CYBERSECURITY
1. Context
The cases of cybercrime nearly doubled in the Capital in 2022, according to the annual report of the National Crime Records Bureau (NCRB), with the police attributing the rise to innovate methods employed by fraudsters to gain access to victims
2. Cybercrimes
Cybercrimes are illegal activities that are carried out using computers, computer networks, and the internet. These crimes often target individuals, organizations, or governments and can have serious consequences. Here are some common cybercrimes:
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Phishing: Phishing involves sending deceptive emails or messages that appear to be from a legitimate source but are designed to trick recipients into revealing sensitive information, such as passwords, credit card numbers, or personal identification.
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Identity Theft: Identity theft occurs when someone steals another person's personal information, such as Social Security numbers or bank account details, with the intent to commit fraud, financial theft, or other criminal activities.
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Malware: Malicious software, or malware, includes viruses, worms, Trojans, ransomware, and spyware. These programs are designed to damage, disrupt, or gain unauthorized access to computer systems and data.
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Cyberbullying: Cyberbullying involves using digital communication tools like social media, email, or text messages to harass, threaten, or humiliate individuals. It can have serious psychological and emotional effects on victims.
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Online Scams: Various online scams exist, including advance-fee fraud, lottery scams, and romance scams. These scams aim to deceive individuals into providing money or personal information to fraudsters.
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Hacking: Hacking involves unauthorized access to computer systems or networks. Hackers may steal data, disrupt services, or gain control of systems for various purposes, including financial gain, activism, or espionage.
- Cyberstalking: Cyberstalking is a pattern of online harassment or persistent unwanted attention directed at an individual. It can involve threats, monitoring, or intimidation and may escalate to physical harm
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Data Breaches: Data breaches involve the unauthorized access, acquisition, or release of sensitive data, such as personal information or financial records. These breaches can have severe consequences for individuals and organizations.
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Online Piracy: Online piracy involves the unauthorized distribution or downloading of copyrighted materials, such as movies, music, software, or books, without permission from the copyright holders.
- Distributed Denial of Service (DDoS) Attacks: In a DDoS attack, multiple compromised computers are used to flood a target system with excessive traffic, rendering it inaccessible to legitimate users. These attacks can disrupt online services and websites
3. Cybersecurity
- Cybersecurity refers to the practice of protecting computer systems, networks, software, and data from various forms of digital threats, attacks, and unauthorized access. In an increasingly interconnected and digital world, cybersecurity is of paramount importance to individuals, organizations, and governments to safeguard sensitive information, maintain privacy, and ensure the integrity and availability of digital resources
- Confidentiality in cybersecurity ensures that sensitive data remains private and accessible only to authorized individuals or systems. Measures to achieve confidentiality include encryption, access controls, and user authentication.
- Integrity ensures that data remains accurate and unaltered during storage, transmission, and processing. Data integrity is maintained through mechanisms like checksums and digital signatures
- Authentication verifies the identity of users and systems trying to access a network or data. Common authentication methods include passwords, biometrics, and multi-factor authentication (MFA).
4.National Cybercrime Reporting Portal (NCRP)
- The National Cybercrime Reporting Portal (NCRP) is a centralized online portal for reporting cybercrime in India. It was launched in 2019 by the Ministry of Home Affairs (MHA) to provide a single platform for citizens to report cybercrime incidents. The NCRP is accessible to all citizens of India, regardless of their location or the type of cybercrime they have experienced.
- To report a cybercrime incident on the NCRP, citizens need to create an account and fill out a complaint form. The form requires basic information about the victim, the accused, and the nature of the cybercrime incident. Citizens can also attach relevant evidence, such as screenshots, emails, or chat logs, to their complaint.
- Once a complaint is submitted, it is assigned to a law enforcement agency for investigation. The NCRP also provides a tracking system so that citizens can check the status of their complaint at any time.
- The NCRP is a valuable resource for citizens who have been victims of cybercrime. It provides a convenient and user-friendly platform for reporting cybercrime incidents. The NCRP also helps law enforcement agencies to track and investigate cybercrime more effectively.
