Current Affairs 29 October 2024

CONTENTS

1. Freebies in Electoral Campaign
2. Multilateral Development Banks
3. Emission Gap Report 2024
4. Coral Triangle
5. Complete Brain Mapping of Adult Fruit Fly Achieved
6. Nature Conservation Index

Freebies in Electoral Campaign

Context:

Freebies in electoral campaigns continue to be a divisive issue in Indian politics. A recent survey conducted across multiple cities in India reveals mixed attitudes among urban Indians toward freebies, especially in the context of rising debates on fiscal responsibility. 

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Freebies vs. Welfare Policies
2. 2013 Supreme Court decision on the issue of freebies (S Subramaniam Balaji vs Tamil Nadu)
3. ECI’s position on freebies
4. Advantages of Freebies in India
5. Freebies’ Negative Effects

Freebies vs. Welfare Policies

Freebies

• Freebies are characterized by the provision of goods and services at no cost, often designed to offer immediate relief.
• These typically include tangible items or services such as free laptops, bicycles, electricity, and water, frequently used as incentives during electoral campaigns.
• There is a significant concern that freebies may foster dependency among beneficiaries, failing to encourage long-term sustainable development.

Welfare Policies

• Welfare policies are structured, long-term initiatives aimed at improving the overall quality of life and ensuring equitable resource access for target populations.
• They are often grounded in the Directive Principles of State Policy (DPSPs), reflecting the state’s commitment to social justice and equity.
• Notable examples include the Public Distribution System (PDS), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and the Mid-Day Meal Program, which are designed to have a sustained positive impact on societal and human development.

Key Distinctions

• Strategic Orientation: While freebies are typically aimed at providing immediate, short-term benefits, welfare policies are designed for systematic societal improvement and long-term development.
• Impact on Development: Freebies are often criticized for potentially leading to economic inefficiencies and dependency, whereas welfare policies are viewed as investments in human capital that foster long-term societal benefits and economic growth.

2013 Supreme Court decision on the issue of freebies (S Subramaniam Balaji vs Tamil Nadu)

• The Supreme Court ruled that promises made by political parties and candidates in their manifestos could not be considered corrupt under the Representation of the People Act.
• It also does not violate the principle of a level playing field (Article 14).
• The Supreme Court had declined to intervene in the government’s schemes for providing goods at no cost.
• The Supreme Court ruled that the distribution of such goods was directly related to state policy directive principles (DPSP).
• It did, however, observe that freebies shake the foundation of free and fair elections to a large extent and directed the EC to develop guidelines for the same in consultation with all recognised parties.
• In 2013, the EC was directed by the court to develop a model code of conduct (MCC).
• The Election Commission welcomed the Supreme Court’s suggestion to form an expert panel to discuss the issue of freebies. However, the ECI stated that it cannot be a part of the body.

ECI’s position on freebies:

• No authority to regulate or act
• The EC previously stated that it lacks the authority to regulate or prosecute parties that make such election promises.
• Offering or distributing freebies before or after an election is a policy decision made by the party in question.
• Whether such policies are financially viable or have a negative impact on the state’s economic health is a question that voters must consider and decide.
• On using its authority to freeze election symbols and cancel the registration of parties that promise gifts
• State and national parties were recognised and maintained based on a single criterion: electoral performance.
• Invoking such powers by ECI may result in parties losing recognition even before their electoral performance is demonstrated.
• There is no precise definition of freebies in the current legal/policy framework.
• Freebies can be lifesavers in difficult times.
• What is irrational or a freebie for one group of people may be rational and necessary for another.
• The benefits of cross-subsidization and situation/sector-specific reliefs in addressing the various vulnerabilities of society’s segments cannot be overstated.
• Political parties may modify the ban on freebies.
• Political parties can make such promises knowing that they will be prohibited or negatively commented on by the regulatory authority.
• This may provide them with more publicity and mileage than actual post-election implementation.

 Advantages of Freebies in India

• Freebies include not only unsustainable pre-election promises, but also a variety of services that the government provides to citizens in order to meet its constitutional obligations (Directive Principles of State Policy), such as the Public Distribution System (PDS), Free Covid Vaccine, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• The ‘Mid-day Meal Scheme’ was introduced by Tamil Nadu’s Chief Minister K. Kamaraj in 1956, and it was later adopted as a national programme a decade later.
• The original avatar of the current National Food Security Programme is NT Rama Rao’s promise of rice at Rs. 2 per kg in Andhra Pradesh.
• Rythu Bandhu of Telangana and Kalia of Odisha pioneered what is now known as Kisan Samman Nidhi.
• Upliftment of the Lower Class: Because states with lower levels of development have a higher percentage of their population living in poverty, such freebies are more useful in these states for upliftment of the lower strata.

