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DAILY CURRENT AFFAIRS, 27 SEPTEMBER 2024

SOUTH CHINA SEA

1. Context

In the last few years, maritime East Asia has become an arena for intensified power politics. The East China Sea borders China, Taiwan, Japan, and South Korea. China asserts that the Senkaku/ Diaoyu islands, located in the East China Sea and under Japanese control, belong to Beijing. There have been multiple crises over these islands in the past. The South China Sea lies between China, Taiwan and five Southeast Asian countries — Vietnam, Malaysia, Brunei, the Philippines, and Indonesia — and has emerged as one of the most important flashpoints in the Indo-Pacific. China has been aggressively pushing its claims in the South China Sea

2. China's South China Sea Escalation

  • Amid the global pandemic, China is intensifying its presence in the South China Sea, particularly focusing on the disputed Spratly Islands and Paracel Islands.
  • This move has raised concerns among neighbouring countries, such as Vietnam and the Philippines, who also claim sovereignty over these territories.
  • China has unilaterally renamed 80 islands and geographical features in the South China Sea, a controversial action that has drawn criticism from neighbouring nations.
  • This renaming effort exacerbates the ongoing territorial dispute and has the potential to strain diplomatic relations in the Asia-Pacific region.
  • The Spratly Islands dispute involves China, Taiwan, Vietnam, the Philippines, and Malaysia, all vying for control over this archipelago and its surrounding features.
  • Although these islands are largely uninhabited, they are believed to harbour significant untapped natural resources.
  • However, due to the dispute, exploration and resource assessment efforts remain limited.

3. Historical Background

  • The discovery of oil near the Palawan coast in the 1970s further fueled territorial claims, even though some reports suggest limited oil and gas reserves in the region.
  • This historical context underscores the complexity of the Spratly Islands dispute.
  • The Paracel Islands dispute is equally complex, with China and Vietnam both laying historical claims to this archipelago.
  • Historical texts from various periods, including colonial-era records, have been cited to support these conflicting claims.
  • Tensions escalated in 1974 when China took control of the islands, sparking a prolonged dispute involving Vietnam and, later, Taiwan.
Image Source: Forbes

4. Contemporary Developments

  • Since 2012, China, Taiwan, and Vietnam have pursued various strategies to bolster their territorial claims, including constructing government buildings, promoting tourism, reclaiming land, and expanding military presence on these islands.
  • China's recent establishment of new administrative districts in both the Spratly and Paracel Islands prompted the Chinese government to rename numerous geographical features.
  • This move is reminiscent of a similar initiative in 1983 when China renamed 287 features in the disputed region.
  • China's increased military activity and the creation of artificial islands for military and economic purposes in the South China Sea have raised concerns among neighbouring countries and Western powers.
  • Recent incidents, such as the sinking of a Vietnamese fishing trawler near the Paracel Islands and the construction of Chinese research stations on disputed Philippine territory, have further inflamed tensions.

5.What is the dispute between the Philippines and China over the South China Sea?

  • The dispute between the Philippines and China over the South China Sea primarily revolves around territorial claims, maritime boundaries, and access to resources.
  • China claims a significant portion of the South China Sea, demarcated by what's known as the "nine-dash line," a boundary that encompasses about 90% of the sea, overlapping with claims by several other nations, including the Philippines.
  • The Philippines contests China's claims, particularly in areas that fall within its Exclusive Economic Zone (EEZ) and territorial waters as defined by the United Nations Convention on the Law of the Sea (UNCLOS).
  • Tensions escalated due to China's construction of artificial islands and military installations in disputed waters, which the Philippines and other neighboring countries view as a violation of their sovereignty and a threat to regional stability.
  • The Philippines filed a case against China in 2013 with the Permanent Court of Arbitration (PCA) in The Hague, challenging the legality of China's claims based on UNCLOS.
  • In 2016, the PCA ruled in favor of the Philippines, declaring that China's claims had no legal basis. However, China has consistently rejected the ruling, asserting historical rights over the South China Sea.
  • Despite the ruling, the situation remains contentious, with ongoing diplomatic efforts and occasional confrontations between the two countries' vessels in the region
6.What is the nine-dash line?
  • The nine-dash line is a demarcation line used by China to outline its territorial claims in the South China Sea. It's a U-shaped boundary that encompasses about 90% of the South China Sea, covering various islands, reefs, atolls, and waters.
  • Originally, the nine-dash line was drawn by the Republic of China (ROC, now Taiwan) in the late 1940s to illustrate its territorial claims over the South China Sea. After the Chinese Civil War, when the Communist Party took control of mainland China in 1949, the People's Republic of China (PRC) continued to uphold this demarcation.
  • However, the line's legal basis and specifics have been ambiguous. It has never been clearly defined, and China has not provided precise coordinates or explanations for its claim. The line overlaps with the exclusive economic zones (EEZs) and territorial waters of several Southeast Asian nations, including Vietnam, the Philippines, Malaysia, Brunei, and Taiwan. This has led to territorial disputes and heightened tensions in the region.
  • The international community, including the United States and many other countries, does not recognize China's nine-dash line claim as valid under international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS), which outlines maritime entitlements and territorial claims based on geographical features and historical rights.
The Nine Dash Line and Its Basis in International Law - Sourabh Gupta -  CHINA US Focus

7. Conclusion

  • The South China Sea remains a highly volatile region, with the potential for further diplomatic tensions and military escalations.
  • The ongoing territorial disputes, fueled by historical claims and concerns over natural resources, pose a significant challenge to stability in the Asia-Pacific region and require careful diplomatic efforts to find peaceful resolutions.
 
