Current Affairs

Death Valley National Park

Context: A sprawling temporary lake at Badwater Basin salt flats, caused by flooding from Tropical Storm Hilary, at the Death Valley National Park in California. The storm delivered a year’s worth of rain to the valley, which is the hottest place on the Earth, in a single day. The Badwater basin itself is located 282 feet below sea level, the lowest point in USA.

Death Valley National Park

image 77
  • Death Valley is a desert valley in Eastern California, in the northern Mojave Desert, bordering the Great Basin Desert.
  • Death Valley is the largest U.S. National Park outside Alaska at 3,422,024 acres. 
  • Even so, 93% of the park is protected as officially designated Wilderness.
  • It is the hottest, driest, and lowest of all the national parks in the United States.
  •  This wild country includes low valley floors crusted with barren salt flats, rugged mountains rising as much as 11,000 feet, deep and winding canyons, rolling sand dunes, and spring-fed oases.
  • The Timbisha Shoshone Indians lived here for centuries before the first white man entered the valley.
  • UNESCO included Death Valley as the principal feature of its Mojave and Colorado Deserts Biosphere Reserve in 1984.
  • Flora and Fauna: -Death Valley is the hottest and driest places in North America, yet it is home to over 1000 species of plants and 440 species of animals.
  • Common plant species
    • At lower elevations, creosote bush, desert holly, and mesquite can be found. 
    • Shadscale, blackbrush, Joshua tree, pinyon-juniper can be found at higher elevations.
    • Sub-alpine limber pine and bristlecone pine woodlands can be found at higher elevations.
  • Common Animal Species
    • Coyotes, ravens, roadrunners, ground squirrels, Desert bighorn sheep, Kangaroo rats, Western Pipistrelle, Devils Hole Pupfish, and lizards.
  • Rivers: - The Amargosa is the only free-flowing river in the Death Valley region of the Mojave, providing a rare and lush riparian area in the desert.

Small Savings Scheme | Significance & Challenges

Context: Collections under small savings schemes have seen a pickup in April-September, with deposits for the Senior Citizens Savings Scheme surging over 2.5 times year-on-year to Rs 74,675 crore. This marks a 160% increase over Rs 28,715 crore collected in the corresponding period a year ago. 

Small savings schemes

The Government formulated a basket of small savings schemes to meet the varying needs of different groups of small investors. They Include:

  • Postal deposits
  • Savings certificates (National small savings certificate and KVP)
  • Social Security Schemes (PPF and Senior Citizens’ Savings Scheme)
  • Sukanya Samriddhi Scheme

All the collections under the schemes are accrued into a National Small Savings Fund (NSSF) in the Public Account of India. 

Significance:

  • Social Security: In a country where more than 90% of the workforce belongs to informal sector and are not covered under any statutory social security benefits, small savings schemes provides such social security net to the marginalised sections.
  • Savings rate: Small savings schemes owing to their high interest rates, implicit sovereign guarantee and tax benefits attracts marginal sections and enhances household savings rate of the economy. 
  • Mobilization of resources: Increased small savings would enable the government to borrow its fiscal deficit from National Small Savings Fund instead of depending upon market borrowings. 

Challenges with Small Savings Schemes:

  • Overlapping instruments: At present the small savings schemes basket comprises 12 instruments with overlapping objectives of promotion of savings among ̳small income groups.
  • Viability of NSSF: The asset liability mismatch of NSSF in terms of tenure and increased gap between income of the fund and its expenditure. 
  • Monetary Policy transmission: As the returns on small savings are typically higher than the bank deposits, the cost of funding for the banks increased and are unable to reflect the change in policy rates in their lending rates. 

Keeping in view of the above challenges, the government rationalised the small savings schemes and since 2016, interest rate resetting has been done based on yields of government securities of corresponding maturity with some spread on the scheme for senior citizens, as advised by the Shyamala Gopinath Committee.

ATR panel assesses progress of tiger rewilding project

Context: Tasked by the Chief Wildlife Warden, a committee visited the enclosure in the core of the Anamalai Tiger reserve (ATR) to assess the progress of the Forest Department’s first ever attempt at rewilding a tiger that was rescued as an abandoned cub.

Rewilding

  • Rewilding is a conservation strategy used to promote biodiversity in ecosystems by reintroducing plant and animal species that have been driven out, largely due to humans. 
  • Bringing these species back into a certain environment can help struggling ecosystems self-regulate and return to their natural processes.

