Current Affairs 27 December 2024

Content:

1. Over 10.58 lakh votes were ‘not counted or rejected’ in Lok Sabha election, show EC data
2. Nation mourns former PM Manmohan Singh, economist-ruler credited with liberalisation
3. A global polio resurgence and the need to reevaluate the basics
4. Local clinical trial waiver for selected drugs is a double-edged sword: experts
5. Should the wealth tax be reinstated in India?
6. Leave Banking to RBI, Says Supreme Court
7. OpenAI finds AI in education a major risk in India but experts disagree

Over 10.58 lakh votes were ‘not counted or rejected’ in Lok Sabha election, show EC data

Relevance : GS 2(Elections )

• This includes 5,35,825 postal votes and 5,22,513 votes cast on electronic voting machines (EVMs).

Voter Registration and Turnout:

• Voter registration saw a significant increase, with 97.97 crore citizens registered, up from 91.19 crore in 2019 (7.43% increase).
• The voter turnout reached 64.64 crore, with 63.89 crore valid votes.

Other Voting Irregularities:

• Three proxy votes were recorded.
• 9,634 tendered votes were cast, meaning impersonation of voters occurred at some polling stations.

Polling Stations and Re-Polling:

• The election had 10,51,016 polling stations, with an average of 930 electors per station.
• Re-polling was conducted at 40 polling stations.

Candidates and Nominations:

• A total of 12,459 nominations were filed, but only 8,360 candidates qualified to contest.
• 7,190 candidates (86%) lost their deposits after failing to secure one-sixth of the votes polled.

Independent Candidates:

• Among 3,921 independent candidates, only seven won. None of the 279 women independent candidates won.

Women Voters and Candidates:

• The number of women candidates increased to 800 in 2024, from 726 in 2019.
• The number of female voters also rose to 47.63 crore in 2024, up from 43.85 crore in 2019.
• Female voter turnout increased marginally from 65.55% to 65.78%.

Political Parties’ Performance:

• Six national parties, including BJP, Congress, and CPI(M), together secured more than 63% of the total valid votes.
• The election also saw participation from 47 recognised state parties and 690 registered unrecognised political parties.

Nation mourns former PM Manmohan Singh, economist-ruler credited with liberalisation

Relevance : GS 4(Ethics , Leadership )

Architect of Economic Reforms

• 1991 Liberalization: Dr. Singh, as Finance Minister, introduced reforms to address the Balance of Payments crisis:
  • Key Measures: Deregulation of industries, FDI liberalization, and a shift towards a market-driven economy.
  • Impact: Positioned India for sustained GDP growth and global economic integration.
• Relevance Today: These reforms serve as the foundation for current policies like GST, PLI schemes, and digital infrastructure.

Indo-U.S. Nuclear Deal

• 2008 Agreement: Despite opposition from Left parties and political risks, Dr. Singh pushed the deal forward, ending India’s nuclear isolation.
• Significance:
  • Secured energy security through civil nuclear cooperation.
  • Elevated India’s global strategic standing by fostering deeper ties with the U.S.
• Departure from Non-Alignment: This deal signified a gradual move away from Nehruvian non-alignment towards pragmatic engagement with global powers.

Transition in Foreign Policy

• Sharm-el-Sheikh Declaration (2009): Attempted to revive composite dialogue with Pakistan by balancing 26/11 concerns with terrorism in Balochistan.
• Criticism and Significance: While controversial, it demonstrated his commitment to diplomacy and peace-building in South Asia.

Governance and Leadership Challenges

• Achievements:
  • Key social welfare initiatives like MGNREGA, RTI Act, and the Right to Education Act under his leadership.
  • Expanded India’s middle class and reduced poverty.

Academic and Professional Excellence

• Distinguished Economist: Held top economic roles (RBI Governor, Finance Secretary, Chief Economic Adviser) before entering politics.
• Global Recognition: Praised by leaders like Barack Obama for his economic insight, reflecting the importance of academic expertise in governance.

Political Legacy and Historical Judgment

• “Accidental PM” to Transformational Leader: While criticized during his tenure, his strategic decisions (1991 reforms, nuclear deal) are recognized as pivotal for India’s development.

A global polio resurgence and the need to reevaluate the basics

Context: Polio, a near-eradicated disease, has resurfaced in various regions, with detections of both wild poliovirus (WPV) and vaccine-derived poliovirus (VDPV). This resurgence calls for a reassessment of eradication strategies and vaccine choices to sustain global progress.