For Prelims: South China Sea, Paracel Islands, Spratly Islands, 
For Mains: 
1. Discuss the historical background of the territorial disputes in the South China Sea. How have historical claims contributed to the complexity of the issue? (250 Words)
 
 
Previous Year Questions
 
1. The South China Sea Dispute involves which of the following countries?  (CDS GK  2019)
1. China
2. Vietnam
3. Malaysia
4. Indonesia
Select the correct answer using the code given below. 
A. 1 and 4           B. 1 and 2 only           C. 1, 2 and 3          D. 2, 3 and 4
 
Answer: C
 
2. Which one of the following statements best reflects the issue with Senkaku Islands, sometimes mentioned in the news? (UPSC CSE 2022)
A. It is generally believed that they are artificial islands made by a country around South China Sea.
B. China and Japan engage in maritime disputes over these islands in East China Sea.
C. A permanent American military base has been set up there to help Taiwan to increase its defence capabilities.
D. Though International Court of Justice declared them as no man's land, some South-East Asian countries claim them.
 
Answer: B
 
Source: The Indian Express
 

UNITED NATIONS (UN)

 
 
1. Context
The Centre may increase the price of ethanol for the 2024-25 season and the minimum selling price of sugar, Union Food Minister Pralhad Joshi
 
 
2. History of UN
Countries that had dominated world affairs had suffered a great deal after the two wars, and there were two emerging new powers, in the form of the United States and the USSR, who looked set to rival each other. Born out of the horrors of that period, the UN was primarily tasked with the goal of maintaining world peace and saving future generations from the evils of war
United Nations - Wikipedia
 
3. Origin of UN
  • The UN was born out of the ashes of yet another international organisation created with the intention of keeping war away.
  • The League of Nations was created in June 1919, after World War I, as part of the Treaty of Versailles.
  • However, when the Second World War broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war.
  • Consequently, in August 1941, American President Franklin D. Roosevelt and British Prime Minister Winston Churchill held a secret meeting aboard naval ships in Placenta Bay, located on the southeast coast of Newfoundland, Canada.
  • The heads of the two countries discussed the possibility of creating a body for international peace efforts and a range of issues related to the war.
  • Together they issued a statement that came to be called the Atlantic Charter. It was not a treaty, but only an affirmation that paved the way for the creation of the UN.
  • It declared the realisation of “certain common principles in the national policies of their respective countries on which they based their hopes for a better future for the world.”
  • The United States joined the war in December 1941, and for the first time the term ‘United Nations’ was coined by President Roosevelt to identify those countries which were allied against the axis powers – Germany, Italy and Japan. On January 1, 1942, representatives of 26 allied nations met in Washington DC to sign the declaration of the United Nations, which basically spelt out the war objectives of the Allied powers.
  • India, which was under British colonial rule at the time, was also among these nations
un declaration
4. Achievements and Failures of the UN

The United Nations (UN) has been a prominent international organization since its establishment in 1945. It has made significant achievements and faced challenges and failures throughout its history. Here are some notable achievements and failures of the United Nations:

Achievements:

  1. Preventing World Wars: The UN was established after World War II with the primary aim of maintaining international peace and security. It has successfully prevented another world war on the scale of the two World Wars.

  2. Humanitarian Aid: The UN, through agencies like UNICEF, the World Food Programme (WFP), and UNHCR, provides vital humanitarian aid, including food, shelter, and medical assistance, to people in need around the world.

  3. Peacekeeping Operations: The UN has undertaken numerous peacekeeping missions to help resolve conflicts and maintain peace in various parts of the world, including Cyprus, Lebanon, and Sierra Leone.

  4. Decolonization: The UN played a significant role in decolonization efforts, helping newly independent countries gain international recognition and supporting the end of colonial rule in many parts of the world.

  5. Universal Declaration of Human Rights: The UN adopted the Universal Declaration of Human Rights in 1948, setting forth fundamental human rights and freedoms. This document has been instrumental in shaping international human rights norms.

  6. Development Goals: The UN established the Millennium Development Goals (MDGs) and later the Sustainable Development Goals (SDGs), which have provided a framework for addressing global poverty, inequality, and environmental challenges.

  7. Environmental Protection: The UN has led efforts to address global environmental issues through conventions like the Paris Agreement on climate change, the Convention on Biological Diversity, and the Montreal Protocol on ozone depletion.

  8. Public Health: The World Health Organization (WHO), a UN agency, has played a crucial role in international public health efforts, including vaccination programs, disease control, and pandemic response.

Failures and Challenges:

  1. Ineffectiveness in Preventing Genocides and Mass Atrocities: The UN has faced criticism for its inability to prevent or effectively respond to genocides and mass atrocities, such as those in Rwanda (1994) and Bosnia (1992-1995).

  2. Security Council Deadlocks: The UN Security Council, with its five permanent members (P5), often experiences deadlock due to conflicting national interests, hindering timely and decisive action on critical global issues.

  3. Human Rights Violations by Member States: Some UN member states with poor human rights records have faced limited consequences for their actions, raising concerns about the UN's ability to enforce human rights norms.

  4. Resource Constraints: The UN relies on contributions from member states, and funding shortfalls can hamper its ability to respond to crises effectively.