Chief Wildlife Warden

  • The Chief Wildlife Warden (CWLW) is the statutory authority, under the Wildlife Protection Act,1972 who heads the Wildlife Wing of the department and exercises complete administrative control over Protected Areas (PAs) within a state.
  • The Act entrusts the Chief Wildlife Warden to control, manage and maintain all sanctuaries in a state.
  • The Chief Wildlife Warden is appointed by the state.
  • Chief Wildlife Warden shall be the authority to ensure destruction, damage or diversion of wildlife does not take place in protected areas.
  • The State Government shall constitute a conservation reserve management committee to advise the Chief Wildlife Warden to conserve, manage and maintain the conservation reserve.

Anamalai Tiger Reserve

image 17
  • Anamalai Tiger Reserve (ATR) is located on the southern side of the Southwestern Ghat Landscape in Tamil Nadu.
  • It is surrounded by Parambikulum Tiger Reserve on the East, Chinnar Wildlife

Sanctuary and Eravikulum National Park on the Southwestern side.

  • Anamalai Tiger Reserve was declared as a Tiger reserve in the year 2007.
  • Flora Around 2500 species of angiosperms are found in the Anamalai Tiger Reserve, with several species of Balsam, Crotalaria, Orchids and Kurinchi.
    • The reserve is rich in wild relatives of cultivated species like mango, jackfruit, wild plantain, ginger, turmeric, pepper, cardamom, solaipuli, nutmeg, cinnamom, amla, jasmine, drumstick, yams, rice, strawberries, and wild guava.
  • Fauna: The reserve supports several species of endangered wild animals. There are 70 species of fishes, more than 70 species of amphibians, 120 species of reptiles, 300 species of birds and 80 species of mammals.
    • In general, the wild animals of the reserve include Jackal, Wild dog, Indian fox, Tiger, Leopard, Jungle cat, Leopard cat, Smooth coated otter, Small clawed otter, Nilgiri marten, Small Indian civet, common Palm civet, Brown palm civet, Greymangoose, Ruddy mangoose, Indian Brown mangoose, Stripe-necked mangoose, Indian pangolin, Black naped hare several species of rodents and bats.
  • Best Practices: Best Practices Innovative alert system for addressing human-wildlife conflict, fire protection, antipoaching strategy, immunization of nearby livestock, control over illegal ganja cultivation and smart patrolling using M-STrIPES protocol.

Despite challenges, why the USA continues the Global Hegemon?

Context: Large number of simultaneous ongoing conflicts in Ukraine, Middle East (Israel-Palestine) and the South China Sea, where in China-Russia-Iran are challenging the USA in different theatres is questioning the American grand strategy.

The question is that whether will over-stretched and fatigued in responding to these conflicts, which will further demonstrate to the world about the fall of American Hegemony and primacy in the world affairs.

Decline of American Hegemony and Primacy in the world

External Reasons

  1. Rise of China (Economic, Political & Strategic): The rise of China’s economic, military and strategic capabilities has helped bridge the power differential between both the countries. China is the world’s second largest economy and has the second largest military. China has emerged as the overwhelming challenger to the US led system.
  2. Rise of Anti-America Coalitions of China, Russia and Iran: Growing closeness among China, Russia and Iran have been challenging the USA’s interests in the different theatres of Indo-pacific, Europe and Middle East. They together have been able to challenge and stretch USA.
  3. Lapses on part of America's moral hegemony: USA’s interventions in Iraq and Afghanistan lacked moral authority. These regime-change policies displayed that USA’s unilateral policies were unwelcome by much of the developing world. 
  4. Decline of American economic primacy: Despite being the largest global economy, US enjoys relatively less power in the global economic architecture. This is visible from the emergence of G20 as the primary global economic agenda body replacing the G7. More and more global economy is being decentralized with Asia being the driver of global economy.
  5. Unable to tackle global challenges: Despite being the global hegemon, USA’s attitude towards global challenges such as terrorism, pandemic, climate change has been not very assuring. President Trump took the US out of the Paris Climate Deal; USA did not collaborate on providing waiver for COVID-vaccines. This has given space for other countries to rise to the occasion.
  6. Rise of Middle Powers: Middle powers such as India, Brazil, Turkey, South Africa, South Korea have emerged as important players in the global politics. These actors are swing states in great power politics and enjoy considerable regional dominance. The US thus must coordinate with these actors and not dominate or dictate them. Thus, constraining US space to operate.
  7. Emerging differences in US-Led Order and groupings such as NATO: The trans-Atlantic partnership which was the essence of US’s foreign policy has been strained due to increasing US expectation of Europe taking extra steps militarily and financially to aid and limit Russia in the European Region. Also, the differences between UK and EU and between the EU countries over the policy towards Russia have made NATO and EU less effective.

