MONETARY POLICY ON INEQUALITY

1. Context 

2. Key Points

• The Reserve Bank of India (RBI) maintained its key interest rate at 6.5% for the 10th consecutive monetary policy review since April 2023, signaling a potential rate cut in the near future by adopting a “neutral” policy stance.
•  
  A majority of five out of six members of the Monetary Policy Committee (MPC), which convened from October 7 for three days, voted to keep the interest rates unchanged, with three new external members participating.
• However, the decision to shift the policy stance from “withdrawal of accommodation” to “neutral” was unanimously supported by the committee. They also reaffirmed their commitment to ensuring inflation aligns with the target, while fostering economic growth.
   
• The RBI maintained its GDP growth projection of 7.2% and its average inflation estimate of 4.5% for 2024-25, viewing risks as balanced. However, the central bank revised its inflation forecast for the second quarter down from 4.4% to 4.1%, though it expects inflation to rise to 4.8% in the October-December quarter.
   
• RBI Governor Shaktikanta Das stated that the macroeconomic conditions of inflation and growth are currently well-balanced. He warned that inflation, having moderated recently, could increase again in September and remain high in the short term due to base effects and other factors.
   
• He added that significant efforts have been made to bring inflation closer to the target within the tolerance band, compared to the elevated levels two years ago. With domestic growth holding steady and both private consumption and investment increasing, the RBI has room to concentrate on ensuring inflation moves steadily toward the 4% target

3. Reasons for raising interest rates

• The RBI has been doing this in its bid to contain inflation.
• RBI hopes that a higher EMI on an existing loan or a costlier new loan would dissuade enough people from borrowing money to fund future economic activity.
• The resultant slowdown in activity and demand for money will likely bring down inflation, which is essentially described as "too much money chasing too few goods".
• Since the RBI, which is the main agency charged with the responsibility of maintaining price stability in the Indian economy, cannot increase the supply of goods and services such as crude oil, cabbage and haircuts, it acts in a manner that reduces the demand for all goods and services.
• This week, too, it is expected that the RBI will end up raising the repo rate by 2 basis points.
• But just like the past two repo rate hikes in February and December, this decision is unlikely to be a unanimous one; More importantly, it will likely be widely debated for soundness.
• That's because both within the MPC and outside, many believe that any further rate hikes will result in crimping India's economic growth and worsening unemployment.

4. Pros and Cons of raising interest rates

• The main problem with hiking interest rates to contain inflation that may be getting caused by costlier crude oil (due to war or some geopolitical tension) or costlier vegetables (due to some unseasonal rains) is that the hike per se cannot improve the supply of those goods and services.
• Raising rates is, in no uncertain terms, a blunt instrument. It achieves the goal of containing prices by killing growth and employment. Many have questioned this approach in the past.
• The standard textbook answer to this criticism is: A central bank does this not so much to address the actual inflation which it can't control if it is driven by supply constraints but to prevent the  "Second-order effects" of high inflation.
• The second-order effects refer to a spike in people's expectations of future inflation. 
• This matters because if people do not see inflation as a minor blip and instead view inflation as here to stay and likely to worsen, they will do what any normal person should be expected to do: Ask their boss for a salary increment.
• But, this can quickly turn into a self-fulfilling prophecy. If workers are allowed to demand higher wages in anticipation of higher inflation, then businesses will start charging higher prices in anticipation of higher input costs (real wages).
• Lo and behold, the economy will find itself in the middle of persistently high inflation.
• It has been shown that once inflation expectations become "unanchored" in this manner, policymakers find it quite tough to bring down inflation.

 5. The problem with breaking this cycle of inflation expectations

• The trouble is, and this is one of the relatively ignored aspects of monetary policy, that inflation control by this method relies heavily on denying the common people, who are most affected by high prices, the chance to raise their wages in line with the already high prices of the first round.
• Worse still, higher interest rates make it difficult for the relatively worse off to get cheap credit to buy a home and create wealth.
• In essence, a contractionary monetary policy the kind being practised the world over at present essentially increases inequality in an economy.
• To be sure, inequality is the distance between the haves and the have-nots in any economy.
• In an academic paper published in January by the Federal Reserve, the board shows that " equality of access of the most important asset class for most households are also dependent on monetary policy.
• The tighter policy leads to greater inequality in ownership, in contrast to the literature that finds reduced wealth inequality based on asset prices.
• The effects of homeownership on wealth take time to accumulate, so the influence of this access channel on wealth inequality would accrue only with a considerable lag.
• When the US Central Bank raises interest rates, it places something as basic as home ownership out of the reach of common people.
• This reduces the people's ability to have access to an asset that creates wealth and this "wealth inequality" (relative to the wealthy) hits the poorer people with a lag.