5. Way forward
Cybercrimes pose significant threats to individuals, businesses, and governments. They can result in financial losses, privacy breaches, and even compromise national security. Law enforcement agencies, cybersecurity experts, and legislation have been developed to combat and prevent cybercrimes, but they remain a persistent challenge in the digital age
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Previous Year Questions
1.In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (UPSC CSE 2020)
1. Cost of restoration of the computer system in case of malware disrupting access to one's computer
2. Cost of a new computer if some miscreant wilfully damages it, if proved so
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
4. Cost of defence in the Court of Law if any third party files a suit
Select the correct answer using the code given below:
A.1, 2 and 4 only
B.1, 3 and 4 only
C.2 and 3 only
D.1, 2, 3 and 4
Answer (D)
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Source: indianexpress
ETHICS COMMITTEE
1. Context
The Ethics Committee report on Trinamool member Mahua Moitra in the Csh for query allegation was listed in the Lok Sabha but not tabled
2. What is the procedure for raising the questions?
- The procedure for raising questions is governed by Rules 32 to 54 of the “Rules of Procedure and Conduct of Business in Lok Sabha” and Directions 10 to 18 of the “Directions by the Speaker, Lok Sabha‟.
- To ask a question, an MP has to first give a notice addressed to the lower house’s Secretary-General, intimating their intention to ask a question
- The notice usually contains the text of the question, the official designation of the Minister to whom the question is addressed, the date on which the answer is desired, and the order of preference, in case the MP tables more than one notice of questions for the same day
- According to 'Question Hour in Parliament' - “A Member is allowed to give not more than five notices of questions, both for oral and written answers, in all, for any day. Notices received in excess of five from a Member for a day, are considered for the subsequent day(s) concerning that Minister(s) during the period of that session only,”
- Usually, the period of notice of a question isn’t less than 15 days.
- There are two ways through which MPs can submit the notices of their questions. First, through an online ‘Member’s Portal’, where they have to enter their ID and password to get access. Second, through the printed forms available in the Parliamentary Notice Office
- The next stage is when the Speaker of Lok Sabha examines the notices of the questions in the light of the laid out rules. It is the Speaker, who decides if a question, or a part thereof, is or isn’t admissible
3. What are the different types of questions?
- There are four different types of questions: starred, unstarred, short-notice questions and questions addressed to private Members
- A starred question is asked by an MP and answered orally by the Minister-in-charge.
- Each MP is allowed to ask one starred question per day. Starred questions have to be submitted at least 15 days in advance (so that the Minister-in-charge has the time to prepare the answers) and only 20 questions can be listed for oral answers on a day. When a question is answered orally, supplementary questions can be asked thereon
- An unstarred question receives a written reply from the Ministry. These also need to be submitted at least 15 days in advance. Only 230 questions can be listed for written answers in a day. Unlike starred questions, unstarred questions don’t permit any follow-up questions
- While starred questions are better suited to inquire about the government’s views on issues and its policy inclination, unstarred questions are more conducive for getting answers to queries related to data or information, according to a report by PRS Legislative Research.
- Short notice questions are ones pertaining to a matter of urgent public importance. They can be asked with less than 10 days’ notice, with reasons for the short notice. Like a starred question, they are answered orally, followed by supplementary questions.
- The question to a private Member is addressed to the MP themselves. It is asked when the subject matter pertains to any Bill, Resolution or any matter relating to the Business of the House for which that MP is responsible
4. What exactly is the Parliamentary Ethics Committee?
A Parliamentary Ethics Committee is a committee within a parliamentary system of government that is responsible for overseeing and enforcing ethical standards and rules of conduct among members of the parliament. The specific responsibilities and powers of a Parliamentary Ethics Committee can vary from one country to another, as they are often determined by the rules, regulations, and laws of the specific parliament in question.
4.1. Role and Functions of Ethics Committee
- Drafting and maintaining a code of conduct or ethical guidelines for members of parliament. This code outlines expected behavior, such as avoiding conflicts of interest, financial transparency, and proper use of parliamentary resources
- Investigating allegations of ethical violations by members of parliament. This could involve cases of corruption, misuse of power, conflicts of interest, or breaches of the parliamentary code of conduct.
- Recommending sanctions or penalties for members found to have violated ethical standards. Sanctions may range from warnings and reprimands to suspension or expulsion from parliament, depending on the severity of the violation.
- Promoting transparency in the financial affairs of members of parliament, such as disclosure of financial interests, assets, and liabilities
- Reporting the committee's findings and recommendations to the parliament for further action or debate
5. Way forward
The specific name of the committee and its authority can vary from one country to another. For example, in the United Kingdom, the House of Commons has a Parliamentary Commissioner for Standards who oversees ethical matters related to members of parliament. In the United States, the House Committee on Ethics and the Senate Select Committee on Ethics are responsible for enforcing ethical rules in the House of Representatives and the Senate, respectively.