Internal Reasons

  1. Deep polarization in American politics compromising domestic consensus over global issues: 
    • There is a growing lack of consensus over foreign policy issues in the domestic US policy. 
    • President Trump actively argued for an isolationist foreign policy as external military participation led to overwhelming costs which the American exchequer paid.
    • On Ukraine, Recently, USA Congress dropped the aid package supporting Ukraine. Some sections of the Republic Party have been arguing against the unending support for Ukraine and concentrating more on balancing China as more desirable USA foreign policy goal. These sections have been asking the European countries to take more responsibility in helping Ukraine preserve its sovereign existence.
  1. Slowing economic growth and deglobalization
  2. Energy security following the shale revolution.
  3. Fatigue with long stretched military commitments in the Iraq, Afghanistan, and Syria

This somewhat perceived and real decline of the hegemony and primacy of USA has further emboldened countries like Russia, China, and Iran to challenge the US led world order. 

Testimony Of USA's Continued Dominance

However, despite the decline the US remains the overwhelming most powerful country of the world. The testimony to the overwhelming power and hegemony of USA despite some transformation in US policy is visible through these instances:

  1. In Europe: Finland and Sweden, two traditionally neutral countries joined the NATO as a guarantee of their security against the aggressive tactics of Russia. 
  2. In Asia: 
    • USA has convinced a hitherto pacifist Japan to increase its military expenditure to counter China and promoted the normalization of ties between Japan & South Korea. (to address China's aggressiveness against Japan).
    • Expanded military support to Taiwan to make it costly for China to invade the island.
    • USA has renewed its defence pact with Philippines and has signed a comprehensive strategic partnership agreement with Vietnam. (both countries at the receiving end of China's aggressiveness in the South China Sea)
    • USA has entered partnership with the UK and Australia to empower Australian Navy with nuclear submarines. 
    • Strengthening of the QUAD Partnership involving USA, Japan, Australia, and India to balance China in the Asia-Pacific region.
  1. In Middle East: 
  • USA has aimed to make bridges between Israel and the Arab world in the form of Abraham Accords, wherein, UAE and Bahrain have accepted normalization of relations with Israel. A similar pact is being negotiated between Saudi Arabia.
  • USA has floated groupings such as I2U2 and IMEC Corridor for the economic growth and multilateral cooperation in the middle east region.
  • Just after the recent Israel-Palestine conflict, US President Biden visited Israel to establish peace.

Factors Behind Continued Dominance Of USA

  1. Ability to forge coalitions: A remarkable advantage the US enjoys the system of alliances that Russia and China are still aiming to build. Recent, US policy has focused on widening the array of traditional allies with which the US coordinates and acts globally to maintain its hegemony. For ex. US has aimed to bring countries wary of China (Japan, India, Australia, Vietnam, Philippines etc.) under its fold and enhanced the deterrent against China in the region. 
  2. Military superiority: USA is the overwhelming military superpower in the world. USA's military expenditure alone is more than the combined expenditure of next 10 countries, including China and India. USA has ability to project its military superiority which is unmatchable by any other country. For ex. After the rise of tensions between Israel and Palestine, US deployed two aircraft carriers in the eastern Mediterranean Sea. 
  3. Strength of US establishment to rise above domestic politics and pursuit the USA's national interests. 
  4. Economic superiority: Despite the relative decline in of the US economy vis-a-vis China, US continues to be the largest economy in the world with a share of 24%. The eminent slowdown of the Chinese economy due to structural reasons means that the USA will continue to have a lead over China's economy in the foreseeable future.
  5. Geographical Isolation: The location of US which is separated by Pacific Ocean and Atlantic Ocean from both China and Russia allows the US to take a detached view of the balance of power dynamics playing out in the Asia and Europe. This allows the US to shift its policies and exploit the contradictions in the growing closeness between China and Russia. For ex. In the 1970s, US exploited the contradictions between Russia and China.
  6. Agenda setting: Despite the ever-growing closeness of China and Russia, US continues to have more leverage than other powers with both Israel and the Arabs. Thus, there is no doubt that US continues to have more power to shape the regional and global agenda. 
  7. Technological superiority: US companies and military establishment define the cutting edge of technologies. Companies like Google, Microsoft, Apple, Facebook dominate the world in software. In the military sphere, US companies like Boeing, General Electric etc. are at the cutting edge of military technology.  
  8. Knowledge superiority: US attracts the brightest individuals globally. Also, US dominates the global R&D expenditure and patent filing in the world. This gives the power to US to dominate the knowledge systems and cutting-edge technologies.
  9. Looking beyond democracies: USA has been traditionally invested in promoting democracies in the world and working closely with them. However, recently USA has showed its ability to show a realist bend and work with all countries which have diverse political systems provided they abide by the UN Charter. 