6. Raising interest rates creates inequality

• From the 2008 Global Financial Crisis until the war between Russia and Ukraine, most central banks, most notably the US Fed, practised an expansionary or loose monetary policy. 
• Essentially, this meant interest rates were kept low (almost near zero in the case of the US Fed) while flooding the economy with additional money in a bid to spur economic activity.
• But during this period, there was growing criticism that low-interest rates were leading to higher wealth inequalities.
• When interest rates are low, savers barely get any rewards even as cheap credit-fuelled spending, profiting companies of different kinds. 
• Under the circumstances, most of the capital appreciation happens in the stock markets.  Most of the stocks in the economy are owned by rich
• The view that low-interest rates widen inequalities is quite widely held even among experts associated with the IMF and the US Fed.

7. Central bank's action 

• Given the pernicious effects on inequality of both a contractionary as well as an expansionary monetary policy.
• The widening inequalities are a very long-term trend, one that has been decades in the making and depends on deep structural changes in any economy such as globalisation, technological progress, demographic trends etc.
• By comparison to the influence of these long-term factors, the effects of monetary policy on inequality are almost certainly modest and transient.
• Monetary policy, if properly managed, promotes greater economic stability and prosperity for the economy as a whole, by mitigating the effects of recessions on the labour market and keeping inflation low and stable.
• Even if it were true that the aggregate economic gains from effective monetary policies are unequally distributed, that would not be a reason to forego such policies are unequally distributed, that would not be a reason to forego such policies.
• Rather, the right response is to rely on other types of policies to address distributional concerns directly such as fiscal policy taxes and government spending programmes and policies aimed at improving workers' skills.
• Policies designed to affect the distribution of wealth and income are appropriate, for the province of elected officials, not the Fed.

8. The Way Forward

• More research is needed to untangle the issue and the role of monetary policy and the job of central bankers.
• The uncertain distributional impact of monetary policy should not prevent the Fed from pursuing its mandate to achieve maximum employment and price stability, thereby providing broad benefits to the economy.
• Other types of policies are better suited to address legitimate concerns about inequality.

For Prelims & Mains

Previous Year Questions

Source: The Indian Express

 

ASEAN

1. Context

Prime Minister Narendra Modi will visit Laos on Thursday and Friday to attend the 21st ASEAN-India and the 19th East Asia Summits.

2. About the ASEAN and East Asia Summit?

ASEAN (Association of Southeast Asian Nations)

• ASEAN is a regional intergovernmental organization consisting of ten countries in Southeast Asia.
• It was founded on August 8, 1967, to promote political and economic cooperation, regional stability, and social progress among its member states.
• The founding members of ASEAN are Indonesia, Malaysia, the Philippines, Singapore, and Thailand, with Brunei, Vietnam, Laos, Myanmar, and Cambodia joining later.
• ASEAN holds regular meetings and summits to discuss regional issues, economic integration, and diplomatic cooperation.

Image Source: The Research Gate

East Asia Summit (EAS)

• The East Asia Summit is a broader regional forum that includes ASEAN member states along with eight other countries, namely Australia, China, India, Japan, New Zealand, South Korea, Russia, and the United States.
• The EAS was established in 2005 to provide a platform for discussions on strategic, political, and economic issues affecting East Asia.
• It addresses a wide range of regional and global challenges, from security and trade to environmental issues.

Image Source: Twitter

3. The Rationality behind the ASEAN and East Asia Summit 

• Promote regional peace and stability. The EAS provides a forum for leaders to discuss and address common security challenges, such as terrorism, piracy, and natural disasters.
• Foster economic growth and development. The EAS can help to promote trade and investment, and to facilitate economic integration in the region.
• Address non-traditional security challenges. The EAS can also address non-traditional security challenges, such as climate change, pandemics, and human trafficking.