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For Prelims: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc
For Mains: General Studies II: Parliament and State legislatures structure, functioning, conduct of business, powers & privileges and issues arising out of these.
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Previous Year Questions
1.Consider the following statements: The Parliamentary Committee on Public Accounts (UPSC CSE 2013)
1. consists of not more than 25 members of the Lok Sabha.
2. scrutinizes appropriation and finance accounts of the Government.
3. examines the report of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 and 3
C. 3 Only
D. 1, 2, 3
Answer (B)
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Source: indianexpress
CYCLONES
1. Context
At least five people were killed in several rain-related incidents in Tamil Nadu following torrential rainfall in Chennai and its neighbouring districts triggered by Cyclone Michaung. Cyclone Michaung, which is currently looming over west-central and coastal south Andhra Pradesh, has intensified into a severe cyclonic storm, leading several areas of the city to be submerged in knee-deep water and power outages
2. What is a Cyclone
- A cyclone is a low-pressure system that forms over warm waters. Essentially, it is a system of high-speed winds rotating around a low-pressure area, with the winds blowing counterclockwise in the Northern Hemisphere and clockwise in the Southern Hemisphere.
- According to the World Meteorological Organization, “Tropical cyclones are one of the biggest threats to life and property even in the formative stages of their development.
- Cyclonic winds move across nearly all regions of the Earth except the equatorial belt and are generally associated with rain or snow
- They include several different hazards that can individually cause significant impacts on life and property, such as storm surge, flooding, extreme winds, tornadoes and lighting.
- Combined, these hazards interact with one another and substantially increase the potential for loss of life and material damage.”
- Cyclones occur chiefly in the middle and high latitude belts of both hemispheres. In the Southern Hemisphere, where most of the terrestrial surface is covered by the oceans, cyclones are distributed in a relatively uniform manner through various longitudes
- Characteristically, they form in latitudes 30° to 40° S and move in a generally southeasterly direction, reaching maturity in latitudes around 60°.
- Cyclones that form closer to the Equator (i.e., at latitudes 10° to 25° north and south over the oceans) differ somewhat in character from the extratropical variety. Such wind systems, known as tropical cyclones, are much smaller in diameter.
- Whereas extratropical cyclones range from nearly 1,000 to 4,000 km (620 to 2,500 miles) across, tropical cyclones typically measure only about 100 to over 1,000 km in diameter.
PC: Brittanica
3. Types of cyclones
3.1.Tropical Cyclones
Cyclones developed in the tropics region (the majority confined to 100– 300 N and S of the equator) are called tropical cyclones.
- tropical cyclones have a thermal origin, and they develop over tropical seas during certain seasons. Pre-existing low pressure, large sea surface with a temperature higher than 27° C, and the presence of the Coriolis force are a must for tropical cyclone formation.
- At these locations, the local convectional currents acquire a whirling motion because of the Coriolis force generated by the earth’s rotation. After developing, these cyclones advance till they find a weak spot in the trade wind belt.
- Tropical cyclones always originate in large water bodies.
3.2.Temperate Cyclone
Temperate cyclones (Mid-Latitude cyclones), also known as Extratropical cyclones, are active over the mid-latitudinal regions between 35° latitude and 65° latitude in both hemispheres.
- They have a dynamic origin and cyclone formation is due to frontogenesis (interaction of cold and warm fronts). When the warm-humid air masses from the tropics meet the dry-cold air masses from the poles and thus a polar front is formed as a surface of discontinuity. The cold air pushes the warm air upwards from underneath. Thus, a void is created because of the lessening of pressure. The surrounding air rushed in to occupy this void and coupled with the earth’s rotation, a temperate cyclone is formed.
- Temperate cyclones can originate on both landmass or water.
4. How are cyclones named?
Cyclones that form in every ocean basin across the world are named by the regional specialised meteorological centres (RSMCs) and Tropical Cyclone Warning Centres (TCWCs). There are six RSMCs in the world, including the India Meteorological Department (IMD), and five TCWCs.
As an RSMC, the IMD names the cyclones developing over the north Indian Ocean, including the Bay of Bengal and the Arabian Sea, after following a standard procedure. The IMD is also mandated to issue advisories to 12 other countries in the region on the development of cyclones and storms.