Conclusion

Despite the growing challenge to USA hegemony by Russia, China and Tehran combine, USA continues to have the resources and will for continue geopolitical maneuver and pursue its dominance and national interest. 

Jamrani Dam: Multipurpose Project under PMKSY

Context: Cabinet committee on Economic Affairs approved central support to Uttarakhand for the proposed Jamrani dam project in Nainital district.

Jamrani Dam

  • The project envisages the construction of a dam near Jamrani village across river Gola, a tributary of the Ram Ganga, in Nainital district.
  • This project included under Pradhan Mantri Krishi Sinchayee Yojana-Accelerated Irrigation Benefit Programme.
  • The dam will feed the existing Gola barrage through its canal.
  • The multipurpose project is scheduled to be completed by 2028.
  • The project will provide drinking water to Haldwani. 
  • Hydroelectricity power generation of 63.9 million units housing a 14 MW power plant.
  • It will provide water for irrigation across 57000 hectares of land in Nainital, Udham Singh Nagar, Bareilly, and Rampur district.

About Ramganga and River Gola

image 72
  • The Ramganga River originates in the southern slopes of Dudhatoli Hill in Chamoli district of the Indian state of Uttarakhand.
  • It flows through the Dun valley of the Corbett National Park and joins the Ganga near Kannauj in Uttar Pradesh.
    • River Gola: - It originates in the Paharpani Village of Uttarakhand state, and flows south and finally joining the Ramganga River about 15 km (9.3 mi) northwest of Bareilly in Uttar Pradesh, Ramganga in turn is a tributary of the river Ganges.
    •  It is mainly a spring fed river; this river is source of water for Haldwani and Kathgodam. 
    • A beautiful dam exists over this river in Kathgodam.

Ganga river system: Tributaries & River valley projects

  • It originates from Gangotri glacier near Gaumukh in Uttarkashi district in Uttarakhand. It forms various prayags (confluence of two rivers) as shown below:
  • Alaknanda + Dhauliganga = Vishnuprayag
  • Alaknanda + Pindar = Karnaprayag
  • Alaknanda + Mandakinin = Rudraprayag
  • Alaknanda + Bhagirathi = Devaprayag

When Ganga reaches West Bengal, it gets divided into two distributaries called Bhagirathi and Hugli. Damodar river is the tributary of Hugli. The main river goes into Bangladesh where it is first called Meghna and then Padma which then enters Bay of Bengal. 

Major tributary of River Ganga

image 73
  • Yamuna, Karmanasa, Punpun, Son. (Right)
  • Ramganga, Gomti, Ghagra, Kosi, Mahananda. (left)

River Valley Projects On Ganga River System

Tehri projectConstructed at confluence of Bhilangana and Bhagirathi.
Region is prone to earthquake (Zone V).
Ramganga projectOn river Ramganga
Tanakpur projectOn river Kali
Rihand projectConstructed in Sonebhadra district of U. P
The reservoir is named Govind Ballabh Pant Sagar.
Bansagar project On son river in Sahdol, MP.
Matatila projectOn river Betwa Joint project of UP & MP.
Chambal projectJoint project of Rajasthan and M.P Three dams are built:
Gandhi Sagar at Chaurasigarh,
M. P Rana Pratap Sagar at Rawatbhata,
Rajasthan Jawahar Sagar at Kota, Rajasthan
Damodar valley projectMultipurpose project Main dam is built on Panchet hills.
Mayurkashi projectIn Jharkhand also known as Canada dam

What is the White Phosphorus?

Context: Human Rights Watch recently accused Israel of using white phosphorus munitions in Gaza, and said that such weapons put civilians at risk of serious and long-term injury. 

White Phosphorus

  • White (sometimes called yellow) phosphorus is a white to yellow waxy solid with a garlic like odour.
  • It ignites spontaneously in air at temperatures above 30°C and continues to burn until it is fully oxidized or until deprived of oxygen.
  • Burning phosphorus produces dense, white, irritating smoke containing mixed phosphorus oxides and intense heat, reaching up to 815°C, making it one of the most lethal weapons in military operations.

Applications:

  • Industrial: Production of phosphoric acid, phosphates and other compounds. It has been used as a rodenticide and in fireworks.
    • Phosphates are used to manufacture a range of products including fertilizers and detergents. 
  • Military: 
    • Its primary military use is as a smokescreen used to hide troop movement on the ground.
    • It is also known to mess with infrared optics and weapons tracking systems, thus protecting forces from guided missiles.
    • White phosphorus can also be used as an incendiary weapon such as grenades and artillery shells, which can result in persistent and intense fires, effective against people, equipment, and structures.