Freebies’ Negative Effects

• Drain on Public Spending: Most of the time, freebies result in an excessive and unnecessary drain on public spending, as well as an economic burden on states, as most Indian states are in poor financial condition and have limited revenue resources.
• Revdi (Freebies) for One, Disaster for Another: In order to maintain internal fiscal balance, the government overcharges industrial and commercial contracts. As a result, the competitiveness of growing industries is reduced, resulting in slower industrial growth and higher commercial prices.
• As a result, the question is not how cheap the freebies are for the recipients, but how costly they are for the economy, life quality, and social cohesion in the long run.
• Subsidies and freebies put pressure on government revenues, resulting in an increased fiscal deficit and increased interest payments.
• Unregulated populism by offering and distributing ‘irrational freebies’ during election campaigns frequently create bias in the minds of voters, particularly the underprivileged class, who are easily swayed by freebies and impact informed decision making to choose their representative.
• Temporary Nature: Freebies occasionally undergo negative transitions from universal to optional, then to a halfway house via surcharges; these promises are only valid until incumbents face fiscal constraints and are forced to withdraw benefits.
• Freebies on Private Goods and Services: Freebies on Private Goods and Services do not result in a tangible social benefit.
• For example, free electricity distribution does not provide any collective social benefits and thus can be considered Private Goods.

-Source: The Hindu

Multilateral Development Banks

Context:

The G20 Independent Expert Group has issued a report card assessing the progress made by Multilateral Development Banks (MDBs) in expanding lending capacity and mobilising private capital.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. MDB Overview
2. Strategic Reforms for Multilateral Development Banks (MDBs)
3. Way Ahead to Strengthen MDBs

MDB Overview

Definition and Purpose

• MDBs are international finance organizations intended to supply financial as well as technical aid so as to spur economic as well as social development for the developing nations.
• There are several leading MDBs around the world such as the World Bank Group, Asian Development Bank, African Development Bank, and Inter-American Development Bank.
• MDBs are well shown to be an effective power to eradicate poverty, for infrastructural needs, as well as the enhancement of human resources in the low-income as well as middle income nations.

The need to reform:

• As global challenges evolve, there is a growing consensus of the need to reform MDBs to better serve the aspirations of sustainable and inclusive growth as envisioned by developing nations.

Why Reforming MDBs is Critical

Outdated Structures:

• The frameworks governing MDBs were mainly established post-World War II and were meant for reconstruction but are now outdated.
• The current institutions do not solve the problems of the new technology era or cater to the particular needs and aspiration of the Global South.

Improve Private Sector Engagement:

• MDBs are expected to mobilize significant private financing, estimated at $740 billion annually, to effectively support climate action and achieve Sustainable Development Goals (SDGs).
• However, the actual mobilization of private capital has been significantly lower, with only about $70 billion raised in the past year, indicating a gap in leveraging private sector investment.

Local Currency Lending:

• MDBs have done relatively little on local currency lending even though they have continued to advance their risk mitigation tools and guarantees.
• This limitation restricts the ability of MDBs to offer suitable financial solutions tailored to specific economic contexts of countries they service.

Strategic Reforms for Multilateral Development Banks (MDBs)

Expanded Triple Mandate for MDBs

• Objectives:
  • Eradicate extreme poverty.
  • Foster inclusive economic growth.
  • Support global public goods, focusing on sustainable development and climate action.
• Implementation Strategies:
  • MDBs are encouraged to triple their financial commitments to meet these ambitious goals.
  • The creation of a “Global Challenges Funding” mechanism is proposed to channel funds effectively.
  • There is a critical need to enhance engagement with the private sector to leverage additional resources.

Enhancing MDBs’ Lending Capacities

• Recent Advances:
  • MDBs have increased their lending capacity by 33%.
  • They have improved the utilization of balance sheets and expanded guarantee platforms.
  • Reforms in capital adequacy frameworks have been implemented to optimize resource usage.
• Challenges:
  • Despite these improvements, the increase in capacity still falls short of the required tripling to meet the expanded mandates effectively.