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For Prelims: Cycles, types of cyclones, reasons for cyclones For Mains: General Studies I: Origin and whether conditions of temperate and tropical cyclones |
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Previous Year Questions
1.Consider the following statements: (UPSC CSE 2020)
1. Jet streams occur in the Northern Hemisphere only.
2. Only some cyclones develop an eye.
3. The temperature inside the eye of a cyclone is nearly 10°C lesser than that of the surroundings.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 and 3 Only
C. 2 Only
D. 1 and 3 Only
Answer (C)
2.In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclones do not originate. What is the reason? (UPSC Prelims GS1, 2015)
(a) Sea surface temperatures are low (b) Inter-tropical Convergence Zone seldom occurs (c) Coriolis force is too weak (d) Absence of land in those regions Answer (a)
1.Tropical cyclones are largely confined to South China Sea, Bay of Bengal and Gulf of Mexico. Why? (GS-1, 2014)
2.The recent cyclone on the east coast of India was called “Phailin”. How are the tropical cyclones named across the world? (GS-1, 2013) |
Source: indianexpress
MONETARY POLICY COMMITTEE (MPC)
1. Context
The Monetary Policy Committee (MPC) of the Reserve Bank may keep the repo rate — its key lending rate — unchanged at 6.5 per cent in its upcoming monetary policy review scheduled from December 6-8 2023. This may be because of rising inflationary risks, stemming from the recent spike in vegetable prices.
2. What is Monetary policy?
Monetary policy refers to the actions and strategies undertaken by a country's central bank to control and regulate the supply of money, credit availability, and interest rates in an economy. Its primary goal is to achieve specific economic objectives, such as price stability, full employment, and sustainable economic growth.
Central banks use various tools to implement monetary policy, including:
Interest Rates: Adjusting the interest rates at which banks lend to each other (known as the federal funds rate in the United States) influences borrowing and spending in the economy.
Open Market Operations: Buying or selling government securities in the open market to regulate the money supply. When a central bank buys securities, it injects money into the system, and when it sells them, it reduces the money supply.
Reserve Requirements: Mandating the amount of reserves banks must hold, affecting their ability to lend money.
By influencing the availability and cost of money, central banks aim to stabilize prices, control inflation, encourage or discourage borrowing and spending, and promote economic growth. However, the effectiveness of monetary policy can be influenced by various factors such as global economic conditions, fiscal policies, and market expectations.
3.What is the primary objective of the monetary policy?
The primary objective of monetary policy typically revolves around maintaining price stability or controlling inflation within an economy. Central banks often set an inflation target, aiming to keep it at a moderate and steady level. Stable prices help in fostering confidence in the economy, encouraging investment, and ensuring that the value of money remains relatively constant over time.
However, while controlling inflation is often the primary goal, central banks might also consider other objectives, such as:
Full Employment: Some central banks have a secondary objective of supporting maximum employment or reducing unemployment rates.
Economic Growth: Encouraging sustainable economic growth by managing interest rates and credit availability to stimulate or cool down economic activity.
Exchange Rate Stability: In some cases, maintaining stable exchange rates might be an important consideration, especially for countries with open economies heavily reliant on international trade.
These additional objectives can vary depending on the economic conditions, priorities of the government, and the central bank's mandate. Nonetheless, ensuring price stability is typically the fundamental goal of most monetary policies, as it forms the basis for a healthy and growing economy.
4. Monetary Policy Committee (MPC)
- In line with the amended RBI Act, 1934, Section 45ZB grants authority to the central government to establish a six-member Monetary Policy Committee (MPC) responsible for determining the policy interest rate aimed at achieving the inflation target.
- The inaugural MPC was formed on September 29, 2016. Section 45ZB stipulates that "the Monetary Policy Committee will ascertain the Policy Rate necessary to meet the inflation target" and that "the decisions made by the Monetary Policy Committee will be obligatory for the Bank."
- According to Section 45ZB, the MPC comprises the RBI Governor as the ex officio chairperson, the Deputy Governor overseeing monetary policy, a Bank official nominated by the Central Board, and three individuals appointed by the central government.
- The individuals chosen by the central government must possess "capabilities, ethical standing, expertise, and experience in economics, banking, finance, or monetary policy" (Section 45ZC)
5.Monetary Policy Committe and Inflation
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- The Monetary Policy Committee (MPC) plays a crucial role in managing inflation through its decisions on the policy interest rate.
- When inflation is too high, the MPC might decide to increase the policy interest rate. This action aims to make borrowing more expensive, which can reduce spending and investment in the economy.
- As a result, it could help decrease demand for goods and services, potentially curbing inflation.
- Conversely, when inflation is too low or the economy needs a boost, the MPC might decrease the policy interest rate.