Effects of exposure:

  • Upon exposure, white phosphorus can cause severe burns, often down to the bone. The burns are excruciatingly painful, difficult to heal, and susceptible to infections. Particles of white phosphorus that remain lodged the body can reignite if in contact with air. 
  • Inhaling white phosphorus particles or smoke can cause respiratory damage and harm to internal organs. Death may occur from shock, hepatic or renal failure, central nervous system or myocardial damage.
  • Those who survive initial injuries often experience a lifetime of suffering with impaired mobility.
Effects of White Phosphorus on Human Health
Harmful impact of white phosphorus remains in Water & Soil

Hence, the ethical concerns surrounding its use in populated areas are significant due to its potential to cause severe burns and suffering. 

Incendiary weapons:

  • The Convention on Certain Conventional Weapons (CCW) imposes restrictions on the use of incendiary weapons, with the aim of safeguarding civilians. Protocol III under the CCW specifically deals with incendiary weapons.
    • Article 1 of this protocol defines an “incendiary weapon” as a weapon or munition primarily designed to set fire to objects or to cause burn injury to persons through the action of flame, heat, or combination thereof, produced by a chemical reaction of a substance delivered on the target.
    • Article 1(b)(i) includes an exemption in this classification for munitions that may cause unintended incendiary effects, such as illuminants, tracers, smoke, or signalling systems.
  • White phosphorus munitions are primarily intended to produce illuminating and smokescreen effects, with the incendiary aspects being secondary or unintentional. Consequently, incendiary munitions clearly fall within the exceptions outlined in Protocol III’s definition of an “incendiary weapon.” Hence, White phosphorus, although a chemical agent and toxic, is not covered by the CWC. 

Chemical Weapons Convention:

  • The Chemical Weapons Convention (CWC) is an international treaty that establishes a comprehensive ban on the use of chemical weapons.
  • The treaty entered into force in 1997. It is administered by the Organisation for the Prohibition of Chemical Weapons (OPCW), based in The Hague, Netherlands.

Key provisions of the CWC:

  • Prohibition: The CWC categorically prohibits the development, production, acquisition, stockpiling, retention, transfer, and use of chemical weapons and their precursors.
  • Destruction of Existing Stockpiles: States parties that possessed chemical weapons at the time of the treaty's entry into force are obligated to destroy their stockpiles upon strict verification by the OPCW.
  • Monitoring: Monitoring the chemical industry to prevent new weapons from re-emerging. OPCW conducts inspections and verification procedures to ensure compliance with the convention. 
  • Assistance and Protection: The CWC also includes provisions for the protection and assistance of individuals and states affected by the use or threat of chemical weapons.
  • Universality: Fostering international cooperation to strengthen implementation of the Convention and promote the peaceful use of chemistry.

Way Forward

Protocol III does not effectively regulate multi-purpose munitions such as those containing white phosphorus, which can cause harm in the same way as the incendiary weapons it defines. The need of the hour is to strengthen Protocol III to remove its existing ambiguity and loopholes. This will facilitate effective enforcement with clearer rules as violations will become more easily identifiable.

Enhancing India's Higher Education Ecosystem: The Need for Reformed Student Visa Policies

Why is it necessary to focus on attracting international students to India?

Annually, around 7.5 lakh Indian students seek education abroad, leading to a surge in private universities aiming to meet this demand. While these institutions have succeeded in attracting foreign faculty, they face challenges in bringing in international students. This limits the cross-cultural exposure essential in modern education. To address this gap, India's National Education Policy 2020 focuses on internationalization. It advocates curricular improvements, campuses open to foreign scholars and students, and joint degree programs with foreign institutions. These changes aim to enhance the competitiveness and inclusiveness of Indian higher education.

Further, Strategies to enhance attraction of International Students in India:

  • Fostering Post-Education Opportunities: One drawback for international students studying in India is that, despite the country's thriving corporate and start-up sectors, they are unable to obtain work experience while pursuing their degrees. This is a significant obstacle for many such students. It is necessary to change India's "S" Visa or student policy in order to address this.
  • Creating a Talent Ecosystem : Many Indian organisations are multinationals or aspire to be multinationals, thus they need staff that understands Indian markets, business etiquette, rules, and culture in-depth. These enterprises can create a network of international talent that acts as a cultural bridge by hiring foreign talent from Indian campuses and employing Indian graduates who are returning home.

For Eg- The big three US tech companies — Google, Meta, and Microsoft — are all headed by Indian alumni of US universities. Former Afghan President Hamid Karzai who studied in India kept bilateral relations warm through difficult times.

