17 Dec 2020: UPSC Exam Comprehensive News Analysis

B. GS 2 Related

Category: INTERNATIONAL RELATIONS

1. U.S. puts India on ‘currency manipulators’ monitoring list

Context:

The U.S. Treasury has added India in its Currency Manipulator Watchlist.

Details:

• It has labelled Switzerland and Vietnam as “currency manipulators”.
  • It said that in the year through June 2020 Switzerland and Vietnam had intervened heavily in currency markets to prevent effective balance of payments adjustments.
• It now added India to its watch list.
  • The watch list comprises countries it suspects of taking measures to devalue their currencies against the dollar.
• With three new additions, the watch list has hit 10.
  • They are Taiwan, Thailand, India, China, Japan, Korea, Germany, Italy, Singapore and Malaysia.
• The U.S. said that India and Singapore had also intervened in the foreign exchange market in a sustained, asymmetric manner but did not meet other requirements to warrant designation as manipulators.
  • India breached the first and the third benchmarks.
  • On the second, on a four-quarter basis, the country’s current account surplus remained below the threshold level.

Note:

• While India had been included in the watch list in 2018, it was removed in 2019.

Implications for India:

• The surge of global liquidity added by global central banks have led to strong inflows into emerging economies like India.
• In the past, a sudden appreciation in the rupee had led to disruptive corrections. To prevent this sudden appreciation, the RBI has absorbed a large chunk of forex inflows.
• With India on the watchlist, it could lead to RBI being somewhat guarded on aggressive forex intervention.

E. Editorials

Category: INTERNATIONAL RELATIONS

1. The many challenges for WTO

Context:

• The World Trade Organization (WTO) is on the cusp of making history; it is soon going to be led by a woman, as both the contending candidates for the Director-General (D-G) post are women, from Nigeria and South Korea respectively.
• The newly elected D-G will have a lot on her plate and will need to display perseverance and outstanding negotiating skills for balancing the diverse and varied interests of the 164 member countries.

Details

• The post-COVID-19 global economic landscape will throw up diverse challenges and the key challenge would be in ensuring that the fallouts of the pandemic do not end up threatening the multilateral trading system.
• The DG will have to expend a lot of time and energy in trying to reconcile the competing multilateral and national visions for the organisation to function smoothly.
• Working towards bringing in reforms that will help revive the global economy will be a huge challenge and it is here the role of the DG and the skills will be tested.

Need for reforms at the WTO

1. Doha Development Agenda
   1. The Doha Round is the latest round of trade negotiations among the WTO membership.
   2. It aims to achieve major reforms of the international trading system through the introduction of lower trade barriers and revised trade rules. The work programme covers about 20 areas of trade.
   3. The Round is also known semi-officially as the Doha Development Agenda as the fundamental objective is to improve the trading prospects of developing countries.
   4. The Doha Development Agenda has been at the centre of the disagreement between the developed and the developing world.
   5. The developed countries have tried to hijack the negotiations to bring about a new agenda that includes, amongst others, e-commerce, investment facilitation, MSMEs and gender.
2. WTO Appellate body
   1. The Appellate Body is an important element of the Dispute Settlement System of the World Trade Organization (WTO), hearing appeals against the findings of the panel established by the Dispute Settlement Body (DSB).
   2. The Appellate Body (AB) ideally consists of seven members including the Chairman, but in 2019, this body spiralled into a crisis as two out of its three remaining members’ four-year terms came to an end.
   3. The United States is blocking the appointment of new members to the Appellate Body (AB).
   4. The US claims that the Appellate Body functions in a manner that is actively unfair and detrimental to its interests.
   5. Thus reforms are needed to prevent the WTO Appellate body from being held hostage to the choices of one country.
3. What are the criteria to be listed as a “developing country”?
   1. Currently, countries can declare themselves as a “Developing country” to avail benefits under the Special and Differential Treatment.
   2. Developing country status in the WTO brings certain rights. There are, for example, some provisions in the WTO agreements that provide a ‘long rope’ to the developing countries when it comes to complying with the WTO agreements.
   3. There have been conscious efforts on the part of several developed countries to revise the definition of “developing country” under the principle of special and differential treatment (S&DT).
   4. This aim to upgrade certain developing countries will directly impact the status of emerging economies such as India, China, South Africa, Turkey, Egypt, etc.
   5. The premise behind such logic is that some countries have benefited immensely from the WTO rules since its formation in 1995. This assumption is flawed, like for example in the case of India, even if there may be no consensus of views on measuring ‘development’, India will remain a developing country no matter which parameter is used.
   6. The possible option for India could be to negotiate a longer phase-out period or an acceptable formula based on development indices, etc.
4. Fisheries subsidies negotiations
   1. India can lead from the front in finding a possible middle ground by persuading others to settle for the lowest common denominator while seeking permanent protection for traditional and artisanal farmers who are at the subsistence level of survival.
   2. The danger lies in seeking larger carve-outs, which, if universally applicable to all, could result in developed countries ploughing precious fisheries resources in international waters.

