CNA 3 July 2023:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Why has the IMF’s view on the crypto market in Latin America changed? C. GS 3 Related D. GS 4 Related E. Editorials INDIAN SOCIETY 1. The master plan and the Slaves INTERNATIONAL RELATIONS 1. The calm after the storm for Pakistan? F. Prelims Facts 1. Genome-sequencing screening for babies unlocks blueprint of health G. Tidbits 1. Osmosis: fluid transfer 2. Work apace on India, Myanmar, Thailand highway 3. India, China ramp up infra on north bank of Pangong lake H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Why has the IMF’s view on the crypto market in Latin America changed?
Syllabus: International Relations: Important International institutions, agencies, their structure, and mandates.
Prelims: International Institutions
Mains: IMF and cryptocurrency
Context:
The International Monetary Fund (IMF) has issued a statement on the use of cryptocurrency in Latin America and the rising interest in central bank digital currencies (CBDCs). This comes as countries like El Salvador adopt Bitcoin as legal tender.
Introduction
- On June 22, the International Monetary Fund (IMF) issued a statement on the use of cryptocurrency in the Latin American and Caribbean market and the rising interest in central bank digital currencies (CBDCs).
- The IMF expressed reservations about El Salvador’s adoption of Bitcoin as legal tender and warned about fiscal risks and consumer protection issues.
Significance of Latin America’s Crypto Economy
- Argentina, Chile, and Columbia have experienced currency devaluation against the U.S. dollar, leading some residents to explore converting their funds to stablecoins.
- Brazil, Argentina, Colombia, and Ecuador are among the top 20 countries in Chainalysis’ 2022 Global Crypto Adoption Index.
- Several Latin American central banks are considering CBDCs, which could increase exposure to blockchain-based infrastructure.
El Salvador’s Distinctive Crypto Economy
- El Salvador became the first country to adopt Bitcoin as legal tender on September 7, 2021, under President Nayib Bukele’s leadership.
- President Bukele is a prominent crypto supporter and has continued to buy Bitcoin despite market crashes.
- The country uses the Chivo digital wallet to regulate crypto transactions, but there have been complaints about the wallet’s functionality.
- El Salvador’s ambitious plans, including issuing Bitcoin bonds and building a ‘Bitcoin City,’ were delayed due to market volatility and a focus on tackling gang activity.
- The country’s Bitcoin investment value has dropped by 26.3% as of June 29, 2023, from the time of adoption.
- Bukele’s prediction of Bitcoin reaching $100,000 by the end of 2022 did not materialize, and Bitcoin’s value remains around $30,000.
For detailed information on the significance and concerns with respect to the adoption of Bitcoin as the official currency by El Salvador, refer to the following article:
CNA dated June 13, 2021: Bitcoin push
IMF’s Reaction to El Salvador’s Bitcoin Adoption
- The IMF opposed El Salvador’s move, citing fiscal risks and consumer protection concerns.
- The IMF’s executive directors urged El Salvador to remove Bitcoin’s legal tender status and expressed reservations about Bitcoin-backed bonds.
- The country was warned that its Bitcoin adoption might affect its application for a loan of $1.3 billion.
IMF’s Surprising Stance on Cryptocurrency and CBDC Use in Latin America
- The IMF’s latest blog post suggested that completely banning crypto assets may not be effective in the long run for the Latin American and Caribbean region.
- Instead, the IMF called for improving financial infrastructure and providing better support to reduce reliance on cryptocurrencies.
- The post also emphasized the need for cryptocurrency regulation and transparent recording of crypto transactions.
Difference Between Cryptocurrency and CBDCs
- Cryptocurrencies are privately run digital currencies, while CBDCs are controlled and tracked by a country’s central bank and correspond to the fiat currency of that country.
- Cryptocurrencies like Bitcoin have volatile prices and are often seen as investment vehicles, while CBDCs are not meant for investment purposes.
- Examples include China’s digital renminbi (e-RMB) and the Bahamas’ Sand Dollar CBDC.
Conclusion
- The IMF’s evolving stance on cryptocurrency and CBDCs in Latin America, including its surprising support for crypto regulation rather than a ban, has raised interest in the region’s financial landscape.
- El Salvador’s unique adoption of Bitcoin as legal tender has faced challenges and has not met the expected outcomes, prompting caution and debate about the future of crypto economies in the region.
Nut Graf: The IMF’s shift in stance on cryptocurrency in Latin America, and its reservations about El Salvador’s Bitcoin adoption, have drawn attention to the region’s crypto economy and the potential for CBDCs.
C. GS 3 Related
Nothing here for today!!!
D. GS 4 Related
Nothing here for today!!!