  5. Lack of Global Consensus: Achieving consensus among 193 member states on complex issues can be extremely challenging, leading to slow progress or gridlock on important matters.

  6. Peacekeeping Failures: Some UN peacekeeping missions have been criticized for not effectively preventing conflicts or abuses by peacekeepers themselves.

  7. Israeli-Palestinian Conflict: The UN has struggled to mediate a lasting peace in the Israeli-Palestinian conflict, which remains unresolved after decades of efforts.

  8. Complex Bureaucracy: The UN's complex bureaucratic structure can lead to inefficiency, redundancy, and lack of coordination in some areas.

5. Way forward
On a more fundamental level, its structure and other organisations associated with it, such as the World Bank and the IMF, have been criticised for furthering neo-liberal ideas – related to championing free markets and a reduced role of governments. This has been linked to deepening inequalities within countries. Further, the UN has been seen as unrepresentative of its members, particularly countries in the Global South
 
Source: indianexpress
 

HUMAN AND ANIMAL CONFLICT

 
 
 
1. Context
 
The Forest Department started a special initiative to drive away wild elephants that wreak havoc in Kanthallur village under the Marayur forest division in Idukki. According to the department officials, an 84-member team began the initiative on Thursday morning to drive away the elephants from human habitations in Kanthallur panchayat to Chinnar Wildlife Sanctuary.
An elephant attacks a resident in a field in Burdwan district of West Bengal | AFP/Getty Images
 
2. What is a Human and Animal Conflict?
 

Human-animal conflict refers to the interactions and conflicts that arise between humans and wildlife when their interests and activities overlap. This conflict often occurs when human activities and development encroach upon natural habitats, leading to increased contact and competition for resources between humans and animals. The consequences of human-animal conflict can be detrimental to both parties and may include economic losses, damage to property, injury, and loss of life for both humans and animals.

Common scenarios of human-animal conflict include:

  • Crop Raiding: Wild animals may enter agricultural fields and damage crops, leading to economic losses for farmers.

  • Livestock Predation: Predatory animals may attack and kill domesticated animals, such as cattle, sheep, or poultry, causing financial losses for livestock farmers.

  • Urban Encroachment: As human populations expand and urban areas expand into natural habitats, animals may find themselves in close proximity to human settlements, leading to conflicts over space and resources.

  • Road Accidents: Animals crossing roads, especially in areas near forests or wildlife habitats, can lead to collisions with vehicles, resulting in injuries or fatalities for both humans and animals.

  • Attacks on Humans: In some cases, wild animals may perceive humans as a threat and may attack, leading to injuries or fatalities.

  • Conservation Challenges: Human-animal conflict can pose challenges for wildlife conservation efforts, as negative interactions with humans may lead to retaliation against wildlife, posing a threat to endangered species

3. What are the reasons for the increase in human-wildlife conflict?
 

Experts attribute the surge in incidents of human-wildlife conflict to various factors, including the expansion of cultivated areas around wildlife habitats, alterations in cropping patterns, a notable rise in the populations of animals like elephants and tigers resulting from conservation initiatives, and the movement of livestock and humans into wildlife habitats during unconventional hours. Additionally, there has been a significant upturn in the populations of prolific breeders such as wild boars and peacocks.

Notably, the increased frequency of conflicts involving elephants is primarily attributed to habitat depletion and fragmentation caused by human activities. Furthermore, the invasion of alien species has diminished the availability of food and water, while the cultivation of monoculture species like eucalyptus and acacia has adversely impacted plant biodiversity

4. Kerala State vs Human and Animal Conflict

  • Approximately 30% of Kerala's land area is covered by forests. Given the relatively small size of the state, with an average width of approximately 70 km and a population exceeding 3.46 crore, numerous densely populated human settlements are situated in close proximity to protected forest regions.
  • Additionally, many agricultural plantations are located near wildlife habitats, particularly in hilly areas, including the heavily forested eastern part of the state. While this geographical arrangement inevitably results in human-animal conflict, Kerala has experienced a notable surge in such incidents in recent years.
  • Residents living near the fringes of forests have suffered substantial financial losses to their livelihoods, primarily due to frequent raids by elephants and wild boars. Since 2015, over 600 people in Kerala have lost their lives in conflicts with animals.
  • This has triggered protests among affected villagers, some of which have escalated into open confrontations between protesters and officials from the State Forest department
  • According to a study conducted by the State Forest department, Kerala experienced human-wildlife conflicts in 1,004 areas.
  • The study documented more than 48,000 incidents of crop damage from 2013-14 to 2018-19. Among the 35 forest and wildlife divisions in the state, Nilambur north (94), Wayanad south (92), and Wayanad north (70) forest ranges reported the highest numbers of major conflict locations.
  • The State recorded the highest number of incidents involving wild elephants, accounting for 14,611 occurrences between 2013-14 and 2018-19. Other contributors to these incidents include wild boars (5,518), bonnet macaques (4,405), and snakes (2,531).
  • Elephants, bonnet macaques, and wild boars have caused significant damage to farmers living in forest fringe areas. Herbivores like sambar, spotted deer, and gaur have also played a considerable role in crop damage.
  • The study reported a total of 814 livestock animals, including cattle, buffalo, and goats, being killed or injured in such attacks, with tigers preying on 420 of these animals
5.What are the reasons for the increase in human-wildlife conflict?
 