  • Addressing Workforce Challenges : Concerns that foreign students may take jobs away from Indian students are unfounded. India’s population growth has dipped below the replacement rate of 2.1 per cent, and the country will begin ageing soon, like China, according to the UN Population Fund. India's declining population growth and impending aging population mean that a dwindling working-age population will soon become a reality. Sustaining growth under these circumstances requires innovative solutions.
  • Learning from Global Practices : Countries like the US, UK, Australia, New Zealand, and Canada have successfully addressed workforce challenges by offering post-study student work visas. Europe, on the other hand, has focused on migration, bringing about political implications. India has the opportunity to learn from these diverse approaches.
  • Expansion of Student Work Visas: An expanded provision of student work visas can unlock several advantages, including accommodating the 4,000 scholarships offered to foreigners annually under various Indian programs. It can also facilitate field experience for foreign students in areas like mining and agriculture.
  • Strategies for Advancing Higher Education as an Export Industry in India:

Prime Minister Narendra Modi has identified higher education as a key export sector.

So, to unlock the full potential of internationalization in higher education, India must amend its student visa policies. This involves multi-ministry coordination, encompassing the Ministry of Home Affairs, Ministry of Finance, Ministry of Education, and active involvement from Indian multinational companies and business chambers.

In conclusion, reformed student visa policies will not only boost India's higher education but also create a sustainable talent ecosystem that benefits the nation's economic and cultural exchange.

What is Bond Yield?

Context: The yield on 10-year government bonds in the US, the benchmark for asset prices across the globe, rose to hit 5.02 per cent, its highest level since July 2007. The yield of the Indian 10-year benchmark Government Security (G-Sec) also hardened to  7.50%, tracking the rise in US Treasury yields, which are reacting to expectations of heavy bond supply due to a jump in the fiscal deficit, continuing price pressures. 

Bond is debt instrument issued by governments and corporates to raise capital. The value at which the bond is issued is regarded as its face value and the value at which the bond is traded in the secondary market is referred to as its market value.

Bond Yield

The return received by the investor on the capital invested on a particular bond. The yield of the bond depends on the market value of the bond. 

  • If the market value increases above the face value of bond (the price at which it is purchased in the primary market when it was issued), then the rate of returns on the purchase of the bond in secondary market decreases. This phenomenon  is often known as softening of bond yields. 
  • On the other hand if the market value decreases below the face value of the bond, then the rate of returns on the purchase of bond in secondary market increases. This phenomenon is known as hardening of bond yields. 

Demand for the bonds

DecreasesIncreases
Market price of the bond decreasesMarket price of the bond decreases
Bond Yield increases (Yield hardening)Bond yield increases (Yield softening)
Reasons: Increased InflationSale of G-secs by the central bank under open market operationsIncreased borrowings by the government (Increased fiscal deficit)Reasons: Deflationary trends in the economyPurchase of G-secs by the Central bank under open market operationsReduced borrowings by the government 
Loss to the bond holderNo loss to the bond holder

Impact of hardening of bond yield

  • Loss to the banks: Since commercial banks in India hold significant size of g-secs owing to their  SLR requirements and LAF purposes, increasing bond yield as a rise in yields leads to a fall in bond prices and therefore these losses have to be booked by the banks.
  • Loss to the mutual funds: Mutual funds holding significant size of g-secs also face similar losses.
  • Increased cost of borrowings:
    • Higher yield on G-secs would mean that the government will have to offer higher interest rates on fresh borrowings.
    • Corporates also need to increase interest rates on their bonds as result of increasing bond yields in the market. Since Indian banks follow interest rates of long term G-secs to fix their lending rates, hardening yields of g-secs may increase their lending rates as well. 
  • Impact on equity market: As bond yields rises,  the opportunity cost of investing in equities goes up and therefore equities become less attractive.

eSIM card and its working

Context: Over the years, the size of the SIM card has shrunk from SIM to mini SIM to micro SIM to nano SIM. The latest is the eSIM with specifications defined by the Global System for Mobile Communications (GSM) Association. 

What is a SIM?

‘SIM’ stands for ‘subscriber identification module’. It is an integrated circuit, or a microchip, that identifies the subscriber on a given network. 

E-Sim vs SIM card

What is an eSIM?

  • An eSIM is an embedded SIM, where the SIM software is loaded on to a Universal Integrated Circuit Card (UICC), that is permanently embedded as part of the motherboard of a smartphone/watch. Being attached to the motherboard, eSIMs allow re-programming, letting users switch operators without having to replace any physical SIM cards. 
  • An eSIM has two immediate advantages.
    • It is environmentally friendlier than a physical SIM, as it is reprogrammable i.e., there is no need for more plastic and metal for a new SIM.
    • If a malicious person gains access to the phone, they will not be able to separately access the SIM application nor be able to duplicate it.
  • The disadvantage is that an eSIM can, in theory, allow network operators to track subscribers’ data, including inside Apps on the device, especially in the absence of data privacy laws. 