Relevance : GS 2(Health )

Resurgence in Developed and Developing Nations:

• Detection of poliovirus in wastewater in developed nations like Finland, Germany, Spain, Poland, and the UK underscores the global nature of the threat.
  • Pockets of under-vaccination, even in nations with high immunization rates (85-95%), create vulnerabilities.

Polio Vaccination Dilemma:

• The oral polio vaccine (OPV) is effective and easy to administer but risks circulating vaccine-derived polioviruses (cVDPVs).
  • The inactivated polio vaccine (IPV), being non-transmissible, is seen as a safer alternative but is costlier and requires trained personnel for administration.

Transmission Dynamics – Faecal-Oral vs. Respiratory:

• Traditional understanding emphasizes faecal-oral transmission.
  • Emerging research suggests a significant role for respiratory transmission, challenging long-held assumptions and necessitating nuanced interventions.

Global Polio Eradication Initiative (GPEI):

• Reliance on OPV for eradication has been questioned.
  • A phased global shift to IPV is recommended for sustainable eradication, addressing both WPV and cVDPVs.

Challenges in Polio Eradication:

Surveillance Gaps:

• Routine surveillance must identify subnational immunity gaps, especially in underserved regions and conflict zones.

Vaccine Controversy:

• Transitioning from OPV to IPV involves logistical, financial, and policy hurdles, particularly in low-income countries.

Public Health Preparedness:

• Stronger health systems and consistent vaccination campaigns are crucial to counter resurgence and prevent vaccine hesitancy.

Environmental Factors:

• Wastewater surveillance highlights the role of environmental reservoirs, necessitating multi-sectoral interventions, including sanitation improvements.

Recommendations:

Phased Transition to IPV:

• Immediate planning for an OPV–to–IPVswitch in phased manner across countries.
  • Encourage funding and partnerships to mitigate the cost implications of IPV.

Enhanced Surveillance and Data Integration:

• Expandwastewatertesting and genomic analysis for real-time tracking of virus circulation.
  • Focus on underserved areas with low vaccination coverage.

Public Awareness and Advocacy:

• Disseminateaccurateinformation about IPV’s safety and effectiveness.
  • Engage communities to address vaccine hesitancy.

Global Coordination and Equity:

• Strengthen international cooperation for vaccine availability and equitable distribution.
  • Reinforce the GPEI with targeted funding and country-specific strategies.

Local clinical trial waiver for selected drugs is a double-edged sword: experts

Context: India’s recent regulatory shift under Rule 101 of the New Drugs and Clinical Trials Rules (NDCTR), 2019, enables the Central Licensing Authority (CLA) to waive local clinical trials for new drugs approved in specific countries. While this aims to expedite access to critical medications, it raises concerns about safety, genetic variability, and healthcare equity.

Relevance : GS 2(Governance)

Accelerated Access to Essential Medicines:

• The waiver allows fasterapprovals for drugs from sixregions: the US, UK, Japan, Australia, Canada, and the EU.
  • Targeted categories include orphan drugs, gene and cellular therapy products, pandemic-related drugs, and medications with significant therapeutic advantages.

Patient Safety Concerns:

• India’s diverse genetic makeup necessitates localized trials to assess efficacy and safety.
  • Bypassing trials could lead to unanticipated adverse effects, as seen in other nations that emphasize ethnic sensitivity testing.

Ethnic Sensitivity Testing: Global Practices:

• Japan mandates localtesting or foreigndataanalysis to ensure genetic compatibility in drug metabolism.
  • China employs stringent frameworks to validate safety within its population.

Impact on Patients with Rare Diseases:

• Advocacy groups highlight the dual role of trials in validating drug efficacy and enabling access to expensive treatments.
  • Waiving trials could reduce patient wait times but might limit opportunities for those who rely on trial participation for treatment access.

Industry Benefits and Pandemic Preparedness:

• Eased regulatorypathways enhance the pharmaceuticalindustry’s ability to respond swiftly during health emergencies.
  • Fast-track approvals improve market readiness for rare disease drugs and innovative therapies.

Challenges:

Ethical and Safety Oversight:

• Absence of localized validation risks exposing patients to unforeseensideeffects or diminished drug effectiveness.
  • Ethical concerns arise when fast-tracking compromises comprehensive safety evaluations.

Inconsistent Policy Frameworks:

• Delayed inclusion of conditions like Acid Sphingomyelinase Deficiency (ASMD) under the National Policy for Rare Diseases highlights procedural bottlenecks.
  • Streamlining policy updates is crucial to align with expedited drug approvals.

Equity and Access:

• Wealthierpatients may disproportionately benefit from rapidapprovals, exacerbating healthcare disparities.
  • Absence of trials may limit affordable access for economically disadvantaged groups relying on trial participation.