  • Experts attribute the escalation in human-wildlife conflict incidents to several factors, including the expansion of cultivated areas surrounding wildlife habitats, alterations in cropping patterns, a notable rise in the populations of animals like elephants and tigers resulting from conservation efforts, and the movement of livestock and humans into wildlife habitats during unconventional hours.
  • Additionally, there has been a significant upturn in the populations of prolific breeders such as wild boars and peacocks.
  • However, the increased frequency of conflicts involving elephants can be traced to habitat depletion and fragmentation caused by human activities. Furthermore, the presence of invasive alien species has diminished the availability of food and water. The cultivation of monoculture species like eucalyptus and acacia has also had adverse effects on plant biodiversity
6.What are the proposed solutions and why are they not effective?
 
  • Elephant-resistant trenches and solar-powered fences are commonly employed in Kerala and are generally deemed effective, provided they receive proper maintenance. However, there are several areas where these protective measures have not been implemented.
  • Additionally, nearby residents often break these fences to allow their cattle to graze in the forests, and elephants themselves may damage the fences using their legs and tusks.
  • In a master plan costing ₹620 crores to address this issue, the Forest department proposes the installation of elevated power fences that are beyond the reach of elephants.
  • Furthermore, as part of the State government's new eco-restoration policy, the Forest department aims to plant suitable indigenous vegetation (wild mango, wild gooseberry, and wild jackfruit) in the forests to ensure food security for wild animals and discourage them from entering agricultural lands.
  • Complementary measures include establishing early warning systems that utilize drones and human observers to track the movement of elephants and other dangerous animals, allowing people to avoid areas where they have been spotted. However, the widespread implementation of such warning mechanisms is lacking in Kerala.
  • On the contrary, these measures are not effective against wild boars. Despite Kerala's request to declare wild boars as vermin still pending with the Centre, the State government has recently granted local bodies the authority to cull wild boars that pose threats to agricultural crops or human life.
  • Other alternatives include capturing and neutering the boars or relocating them to forests where predators like tigers and leopards are present
7.How is human-animal conflict connected to the ESZ norm?
 

Human-animal conflict is connected to the concept of Ecologically Sensitive Zones (ESZ) norms through the need to establish buffer areas around protected areas, wildlife habitats, and other ecologically sensitive zones. ESZ norms are guidelines and regulations aimed at minimizing human disturbances and activities that could negatively impact biodiversity and ecosystems in designated areas. These zones are established to create a buffer between human settlements and wildlife habitats, reducing the chances of conflict between humans and animals.

Here's how human-animal conflict is connected to ESZ norms:

  • Buffer Zones: ESZ norms often define buffer zones around national parks, wildlife sanctuaries, and other ecologically sensitive areas. These buffer zones act as a transitional space to mitigate the impacts of human activities on wildlife and vice versa.

  • Land Use Planning: ESZ norms include regulations related to land use planning around protected areas. By controlling and guiding developmental activities in these zones, there is an attempt to minimize disturbances to wildlife and their habitats, consequently reducing the likelihood of conflict.

  • Wildlife Corridors: ESZ norms may address the creation and preservation of wildlife corridors, which are crucial for the movement of animals between different habitats. Ensuring the connectivity of habitats helps in preventing isolated populations, which can lead to increased interactions and conflicts with humans.

  • Conservation Measures: ESZ norms may include measures to conserve and restore natural habitats. By maintaining the integrity of these habitats, the likelihood of wildlife straying into human-dominated landscapes in search of food or suitable habitat is reduced.

  • Community Engagement: Some ESZ norms encourage community engagement and participation in conservation efforts. Involving local communities in wildlife conservation can lead to better understanding and cooperation, reducing conflicts by promoting coexistence

 

Previous Year Questions
 

1.Consider the following statements in respect of Trade Related Analysis of Fauna and Flora in Commerce (TRAFFIC): (UPSC CSE 2017)

  1. TRAFFIC is a bureau under United Nations Environment Programme (UNEP).
  2. The mission of TRAFFIC is to ensure that trade in wild plants and animals is not a threat to the conservation of nature.

Which of the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (b)

2.With reference to Indian elephants, consider the following statements: (UPSC CSE 2020)
1. The leader of an elephant group is female.
2. The maximum gestation period can be 22 months.
3. An elephant can normally go on calving till the age of 40 years only.
4. Among the States in India, the highest elephant population is in Kerala.

Which of the statements given above is/are correct?

A.1 and 2 only

B.2 and 4 only

C.3 only

D.1, 3 and 4 only

Answer (A)

3.With reference to Indian laws about wildlife protection, consider the following statements: (UPSC CSE 2021)
1. Wild animals are the sole property of the government.
2. When a wild animal is declared protected, such animal is entitled for equal protection whether it is found in protected areas or outside.
3. Apprehension of a protected wild animal becoming a danger to human life is sufficient ground for its capture or killing.
Which of the statements given above is/are correct?

A.1 and 2

B.2 only

C.1 and 3

D.3 only

Answer (B)

 
Source: The Hindu
 

ETHANOL BLENDING

1. Context

Ethanol is basically 99.9% pure alcohol that can be blended with petrol. It is different from the 94% rectified spirit has applications in paints, pharmaceuticals, personal care products, and other industries, and 96% extra neutral alcohol that goes to make potable liquor. Recently, Prime Minister Narendra Modi, at a G20 Energy Ministers’ meeting said that India has rolled out 20% ethanol-blended petrol this year and aims to “cover the entire country by 2025”. 
 
