Daily Prelims Notes 11 December 2023

Daily Prelims Notes

11 December 2023

Table Of Contents

1. 75th anniversary of the Universal Declaration of Human Rights
2. House Panel recommend Prayer at protected site of religious significance
3. In Greater Noida, a Shah Jahan-era tomb with Red Fort link
4. RBI’s Agreement with Bank of England for CCIL Matter
5. RBI’s Monetary Policy Review Highlights
6. What is the controversy over Germany’s debt brake rule?
7. How fractals offer a new way to see the quantum realm
8. Cauvery basin lost nearly 12850 sq. km of green cover
9. Climate change having devastating impact on migratory species

1. 75th anniversary of the Universal Declaration of Human Rights

Subject :IR

Section: Int Body

Context:75th anniversary of the Universal Declaration of Human Rights.

More about the news:

• On December 10, 2023, the Universal Declaration of Human Rights (UDHR) celebrated its 75th anniversary.
• The UDHR stands as a pivotal document, safeguarding human rights and fundamental freedoms for every individual.

What is the Universal Declaration of Human Rights:

• The Universal Declaration of Human Rights (UDHR) is a concise document comprising a preamble and 30 articles outlining fundamental rights and freedoms.
• Article 1 emphasizes the inherent freedom and equality of all human beings, while Article 2 asserts that everyone is entitled to these rights without discrimination.
• The declaration further addresses the rights to life, liberty, and security of person, prohibiting slavery, torture, and degrading treatment.
• It emphasizes equality before the law, the right to a fair trial, and the entitlement to seek asylum from persecution in other countries.
• The UDHR also safeguards freedom of religion, opinion, expression, peaceful assembly, and the right to education.
• The UDHR, together with the International Covenant on Civil and Political Rights and its two Optional Protocols, and the International Covenant on Economic, Social and Cultural Rights(ICESCR), form the so – called International Bill of Human Rights.
• It is not a legally binding treaty

Why and how was it drawn up:

• The Universal Declaration of Human Rights emerged from the collective determination of political leaders, driven by the “never again” sentiment following two world wars and the Holocaust.
• Complementing the U.N. Charter, the foundational document of the United Nations, the UDHR was conceived as a “road map” to secure the rights of every individual.
• Eleanor Roosevelt, widow of U.S. President Franklin D. Roosevelt, chaired the drafting committee,composed of members from eight countries, selected for geographical representation.
• With the participation of over 50 U.N. member countries, the General Assembly approved the declaration on Dec. 10, 1948, with unanimous support except for eight abstentions.
• Despite the prevalence of colonial rule at that time, the drafting process, according to Amnesty International, avoided dominance by powerful nations.
• Smaller nations played a strategic role, ensuring the final text pledged human rights for all, and female delegates championed equal rights for men and women.

What did it achieve:

• While not legally binding as a treaty, the Universal Declaration of Human Rights (UDHR) has profoundly influenced many countries’ legal frameworks, serving as the foundation for international human rights law.
• It has inspired over 70 global and regional human rights treaties and played a pivotal role in movements such as decolonization,anti-apartheid, and fights against gender discrimination, LGBTQ+ rights, and racism.
• The Vienna Declaration of 1993 is built upon the principles of the 1948 declaration.

2. House Panel recommend Prayer at protected site of religious significance

Subject: History

Section: Art and Culture

Context: House Panel recommend Prayer at protected site of religious significance

More about the news:

• A parliamentary panel in India has recommended exploring the possibility of allowing puja (worship) and religious activities at Archaeological Survey of India (ASI) protected monuments that have religious significance.
• This could open the door for rituals at dilapidated temples, dargahs, churches, and other religious sites.
• The ASI currently permits worship at monuments where traditions were ongoing at the time of custody.
• The Ministry of Culture will explore the feasibility, but the policy generally prohibits reviving worship if it wasn’t present during ASI protection or has been abandoned for a long time.