Reverse consensus method

• It is the consensus-based decision-making currently being followed in the WTO, which enables dissension by even one member to stop the process in its tracks, and gives developing countries some heft and influence at par with developed countries.
• The D-G would need to tread cautiously on this front, as some will allude to the successful implementation of the Trade Facilitation Agreement in 2017, that allowed member countries to make commitments in a phased manner by their domestic preparedness.

Lessons from COVID-19

• The COVID-19 crisis has proved that international cooperation and collaboration is essential to tackle major global issues. The COVID-19 pandemic exposed the vulnerabilities of unilateral actions in containing the spread, it required a large scale global cooperation and understanding to stem the spread of the virus.
• The D-G can help alleviate the impacts of the pandemic by ensuring that supply chains remain free and open, recommending a standard harmonised system with classification for vaccines, and by the withdrawal of import/export restrictions.
• Voluntary sharing and pooling of Intellectual Property Rights (IPR) is an essential requirement to tackle the pandemic at the global scale, but with the fear of vaccine nationalism looming large, several countries are seeking to secure the future supply of leading COVID-19 vaccines.
• D-G has to play a responsible role in removing barriers to intellectual property and securing a legal framework within the WTO TRIPS Agreement. The vaccine development must not be seen solely in a nationalistic manner but in the interests of mankind as outlined by India’s Prime Minister.
• Compulsory licensing and agreement of a patent without the authorisation of its owner under certain conditions will have to be enabled by a broad interpretation of articles 8 and 31 of the TRIPS.

Category: HUNGER

1. The long road to food security

Context:

• The Global Hunger Index has ranked India at the 94^th position in a list of 107.
• India’s malnutrition levels have been alarming, to say the least, with the malnutrition levels being worse off than some of the neighbours and also some of the African nations.

Details:

• India has attained self-sufficiency in food grain production, yet as per a UN-FAO report, 194 million people go hungry every day in India, comprising almost one-fourth of the world’s undernourished population.
• Right to food was recognized as an intrinsic part of Right to Life by the Supreme Court in the Right to Food case.

India’s production levels

• India’s annual food grain production is one of the highest in the world, recent data reveals that in the year 2018-19 India produced 283.4 million tonnes of food grains.
• India finds itself among the top producers of food grains in the world, for example, India is the leading millet producer in the world and ranks second in rice and wheat production in the world.
• India’s horticultural crops, such as fruits and vegetables, have surpassed food grain production with over 313 million tonnes in 2018-19.

Struggling ecosystem

1. Damage at the storage level
   1. According to data released by the Department of Consumer Affairs, almost 62,000 tons of food grains were damaged in Food Corporation of India warehouses between 2011 and 2017.
   2. In 2016-17 alone, over 8,600 tons of food grains were lost.
   3. The method of storage is not reflective of the times we live in, most of the FCI godowns have a ‘Cover and plinth’ system where jute bags are used.
   4. The developed countries store food grains in steel silos that prevent bacterial and fungal growth which are witnessed under the ‘cover and plinth’ system.
2. Leakage of food grains
   1. A study conducted by the Indian Council for Research on International Economic Relations found that while there is a proliferation of millions of ineligible and bogus ration cards, there are also, simultaneously, a multitude of genuinely poor families that do not even possess ration cards.
   2. These data expose the poor management of the food ecosystem in India.

Bulwarks of Food Security

• To ensure India’s food security, a two-pronged policy is needed.
  1. Firstly, the government must ensure remunerative prices for farm produce. For this, the Minimum Support Price (MSP) should be made available to the maximum range of farm products. This will enhance the purchasing power of farmers so that they can purchase essential food items.
  2. Secondly, India must improve the Public Distribution System and Public Procurement.

The Annapurna scheme

• Currently, under this scheme, ten kilograms of food grains are distributed per month free of cost to destitute persons above 65 years of age, with no or meagre subsistence.
• The Centre has fixed the target of 20% of the number of persons who are eligible for National Old Age Pension, but who are not receiving such pension.
• It may be noted that as far as Kerala is concerned, social security pension covers almost all the sections of people in the community. Thus, almost all eligible people are excluded from the Annapurna Yojana. This problem demands immediate attention and resolution.