North Koel Reservoir Project

Context: Cabinet Committee on Economic Affairs has given approval to the proposal of Ministry of Jal Shakti to complete the balance works of North Koel Reservoir Project at a revised cost of Rs 2,430 crores.

About the North Koel Reservoir Project

  • North Koel Reservoir Project is an inter-state major irrigation project with command area lying in the States of Bihar & Jharkhand.
  • The project comprises a dam on North Koel River near Kutku Village (Latehar District, Jharkhand) and a barrage 96 km downstream of dam (Palamu district, Jharkhand), Right Main Canal and Left  Main Canal taking off water from the barrage.
  • The dam was first propose in 1927 and construction was started in 1972. However, the fear that the water from the dam would threaten the Betla National Park and Palamu Tiger Reserve. 
image 67

About North Koel River

  • North Koel River is the second largest right bank tributary of River Sone. 
  • The North Koel river originates in the Ranchi Plateau and enters Palamau division, below Netarhat near Rud.
  • North Koel River meets the Sone River in Haidargarh, Palamu district, Jharkhand.
  • Important tributaries of North Koel River: Auranga, Amanat and Burha Rivers.
  • North Koel River forms the northern boundary of Betla National Park.

About Betla National Park and Palamu Tiger Reserve

  • Betla National Park is the only national park in the Jharkhand State.
  • It is located on the western park of the Chhotanagpur plateau. 
  • A part of Betla National Park, was declared as the Palamu Tiger Reserve. (Included in the first 9 Tiger Reserves declared in 1974).
  • Only Tiger Reserve in the Jharkhand.
  • River Koel along with its tributaries meanders through the northern part of the Betla national park.
  • Flora of Betla National Park: Betla National Park has a mix of tropical wet evergreen in the lower reaches and mixed deciduous forests in middle to temperate alpine forests in high altitude areas. Sal and Bamboo forests cover a major portion of the national park.
  • Fauna of Betla National Park: Elephant, leopard, panther, monkey, Indian civet, chital, bison, sloth bear, sambhar, nilgai, langur, mouse deer, porcupine and chinkara etc.
  • Indian Grey Wolf: The Betla National Park and Palamu Tiger Reserve have a thriving population of Indian Grey Wolf. Only wildlife sanctuary dedicated for the conservation for India Grey Wolf 
  • Interestingly the first ever tiger census by way of pug mark count, was undertaken within these forests in 1934. 
  • Famous hill station of Netarhat is located on the southern edge of the Betla National Park/Palamu Tiger Reserve.
  • Palamu Tiger Reserve has forts built by Chero dynasty. Cheros were also known as Chyavana dynasty that ruled over the region of Bihar, UP and Jharkhand after the fall of Pala dynasty from the 12th to 19th century. 

Effectiveness of suppressants to control dust

Context: In response to deteriorating air quality in Delhi, the Government has boosted public transport and used suppressants to control dust.

About Dust Suppressants

  • Dust suppressants are substances that are used to control dust emissions from various sources such as construction sites and roads.
  •  They can be salts of calcium or magnesium that can absorb moisture, or other chemical mixtures.

Types of Dust Control measures

  • Water: Water is one of the most common and effective dust suppressants. It can be applied as a fine mist, spray, or through irrigation systems to dampen surfaces and keep dust particles from becoming airborne. Water is environmentally friendly and readily available.
  • Chemical Dust Suppressants: Chemical dust suppressants are substances that are applied to surfaces to control dust. Common chemical suppressants include:
  • Calcium Chloride: It is often used on roads and construction sites to control dust. It attracts moisture from the air, keeping the road or area damp and dust-free.
  • Magnesium Chloride: Like calcium chloride, magnesium chloride is used for dust control on roads and surfaces. It is less corrosive to metals than calcium chloride.
  • Lignin Sulfonate: Lignin sulfonate is a natural biopolymer that can be used as a dust suppressant, particularly in areas where ecological concerns are a priority.
  • Synthetic Polymers: Synthetic polymers, like polyvinyl acetate or polyvinyl alcohol, can be applied to the surface to create a dust-retaining film.
  • Soil Stabilizers: They are used to bind the soil particles together and prevent them from becoming airborne.
  • Dust Control Equipment: Dust control equipment, such as dust collectors, electrostatic precipitators, and baghouses, are used in industrial settings to capture and collect dust particles before they can escape into the air.
  • Vegetation: Planting vegetation in and around dusty areas can help reduce dust by stabilizing the soil and acting as a natural dust suppressant.
  • Windbreaks: Installing windbreaks, such as walls or fences, can help reduce the movement of windborne dust by blocking the wind's force.

