prosperity. By institutions, the laureates refer to the broad set of rules that govern the behaviour of individuals in a society or a country.
They held that societies with a poor rule of law and institutions that exploit the population do not generate growth or change for the better.
The three laureates have distinguished between inclusive and extractive institutions.
- An inclusive institutional framework refers to the existence of democracy, law and order, protection of property rights, etc.
- By contrast, an extractive institutional framework typically refers to a lack of rule of law, of power being concentrated in the hands of a few (autocracy or dictatorship), and the associated risks of expropriation.
- These two opposite types of institutional frameworks lead to very different incentives for people in an economy or society.
For instance, if people are assured that their property will not be taken away at will, or that their incomes and profits will be protected for generations, they tend to focus on boosting long-term growth and prosperity.
In the absence of an inclusive institutional framework, the incentives collapse, undermining longer-term prosperity.

Arguments to Support Their Findings

The laureates examined the European colonisation of large parts of the world.
They found that one important explanation for the current differences in prosperity is the political and economic systems that the colonisers introduced, or chose to retain, from the 16th century onward.
In some colonies, the purpose was to exploit the indigenous population and extract natural resources to benefit the colonisers. Their decisions were driven by the factor of “mortality”.
- If the chances of their being killed were high, either because the local population was large in numbers and capable of killing or because the region was home to diseases like malaria, the colonisers chose extractive institutions because they were unwilling to settle down in the colony.
While in other cases, the colonisers built inclusive political and economic systems for the long-term benefit of European settlers.
- In these colonies, the mortality rate was low. Hence, they chose inclusive institutions that gave people a say, an ability to build a future, and possibly even a fortune.

This effect can be understood in relation to what happened in India under British rule, as the colonisers chose to exploit the nation’s population and natural resources.

About Nobel Prize

It is an international award administered by the Nobel Foundation in Stockholm, Sweden, and based on the last will of Alfred Nobel (in 1895).
Instituted in 1901, awarded annually in five categories (Physics, Chemistry, Physiology or Medicine, Literature, and Peace) to people for the greatest benefit to humankind in preceding year.

About Nobel Prize in Economics

In 1968, Sveriges Riksbank (Sweden’s central bank) established the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
The prize is based on a donation received by the Nobel Foundation in 1968 from Sveriges Riksbank on the occasion of the bank’s 300th anniversary.
The prize amount is the same as for the Nobel Prizes and is paid by the Riksbank.
The Nobel statutes prohibit the judges from discussing their deliberations for 50 years.

Who awards the prize?

The prize in economic sciences is awarded by the Royal Swedish Academy of Sciences, Stockholm, Sweden, according to the same principles as for the Nobel Prizes that have been awarded since 1901.

What do the winners receive?

A Nobel diploma, each of which is a unique work of art
A Nobel medal
A cash prize (set Swedish kronor (SEK) 11.0 million per full Nobel Prize for 2023)

Central Administrative Tribunal (CAT)

Context: Four senior IAS officers working in Telangana and who were repatriated to Andhra Pradesh cadre have approached the Central Administrative Tribunal (CAT) seeking cancellation of the Department of Personnel and Training (DoPT)’s repatriation orders.

A tribunal is a quasi-judicial body that resolves disputes pertaining to administration, taxation, environment, securities, etc.

About Central Administrative Tribunal

Constitutional provision: The Central Administrative Tribunal (CAT) was established under Article 323-A of the Constitution to resolve disputes related to recruitment and service conditions of public employees under the Union or other government-controlled authorities.
Objective: The Administrative Tribunals Act of 1985 aims to reduce the burden on regular courts and provide speedy resolution of service matters.
Structure:
- There are 19 Benches and 19 Circuit Benches of CAT across India.
- 215 organizations, including Central Government ministries and departments, fall under CAT's jurisdiction.
- CAT’s Principal Bench handles cases related to the Government of the National Capital Territory of Delhi.