- This move makes borrowing cheaper, encouraging businesses and individuals to spend and invest more, thus stimulating economic activity and potentially raising inflation closer to the target level.
- The MPC's goal is to use the policy interest rate as a tool to steer inflation toward a target set by the government or central bank.
- By monitoring economic indicators and assessing the current and expected inflation levels, the MPC makes informed decisions to maintain price stability within the economy
6. Way forward
With more than half of the current financial year witnessing positive developments in the economy, the full financial year should conclude as projected with a strong growth performance and macroeconomic stability. Yet risks on the downside persist. Inflation is one of them that has kept both the government and the RBI on high alert. Financial flows in the external sector also need constant monitoring as they impact the value of rupee and the balance of payments. A fuller transmission of the monetary policy may also temper domestic demand
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For Prelims: Economic and Social Development
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4 Answer: C 3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall. (b) Central bank is no longer making loans to commercial banks. (c) Central bank is following an easy money policy. (d) Central bank is following a tight money policy. Answer: (d) 4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only Answer: A |
Source: Indianexpress
CLIMATE FINANCE
1. Context
The United Arab Emirates, which is hosting the ongoing COP28 climate summit, announced on December 1 that it would contribute $30 billion to a new fund aiming to divert private sector capital towards climate investments and improve financing for the Global South
Climate finance is a key topic of discussion at COP28 as it has been a bone of contention between low income countries and developed nations. Here is a look at the issue.
2. Climate Finance:
- Climate finance(CF) refers to local, national/transnational financing, drawn from public, private & alternative sources of financing that seek to support mitigation & adaptation actions that will address climate change.
- The Convention, Kyoto Protocol, and the Paris Agreement calls for financial assistance from Parties with more financial resources to those that are less endowed & more vulnerable.
- Climate finance is needed for mitigation because large-scale investments are required to reduce emissions.
- CF is important for adaptation, as financial resources are needed to adapt to the adverse effects & reduce the impacts of changing climate.
- Developed country parties should provide financial resources to assist developing country parties in implementing the objectives of the UNFCCC.
- The Paris Agreement reaffirms the obligations of developed countries while encouraging voluntary contributions by other parties.
- Developed country parties should take the lead in mobilizing climate finance from a wide variety of sources, noting the role of public funds, and taking into account the needs of developing country parties.
- It is important for all governments & stakeholders to understand the financial needs of developing countries, to understand & assess the financial needs of developing countries & to mobilize these financial resources.
- Provision of resources should aim to achieve a balance between adaptation & mitigation.
- Efforts under the Paris Agreement are guided by its aim of making finance flows consistent with a pathway towards low GHG emissions & climate-resilient development.
- The Paris Agreement emphasizes the transparency & enhanced predictability of financial support.
3. Financial Mechanism:
- The Convention established a financial mechanism to provide financial resources to developing country Parties.
- The financial mechanism serves the Kyoto Protocol & the Paris Agreement.
- The convention states that the operation of the financial mechanism can be entrusted to one/more existing international entities.
- The Global Environment Facility(GEF) served as an operating entity of the financial mechanism since the Convention's entry into force in 1994.
- In 2010, Parties established the Green Climate Fund (GCF) & in 2011 designated it as an operating entity of the financial mechanism.
- The financial mechanism is accountable to the COP, which decides its policies, programme priorities, and eligibility criteria for funding.
- In addition to GEF & GCF, Parties have established two special funds-the Special Climate Change Fund (SCCF), the Least Developed Countries Fund(LDCF), and the Adaptation Fund(AF) established under the Kyoto Protocol in 2001.
- Regarding AF serving the Paris Agreement negotiations are underway in the Ad hoc Working Group on the Paris Agreement(APA).
4. Standing Committee:
- In 2010, the Parties decided to establish the Standing Committee on Finance (SCF) to assist the COP in exercising its functions regarding the financial mechanism of the Convention.
- The SCF has four main functions:
- Assisting the COP in improving coherence & coordination in the delivery of climate change financing,
- Assisting the COP in the rationalization of the financial mechanism of the UNFCCC,
- Supporting the COP in the mobilization of financial resources for climate financing,
- Supporting the COP in the measurement, reporting & verification of support provided to developing country parties.
- The SCF is designated to improve the linkages & to promote the coordination with climate finance-related actors & initiatives both within & outside of the Convention.
- At the Paris Conference in 2015, the Parties decided that the SCF shall also serve the Paris Agreement.