2. Ethanol
  • Ethanol, also known as ethyl alcohol, is a type of alcohol commonly used as a biofuel and a key ingredient in alcoholic beverages.
  • It is a clear, colorless liquid with a characteristic odor and a slightly sweet taste.
  • Ethanol has a wide range of applications and is produced through the fermentation of sugars by yeast or other microorganisms.

3. Ethanol Blending

  • Ethanol blending refers to the practice of mixing ethanol with gasoline or other fuels to create a blended fuel.
  • Ethanol is a biofuel derived from renewable sources such as sugarcane, corn, or other plant materials.
  • It is commonly used as an additive to gasoline in various parts of the world to reduce greenhouse gas emissions and promote cleaner fuel options.
  • In the context of transportation, the most common form of ethanol blending is with gasoline, creating a blend known as ethanol-gasoline blend or gasohol.
  • The most common ethanol-gasoline blends are E10 and E15, indicating the percentage of ethanol in the mixture. For example, E10 contains 10% ethanol and 90% gasoline, while E15 contains 15% ethanol and 85% gasoline.

4. Benefits of Ethanol blending

  • Ethanol is considered a renewable fuel because it is derived from plant materials that absorb carbon dioxide during their growth. When blended with gasoline, ethanol can help reduce the carbon footprint of transportation fuels, as it emits fewer greenhouse gases compared to pure gasoline.
  • By blending ethanol with gasoline, countries can reduce their reliance on imported fossil fuels and promote energy security.
  • Ethanol has a higher octane rating than gasoline, which can improve engine performance and increase fuel efficiency.
  • Ethanol production often relies on agricultural feedstocks, providing economic benefits to farmers and rural communities.
  • Ethanol-gasoline blends can help reduce harmful pollutants such as carbon monoxide and volatile organic compounds, contributing to improved air quality.
  • Mixing 20 percent ethanol in petrol can potentially reduce the auto fuel import bill by a yearly $4 billion, or Rs 30,000 crore. 
  • Another major benefit of ethanol blending is the extra income it gives to farmers. Ethanol is derived from sugarcane and also foodgrains. Hence, farmers can earn extra income by selling their surplus produce to ethanol blend manufacturers.

5. What is E20 Fuel?

  • E20 fuel is a type of blended fuel that contains 20% ethanol and 80% gasoline.
  • It is an ethanol-gasoline blend, similar to other common blends like E10 (10% ethanol) and E15 (15% ethanol).
  • The percentage of ethanol in the blend is denoted by the "E" followed by the percentage of ethanol content.
  • E20 fuel is considered a higher ethanol blend compared to E10 and E15, which are more widely available in various countries.
  • The use of E20 is part of efforts to promote renewable fuels and reduce greenhouse gas emissions from the transportation sector.

6. Significance of E20 fuel

  • Reduced Greenhouse Gas Emissions: Ethanol is derived from renewable plant sources, and blending it with gasoline can help reduce the carbon footprint of transportation fuels, contributing to efforts to combat climate change.
  • Energy Security: By using more domestically produced ethanol, countries can reduce their dependence on imported fossil fuels and enhance energy security.
  • Improved Engine Performance: Ethanol's higher octane rating can enhance engine performance and increase fuel efficiency in certain vehicles.
  • Support for Agriculture: Ethanol production often relies on agricultural feedstocks, supporting farmers and rural economies.

7. Challenges in Ethanol Blending Programme

While ethanol blending in transportation fuels offers various benefits, there are several challenges that countries may face in implementing and sustaining a successful ethanol blending program. Some of these challenges include:

  • Infrastructure and Distribution: Establishing the necessary infrastructure for blending and distributing ethanol-gasoline blends can be a significant challenge. This includes ensuring that fuel stations have the proper storage facilities and compatible pumps to dispense blended fuels.
  • Compatibility with Vehicles: Not all vehicles are designed to run on high ethanol blends like E20 or E85. Older vehicles or vehicles from certain manufacturers may not be compatible with these blends, leading to potential engine damage or decreased performance.
  • Fuel Quality and Standards: Maintaining consistent fuel quality is essential to prevent engine damage and ensure consumer confidence. Governments and fuel suppliers must adhere to strict quality standards and monitor the blending process to avoid issues with fuel performance.
  • Feedstock Availability and Cost: The production of ethanol relies on agricultural feedstocks, such as corn, sugarcane, or other biomass. The availability and cost of these feedstocks can vary, affecting the overall cost of ethanol production and blending.
  • Land Use and Food Security Concerns: Utilizing agricultural land for ethanol production can raise concerns about competing with food production and potentially impacting food security in some regions.
  • Competing Uses for Ethanol: Ethanol has various applications beyond fuel blending, such as in the production of alcoholic beverages, pharmaceuticals, and industrial chemicals. Competing uses can influence the availability and cost of ethanol for blending.