Leadership: The Tribunal is chaired by a chairman and 69 members (34 Judicial Members and 35 Administrative Members).
Functioning:
- Benches consist of one Judicial Member and one Administrative Member.
- CAT specializes in service-related matters and operates with simplified procedures compared to ordinary courts.
- Since its establishment, CAT has received over 13,350 cases from the High Courts and subordinate courts.
- By June 2022, CAT had disposed of 8,04,272 cases, achieving a disposal rate of 91.18%.
- Aggrieved government employees can personally represent themselves at CAT.
- A nominal fee of Rs. 50/- is required to file an application, with provisions for fee exemption based on indigence.
Rules and procedures: CAT follows natural justice principles and is not bound by the Civil Procedure Code. It has its own rules framed under the Administrative Tribunal Act, 1985, including:
- Central Administrative Tribunal (Procedure) Rules, 1987
- Central Administrative Tribunal Rules of Practice, 1993
- Furthermore, CAT holds the same powers as a High Court in matters of contempt under Section 17 of the Administrative Tribunal Act, 1985.

Provision for appeal: Initially, decisions could be challenged through a Special Leave Petition in the Supreme Court. After the L. Chandra Kumar case, decisions are challenged through a Writ Petition under Article 226/227 in the respective High Court.

Nobel Prize in Literature 2024

Context: The Swedish Academy has awarded the Nobel Prize in Literature for 2024 to South Korean poet and novelist Han Kang for her “intense poetic prose that confronts historical traumas and exposes the fragility of human life.”

About Han Kang

Han Kang is a 53-year-old writer from South Korea who became the first Korean to win the Nobel Prize in Literature.
Her career began in 1993 with poems published in literary magazines. However, it was in prose that she truly found her expression, debuting with a short story collection, Love of Yeosu, in 1995.
Key themes: Han Kang has developed her unique voice, one that blends poetry with prose and explores the most profound aspects of human existence.
- Her work is most distinguished by its exploration of historical trauma, human vulnerability, and existential questions.
- Her literature is often marked by an intense focus on her characters' physical and psychological experiences. She addresses themes of violence, grief, and loss while also probing deeply into human frailty.
Her notable literary works:
- The Vegetarian (2007): The radical story about a woman who gives up eating meat and finds solidarity only in the plant world. She was awarded the International Booker Prize in 2016 for the novel.
- Human Acts (2016): The political novel is about the massacre of protesting students and dissenters by the South Korean military in the 1980s, in which souls of the dead are allowed to “witness their annihilation.”
- The White Book (2017): The novel is centered around grief — where an unnamed narrator talks about grief — the loss of her elder sister, who died just hours after birth.
- We Do Not Part (2025, to be published): The novel is the story of a friendship between two women in the backdrop of the 1948 massacre in South Korea’s Jeju Island.

Nobel in literature in previous years:

2023: Jon Fosse: For his innovative plays and prose, which give voice to the unsayable.
2022: Annie Ernaux: For the courage and clinical acuity, she uncovers the roots, estrangements and collective restraints of personal memory.
1913: Rabindranath Tagore for Gitanjali (a collection of poems).

Nobel Prize in Chemistry 2024

Context: The Nobel Prize in Chemistry for 2024 has been jointly awarded to David Baker for his work on computational protein design (building new proteins) and Demis Hassabis and John M. Jumper for predicting proteins’ complex structures using an artificial intelligence (AI) model called AlphaFold.

Proteins: Structure & function

Proteins are the building blocks of life. Proteins are biomolecules or polymers formed from the sequences of amino acids (monomers).
While there are many types of amino acids in nature, only 20 of them in different combinations make up all the proteins in the human body and in most life-forms.