5. Long-term Climate Finance:
- The long-term finance process is aimed at progressing on the mobilization & scaling up of climate finance of resources originating from a wide variety of sources, public & private, bilateral & multilateral, including alternative sources.
- The COP decided on the following activities through to 2020:
Organization by the secretariat of annual in-session workshops; developed countries providing, on a biennial basis, information on strategies & approaches for scaling up climate finance, convening of biennial high-level ministerial dialogue on climate finance.
- In the context of meaningful mitigation actions & transparency on implementation, a goal of mobilizing jointly USD 100 billion per year to address the needs of developing countries.
- While adopting the Paris Agreement, Parties confirmed this goal and called for a concrete road map to achieve the goal by 2020.
- They also agreed that before 2025 the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement shall set a new collective quantified goal from a floor of USD 100 Billion per year.
6. Finance Portal:
- The UNFCCC website includes a Climate finance data portal with helpful explanations, graphics, and figures for a better understanding of the climate finance process.
- The finance portal comprises three modules, each of which includes information made available by Parties & operating entities of the financial mechanism.
- The first module, National Communications Module, presents information communicated by contributing countries on the provision of financial resources, in the context of regular reporting to the convention.
- The second module, the Fast-start Finance Module, includes information on resources provided by developed countries in the context of their commitment to providing USD 30 Billion during 2010-12.
- The third module, on Funds Managed by the GEF is a joint effort between the secretariat of the UNFCCC & the GEF
- Additionally, information on projects & programmes of the Adaptation Fund can be found in the finance portal.
- This fund was established under the Kyoto Protocol to finance concrete adaptation projects & programmes in developing countries that are Parties to the Kyoto Protocol.
Source: indianexpress
AGRI-FOOD SYSTEM
1. Context
A recent report by the United Nations Food and Agriculture Organization (FAO) unveils the hidden costs of global agri-food systems, reaching a staggering $10 trillion. This burden is particularly acute in middle-income countries like India, where these costs represent nearly 11% of GDP. The report attributes these escalating costs to unsustainable agricultural practices and calls for a shift towards multi-cropping systems to promote farmer well-being, improve nutritional outcomes, and protect ecological health.
2. About Intensive Agriculture
Intensive agriculture, also known as conventional or industrial agriculture, is a farming method characterized by high levels of inputs, such as chemical fertilizers, pesticides, and irrigation water, to maximize crop yields. This approach has been instrumental in increasing global food production and meeting the demands of a growing population. However, intensive agriculture has also been associated with a range of negative environmental and social impacts.
Impacts of Intensive Agriculture in India
India's agricultural sector has undergone significant transformations over the past five decades, primarily driven by the adoption of monocropping systems and chemical-intensive farming practices. While these practices have led to impressive improvements in agricultural productivity, they have also brought about several unintended consequences:
- The Green Revolution's emphasis on high-yielding varieties of paddy and wheat has led to a reliance on seeds purchased from multinational corporations. This has eroded seed sovereignty, diminishing farmers' control over their seed selection and cultivation practices. Additionally, the infusion of these seeds has displaced traditional cropping patterns and Indigenous knowledge systems related to sustainable agriculture.
- The Green Revolution promoted a shift from diverse crop varieties and staples, such as pulses and millets, towards monoculture plantations of paddy and wheat. This monocultural approach has compromised the nutritional needs of households, reducing access to a variety of essential nutrients.
- The intensive use of chemicals in agriculture has led to excessive extraction of groundwater, soil degradation, and pollution of water bodies. These environmental impacts threaten the long-term sustainability of agriculture and pose risks to human health.
- The privatization and deregulation of agricultural inputs have made farmers increasingly reliant on external sources for seeds, fertilizers, and pesticides. This has led to a rise in indebtedness among agrarian households, putting a significant financial strain on farmers.
- The combination of factors mentioned above has rendered agriculture in India increasingly unviable. The average monthly household income of a farming household stands at ₹10,816, well below the national average, highlighting the economic struggles faced by farmers.
3. Favoured Crops in India's Food System
India's food system is characterized by a heavy focus on rice and wheat production, driven by procurement policies and agricultural subsidies. This emphasis has led to a decline in the cultivation of coarse grains and other nutritious crops, raising concerns about food security and nutritional diversity.
Procurement Policies and Rice-Wheat Dominance
- Under the National Food Security Act 2013, the Food Corporation of India (FCI) plays a central role in procuring food grains for the Public Distribution System and other welfare programs.