Pulses – a rich protein source

• The Global Pulse Confederation in its report stated that pulses are part of a healthy, balanced diet and have been shown to have an important role in preventing illnesses such as cancer, diabetes, and heart disease.
• The World Food Programme (WFP) recommends 60 grams of pulses in its typical food basket, alongside cereals, oils and sugar and salt.
• The Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution in its report titled Price Rise of Essential Commodities – Causes and Effects (2020) stated that with the dietary shift in favour of proteins, in an otherwise vegetarian society, the consumption of pulses is rising but the production has largely lagged.

• However, production of pulses has increased during the last two years which has resulted partly from the continuous increase in MSP, increased procurement, and creation of buffer stock of pulses.
• There is a need to diversify the food basket and thus this is an ideal time to include pulses into the Public Distribution System.

Conclusion

• It is a paradox that India while being one of the leading producers of food grains, continues to perform badly in nutrition indices.
• The food security is being pushed forward through several social welfare schemes like the National Food Security Act, Annapurna scheme, the Public Distribution System, and there is a need to dovetail these efforts with schemes like POSHAN Abhiyaan, Mid-day meal scheme and ICDS to meet nutritional security.

Category: HEALTH

1. Discouraging numbers

Context:

• The release of early data from the National Family Health Survey-5 has raised concerns over key nutritional indicators.

Details:

• The COVID-19 pandemic has contributed to the deterioration of the nutritional outcomes.
• Numerous incidents and anecdotes have been recorded which highlight how the pandemic and the lockdown that followed had deleterious effects on food security.

The NFHS-5 survey

• The NFHS survey provides much-needed information about fertility, mortality, family planning, maternal and child health indicators, child nutrition, domestic violence, etc.
• The release of early data from NFHS-5 survey covers 22 states/UTs and does not include data from large states like Uttar Pradesh, Tamil Nadu, Punjab, etc.

1. Alarming statistics
   1. The survey reveals that four important child nutrition metrics have declined in comparison to the NFHS-4 in many of the surveyed states.
   2. This is a worrying piece of statistics because deterioration of child nutritional status can lead to a potential drain in India’s future human resources.
   3. Children are the future generation, to see children suffer from wasting, stunting, underweight, etc. does not bode well for India.
   4. Some of the industrialised states that have a vibrant economy like Maharashtra and Gujarat have witnessed a rise in anaemia and wasting.
   5. Child stunting which is a key indicator of a child’s health has seen an increase in 13 of the surveyed 22 states and UTs when compared to the preceding NFHS survey.
   6. Even in states that have seen a reduction in stunting, the decrease has been very minimal and less than the rate required to achieve the government’s targets.
2. Positive takeaways from the survey
   1. Access to sanitation and clean cooking fuels have been better and widespread when compared to NFHS-4, which bodes well for tackling factors that aid malnutrition.
   2. Women have witnessed an improvement in indicators linked to their wellbeing, such as spousal violence declined in all but 5 states surveyed, child marriage dipped in 18 states and the access to bank accounts increased in all the 22 states and UTs.

Way forward

• The data paints a gloomy picture of numerous health and nutritional indicators. There is a high possibility that the current scenario may be worse off since the COVID-19 pandemic and lockdown has further aggravated the health and nutritional indices.
• There have been a plethora of initiatives by the central government and the state governments to ensure food security; there is a compelling case to review the schemes, increase its coverage and enhance delivery mechanisms.
• A healthy population is essential for the general welfare and when an opportunity to utilize the demographic dividend is beckoning, India should not miss out on this opportunity.
• There is a need to reinforce food security programmes while laying emphasis on improved nutritional outcomes.

Q1. Consider the following statements with respect to enzyme-linked immunosorbent 
assay (ELISA):

Q2. Consider the following statements with respect to the Directive Principles of 
State Policy (DPSP):

Q3. Which of the following indices are released by the United Nations Development 
Programme (UNDP)?

Q4. Consider the following statements with respect to the National Hydrology Project:

I. UPSC Mains Practice Questions

1. Despite achieving self-sufficiency in food grains production, India’s hunger levels and malnutrition levels are a cause for concern. Elucidate. (15 marks 250 words) [GS 2, Hunger]
2. “World Trade Organisation as a multilateral body is facing numerous challenges.” In light of the above statement, discuss the relevance of WTO and also suggest suitable reforms to ensure its smooth functioning. (15 marks, 250 words) [GS 2, International Relations]

Read the previous CNA here.