11 Nov 2021: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: ECONOMY

1. The case of demonetisation in India

Context

An assessment of popular narratives vs economic facts on the fifth anniversary of Demonetisation in India.

A popular narrative – What does it mean?

Narratives are the description of events, processes or stories often intertwined in the cultural belief systems of the society. These may be grounded more in myth than reality and thereby policy decisions based on these have devastating impacts at times on society.

Demonetisation – The story so far

The November 8, 2016 decision to demonetise large denomination currency to flush out undeclared hoards of cash was nothing new. It was experimented earlier on two previous occasions, in 1946 and 1978, with dismal results. 

The stated objectives

1. Eliminating black money and corruption;
2. Moving towards “less cash and more digital economy”; 
3. Increased tax compliance;
4. A windfall gain of  ₹2 trillion – ₹3 trillion.

Results and the impacts

• Unlike the limited impact of similar events in 1946 and 1978, the latest demonetisation in 2016 resulted in widespread disruption in the economy, whose aftershocks are still being felt by society. 
• The majority of observers have opined that this policy was a failure as only a fraction of its declared objectives could be achieved. 
• Interestingly, more than 99.3% of cash returned to the system, pointing towards money laundering routes.
• Rubbing more salt to the wound, data shows that the cash in circulation now exceeds even the pre-demonetisation levels.

The euphoria surrounding the crackdown on “Black Money”

• The deeply satisfying idea of striking a powerful blow through dramatic action against black money has always been in the psyche of the public. More often than not, it has been influenced by the stuff of epics, cinematic experiences and moral terms. 
• Contrary to the popular belief, the lion’s share of black money is earned through perfectly legal activities rather than income from corruption or criminal activities. 
• Moreover, black money is not mostly kept, in stacks of currency notes and gold, hoarded in safes, boxes, or secret cupboards, except in small quantities, but is mostly accumulated through real estate and other assets.
• We observed seemingly the narrative getting changed and focus from black money and fake currency to digital/cashless payments being elevated and taking the centre stage.

Capitalising on the moral economy of the poor

• The ideals of collective sacrifice, nationalism and patriotism have always been at the deeply entrenched soft corners among the masses and invoking high moral values is a low hanging fruit for policymakers.
• For the poor, any endeavour towards penalising the rich is far more attractive than achieving social justice and equity.

Conclusion

Falling prey to the popular narratives has shown to influence a much bigger role in economic policymaking historically than economists acknowledge. The case of demonetisation adds to the long list of such decisions which demonstrates that popular narratives can trump economic facts. An auto-immune shock for the otherwise steady and growing economy, leading to a plethora of hardships being faced to date, presents a case of pondering upon and learning a lesson for the future.

Category: ENVIRONMENT AND ECOLOGY

1. Does India have a right to burn fossil fuels?

Context

During the recent United Nations Climate Change Conference (COP26), India has, for the first time, committed to achieving the net-zero emission target by 2070. 

The Pledges – Ambitious vs Ambiguous

The Indian PM surprised observers across the world with some ambitious, commendable and unconditional five pledges (Panchamrit) on India’s decarbonisation during his speech at COP26:

1. Increase non-fossil energy capacity to 500 GWs by 2030.
2. Meet 50 percent of energy requirements from renewables by 2030.
3. Reduce the total projected carbon emissions by 1 BTs by 2030.
4. Reduce the carbon intensity of the economy by less than 45 percent.
5. Achieve net zero carbon by 2070.

Although these commitments appear to be our new tryst with destiny in terms of achieving sustainable development goals, more clarity on each of these targets could help in realising a few of the targets, if not all.

Clean Development vs Energy Dilemma

• The country needs a large amount of energy for its economic development and our dependence on coal is huge as of now.
• Our commitments look like a fairy-tale when looked at the scenario at the grassroots level.
• The coal lobbyists and other factions do have their vested interests as well to jeopardise the cherished goals.