- However, the procurement policy disproportionately favours rice and wheat, with the FCI procuring 341.32 lakh million tonnes (MT) of wheat and 514.27 lakh MT of rice in 2019-2020.
- This focus on rice and wheat has led to a significant increase in their cultivation, while the area under coarse grains has declined by 20% between 1966-1967 and 2017-2018.
Decline of Coarse Grains and Nutritional Crops
- The neglect of coarse grains and other nutritious crops like jowar, bajra, ragi, maize, and barley has adverse consequences for food security and nutrition.
- These crops are typically grown by small and marginal farmers and are more resistant to droughts and pests compared to rice and wheat.
- Moreover, they offer a wider range of nutrients, contributing to a more balanced and diverse diet.
Impacts of Sugarcane and Areca Nut Cultivation
- The expansion of water-intensive cash crops like sugarcane and areca nut has also emerged as a concern.
- Sugarcane cultivation affects biodiversity, increases pressure on groundwater resources, and contributes to air and water pollution.
- Areca nut plantations, often grown under favourable policies for borewell electricity, have also raised environmental concerns.
Global Trade and Food Production Systems
- The global food system structure has a direct impact on farmers and soil health.
- For instance, between 2012 and 2016, large fluctuations in soya prices in the global market and a glut in supply from Latin American countries eroded income for soy farmers and agro-companies in Malwa.
- Historically, global trade relations have influenced food production systems in the Global South, as evident in the pre-independence era when tax systems were designed to facilitate the export of primary raw materials like cotton.
- Reforming procurement policies to promote a more diverse range of crops, particularly coarse grains and nutritious varieties, is crucial for enhancing food security and improving nutritional outcomes.
- Additionally, addressing the environmental impacts of water-intensive cash crops like sugarcane and areca nut is essential for sustainable agriculture.
4. Crop Diversification as a Solution for Food and Environmental Challenges
The current global food system faces significant challenges, including environmental degradation, malnutrition, and exploitation of farmers. A systemic shift towards local and diversified food production systems is essential to address these issues. Crop diversification, rooted in agroecological principles, offers a promising solution.
Benefits of Diversified Multi-cropping Systems
Multi-cropping systems, incorporating a variety of crops, legumes, pulses, oilseeds, trees, shrubs, and livestock, provide numerous benefits:
- Diversified systems enhance soil health, improve nutrient cycling, and increase soil biodiversity, fostering resilience against climate change and enhancing productivity.
- Diversified farms offer a diverse range of products, providing både cash income from commercial crops and food and fodder for household consumption and livestock.
- Intercropping practices promote ecosystem services such as nitrogen fixation, pest control, and pollination, contributing to a more balanced and sustainable agricultural system.
- Diversified diets rich in millet, legumes, and pulses enhance nutritional security, combating malnutrition and promoting overall health.
Addressing Concerns about Farmer Income
Critics often express concerns that alternative farming systems may lead to a decline in farmer income. However, the FAO report highlights the "hidden costs" associated with the current system, emphasizing the need to consider long-term income evaluations. Diversified systems offer several advantages in this regard:
- Millets, with yields comparable to rice and wheat, offer greater nutritional value, adaptability to semi-arid conditions, minimal input requirements, and a diverse food basket.
- Redirecting subsidies from corporations to farmers who adopt sustainable practices can incentivize them to protect natural capital and enhance their livelihoods.
5. Enabling Farmers' Transition to Sustainable Agriculture
Transitioning from chemical-intensive monoculture practices to diversified and sustainable agriculture requires a systematic approach that supports farmers throughout the process. Here are key considerations for facilitating this transition:
- Expecting an abrupt shift to diversified agriculture is unrealistic. Farmers need time to adjust and explore new practices. A gradual approach, such as experimenting with non-pesticide management and natural farming methods, can reduce input costs and ease the transition.
- Diversifying income sources is crucial for farmers adopting sustainable practices. Value addition, livestock integration, and poultry farming can provide additional income streams, reducing reliance on monoculture crops.
- Experimenting with diversified farming practices on specific portions of land allows farmers to assess the feasibility and benefits of these methods without risking their entire livelihood.
- A visual representation of a diversified farm allocates 70% for commercial crops, 20% for food and fodder, and 10% for environmental services like oilseed trap crops. Over time, the commercial crop allocation can be reduced to 50% and border crops replaced with locally suitable tree species. Livestock integration can further enhance incomes.
- Preliminary economic modelling suggests that diversified practices can improve ecological outcomes and sustain farm incomes in the short and long run.