4. About ‘multilateralism’ 

Multilateralism is a principle of international relations that emphasizes cooperation between countries. This cooperation can take many forms, such as diplomacy, trade agreements, and international organizations. There are several benefits to multilateralism including

1. It can help to promote peace and stability by encouraging countries to work together to resolve their differences.

2. It can help to promote economic growth by reducing barriers to trade and investment. 

3. It can help to address common challenges, such as climate change and terrorism.

4.1. Concept of Multilateralism

• The concept of multilateralism emphasizes diplomacy, negotiation, and cooperation among nations to achieve collective objectives.
• It rests on equality, non-interference in internal affairs, and respect for international law.
• Multilateral institutions like the United Nations, the World Trade Organization, and regional organizations such as ASEAN play significant roles in facilitating multilateral cooperation.

4.2. Purpose of Multilateralism

• Foster international cooperation and dialogue.
• Promote peace and security by addressing conflicts through diplomacy and collective security mechanisms.
• Facilitate economic integration and trade through agreements like the World Trade Organization (WTO).
• Address global challenges such as climate change, public health crises, and terrorism through coordinated efforts.
• Uphold international law and human rights.
• Create a more stable and predictable international system.

4.3.  About post-Cold War multilateralism

• Post-Cold War multilateralism refers to the practice of cooperation between countries in the post-Cold War era.
• This cooperation is often seen as a way to address common challenges and promote peace and stability.
• There are several reasons why multilateralism has become more important in the post-Cold War era.

1. The end of the Cold War led to a decline in superpower rivalry, which created an opportunity for countries to cooperate more closely.
2. The rise of new challenges, such as terrorism and climate change, has made it clear that no country can address these challenges alone.
3. The increasing interconnectedness of the world economy has made it more important for countries to cooperate on trade and investment issues.

5. Unilateralism and Multilateralism in International Relations

Unilateralism

• Unilateralism is an approach in international relations where a nation acts independently and without seeking the approval or cooperation of other countries.
• This can include making decisions, taking military action, or implementing policies without regard for international consensus.
• Unilateralism can be seen as a more assertive or isolationist stance.

Multilateralism

• Multilateralism involves collaboration and cooperation among multiple nations to address global challenges.
• It values diplomacy, negotiation, and shared responsibilities. Multilateral approaches are often considered more inclusive and consensus-based.

6. Is multilateralism declining?

• There is some evidence to suggest that multilateralism is declining. For example, the number of new international organizations has declined in recent years, and there has been a rise in unilateralism, particularly in the United States.
• However, there are also many examples of countries cooperating multilaterally to address common challenges.
• Ultimately, the future of multilateralism will depend on the willingness of countries to work together to address the challenges of the 21st century.

For Prelims: ASEAN, East Asia Summit, Post-Cold War,  multilateralism, G20 summit, United Nations, the World Trade Organization, Unilateralism, For Mains:  1. Discuss the concept and purpose of post-Cold War multilateralism. What factors have contributed to the increased emphasis on multilateral cooperation in the post-Cold War era? (250 Words)

 

 