Innovations in Capital Mobilization

• New Funding Mechanisms:
  • Introduction of hybrid capital options, such as non-voting shares, to attract additional financial resources.
  • Although these options have sparked some interest among member states, overall uptake remains limited.

Boosting Private Sector Involvement

• Cultural and Operational Shifts:
  • MDBs need to adapt their operational cultures to mitigate perceived risks and attract private capital.
  • Collaborative efforts with rating agencies and the creation of investment-friendly environments are essential.
  • Encouraging private investors through targeted risk-reduction strategies and incentives.

Way Ahead to Strengthen MDBs

Boosting Performance and Adaptability

• Maximizing Resource Mobilization: Existing methods fall short in fully utilizing the capacity of MDBs to gather resources, align policies, and encourage innovation.
• Adaptation to Global Needs: Implementing flexible, tailored solutions along with a variety of financial instruments is vital to address the evolving requirements of diverse nations and sectors.

Reforming Governance

• Equitable Representation:
  • Current governance structures within MDBs do not adequately reflect the perspectives of developing nations.
  • Enhancing transparency, accountability, and responsiveness is crucial for improving the trust and operational efficiency of MDBs.

Enhancing Concessional Financing

• Support for the Most Vulnerable:
  • Focus on increasing concessional financing to provide essential support to the world’s poorest nations without exacerbating their debt situations.

Expanding Climate Financing

• Scaling Up Financial Commitments:
  • MDBs have significantly raised their climate financing efforts, with total commitments reaching $75 billion in 2023, a significant increase from $42 billion in 2019. This funding includes $50 billion for mitigation strategies and $25 billion for adaptation measures.

Strengthening Coordination

• Improving Collaboration:
  • MDBs are actively working to synchronize procurement practices and have rolled out a digital co-financing platform to enhance the management and implementation of extensive development projects.

-Source: The Hindu

Emission Gap Report 2024

Context:

If countries continue with their current environmental policies, it would lead to 3.1 degrees Celsius warming over pre-industrial levels, according to the recently published Emissions Gap Report 2024.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

1. About Emissions Gap Report
2. United Nations Environment Programme (UNEP)
3. Highlights of the 2024

About Emissions Gap Report

The UNEP’s Emissions Gap Report gives a yearly review of the difference between where greenhouse emissions are predicted to be in 2030 and where they should be to avoid the worst impacts of climate change.

The annual report from UNEP measures the gap between anticipated emissions and levels consistent with the Paris Agreement goals of limiting global warming this century to well below 2°C and pursuing 1.5°C.

United Nations Environment Programme (UNEP)

• The UNEP is a leading global environmental authority established in 1972 and Headquartered in Nairobi, Kenya.
• It sets the global environmental agenda, promotes the sustainable development within the United Nations system, and serves as an authoritative advocate for global environment protection.
• It sets the global environmental agenda, promotes sustainable development within the United Nations system, and serves as an authoritative advocate for global environment protection.
• The UNEP Publishes:
  • Emission Gap Report,
  • Global Environment Outlook,
  • Frontiers,
  • Invest into Healthy Planet.

Highlights of the 2024

Urgent Reduction Goals:

• The 2024 report, titled “No More Hot Air… Please!”, emphasizes the critical need for rapid global reductions in greenhouse gas (GHG) emissions.
• To adhere to the Paris Agreement’s 1.5°C temperature target, a 42% reduction by 2030 and 57% by 2035 are necessary.
• For the less stringent 2°C target, reductions of 28% by 2030 and 37% by 2035 are required.

Emissions Trends and National Contributions:

• The report notes a concerning 1.3% increase in global GHG emissions in 2023 compared to 2022, largely driven by the power sector, followed by transportation, agriculture, and industry.
• India saw the most significant rise in emissions among major economies at 6.1%, followed by China at 5.2%.
• Conversely, the European Union and the United States saw decreases of 7.5% and 1.4%, respectively.

Global Emission Comparisons:

• Despite the increases, India’s total GHG emissions stood at 4,140 million metric tons of CO2 equivalent (MtCO₂e), relatively lower compared to China’s 16,000 MtCO₂e and the US’s 5,970 MtCO₂e.
• The EU’s emissions were 3,230 MtCO₂e, slightly less than India’s.
• Collectively, the six largest GHG emitters contributed to 63% of the global emissions, while the least developed countries contributed only 3%.

Nationally Determined Contributions (NDCs):

• NDCs are pivotal in each country’s efforts under the Paris Agreement to limit global temperature rise.
• The report stresses the necessity for enhanced NDC targets to prevent the projected temperature rise to between 2.6°C and 3.1°C by the end of the century.