- Challenges such as local seed availability, market access, drudgery, and farm labour requirements need to be addressed for a successful transition.
- Scaling up sustainable practices requires collaboration among institutions, policymakers, and social groups to create economic incentives for farmers to shift from monoculture to diversified cropping.
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For Prelims: United Nations Food and Agriculture Organization, Intensive agriculture, Green Revolution, National Food Security Act 2013, Food Corporation of India, Public Distribution System, millets
For Mains:
1. Discuss the hidden costs of global agri-food systems and their impact on middle-income countries like India. (250 Words)
2. Discuss the environmental impacts of intensive agriculture, with a focus on soil degradation, water pollution, and biodiversity loss. (250 Words)
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Previous Year Questions
1. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies.
Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
2. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
3. Consider the following crops of India: (UPSC 2012)
1. Groundnut
2. Sesamum
3. Pearl millet
Which of the above is/are predominantly rainfed crop/crops?
A. 1 and 2 only B. 2 and 3 only C. 3 only D. 1, 2 and 3
4. Among the following, which one is the least water-efficient crop? (UPSC 2021) A. Sugarcane B. Sunflower C. Pearl millet D. Red gram
5. With reference to 'Initiative for Nutritional Security through Intensive Millets Promotion, which of the following statements is/are correct? (UPSC 2016)
1. This initiative aims to demonstrate the improved production and post-harvest technologies and to demonstrate value addition techniques, in an integrated manner, with a cluster approach.
2. Poor, small, marginal and tribal farmers have a larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment.
Select the correct answer using the code given below.
A. 1 only B. 2 and 3 only C. 1 and 2 only D. 1, 2 and 3
6. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
7. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
8. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 only C. 3 only D. 1, 2 and 3
9. Which one of the following most appropriately describes the nature of Green Revolution of the late sixties of 20th century? (BPSC CCE 2015)
A.Intensive cultivation of green vegetable
B.Intensive agriculture district programme
C.High-yielding varieties programme
D.Seed-Fertilizer-Water technology
E.None of the above/More than one of the above
Answers: 1-D, 2-B, 3-D, 4-A, 5- C, 6-C, 7- C, 8-A , 9-E
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Source: The Hindu
PERIODIC LABOUR FORCE SURVEY (PLFS)
1. Context
Recently, the Ministry of Statistics and Programme Implementation released the results of the Periodic Labour Force Survey for the period July 2022 to June 2023. This is the sixth PLFS report and each tracks 12 months between July and June.
2. About The Periodic Labour Force Survey (PLFS)
- The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
- The survey is conducted annually in all the states and union territories of India.
- The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
- The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
- Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
- This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.
3. Data Collection Methods in PLFS
- The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
- In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
- The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
- Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
- The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods.
4. Latest findings of the Report
Unemployment Rate (UER)
- The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
- As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
- Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one.
Labour Force Participation Rate (LFPR)
- The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
- However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
- As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
- As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.
LFPR for women
- This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
- The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.
Worker Population Rate
- Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
- As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
- The WPR is the percentage of persons employed among the persons in the population.
- Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
- This metric too has been going up and especially noteworthy are the two discrete
step-ups in 2019-20 and 2022-23.
WPR among women
This metric throws light on the WPR for women to understand what’s leading to the spike in overall WPR. Again, the WPR for women has been going up but two main spikes have been in 2019-20 and 2022-23.
Monthly earnings
The PLFS reports also provide a sense of how much people earn in different types of jobs. There are three main categories, as detailed in the Table 2.
While it is true that incomes have broadly gone up after falling during Covid the main takeaway from this data emerges when one compares how little have monthly incomes changed over the past 6 years, especially in the face of a sharp rise in inflation. To be sure, since late 2019, annual consumer inflation has always been above the RBI’s target of 4%.
Distribution of workers
To accurately make sense of more and more people working, it is important to know not just what they earn but also what kind of work they do. For this, we look at data collected over the usual status by PLFS. Table 3 alongside gives the details of the three main classifications: self-employment, casual labour (say a construction worker) and regular salaried job. Self-employed has two sub-categories:
(i) own account worker and employer and
(ii) unpaid helper in household enterprises.
The data shows that self-employment has risen and jobs in the other two categories have fallen in proportion. It is also noteworthy that self-employment among women is the key driver for this overall trend.
5. Key Trends in PLFS 2022-23
- Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
- However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
- Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
- Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
- In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.
6. The WayForward
While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Indian Express