Previous Year Questions   1. India is a member of which among the following? (UPSC 2015)  1. Asia-Pacific Economic Cooperation 2. Association of South-East Asian Nations 3. East Asia Summit Select the correct answer using the code given below. A. 1 and 2 only        B. 3 only        C. 1, 2 and 3           D. India is a member of none of them   Answer: B   2. Recently, the USA decided to support India's membership in multilateral export control regimes called the "Australia Group" and the "Wassenaar Arrangement". What is the difference between them? (UPSC 2011) 1. The Australia Group is an informal arrangement which aims to allow exporting countries to minimize the risk of assisting chemical and biological weapons proliferation, whereas the Wassenaar Arrangement is a formal group under the OECD holding identical objectives. 2. The Australia Group comprises predominantly of Asian, African and North American countries, whereas the member countries of Wassenaar Arrangement are predominantly from the European Union and American continents. 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   Answer: D   3. With reference to the "Look East Policy" of India, consider the following statements (UPSC 2011) 1. India wants to establish itself as an important regional player in East Asian affairs. 2. India wants to plug the vacuum created by the termination of the Cold War. 3. India wants to restore the historical and cultural ties with its neighbours in Southeast and East Asia. Which of the statements given above is/are correct? A. 1 only               B. 1 and 3 only           C. 3 only        D. 1, 2 and 3   Answer: B   4.With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022) 1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. 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 Answer: C   5. In which one of the following groups are all the four countries members of G20? (UPSC 2020)  A. Argentina, Mexico, South Africa and Turkey B. Australia, Canada, Malaysia and New Zealand C. Brazil, Iran, Saudi Arabia and Vietnam D. Indonesia, Japan, Singapore and South Korea Answer: A   6. With reference to the United Nations General Assembly, consider the following statements: (UPSC 2022)  1. The UN General Assembly can grant observer status to the non-member States. 2. Inter-governmental organisations can seek observer status in the UN General Assembly. 3. Permanent Observers in the UN General Assembly can maintain missions at the UN headquarters. 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   Answer: D   7. In the Context of which of the following do you sometimes find the terms 'amber box, blue box and green tax' in the news? (UPSC CSE 2016) A. WTO Affairs B. SAARC affairs C. UNFCC affairs D. India-EU negotions on FTA Answer-A 8. In the context of the affairs which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently? (UPSC 2010) A. United Nations Environment Program B. World Trade Organization Agreement C. ASEAN-India D. Free Trade G-20 Summits Answer: B 9. Consider the following statements: (UPSC 2017) 1. India has ratified the Trade Facilitation Agreement (TFA) of the WTO 2. TFA is a part of WTO's Bali Ministerial Package of 2013 3. TFA came into force in January 2016 Which of the statements given above is/are correct? A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3 Answer: A 10. Which of the following are the main functions of WTO? (UPSC ESE 2020)  1. To organize meetings of member countries to arrive at trade agreements covering international trade 2. To ensure that member countries conduct trade practices as per agreement agreed upon and signed by the member countries 3. To provide a platform to negotiate and settle disputes related to international trade between and among member countries A. 1 and 2 only          B. 1 and 3 only      C.  2 and 3 only            D.  1, 2 and 3   Answer: D   11. In a unilateral system of tolerance, tolerance is allowed on which side? (HPCL Engineer Mechanical 2021)  A. one side of the nominal size B. no side of the nominal size C. Both sides of the actual size D. One side of the actual size   Answer: A   12. Which of the following is a bilateral element? (UPSSSC JE Electrical 2016) A. constant current source B. constant voltage source C. capacitance D. None of these   Answer: C

 

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)

1. Context

The Calcutta High Court has sought a response from the Union and West Bengal governments over the stalled payment of unemployment allowance to Mahatma Gandhi National Rural Employment Guaran- tee Scheme (MGNREGS) beneficiaries

 

2. About the National Level Monitoring (NLM) report

• The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
• The report is based on field visits and interviews with stakeholders at the grassroots level.
• The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
• The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.

The NLM report typically identifies the following areas:

• The coverage of rural development programs
• The quality of implementation of rural development programs
• The impact of rural development programs on the lives of rural people

The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.

 

3. The findings of the NLM report

• In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
• In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
• In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
• The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
• The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.

 

4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.

4.1. Mandate and Goals

• The mandate of MGNREGA is to provide employment and ensure food security for rural households.
• The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
• The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity. 

4.2. Core Objectives 

•  The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
• The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
• MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
• The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.

4.3. Key Stakeholders 

• Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
• Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
• The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
• The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
• Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.

4.4. Role of Gram Sabha and Gram Panchayat

• The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
• The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.

4.5. Issues with MGNREGA

•  Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
•  There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
• Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
• Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
• Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
• Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.

5. Conclusion

MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.

 

For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),  For Mains:  1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)

 

 

 

Previous Year Questions   Prelims 1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households (b) Adult members of below poverty line (BPL) households (c) Adult members of households of all backward communities (d) Adult members of any household Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012) Deprivation of education, health, assets and services at household level Purchasing power parity at national level Extent of budget deficit and GDP growth rate at national level Select the correct answer using the codes given below: (a) 1 only             (b) 2 and 3 only         (c) 1 and 3 only             (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013) Regional Rural Banks National Bank for Agriculture and Rural Development Land Development Banks Select the correct answer using the codes given below: (a) 1 and 2 only         (b) 2 only                     (c) 1 and 3 only                (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012) By setting up a large number of new manufacturing industries and agribusiness centres in rural areas By strengthening ‘self-help groups’ and providing skill development By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipment free of cost to farmers Select the correct answer using the codes given below: (a) 1 and 2 only          (b) 2 only                        (c) 1 and 3 only              (d) 1, 2 and 3 Answer: B  5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States   Answer: A   Mains   1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)

 

Source: indianexpress

 

H5N1

1. Context 

Oceania is the last region of the world free of the H5N1 clade 2.3.4.4b avian influenza that has killed hundreds of millions of birds and tens of thousands of mammals since appearing in Asia, Europe, and Africa in 2020, littering beaches with corpses and upending the agricultural industry.