Why prayers are held at some protected sites:

• According to Archaeological Survey of India rules, prayers are allowed at protected sites only if they were “functioning places of worship” at the time the ASI took charge of them.
• Some well-known examples include the Taj Mahal, where namaz is held every Friday, and other living monuments such as three mosques in Kannauj, the Roman Catholic Church in Meerut, Nila Mosque in Delhi’s Hauz Khas Village, and various Buddhist monasteries in Ladakh. 
• However, many protected monuments also witness “unauthorized worship,” as per ASI records, including Lal Gumbad, Sultan Ghari’s tomb, and Ferozeshah Kotla, all in Delhi.

Some facts about the Archaeological Survey of India (ASI):

• ASI is the premier organization for archaeological research, scientific analysis, excavation of archaeological sites, and conservation and preservation of protected monuments.
• It is an attached office under the Department of Culture (Ministry of Culture).
• ASI was founded in 1861 by Alexander Cunningham who became its first Director-General.

What are the Regulation and protection of monuments:

• The ASI regulates construction around the protected monuments through the Ancient Monuments and Archaeological Sites and Remains (Amendment) Act, 2010.
• The Act prohibits the construction of 100 metres around a protected monument. The next 300-metre radius is regulated too.
• Further amendments have been proposed which seek to do away with the ban on construction within 100 metres of a ASI-protected monument and regulate construction within 100-200 metres, under the Act that protects monuments and sites over 100 years old.
• This is expected to give more powers to the ASI on the encroachments.

What is a National Monument

• ‘Ancient Monument’ is defined under the Ancient Monument and Archaeological Sites and Remains Act,1958
• The Act defines Ancient Monument as any structure or monument or any cave, rock sculpture, an inscription that is of historical, or archaeological interest.
• Further, Ancient Monument has to be in existence for not less than 100 years
• Maintained by: The Central Government is authorised to maintain, protect and promote Monuments of National Importance.
• Nodal Authority: Monuments of National Importance are designated by the Archaeological Survey of India (ASI).

3. In Greater Noida, a Shah Jahan-era tomb with Red Fort link

Subject : History

Section: Art and Culture

Context: Shah Jahan-era tomb with Red Fort link

More about the news:

• Greater Noida, known for modern infrastructure, houses a historical gem—the tomb of Ikram Khan, a key figure in the construction of Delhi’s Red Fort during Shah Jahan’s era.
• Located in Kasna Park, the tomb, built with red sandstone, remains in a state of decay.
• Historians connect the structure with the Nihalde Sati Temple, linked to the Rajasthani epic of Nihalde and Narsultan.
• Despite its historical significance, the tomb has suffered neglect, and there are calls for its restoration to preserve this unique monument dedicated to a craftsman.
• The story of Nihalde and Narsultan adds a layer of folklore to the site, emphasizing its cultural importance.

What is the story of Nihalde and Narsultan:

• The tomb of Ikram Khan in Greater Noida has historical ties to the Rajasthani epic of Nihalde and Narsultan.
• Legend has it that Nihalde, spotted by Rajasthani prince Narsultan, moved to his kingdom at Keshavgarh after their marriage.
• Following Narsultan’s exile due to court scheming, Nihalde pledged Sati, promising to jump on a funeral pyre if he didn’t return by Teej.
• Unfortunately, Narsultan arrived late, and in her memory, he built the Nihalde Sati Temple, adding cultural significance to the historical site.