8. National Biofuel Policy

  • India has a National Policy on Biofuels, which was first introduced in 2009 and later revised in 2018.  The policy aims to promote the use of biofuels to reduce the country's dependence on fossil fuels, enhance energy security, promote sustainable development, and mitigate greenhouse gas emissions.
  • The policy encourages the blending of biofuels with conventional fossil fuels to create biofuel blends. It focuses on the production and utilization of first-generation biofuels like ethanol and biodiesel, as well as advanced biofuels made from non-food feedstock.
  • The policy sets targets for blending biofuels with conventional fuels in the transportation sector. For instance, the policy aimed for a 20% ethanol blending in petrol and a 5% biodiesel blending in diesel by 2030.
  • The policy emphasizes the development and promotion of second-generation biofuels, which are produced from non-food feedstock, such as agricultural residues, waste, and non-edible oils. This helps avoid competition with food crops and ensures sustainability.
  • The policy supports research and development initiatives in the biofuels sector, aimed at improving production processes, enhancing feedstock availability, and developing cost-effective technologies for biofuel production.
  • The policy focuses on creating a robust supply chain for biofuels, from feedstock cultivation and collection to biofuel production, distribution, and marketing. This helps in ensuring a smooth and efficient supply of biofuels across the country.
For Prelims: Ethanol Blending, E20 fuel, Greenhouse Gas Emission, National Policy on Biofuels, Food Security, and Gasoline.
For Mains: 1. Discuss the benefits and challenges of ethanol blending in transportation fuels as a strategy to reduce greenhouse gas emissions and promote renewable energy sources. (250 Words).
 

Previous year Question

1. According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC 2020)
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:
A. 1, 2, 5, and 6 only
B. 1, 3, 4, and 6 only
C. 2, 3, 4, and 5 only
D. 1, 2, 3, 4, 5 and 6
Answer: A
Source: The Indian Express
 

UNIFIED PENSION SCHEME (UPS)

 
 
1. Context
 
The pension system in India has undergone a significant transformation over the years with three major schemes, the Old Pension Scheme (OPS), New Pension Scheme (NPS), and the proposed Unified Pension Scheme (UPS), marking the different phases of government policy. Each scheme impacts retirees in different ways, with the OPS often being viewed as a more secure system compared to the NPS, which ties retirement funds to volatile market conditions. As the world witnesses a retreat from neoliberal policies, the debate around welfarism is being reignited. In this context, the UPS requires considerable rectification to ensure that it serves the interests of retirees effectively.
 
2. What is the Unified Pension Scheme (UPS)?
 
The Unified Pension Scheme (UPS) refers to a pension initiative proposed to streamline and unify various pension systems in India, aiming to provide a more consistent and efficient framework for pension benefits across different sectors. It is a part of broader reforms aimed at improving the sustainability and accessibility of pension systems for both government employees and individuals in the private sector
 
3. What are the key components of UPS?
 
  • The Unified Pension Scheme (UPS) includes five main components. Firstly, it guarantees that government employees will receive a lifetime monthly pension amounting to half of their average basic salary from the last 12 months of service before retirement, provided they have served a minimum of 25 years.
  • For those with less than 25 years of service, the pension benefits will be reduced proportionally, with a minimum pension set at ₹10,000 for those who have worked for at least 10 years.
  • In the event of an employee’s death, a family pension, amounting to 60% of the employee's pension, will be provided to their dependents. To protect against inflation, these pension payments will be adjusted based on consumer price trends for industrial workers, similar to the dearness relief given to current government employees.
  • Additionally, retirees will receive a lump-sum superannuation payout, along with gratuity benefits. This payout will be calculated as 1/10th of the employee’s monthly salary at the time of retirement for every six months of service
 
4. What is the difference between old and new pension scheme?
 
  • Government employees who joined before January 1, 2004, were covered under what is known as the Old Pension Scheme (OPS). However, this was replaced by the National Pension System (NPS) for employees who joined on or after that date.
  • The OPS guaranteed employees a pension equal to 50% of their last drawn salary, along with increases for dearness allowance.
  • It also provided a family pension of 60% of the last drawn pension and a minimum pension of ₹9,000 plus dearness allowance. At the time of retirement, employees could take 40% of their pension as a lump sum.
  • Additionally, pensioners who reached the age of 80 received a 20% increase in their monthly pension, with further increases every five years. Pensions were adjusted according to salary revisions recommended by the Pay Commission, with the most recent update implemented in 2016.
  • One major distinction between the OPS and both the NPS and the Unified Pension Scheme (UPS) is that OPS benefits were paid directly from the government’s treasury each month, meaning these obligations were "unfunded."
  • Unlike private sector employees, whose retirement savings are managed by the Employees’ Provident Fund Organisation, no contributions were made by either employees or employers under the OPS.
  • The NPS, introduced by the Atal Bihari Vajpayee government after lengthy discussions about the growing costs of civil servants' pensions, replaced the OPS's 'defined benefits' model with a 'defined contribution' approach.
  • Under the NPS, 10% of employees' salaries, matched by contributions from the employer (either the Central or State governments, as nearly all states adopted the NPS), were invested in market-linked securities, including equities, managed by professional fund managers.
  • At retirement, employees were required to use 40% of their NPS savings to purchase an annuity that would provide a monthly income. Although the government increased its contribution to the NPS to 14% in 2019, the NPS did not guarantee specific pension amounts, unlike the OPS.
  • The Unified Pension Scheme (UPS) aims to blend the defined benefit aspect of the OPS with the defined contribution model of the NPS. Employees will contribute 10% of their salary, while the government will contribute 18.5%, with the possibility of adjusting this rate in the future.
  • The government will cover any shortfall between the returns generated by these contributions and its pension obligations.
  • It is unclear whether the UPS will include adjustments based on future Pay Commission recommendations or provide higher pensions for those over 80 years of age, as the OPS did
 