E. Editorials
1. The master plan and the Slaves
Syllabus: Urbanization, their problems and their remedies
Mains: Master Plan and its Significance And Challenges
Context: At a recent Urban-20 City Sherpas’ meeting, India’s G20 Sherpa emphasized the importance of having a master plan in place for any city to handle urbanization.
About Master Plan and its Significance
- A master plan is a tool used by urban local bodies (ULBs) for governance. It has, very properly, recently drawn a lot of attention in national policy discussions.
- Revision of city master plans has been advised by the Ministry of Housing and Urban Affairs for better city governance.
- A master plan is just a spatial plan for distributing land uses that is backed by bylaws and development control rules. In essence, it represents a spatial vision for cities.
- The administrative structures, cultural norms, and practices of urban governance are all centered on the master plan vision. The objective of controlling spatial growth cultivates and shapes ULBs, who continue to be subject to these concepts.
Concerns associated with Master Plan
- Stress on Urban Governance: Urban local authorities frequently experience a wide range of inabilities and tensions as a result of the master plan’s requirements. These answers are frequently motivated by political expediency and short-term objectives.
- Dependency: Numerous efforts to increase infrastructure, social inclusion, and sanitation rely on specific schemes. The programming plans, particularly the ones that are physically related, like the plans for the preservation of water bodies, may be constrained by the legislative and spatial structure of the master plan.
- Outdated Idea: The master plan instrument is out of date because it was created using model laws created in the 1950s. The fact that the master plan is an outdated idea whose sales pitch is more impressive than its performance adds another layer of complexity.
- Exclusion of Environmental concerns: The master plan’s conceptualizations don’t take into account modern sensitivities, such as the need for environmental preservation. With its antiquated notions of land development for urban service rationalities, the master plan’s legal and institutional framework remained unaltered.
- Lot of Ambiguity: According to NITI Aayog, only about 65% of urban settlements in India have master plans. A cursory review of related regulations reveals that there are no predetermined requirements for requiring a spatial plan to control urban growth.
- Delays: Such announcements of required master plans are delayed for a number of reasons, most notably a lack of human and financial resources.
Read more on Gati Shakti National Master Plan.
Solutions
- India’s urban planning urgently needs to be rethought.
- Accept the possibility that the master plan instrument may be constrained by its antiquated ideas and ingrained institutional cultures.
- Learn from Indian cities, which can provide enough examples, such as how to complement the master plan’s shortcomings with creative bye-laws.
- Prioritize the shortcomings in urban planning and governance outlined in the NITI Aayog report from 2021.
- Make sure that the profession and education of spatial (town) planning receive increased emphasis.
Read more on Urban Planning and Development in India.
Conclusion
The era of planetary urbanization brings spatial planning into sharp focus and necessitates reimagining the spatial planning framework in India. The Indian spatial planning framework needs to be reevaluated, and the Centre and States must collaborate.
Nut Graf: Recent initiatives, such as the Gati Shakti and Model Rural Transformation Acts, demonstrate the growing demand for a spatial planning framework. Master Plans might not be a cure-all. In order to handle the expanding and new governance difficulties brought on by urbanisation, India needs to rethink spatial planning.
Category: INTERNATIONAL RELATIONS
1. The calm after the storm for Pakistan?
Syllabus: Effect of policies and politics of developed and developing countries on India’s interests
Mains: Political and Economic Crisis In Pakistan and its implications
Recent Development
- Pakistan had a number of difficulties, including conflicts between the political parties, battles between the administration and the opposition, an economic collapse, and the devastation caused by the floods in 2022.
- The Elections (Amendment) Act 2023, just passed by the Parliament, gives the Election Commission of Pakistan (ECP) sole authority over the choice of when to hold elections.
- Pakistan has been successful in obtaining International Monetary Fund (IMF) assistance on the economic front. However, the bigger problems still exist, such as the requirement for macroeconomic reforms, the already constrained tax base, etc.
- Uncontrolled rioting broke out after a political figure was taken into custody on suspicion of corruption. The protests were started by his fans and other party members.
- Since the violence, the Establishment has used overt pressure in addition to direct action.
- The Establishment thus succeeded in creating a new narrative that the violent offenders were Pakistan’s deadliest foes.
Challenges associated with Pakistan Crisis
- Political Instability: Political insecurity has ended, not via conversation between political players, but by the ruthless shrinkage of one party, by an extra-political institution. Constant political turbulence is thought to make it more difficult to formulate timely and effective policy.
- Economic Crisis: Pakistan was in danger of going bankrupt, was experiencing extreme inflation, and had a foreign reserve that could only last a few more months. Pakistan has to reapply to the IMF with updated estimates despite various political bravos and hopes that friendly nations will assist Pakistan in overcoming the economic crisis.