Types of proteins:

1. Based on Protein Folding:

Primary: linear sequence of amino acids in a polypeptide chain.
Secondary: localised folding patterns within the polypeptide chain, primarily stabilised by hydrogen bonds.
- Alpha Helices: Coiled structures that resemble a spring.
- Beta Sheets: Flat, sheet-like structures formed by hydrogen bonds between different segments of the polypeptide chain.
Tertiary: 3-dimensional folding in a single polypeptide chain by bonding between different side chains. Tertiary structure determines the protein's function and interactions with other molecules.
Quaternary: bonding between more than two polypeptide chains. E.g., Haemoglobin, the protein that carries oxygen in blood, is a protein with a quaternary structure (made of four subunits working together).

2. Based on Structure:

Globular proteins: These are spherical or globular in shape. They are often involved in biological processes like enzymes (which speed up chemical reactions) and transport proteins (which carry molecules around the body). E.g., Haemoglobin (carries oxygen in the blood) and Insulin (regulates blood sugar).
Fibrous proteins: These are long, thin, and fibrous in shape. They are often structural proteins, providing strength and support to tissues. E.g., Keratin (found in hair, nails, and skin), collagen (found in bones, tendons, and ligaments).

Functions of Proteins:

Proteomics is the large-scale study of proteins, their structures, functions, and interactions within a biological system.
They provide structural support, are catalysts in biochemical reactions, move molecules like oxygen across biological membranes, control muscle contraction and help cells communicate with each other to perform their tasks among other functions.

Protein-folding problem:

Protein does not try to bend into different shapes before settling into its final one. Instead it somehow knows the shape it needs to have and rapidly folds itself to acquire it. The mysterious nature of this ‘knowledge’ of the protein is called the protein-folding problem.
- Determining structure is the first and most important step in determining protein function.
- Proteins are long ribbons in which the 20 different amino acid building blocks can be sequentially arranged to form innumerable combinations.
- Even if researchers know the sequence of amino acids in a ribbon, the ribbon can twist and fold in an astronomical number of possible shapes for each sequence, thereby making protein structure determination extremely challenging.
- For instance, if a protein consists of only 100 amino acids, the protein can assume at least 1047 different 3D structures.
The structures of proteins can be determined through techniques such as- X-ray crystallography, NMR spectroscopy, and electron microscopy.
By the late 2010s, scientists had determined the structures of around 1.7 lakh proteins — a large number yet still small compared to the roughly 200 million proteins in nature. This situation changed drastically around 2018 (after the launch of AlphaFold).

Contribution of the Nobel Winners:

1. Hassabis and Jumper (AlphaFold AI Model):

Hassabis co-founded DeepMind in 2010. Here, Hassabis and his colleagues unveiled AlphaFold in 2018. AlphaFold is a deep-learning model able to predict the 3D structures of almost all proteins after training on the set of known structures.
DeepMind launched its successor AlphaFold 2 in 2020, when it was able to predict the structure of proteins with an accuracy comparable to that of X-ray crystallography.
Jumper led the work on AlphaFold 3, which DeepMind released in May 2024. This model is able to predict the structures of various proteins as well as how two proteins and/or a protein and another molecule might interact.
These machine-learning models are capable of deducing the 3D shapes of most proteins in a matter of hours — a task that once required several months/years.
AlphaFold has now predicted the structure of almost all 200 million proteins from nearly a million species. The code for the AlphaFold model has been publicly available since 2021, and the AI tool has been used by more than two million people from 190 countries.

2. Baker (computer software Rosetta):

Baker developed computerised methods to create proteins that did not previously exist and which, in many cases, have entirely new functions.
- Baker used his computer software Rosetta to generate new proteins that never existed naturally.
- Instead of predicting the protein structure based on amino acid sequences, he created new protein structures and used Rosetta to determine the amino acid sequence. It was done by searching a database of all known protein structures and looking for short fragments of proteins that had similarities with the desired structure.
- Rosetta then optimised these fragments and proposed an amino acid sequence.
Baker too made the code for Rosetta freely available so that researchers can develop the software and find new areas of application.