5. Reasons for the Change
 
  • Before and after the introduction of the NPS, government employees expressed strong opposition due to the lack of guaranteed pension incomes and the disparity between the benefits received by employees who joined after 2004 compared to those who joined earlier. This discontent has grown in recent years, as some NPS participants with fewer years of service began retiring with comparatively lower pension benefits.
  • This unrest eventually became a political issue, with opposition parties like the Congress pledging to reinstate the OPS for state employees in the lead-up to some state elections and implementing this change after coming to power in a few states.
  • The Narendra Modi government, in its second term, opposed this reversal, arguing that it was fiscally irresponsible. However, in March 2023, Finance Minister Nirmala Sitharaman announced the formation of a committee to review the NPS for government employees, aiming to balance "their aspirations with fiscal prudence."
  • This committee was led by former Finance Secretary T.V. Somanathan, and while its report has not yet been made public, the decision to introduce the UPS has been influenced by the committee's discussions.
  • If there was any doubt about the connection between the UPS benefits and political considerations ahead of several state elections, Information and Broadcasting Minister Ashwini Vaishnaw addressed them.
  • While announcing the UPS, he pointed out that Congress-ruled states that had promised to return to the OPS had not yet implemented it, whereas Prime Minister Modi had delivered a solution aimed at ensuring "inter-generational equity."
6. Reaction of States
 
  • Central government employees have generally welcomed the provisions of the UPS, viewing it as recognition of the issues with the NPS. However, there are still concerns about the contributory nature of the UPS and the absence of a commutation option similar to the OPS.
  • Like the employee representatives, economists are also awaiting more detailed information about the structure and financial implications of the UPS. This year, the contributions to the UPS, including arrears for some employees, are anticipated to cost an additional ₹7,050 crore.
  • Over time, increases in dearness allowance will also require extra funding. Aditi Nayar, chief economist at ICRA, noted, “Guaranteed pensions will increase the government's committed expenditure in the future, while reducing uncertainty for employees. This needs to be factored into the fiscal consolidation plans going forward.”
  • Although the immediate effect will be the government's additional 4.5% contribution to the UPS, future pension payouts will be higher but could be managed through increased revenue growth
For Prelims: PFRDA, NPS, AMC, PF, ISS, SLW
For Mains:
1.What is National Pension System and discuss the new withdrawal rules (250 words)
2.What is SLW and explain its Benefits (250 words)
 3.What is PFRDA and Critically analyse the functions and new regulations of PFRDA  (250 words) 

 

Source: The Hindu
 

GULF COOPERATION COUNCIL (GCC)

 
 
1. Context
 
During the first India-GCC Joint Ministerial Meeting for Strategic Dialogue, held in Riyadh on September 9, the two sides emphasised on the significance of bolstering cooperation across various sectors, including trade, investments, energy, infrastructure, and healthcare. 
 
2. Gulf Cooperation Council (GCC)
 
  • The Cooperation Council for the Arab Gulf States, more commonly known as the Gulf Cooperation Council (GCC), stands as one of the most influential regional organizations in the Gulf and the broader Middle East.
  • Formed in 1981, the six member countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE—came together against the backdrop of a turbulent political climate to establish collective strategies for addressing political, security, and economic challenges faced by the region.
  • Over time, the primary focus of the GCC has shifted, and internal differences have occasionally surfaced, as seen during the Qatar crisis from 2017 to 2021. Despite these challenges, the GCC remains arguably the most successful regional organization in the Middle East.
  • While disagreements over political and security objectives persist, economic cooperation among member states has been robust. In recent years, the GCC has made notable progress toward creating a common market, establishing a monetary union, and undertaking joint infrastructure and connectivity projects.
  • The GCC states have also sought to build partnerships with key global economies, organizing summits with the United States, China, Japan, South Korea, Central Asia, and the Association of Southeast Asian Nations (ASEAN) to bolster economic ties.
  • These efforts are part of a broader initiative to implement economic reforms in anticipation of a post-oil future, a process that has gained momentum since the Arab Spring and the COVID-19 pandemic
3. First India-GCC Summit
 
  • The inaugural India-GCC Joint Ministerial Meeting for Strategic Dialogue is a notable step in the ongoing efforts to strengthen the economic partnership between India and the GCC, focusing on areas such as trade, investments, energy collaboration, infrastructure development, connectivity, food security, and healthcare.
  • The meeting was co-chaired by India's External Affairs Minister, S. Jaishankar, and the President of the GCC Ministerial Council, Qatar's Prime Minister and Foreign Minister, Mohammed bin Abdulrahman bin Jassim Al Thani.
  • It was attended by the foreign ministers of all GCC member states. During the meeting, a decision was made to establish a Joint Action Plan for 2024-2028, aimed at undertaking collaborative activities in various sectors, including health, trade, security, agriculture, food security, transportation, energy, and culture, with the flexibility to incorporate additional areas through mutual agreement
4.Significance of this partnership
 