- Debt: According to CEIC figures, the nation’s external debt reached $126.9 billion in September 2022. The danger level for Pakistan’s debt-to-GDP ratio is 70 percent, and this year, 40 to 50 percent of government revenue would be used to pay interest.
- High Pakistan inflation: As a result of the government’s cash-strapped decision to restrict imports, thousands of containers of food, raw materials, and equipment are sitting in ports, pushing up inflation to a 48-year high.
- Significant shortage of power and energy: Pakistan is heavily dependent on imports, especially when it comes to energy, making it particularly sensitive to increases in the price of oil and gas around the world. Due to its massive debt load and inability to fund infrastructure and power lines, Pakistan lacks the resources necessary to operate its oil and gas-powered plants.
- Devastating floods: As Pakistan’s economy recovered from the effects of COVID-19, an overdue adjustment was taking place. However, it’s possible that the recent flood’s economic effects have put off the crucial economic adjustment.
Read more on Pakistan Economic Crisis
Read more on Pakistan’s Crumbling Economy.
Nut Graf: Pakistan continues to put its faith in the International Monetary Fund (IMF) for a bailout from its severe economic crisis despite increasing debts and skyrocketing inflation. However, the developing political issue might prevent that.
F. Prelims Facts
1. Genome-sequencing screening for babies unlocks blueprint of health
Syllabus: GS03-Science and Technology
Prelims: About Rapid Whole-Genome Sequencing
Context:
The article discusses the benefits of rapid whole-genome sequencing for newborns, enabling early diagnosis and treatment of genetic diseases.
Introduction:
- Scenario: Severely ill newborns in the ICU require fast and effective diagnosis for effective treatment.
- Complication: Rare diseases that are not well-known to clinicians can be challenging to identify.
- Genetic diseases: Approximately 6,000 genetic diseases exist, with only around 3,500 documented and fewer with mapped genetic defects.
Importance of Rapid Whole-Genome Sequencing:
- Newborn screening programs focus on early diagnosis for effective treatment and prevention of death or disability.
- Current newborn screening programs are limited in the number of genetic tests they cover.
- Genomic sequencing is now available, accessible, and affordable, providing better coverage for genetic diseases.
- Whole-genome sequencing is a single test that allows for fast and effective diagnosis compared to multiple routine tests.
Read more on Genome India Project (GIP).
Positive Outcomes and Statistics:
- Research by Stephen Kingsmore’s team showed that whole-genome sequencing diagnosed around 40% of cases, compared to 10% with standard genetic tests.
- 26% of diagnosed children benefited from reduced illness severity and lower treatment costs.
- A UK study reported similar results, validating the effectiveness of whole-genome sequencing.
Screening Healthy Babies:
- The BabySeq project evaluated the sequences of healthy and sick infants and found that over 10% had unanticipated risk of genetic diseases.
- Sequencing helped diagnose diseases and provided better medical surveillance for infants.
- Additional family members benefited from sequencing, and some infants underwent surgeries.
Support for Routine Sequencing:
- A study surveyed over 200 genetic experts, and most believed that sequencing babies should be part of routine care.
- The UK National Health Services launched a nationwide program to sequence 100,000 sick babies.
Speed of Sequencing:
- The fight for fast sequencing started with Dr. Kingsmore’s team broke the Guinness World Record in 19.5 hours. In 2021, Euan Ashley’s team achieved sequencing in just over 5 hours and 2 minutes.
- A large study suggested a median time of just over 20 hours for sequencing, clinical interpretation, and reporting.
Ethical Considerations:
- Ethical challenges include the disclosure and management of incidental and secondary findings, privacy concerns, and psychological impacts on families.
- Equitable distribution of benefits and burdens raises issues of justice and fairness.
Conclusion:
- Rapid whole-genome sequencing offers the means to detect rare genetic disorders, anticipate disease susceptibility, and improve treatment decisions.
- Balance between benefits and harm must be carefully considered.
- Rapid whole-genome sequencing may become a standard diagnostic approach for unwell infants.
- The future envisions that every child will have the right to rapid whole-genome sequencing.
G. Tidbits
- Osmosis is a type of movement where a fluid moves from an area of higher concentration to a lower concentration through a semipermeable membrane.
- Wilhelm Pfeffer, a German plant physiologist, extensively studied osmosis in 1877 following previous research on leaky membranes.
- Osmosis is vital in biology, particularly in the movement of liquids across cellular membranes within organisms.
- In trees, osmosis plays a role in a pumping system that transports water and nutrients from the roots to the leaves.
- Osmosis can be observed in everyday scenarios such as the swelling of raisins or seeds when soaked in water, and the pruning or wrinkling of fingers after a long bath.