Historic burden and Right to Burn

• The global north vs south arguments in terms of owning the responsibility for reducing the emission now, often face an impasse due to different viewpoints.
• While historically we can establish that the developed nations have contributed more towards global warming and climate change, this should not mean that we shy away from the fact that it is a common goal.

The Alternatives

• While we are no doubt still dependent on and one of the largest importers of coal, the arguments for its affordable, reliable and domestically available nature are questionable.
• As we are geographically blessed with a huge amount of renewable resources from solar to hydro and wind energies, tapping them with technological development will reduce the burden.

The Development Models

• The blind faith in the models adopted by the west centuries ago for economic development without paying attention to the current needs and technological gains needs to be changed.
• The south-south cooperation and evolving our own growth parameters will help in achieving the overall development addressing the issues of employment, technology, energy, poverty and self-reliance.

Conclusion

• Blaming some for historic injustices and shunning the responsibilities for undoing the wrongs that have been done is not going to lead us to a better future. We also need to realise the damage we will inflict on the poor among us, the flora and fauna and to the planet as a whole if we repeat our mistakes.

2. Kalaris back on track post-lockdown

Kalaripayattu:

• Kalaripayattu, also known simply as Kalari, is an Indian martial art that originated in Kerala.
• It is one of the oldest surviving martial arts in India, with a history spanning over 3,000 years.
• It is a martial art designed for the ancient battlefield (the word “Kalari” meaning “battlefield”), with weapons and combative techniques. It originated as part of military training for warriors.

3. Coringa set for fishing cat collaring project

Context:

• Conservation biologists of the Wildlife Institute of India (WII), Dehradun, will soon begin collaring 10 fishing cats (Prionailurus viverrinus) in the Coringa Wildlife Sanctuary (CWS) in Andhra Pradesh for a better understanding of the species.

Fishing cats:

• The fishing cat (Prionailurus viverrinus) is a medium-sized wild cat. It is predominantly nocturnal.
• The fishing cat hunts in water. It has specialized features like partially webbed feet and water-resistant fur that helps it to thrive in wetlands.
• The fishing cat is threatened by the destruction of wetlands, which are increasingly being polluted and converted for agricultural use and human settlements. The conversion of mangrove forests to commercial aquaculture ponds is a major threat. Another threat to the fishing cat is the depletion of its main prey – fish due to unsustainable fishing practices and over-exploitation of local fish stocks.
• Since 2016, the fishing cat is listed as Vulnerable on the IUCN Red List. In India, the fishing cat is included in Schedule I of the Indian Wildlife (Protection) Act, 1972 and thereby protected from hunting.
• The fishing cat is the state animal of West Bengal.

Coringa Wildlife Sanctuary:

• Coringa Wildlife Sanctuary is an estuary situated near Kakinada in Andhra Pradesh. It constitutes a large stretch of mangrove forests in India.
  • The sanctuary is a part of the Godavari estuary.
• The sanctuary is yet to be declared as a Ramsar site despite facing various threats to its ecology.

2. Centre approves incentives for sugar cane, cotton, jute farmers

• The Cabinet Committee on Economic Affairs (CCEA) has approved a slew of measures that will support farmers growing sugarcane, cotton and jute.
  • The CCEA has increased the price of ethanol extracted from sugarcane juice and molasses for blending in petrol.
  • The CCEA also approved a committed price support to the Cotton Corporation of India (CCI) as reimbursement for its losses in procuring cotton produce from farmers at minimum support prices (MSP) over the past seven years.
  • The CCEA approved reservation norms for the mandatory use of jute in packaging, stipulating that 100% of foodgrains and 20% of sugar must compulsorily be packed in jute bags.

Q1. Consider the following statements with respect to MPLADS funds:

Q2. Consider the following Pairs:

Q3. With respect to Coringa Wildlife Sanctuary, which of the following statements is/are 
correct?

Q4. Which is the best description of Janjatiya Gaurav Divas?

Q5. With reference to the cultural history of India, the memorizing of chronicles, dynastic 
histories and Epic tales was the profession of who of the following?