  • The summit was particularly significant as it aimed to strengthen the already robust India-GCC relationship, with key areas of focus including trade, business, investments, energy and food security, defense, military and counterterrorism, as well as enhancing people-to-people connections, which form the foundation of bilateral relations.
  • The GCC region hosts one of the largest expatriate Indian communities globally, estimated at around 8.5 million, making it the biggest concentration of Indian citizens outside their home country.
  • Over time, numerous Indians have found substantial employment opportunities in the thriving economies of the GCC, making this region the largest contributor to the nearly $120 billion in remittances sent to India in 2023.
  • The GCC also ranks as one of India's most significant trading partners. For instance, in 2023-24, bilateral trade between India and the GCC amounted to $161.82 billion, accounting for 14.22% of India's total foreign trade.
  • Although the trade balance currently favors the GCC, this is primarily due to India's substantial imports of oil and gas from the region. Out of the total imports valued at $105.49 billion in 2023-24, $61.35 billion, or 58%, were oil and gas imports from the GCC.
  • These figures highlight the critical role the GCC plays in India's energy security. For decades, GCC nations have been the primary suppliers of energy to India, contributing nearly 50-60% of India's hydrocarbon imports until recently.
  • As India diversifies its energy sources to reduce risks associated with political and security disruptions, the GCC's share in oil and gas supplies has declined to 28% in 2023-24.
  • Nevertheless, the bloc continues to be vital for India's energy security, with Saudi Arabia, the UAE, Qatar, and Kuwait remaining among India’s top 10 suppliers of crude oil and gas.
  • Moreover, the GCC countries are among the most important sources of foreign direct investment (FDI) for India. Between April 2000 and June 2024, India received a combined FDI inflow of $24.66 billion from the GCC, excluding substantial portfolio investments. Major GCC companies such as ARAMCO, ADNOC, and EMAAR have invested in various sectors of the Indian economy.
  • Business relations are not one-sided; many Indian companies have become prominent investors, service providers, and market leaders within the GCC economies. For example, the Lulu Hypermarket chain has emerged as a major player in the retail sector. Additionally, Indian companies like TCS, Wipro, Larsen & Toubro, and Shapoorji-Pallonji have established a strong presence in their respective industries within the GCC market
5. India-GCC Free Trade agreement
 
  • Discussions regarding an India-GCC Free Trade Agreement (FTA) have accelerated in recent years, particularly following the signing of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The groundwork for an FTA was initially established with a framework agreement in 2004, followed by two rounds of negotiations in 2006 and 2008.
  • However, the onset of political challenges in the region, especially following the Arab Spring of 2010-11, caused a pause in the FTA discussions.
  • The intention to revive the India-GCC FTA was announced in November 2022, and officials have since been engaged in exploring pathways to finalize the agreement.
  • Despite ongoing discussions, the FTA has not yet been signed, although both sides continue to express a strong interest in moving forward with the negotiations
6. Security and defence ties
 
  • In addition to trade and economic relations, India and the GCC have strengthened their defense and security cooperation, focusing on counterterrorism, maritime, and coastal security. Joint military exercises and training involving various branches of their respective armed forces have become central to this bilateral defense collaboration.
  • In recent years, India has engaged closely with GCC nations, particularly the UAE and Saudi Arabia, to boost defense trade, including exploring opportunities for potential joint manufacturing, considering the growing defense market in the Middle East and North Africa
 
7. Strategic Convergence
 
  • The GCC stands as a key regional bloc in the Middle East. Despite internal differences, its member states have collaborated to establish an economic union aimed at fostering growth and addressing challenges arising from evolving global economic and political landscapes. As the international order shifts and the economic focus moves towards Asia, GCC nations have also begun to cultivate partnerships with emerging Asian economies.
  • Beyond mutual economic interests, there are shared goals in tackling pressing issues such as climate change, reducing carbon emissions, developing clean and renewable energy sources, ensuring food and health security, and advancing the digital economy, AI, machine learning, and space exploration. Given their geographical proximity, many current and future challenges facing India and the GCC can be addressed collaboratively, enhancing their strategic alignment.
  • This strategic alignment is further influenced by changes in the international landscape and various political and security developments globally. Events such as the conflicts in Ukraine and Gaza, proxy tensions between Iran and Israel, disputes in the South China Sea and Taiwan Strait, and instability in the Afghanistan-Pakistan region underscore the necessity for deeper cooperation between India and the GCC.
  • In summary, the relationship between India and the GCC has evolved from a primary focus on energy security, bilateral trade, and the presence of Indian expatriates to a broader partnership aimed at collaboratively addressing present and future challenges.
  • Key areas of focus that strengthen ties between India and the GCC include economic prosperity, land and maritime security, territorial integrity, food and health security, climate change, cultural collaboration, and leveraging technological advancements for the benefit of their populations, as highlighted during the first India-GCC Joint Ministerial Meeting in Riyadh. These strategic alignments are central to the deepening relationship between India and the GCC
 
 
For Prelims: SCO, NATO, India, Central Asia, United States, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, terrorism, 
For Mains: 
1. Examine the potential challenges and opportunities for India as a full member of the SCO, highlighting its implications for India's political, economic, and security interests.  (250 Words)
 
 
Previous Year Questions
 
1. Shanghai Cooperation Organisation (SCO) Heads of State Summit was held on 10th November, 2020 in the video conference format. The Summit was hosted by: (OPSC OAS 2021) 
A. Russia               B. India               C. Kazakhstan             D.  Uzbekistan
 
Answer: A
 
2. The Summit of the Shanghai Cooperation Organisation (SCO) was hosted by which country from 15-16 September 2022? (Rajasthan CET 2023)
A. Kazakhstan         B.  Tajikistan        C.  Uzbekistan           D. India
 
Answer: C
 
3. The area known as 'Golan Heights' sometimes appears in the news in the context of the events related to  (UPSC  2015)
A. Central Asia          B. Middle East              C. South-East Asia          D. Central Africa
 
Answer: B
 
4. Siachen Glacier is situated to the (UPSC 2020) 
A. East of Aksai Chin       B. East of Leh         C. North of Gilgit       D. North of Nubra Valley
 
Answer: D
 
Source: Indianexpress

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