2. Work apace on India, Myanmar, Thailand highway
- The India-Myanmar-Thailand Trilateral Highway is an ambitious 1,400 km long project that seeks to establish connectivity between India, Thailand, and Myanmar.
- Its primary objective is to enhance trade, business, healthcare, education, and tourism collaboration among the three nations.
- The trilateral highway project aims to establish a connection between Moreh in Manipur, India, and Mae Sot in Thailand, passing through Myanmar.
- According to Union Minister Nitin Gadkari, around 70% of the India-Myanmar-Thailand Trilateral Highway has been completed, but the minister did not provide a timeline for the completion and operationalization of the highway.
- The project has faced delays, as the original goal was to make the highway operational by December 2019.
3. India, China ramp up infra on north bank of Pangong lake
- China and India are engaged in various infrastructure projects in the Galwan Valley and Pangong Tso area, three years after the violent clash between their forces.
- India is building a blacktopped road on its side of the north bank, with completion expected by 2025. Work is currently in progress on an alternate route to the Darbuk-Skyok-Daulat Beg Oldie road via the Saser La pass..
- Chinese construction includes work on a main bridge and road connectivity along the south bank towards Shandong village. The Chinese air defense site is located east of the Khurnak fort. A 22-km tunnel is under construction along the G-0177 expressway at Yuli, connecting to the G-216 highway in Tibet.
- The Corps Commander-level talks between India and China remain gridlocked, with friction points at Depsang and Demchok.
- Budgetary allocation for the Border Roads Organisation (BRO) has increased, with a 43% rise in capital budget in 2023-24 compared to the previous year.
- The India-China Border Roads (ICBR) plan aims to construct over 1,400 km of strategic roads along the Line of Actual Control (LAC).
- The BRO is close to completing key infrastructure projects in the eastern sector, improving all-weather connectivity along the LAC.
Read more on India-China Border Clash.
H. UPSC Prelims Practice Questions
Q1. Consider the following statements about genome sequencing:
- Genome sequencing is a process that involves determining the complete DNA sequence of an organism’s genome.
- Genome sequencing can be used to identify genetic variations and mutations that may be associated with diseases.
- Whole genome sequencing is currently the most comprehensive method for analyzing an individual’s genetic makeup.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
CHECK ANSWERS:-
Answer: c
Explanation: Genome sequencing involves determining the complete DNA sequence, helps identify genetic variations, and is the most comprehensive method.
Q2. Consider the following statements about ‘Osmosis’:
- Osmosis is the movement of fluid from a place of lower concentration to a higher concentration through a semipermeable membrane.
- Osmosis plays a crucial role in the transportation of water and nutrients in trees.
- Osmosis can be observed in the swelling of raisins or seeds when soaked in water.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
CHECK ANSWERS:-
Answer: b
Explanation: Osmosis involves movement of fluid from a higher concentration to a lower concentration. It is observed during transportation of water and nutrients in trees, and in the swelling of raisins or seeds.
Q3. With reference to the Cryptocurrency and Central Bank Digital Currencies (CBDCs), which of the following statements is incorrect?
- Cryptocurrencies are controlled and tracked by a country’s Central Bank.
- CBDCs correspond to a country’s fiat currency.
- Cryptocurrencies are generally operated by private companies or individuals.
- CBDCs are centralized and issued by the Central Bank.
CHECK ANSWERS:-
Answer: a
Explanation: Cryptocurrencies are not controlled or tracked by a country’s Central Bank.
Q4. With reference to the Pangong Tso lake, which of the following statements is/are incorrect?
- Pangong Tso is a saltwater lake and remains frozen during winter.
- Pangong Tso changes colors due to the reflection of surrounding mountains
Select the correct answer using the code given below:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
CHECK ANSWERS:-
Answer: d
Explanation: Pangong Tso is a saltwater lake that freezes during winter. It changes colors based on the reflection of surrounding mountains and the salt content in the water, influenced by sunlight.
Q5. Consider the following statements, with reference to the India-Myanmar-Thailand Trilateral Highway:
- The highway connects the cities of Imphal (India), Mandalay (Myanmar), and Bangkok (Thailand).
- It will boost trade between India and Thailand.
- The India-Myanmar-Thailand Trilateral Highway is a part of the Asian Highway Network.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
CHECK ANSWERS:-
Answer: b
Explanation: The highway will connect Moreh in India with Mae Sot in Thailand via Mandalay and Yangon in Myanmar.
I. UPSC Mains Practice Questions
- “Urban Development and Planning needs to go beyond master plans”. Comment. (150 words, 10 marks) [GS-3; Economy]
- What is the difference between cryptocurrency and central bank digital currencies (CBDCs) ? (150 words, 10 marks) [GS-3; Economy]
Read the previous CNA here.
CNA 3 July 2023:- Download PDF Here
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