2. Avian Influenza

• Avian Influenza, also known as Avian or Bird Flu, is a form of influenza caused by a virus found in birds.
• Avian Flu is similar to variants found in animals and humans – caused strains of influenza that have adapted to specific hosts.

3. Avian Influenza Type A viruses

• Type A viruses are classified based on two proteins on their surfaces – Hemagglutinin (HA) and Neuraminidase (NA). There are about 18 HA subtypes and 11 NA subtypes.
• Several combinations of these two proteins are possible e.g., H5N1, H7N2, H9N6, H17N10, H18N11, etc.
• All known subtypes of influenza A viruses can infect birds, except subtypes H17N10 and H18N11, which have only been found in bats.

Image Source: The Hindu

4. Effect on Birds

• Although avian influenza has different subtypes, H5N1 is a highly pathogenic subtype that causes mortality in birds.
• Since 2022, the virus has infected over 100 million birds across the globe, resulting in the deaths of over 50 million and the culling of millions of poultry.
• Unlike previous outbreaks of highly pathogenic subtypes of avian influenza, H5N1 is heavily impacting wild bird species, including many which were on the verge of extinction. 
• While it is difficult to ascertain how many wild birds have been affected by the virus, a significant impact has been seen in eagles, pelicans, geese, waterfowl, gulls, falcons, and shorebirds, in addition to the highest possible impact on poultry seen till date, at least in the U.S.
• The impact of H5N1 on wild bird populations has varied depending on several factors, such as the level of exposure, geographical locations, and migratory patterns of the affected species. 
  
• High mortality in wild birds due to the virus could lead to significant ecological consequences, including the vulnerability of predators and alterations in species composition in affected ecosystems, and therefore a possible impact on biodiversity not just limited to avian species. 
• It has raised concerns regarding the spread of the virus among critically endangered avian populations.  

5. Spreading to animals

• The highly contagious H5N1 virus can also occasionally spill over from birds to animals through direct or indirect contact with infected birds or their droppings. 
  
• Worryingly, there have been several reports on the spillover of H5N1 to mammals during the current outbreak from different countries, infecting species such as sea lions, minks, foxes, wild bears, and skunks, apart from domestic animals such as dogs and cats.
• In 2023 alone, H5N1 caused the deaths of over 3,000 sea lions in Peru. In a recent yet ­to­ be peer ­reviewed study, scientists found that the virus could efficiently spread between ferrets in the laboratory.
  
• The only known cases of the virus spreading between mammals were reported in minks that were raised in close confinement on a farm in Spain.
• The transmission of H5N1 from birds to mammals is rare, but when it does occur, it can be a cause for concern, as the virus could accumulate mutations and acquire the ability to potentially initiate human outbreaks.
• H5N1 has a high mortality rate of over 60% in humans and is primarily transmitted to humans through close contact with infected birds or animals, either through handling infected poultry or exposure to contaminated environments.

6. Enhanced Measures

• As the current H5N1 outbreak continues unabated with devastating impact on the avian population globally, and with significant ecological and economic consequences, the time has never been better to initiate efforts for preparedness towards building better, more efficient vaccines for avians and humans.
• Genomic surveillance should be done to map the continued evolution of the virus.
• Moreover, enhanced biosecurity measures are required to protect both animal and public health.

For Prelims: Avian influenza H5N1, Bird Flu, Hemagglutinin (HA) and Neuraminidase (NA), influenza A viruses, Genomic surveillance, Pathogens, and Viruses.

Previous year Questions

1. H1N1 virus is sometimes mentioned in the news with reference to which one of the following diseases? (UPSC 2015) A. AIDS B.  Bird flu C.  Dengue D.  Swine flu Answer: D 2. Consider the following statements : (UPSC 2010) 1. Every individual in the population is an equally susceptible host for Swine Flu. 2. Antibiotics have no role in the primary treatment of Swine Flu. 3. To prevent the future spread of Swine Flu in the epidemic area, the swine (pigs) must all be culled. Which of the statements given above is/are correct? A. 1 and 2 only B. 2 only C. 2 and 3 only D. 1, 2 and 3 Answer: A 3. Which of the following statements is/are correct? (UPSC 2013) 1. Viruses lack enzymes necessary for the generation of energy. 2. Viruses can be cultured in any synthetic medium. 3. Viruses are transmitted from one organism to another by biological vectors only. Select the correct answer using the codes given below. A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3 Answer: A

Source: The Hindu