4. RBI’s Agreement with Bank of England for CCIL Matter

Subject : Economy

Section: Monetary Policy

1. Recognition of RBI’s Regulatory Role:
   • RBI Governor Shaktikanta Das highlighted the agreement with the Bank of England during the recent monetary policy statement.
   • The agreement recognizes the RBI as the principal regulator of Clearing Corporation of India (CCIL).
   • It affirms mutual respect for each jurisdiction’s current regulatory regime and supervisory practices.
2. Resolution of Regulatory Ambivalence:
   • The agreement aims to bring an end to regulatory ambivalence regarding CCIL.
   • It addresses doubts raised on India’s regulatory capabilities by affirming the regulatory role of the RBI.
3. Assessment of UK Banks’ Use of CCIL:
   • The agreement facilitates the Bank of England in assessing whether UK-based banks can utilize CCIL for settling transactions in Indian government bonds, foreign exchange, and derivative markets.
4. Guidance for Other Regulators:
   • The agreement sets an example for other regulators, including the European Securities Markets Association (ESMA), on resolving contentious issues related to the external supervision of Indian clearing corporations.
5. Resolution of External Supervision Dispute:
   • Over the past year, ESMA and Bank of England had set a deadline for derecognizing Indian clearing corporations regulated by RBI, SEBI, and IFSCA.
   • The agreement signifies a resolution to the dispute, emphasizing the regulatory competence of Indian clearing corporations.
6. Superiority of Indian Clearing Corporations:
   • The agreement reinforces that Indian clearing corporations are superior to their European counterparts in terms of risk management and investor protection.
   • Indian clearing corporations operate as independent entities with robust settlement guarantee funds.
7. Concerns About Data Access:
   • Indian regulators have expressed concerns about data access provided by external rules, emphasizing the need to safeguard data privacy.
8. Global Implications:
   • The agreement has global implications, signaling that jurisdictions may not be willing to adhere to external regulatory demands.
   • European banks facing restrictions may lead to a shift in business to banks in the US or Asia.
9. RBI’s Assertive Response:
   • The RBI’s assertive stance in calling out the aspersions on Indian regulators and securing the agreement with the Bank of England is commendable.
   • The agreement serves as a model for similar agreements with other regulators.
10. Model for Future Agreements:
    • The agreement with the Bank of England is expected to serve as a model for future agreements with other regulators, providing a framework for addressing regulatory issues.

Clearing Corporations (CC):

1. Definition:
   • Clearing Corporations (CC) are organizations associated with financial exchanges that facilitate the confirmation, settlement, and delivery of financial transactions. They play a crucial role in ensuring the smooth functioning of financial markets.
2. Functions of Clearing Corporations:
   • Confirmation: Verifying the details of a trade or transaction.
   • Settlement: Ensuring the actual exchange of assets and funds between parties.
   • Delivery: Facilitating the transfer of financial instruments or commodities.
3. Examples of Clearing Corporations in India:
   • In the context of Indian financial markets, some examples of Clearing Corporations include:
     • The Clearing Corporation of India Limited (CCIL): Handles clearing and settlement for various financial instruments.
     • Indian Clearing Corporation Ltd (ICCL): Associated with the BSE (Bombay Stock Exchange).

5. RBI’s Monetary Policy Review Highlights

Subject : Economy

Section: Monetary Policy

1. Policy Rate Unchanged:
   • The Reserve Bank of India (RBI) has maintained the policy rate at 6.5%, marking the fifth consecutive time without a change.
   • The decision is driven by the central bank’s vigilant stance on inflation.
2. Liquidity Management Tools Adjusted:
   • RBI has tweaked liquidity management tools, specifically the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF).
   • Reversal of MSF and SDF facilities will be allowed on weekends and holidays, effective from December 30, to enhance liquidity management.
   • The move aims to address the simultaneous high utilization of both MSF and SDF by banks.
3. Rate Details:
   • The Standing Deposit Facility rate remains at 6.25%.
   • The Marginal Standing Facility (MSF) rate is maintained at 6.75%.
4. Deficit Liquidity and Government Spending:
   • System liquidity, measured by the net position under the Liquidity Adjustment Facility (LAF), turned into a deficit in September 2023 for the first time since May 2019.
   • Deficit liquidity was influenced by factors such as higher currency leakage during the festive season, government cash balances, and RBI’s market operations.
   • RBI expects liquidity conditions to ease as government spending increases.
5. Additional Spending Proposal:
   • The Indian government has sought parliamentary approval for additional spending of Rs 1.29 trillion in the current fiscal year.
   • The proposed spending includes higher subsidies for farmers and funding for a rural job employment program.
   • Net additional spending for the fiscal year is Rs 58,378 billion rupees, with the remaining amount accommodated through expense reshuffling.
6. Future Outlook:
   • The RBI remains committed to nimble liquidity management, anticipating that government spending will further alleviate liquidity conditions.
7. Review Period for Adjusted Measures:
   • The newly introduced measure of allowing the reversal of liquidity facilities under SDF and MSF on weekends and holidays will be reviewed after six months or earlier if necessary.