Recommendations:

Localized Trials with Adaptive Frameworks:

• Mandate bridging studies to address India’s genetic diversity while expediting approvals.
  • Implement real-world evidence collection to monitor post-market drug performance.

Policy and Regulatory Harmonization:

• Align fast-track approval mechanisms with the National Policy for Rare Diseases.
  • Ensure periodic updates to include new rare diseases in regulatory frameworks.

Stakeholder Engagement:

• Incorporate feedback from patientadvocacy groups to balance access and safety.
  • Promote transparency in the waiver decision–making process to build public trust.

Post-Market Surveillance:

• Strengthen pharmacovigilance systems to track adverse events and long-term efficacy.
  • Leverage technology for efficient monitoring and data analysis.

Should the wealth tax be reinstated in India?

Introduction : The debate around reintroducing the wealth tax in India revolves around economic growth, wealth inequality, revenue generation, and governance efficiency. While proponents argue that a wealth tax can reduce inequality and finance essential sectors like health and education, critics raise concerns about its practicality, potential capital flight, and administrative inefficiencies.

Relevance : GS 2(Governance ) , GS 3(Taxation )

Arguments in Favor of Reinstating Wealth Tax:

Addressing Inequality:

• Proponents like Rahul Menon highlight that wealth concentration has reached extreme levels, reducing opportunities for a significant portion of the population.
  • A wealth tax targeting the top 0.04% of the population can act as a redistributive mechanism to bridge disparities.

Revenue Generation for Social Sectors:

• The revenue from a wealth tax could be invested in healthandeducation to enhance humancapital.
  • Targeted spending on public goods would potentially offset the adverse effects of inequality by creating an educated and healthy workforce.

Global Examples:

• Countries like Norway and theUK, despite having wealthtaxes, have managed to retain publictrust through robust infrastructure and welfare systems.
  • The idea of taxing wealth aligns with international trends to create equitable growth models.

Feasibility:

• With advancements in technology and trackingsystems, it is now possible to better assess and monitor wealth.
  • International collaborations and data-sharing agreements can further aid transparency and enforcement.

Arguments Against Reinstating Wealth Tax:

Administrative and Practical Challenges:

• As Ajay Shah points out, measuring wealth accurately is fraught with difficulties. Wealth in forms like realestate or gold can be easily underreportedorhidden.
  • Previous iterations of wealth tax in India (abolished in 2016-17) yielded less than 1% of gross tax collections, highlighting high administrative costs and low returns.

Risk of Capital Flight:

• Wealth taxes could drivehigh–net–worthindividuals to relocate their assets or themselves to countries with lower tax burdens.
  • This could harm economic growth and reduce investment in India.

Economic Growth Over Redistribution:

• Critics argue that growth, not redistribution, is the key to reducingpoverty and improving well-being.
  • Public policy should focus on creating conditions for economic expansion rather than targeting the wealthy.

Inefficiencies in Public Spending:

• Allocating wealth tax revenues to health or education may not necessarily yield desiredoutcomes due to systemic inefficiencies.
  • Without governance reforms, additional funds may only exacerbate existing issues, such as poor student outcomes highlighted by ASER surveys.

Behavioral Distortions:

• A wealth tax could incentivize individuals to shift investments from productive assets like equities to less productive ones like gold or real estate, adversely impacting the economy.

Recommendations:

Broader Tax Reforms:

• Focus on strengthening and expanding existing progressivetaxes such as personalincometax and propertytax.
  • Introduce measures to close loopholes and improve compliance in these systems.

Efficient Public Expenditure:

• Prioritize reforms to improve the efficiency and accountability of public spending in social sectors.
  • Link increased allocations to measurable outcomes in health and education.

Alternative Mechanisms:

• Consider comprehensivetaxation systems that do not distinguish between labor and capital.
  • Explore policies like inheritance tax or capital gains tax on ultra–wealthy individuals instead of a direct wealth tax.

Public Awareness and Institutional Framework:

• Develop an institutional framework to assess wealth comprehensively and minimize evasion.
  • Engage stakeholders to build consensus on redistributive policies.

Leave Banking to RBI, Says Supreme Court

Case Background

Context:

• Appeals were filed by major banks (HSBC, Citibank, American Express, Standard Chartered, and HDFC) challenging a 2008 National Consumer Disputes Redressal Commission (NCDRC) decision.
  • The NCDRC had capped credit card interest rates at 30%, deeming higher rates (36%-49%) as “exorbitant” and exploitative.