Effectiveness of Dust Suppressants

  • According to the Central Pollution control board, the use of dust suppressants along with water is relatively more effective in controlling pollution than conventional methods of dust control i.e., water spraying. 
  • With the use of dust suppressants, there is about a 30% reduction in dust concentration (PM 10, PM 2.5, and PM 1) within the first six hours on both construction sites and roads.
  • Dust suppressants with bio-additives help to reduce dust for 5-6 hours as compared to plain water which lasts for 15-30 minutes.
  • According to the Centre for Science and Environment, the duration of effectiveness of mixed dust suppressants is uncertain, and it is still unknown whether they have long-term effects.

IMF Bailout - Bangladesh

Context: Bangladesh has sealed a bailout agreement with IMF to boost its cash strapped economy.

Reasons for seeking Bailout from IMF

  • Balance of Payment crisis: A nation may seek a bailout when it faces a deficit in its balance of payments, which includes trade imbalances, a shortage of foreign exchange reserves, and difficulties in meeting external debt obligations. It can be a result of political instability, populist measures such freebies etc.
  • Unsustainable Debt: When a country accumulates unsustainable levels of debt, it may become unable to service its debt obligations, potentially leading to default. E.g., Sri Lanka and Pakistan.
  • External shocks: Natural disasters, global economic crises, or other external shocks like pandemic (COVID-19) can severely affect a country's economic stability. E.g., Bangladesh  following the Russia Ukraine war its dollar reserves have shrunk by more than 1/3rd due to costly oil imports. 
  • Currency depreciation due to inappropriate monetary & fiscal policies. E.g., overly expansionary monetary policies, such as printing excessive money or keeping interest rates too low for too long, can lead to high inflation and exchange rate instability.

IMF helps countries in following ways

  • It basically lends money, often in the form of special drawing rights (SDRs), to troubled economies that seek the lender’s assistance. 
  • SDRs simply represent a basket of five currencies, namely the U.S. dollar, the euro, the Chinese yuan, the Japanese yen, and the British pound. 
  • Currently, Bangladesh is in urgent need for U.S. dollars to import essential items such as fuel and also to pay their foreign debt. 

Conditionalities of IMF Bailout

  1. Reducing government borrowing – Higher taxes and lower spending
  2. Higher interest rates to stabilise the currency.
  3. Structural adjustment such Privatisation, deregulation of certain sectors.

Issue with IMF conditions

  • The policies of structural adjustment and macroeconomic intervention can make difficult economic situations worse.
  • For instance, in the Asian crisis of 1997, countries such as Indonesia, Malaysia and Thailand were required by the IMF to pursue tight monetary policy (higher interest rates) and tight fiscal policy to reduce the budget deficit and strengthen exchange rates. However, these policies caused a minor slowdown to turn into a serious recession with very high levels of unemployment.

Does the IMF charge for its loans?

All IMF members have access to financial support through the General Resources Account (GRA), which is subject to various charges. These charges are designed to cover the operational costs of the IMF and support its activities, including those related to providing policy advice and capacity development to member countries. 

About IMF

  • The IMF is an independent international organization. 
  • It is a cooperative of 190 member countries, whose objective is to promote world economic stability and growth.
  • It was originally created in 1945 as part of the Bretton Woods agreement, which attempted to encourage international financial cooperation by introducing a system of convertible currencies at fixed exchange rates.
  • The member countries are the shareholders of the cooperative, providing the capital of the IMF through quota.
  • It is one of several autonomous organizations designated by the United Nations (UN) as “Specialized Agencies,” with which the UN has established working relationships.
  • It is a permanent observer at the UN.
  • Its headquarters is in Washington DC.
  • The IMF began its operations in 1947, and France became the first country to draw funds from the IMF in 1947.
  • Membership of the IMF is compulsory to be part of the International Bank for Reconstruction and Development (IBRD or World Bank). 

IMF’s lending provisions

  • Extended Fund Facility: It provides financial assistance to countries facing serious medium-term balance of payments problems because of structural weaknesses that require time to address.
  • Extended credit Facility: It provides medium-term financial assistance to low-income countries (LICs) with protracted balance of payments problems.
  • Rapid Financing Instrument: It provides prompt financial assistance to any IMF member country facing an urgent balance of payments need. It is one of the facilities under the General Resources Account (GRA) that provide financial support to countries, including in times of crisis.
  • Rapid Credit Facility: It provides fast concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments need. 
  • Flexible Credit Line: It is designed to meet the demand for crisis-prevention and crisis-mitigation lending for countries with very strong policy frameworks and track records in economic performance.
  • Resilience and Sustainability Facility: It provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.