Critical Observations:

• The report highlights a dire need for intensified global efforts and enhanced national plans to mitigate climate change impacts effectively.
• It calls for urgent collective action to realign current trajectories with the Paris Agreement’s temperature goals to prevent irreversible damage.

-Source: Down To Earth, The Hindu

Coral Triangle

Context:

A report released at the 16th Conference of Parties (COP16) to the Convention on Biological Diversity (CBD) highlighted alarming facts about oil and gas activities in the Coral Triangle.

Relevance:

Facts for Prelims

Coral Triangle

• It is described as the ‘Amazon of the seas’, covering over 10 million square kilometers.
• This includes parts of Indonesia, Malaysia, Papua New Guinea, Singapore, the Philippines, Timor-Leste, and the Solomon Islands.
• It houses 76% of the world’s coral species and is vital for over 120 million people dependent on its marine resources for livelihood.

Obstacles in the Coral Triangle

• Unsustainable fishing, development pollution in the coastal setting, and the impacts of global climate change like corals’ bleaching critically imperil the health and sustainability of this system.

What are Corals?

• Actually, many people actually believe that corals are plants; on the other hand, corals are animals which hold a fixed position on the floor of the ocean floor.
• Mutualistic Relationship: It holds zooxanthellae, an algae used for mutualistic existence, feeding them through photosynthesis for nutrient production.
• The corals capture food using their tentacle-like appendages by drawing the same in their mouths.

Structure of Coral

• Structure of Polyp: units of corals are termed as polyps that combine in hundreds to thousands which form a large colony named the coral colony with genetic similarities across the colony.

-Source: Down To Earth

Complete Brain Mapping of Adult Fruit Fly Achieved

Context:

Scientists have achieved a significant breakthrough by mapping the entire brain of an adult fruit fly. This landmark accomplishment enhances our understanding of brain function, providing valuable insights that could influence studies of both animal and human neurology.

Relevance:

Facts for Prelims

Breakthrough in Brain Mapping: The Adult Fruit Fly

Overview of Recent Scientific Achievement

• Major Scientific Milestone: Researchers have successfully mapped the entire brain of an adult fruit fly, marking a significant advancement in our understanding of how brains function.
• Purpose of the Study: This research was primarily focused on deciphering the complex wiring and signaling mechanisms that underpin healthy brain functions.

Details of the Research

• Extensive Neural Mapping: The study detailed over 50 million neural connections, involving more than 139,000 neurons within the fruit fly’s brain.
• Connectome Development: Building upon prior research on simpler organisms, this study has produced a detailed connectome of an adult fruit fly’s brain.

Implications for Neuroscience

• Due to their capability for complex behaviors such as learning, memory, and social interactions, fruit flies are invaluable for neuroscience research that might be applicable to understanding similar functions in humans.

About the Fruit Fly

• Known scientifically as part of the Drosophilidae family, fruit flies are a staple in biological research, often found around ripe or decaying fruit.
• For over 100 years, the fruit fly has been a critical model organism, contributing to numerous scientific breakthroughs.
• The fruit fly’s fully sequenced genome provides researchers with extensive data on its biochemistry, physiology, and behavioral patterns.

-Source: The Hindu

Nature Conservation Index

Context:

India with an abysmal score of 45.5 (out of 100) has been ranked 176th in the Global Nature Conservation Index, 2024.

Relevance:

GS III: Environment and Ecology

About Nature Conservation Index:

• This is developed by Goldman Sonnenfeldt School of Sustainability and Climate Change at Ben-Gurion University of the Negev.
• The NCI is a data-driven analysis to assess each country’s movement in balancing conservation and development.
• It is meant for governments, researchers, and organizations to identify concerns and better conservation policies for long-term biodiversity protection.
• This is the first edition of the index, ranking countries according to their efforts vis-a-vis four pillars:
• Managing protected areas, addressing threats against biodiversity, nature and conservation governance, and future trends in a country’s natural resource management.

Highlights

• India ended up at the bottom, primarily due to inefficient land management and the rising threats to its biodiversity.
• The report concluded that there were several threats to India’s biodiversity, from habitat loss and fragmentation resulting from agriculture, urbanization, and infrastructural development, and climate change added on.
• Luxembourg, Estonia, and Denmark were at the top of the list, and others like Zimbabwe and Costa Rica were included in the top 10.

-Source: Down To Earth