Relevance : GS 2(Judiciary ), GS 3(Banking )

Supreme Court’s Judgment:

• Set aside the NCDRC ruling, emphasizing it violated Section 21A of the Banking Regulation Act, 1949.
  • Highlighted that the Act prohibits judicial scrutiny of interest rates charged by banks.

Observations by the Supreme Court

1. Judicial Limitations:
   1. Courts should not assume expertise or jurisdiction in banking matters.
   1. Their role is confined to examining whether an authority, like the RBI, has abused its lawful powers.

• Exclusive Domain of RBI:
  • The RBI is the sole entity mandated to regulate and supervise banks.
  • No other institution, including courts, can legislate or issue binding directives for banking.

Rationale Behind the Verdict

Role of RBI:

• The RBI, as the primary regulatory authority, is empowered to issue binding guidelines with statutory force.
  • It is entrusted with ensuring public interest and economic growth through its directives.

Judicial Overreach:

• The NCDRC’s attempt to capinterestrates encroached upon the RBI’sregulatorydomain.
  • Courts must avoid appropriating tasks that are exclusively designated to specialized authorities like the RBI.

Legal Framework Referenced

Banking Regulation Act, 1949:

• Section 21A prohibits courts from scrutinizing interest rates charged by banks.
  • Banking regulations are designed to provide RBI full control over the financial sector.

Judicial Oversight:

• Courts may only intervene in cases of abuse of lawful authority by the RBI or banks.

Implications of the Verdict

Clarification of Roles:

• Reinforces RBI’s exclusive mandate over banking operations.
  • Limits judicial interference in technical and economic matters beyond its expertise.

Impact on Consumers:

• Consumer disputes related to banking must align with the regulatory framework set by the RBI.
  • NCDRC and similar forums cannot independently cap interest rates or override RBI directives.

Banking Autonomy:

• Ensures that banking institutions operate without undue judicial constraints, fostering growth and stability in the financial sector.

OpenAI finds AI in education a major risk in India but experts disagree

Context : OpenAI’s Study and Findings

Relevance : GS 2(Education ), GS 3(Technology )

1. AI Risks in Education:
   1. OpenAI’s survey highlighted that policymakers in India see AI risks to education as a particularly high concern compared to other countries.
   1. Risks identified include over-reliance on AI tools by students, which could hamper critical thinking skills.

• Global Comparison:
  • In countries like the U.S., U.K., Japan, and Taiwan, AI risks in education were viewed as less significant.
  • Indian respondents ranked risks in education as the fifth priority, surpassing concerns like geopolitical risks or the alignment problem.

• Key Risks Identified:
  • Misuse of AI by malicious actors.
  • Economic risks, including job displacement due to automation.
  • The potential decline in students’ critical thinking and reasoning skills due to AI assistance.

Expert Reactions and Disagreements

1. Disagreement with OpenAI’s Findings:
   1. Experts in India, from government, industry, and academia, argue that the concerns raised by OpenAI are overblown.
   1. They believe that the benefits of AI in education far outweigh the perceived risks, particularly in the Indian context.

• Advitiya Sharma’s Perspective:
  • Sharma, an EdTech leader, criticized the study, pointing out that the lack of understanding and awareness of AI in India creates exaggerated concerns.
  • He emphasized that AI has already shown significant benefits in classrooms, including among tens of thousands of teachers and students.
  • He predicts that in 18-24 months, AI’s role in education will be better understood, and risk perceptions will decrease as its benefits become more widely recognized.

• Lack of Awareness and Experience:
  • According to Sharma, countries like the U.S. and U.K. are more advanced in AI use in education, leading to a greater recognition of potential problems. In contrast, India’s limited experience may amplify concerns.

Potential Threats to Education

1. Loss of Critical Thinking:
   1. One of the key concerns raised by Indian policymakers is that generative AI tools might lead students to rely on quick answers rather than engaging in critical reasoning and problem-solving.

• AI in Assessment:
  • There are fears that the use of AI tools like ChatGPT could complicate assessments, as students might submit AI-generated answers rather than their own work.

• Challenges with AI Outputs:
  • Educators acknowledge that AI tools sometimes produce incorrect or misleading results, which poses a challenge but does not overshadow AI’s potential for educational enhancement.

Optimism about AI’s Role in Education

1. AI as a Knowledge Tool:
   1. Experts like Krishnan Narayanan from IIT Madras see AI as a valuable brainstorming and knowledge co-creation tool.
   1. Narayanan suggests that AI should be designed to guide students toward answers rather than providing solutions directly, encouraging more active learning and reasoning.

• Socratic AI Design:
  • Experts propose using AI in a Socratic manner, prompting students to develop their own answers through guided questioning rather than simply offering solutions.