Comprehensive News Analysis - 22 January 2016

Useful News Articles

A. GS1 Related:

— Nothing here today, folks! —

.

B. GS2 Related:

— Nothing here today, folks! —

Plenty of news on Vemula, some updates on Pakistani terror and diplomacy. But nothing new today.

.

C. GS3 Related:

— Nothing here today, folks! —

Again, Rupee is still falling, China is still falling, Sensex is still falling and bit of talk of investments, some reports from WEF, Davos. But nothing significant. Finish your newspaper in 30 mins today! 🙂

1. Some nice Numbers: Climate Change, Retail in India, Defining Start-Ups, Indian Exports Fall

D. Important Editorials: A Quick Glance

The Hindu:

1. Internal Terror in Pakistan

Topic: IR, Paper III

Category: Neighbors, IR, Border

Key points:

– The attack by terrorists on Bacha Khan University in northwestern Pakistan, which left at least 21 people dead, raises serious questions about Islamabad’s anti-terror strategy.

– The assault demonstrates that despite a year-long enhanced counterterror offensive by the Army, Tehreek-e-Taliban Pakistan (TTP) retains the capacity to inflict lethal harm.

– Pakistan remains caught between its own growing internal security challenges and a flawed geopolitical strategy. The way forward for Islamabad is to come out of this mess and join other regional powers in a consistent fight against all forms of terrorism.

Related Article: How Pak can beat Terror

.-.

Indian Express:

Others:

1. DNA: China will become old before it becomes rich?

Topic: Economy, Paper III

Category: Demographic Dividend

Key points:

– The demographic window is closing + even proper stable institutions are not yet in place…

.

E. Concepts-in-News: Related Concepts to Revise/Learn:

i. Demographic Window + demographic Dividend

ii. NEER + REER

iii. Trade Deficit + Balance of Trade

.

F. Fun with Practice Questions 🙂

Question 1: Which of the statement below about Demographic Window is incorrect?

1. Generally, the demographic window of opportunity lasts for 50–60 years depending upon the country.
2. The UN Population Department has defined it as period when the proportion of children and youth under 15 years falls below 30 per cent and the proportion of people 65 years and older is still below 15 per cent.
3. Societies who have entered the demographic window have smaller dependency ratio
4. Demographic window is defined to be that period of time in a nation’s demographic evolution when the proportion of population of working age group is particularly prominent

Question 2:Which of the following statement is correct about Demographic Dividend?

1. Demographic dividend refers to a period – usually 20 to 30 years
2. Demographic dividend, as defined by the United Nations Population Fund (UNFPA) means, “the economic growth potential that can result from shifts in a population’s age structure
3. Demographic shift does not initiates the demographic dividend
4. Countries should recognize and develop the potential of young people to reap the benefits of a demographic dividend

Choices:

1. 1, 3, 4
2. 1, 2, 4
3. 2, 3, 4
4. 4, 1, 2

Question 3: Which of the statement related to NEER is correct:

1. The NEER represents the relative value of a home country’s currency compared to the other major currencies being traded (U.S. dollar, Japanese yen, euro, etc.).
2. A higher NEER coefficient (above 1) means that the home country’s currency will usually be worth more than an imported currency
3. A lower coefficient (below 1) means that the home currency will usually be worth less than the imported currency.
4. All of the above.

Question 4: Which of the following statement is incorrect about REER?

1. This exchange rate is used to determine an individual country’s currency value relative to the other major currencies in the index, as adjusted for the effects of inflation.
2. All currencies within the said index are the major currencies being traded today: U.S. dollar, Japanese yen, euro, etc.
3. This is also the value that an individual consumer will pay for an imported good at the consumer level.
4. This price will not include any tariffs and transactions costs associated with importing the good.

Question 5:Consider the factors that can affect the balance of trade:

1. The cost and availability of raw materials, intermediate goods and other inputs
2. Exchange rate movements
3. Multilateral, bilateral and unilateral taxes or restrictions on trade
4. Tariff barriers such as environmental, health or safety standards

Which of the above statement is incorrect?

Archives:

You can check out some more recent News Analysis sections to build even more context

21st January 2016: Daily News & Current Affairs Analysis

20th January 2016:Daily News & Current Affairs Analysis

19th January 2016:Daily  News & Current Affairs Analysis

18th January 2016:Daily News & Current Affairs Analysis

17th January 2016:Daily News & Current Affairs Analysis

16th January 2016: Daily News & Current Affairs Analysis

15th January 2016: Daily News & Current Affairs Analysis

List of all DNA Articles

Practice More: Enroll for India’s Largest All-India Test Series