Conclusion:

The RBI’s monetary policy review emphasizes maintaining the status quo on the policy rate, introducing measures for effective liquidity management, and addressing deficit liquidity concerns while anticipating the impact of increased government spending. The adjustments in liquidity tools aim to enhance flexibility and responsiveness in the banking system. The central bank remains watchful of inflation and committed to supporting economic stability.

Monetary Policy Instruments of RBI:

Qualitative Instruments:

1. Moral Suasion:
   • Persuasion and communication techniques to influence banks’ behavior.
   • Encourage or discourage certain activities without using direct regulatory measures.
2. Direct Credit Controls:
   • Regulation of credit flow to specific sectors or industries.
   • Target and control credit allocation to influence economic activities.
3. Selective Credit Controls:
   • Targeting specific types of loans to control demand in specific areas.
   • Direct control over credit for specific purposes, such as curbing inflation or promoting certain sectors.

Quantitative Instruments:

1. Cash Reserve Ratio (CRR):
   • Reserves that banks must maintain with the central bank against their total deposits.
   • Regulate the overall money supply in the economy.
2. Repo Rate:
   • The interest rate at which the central bank lends short-term funds to commercial banks.
   • Influence short-term interest rates and control liquidity in the banking system.
3. Reverse Repo Rate:
   • The interest rate at which banks can park excess funds with the central bank.
   • Control the money supply by managing the flow of funds in the banking system.
4. Bank Rate:
   • The rate at which the central bank provides long-term funds to commercial banks.
   • Regulate long-term interest rates and provide a benchmark for other interest rates.
5. Open Market Operations (OMOs):
   • Buying or selling government securities in the open market.
   • Influence money supply, interest rates, and liquidity conditions.
6. Liquidity Adjustment Facility (LAF):
   • Includes Repo Rate and Reverse Repo Rate.
   • Provide liquidity or absorb excess liquidity in the banking system.
7. Marginal Standing Facility (MSF):
   • Allows banks to borrow overnight funds against collateral.
   • Manage short-term liquidity needs of banks.
8. Statutory Liquidity Ratio (SLR):
   • Percentage of Net Demand and Time Liabilities (NDTL) to be maintained in approved securities.
   • Ensure banks hold a certain proportion of their deposits in liquid assets to meet obligations.

6. What is the controversy over Germany’s debt brake rule?

Subject : IR

Section: Int events

Context:

• Germany’s constitutional court on November 15 ruled unlawful a government move to reallocate €60 billion, unused from the sums initially earmarked for the pandemic  emergency, to a “climate and transformation fund” (KTF).

What is the Debt Brake Rule?

• The debt brake rule caps government borrowing and restricts the federal government’s fiscal deficit to 0.35% of GDP, while prohibiting deficit spending by Germany’s 16 regions.
• This rule was incorporated into German law in 2009 by a coalition, mirroring the EU’s Stability and Growth Pact and the 2012 Fiscal Compact Treaty.

Challenge and Its Legal Implications

• Opposition’s Argument: It argued that climate change and energy transition investments, being long-term, shouldn’t be funded by the debt brake’s emergency exemption, which was specific to COVID-19 relief.
• Government’s Defense: The government contended that the reallocated funds addressed economic consequences of the pandemic by linking investment shortfalls to COVID-19’s economic impact.

Economic Performance Of Germany Since 2009 

• Pandemic Response: In 2020, the debt brake rule was suspended for pandemic-related borrowing, with plans for reinstatement.
• Mixed Outcomes: Germany experienced growth and budget surpluses in the last decade, benefiting from low-interest policies of the ECB.
• Zero-Deficit Budget: The government achieved a zero-deficit budget, promoting it as an ideal approach for the EU during a sovereign debt crisis.

Criticisms:

• A cooling economy highlighted under-investment in infrastructure.Critics urged for expansionary fiscal measures, while others favored higher taxation.
• Chancellor Angela Merkel emphasized the need to avoid burdening the younger generation with debt.

7. How fractals offer a new way to see the quantum realm

Subject : Science and Tech

Section Awareness in IT

Introduction:

• Quantum physics is too weird for many people to understand, and part of the weirdness is due to some of its counter intuitive features. For example, many quantum phenomena are bound by Heisenberg’s uncertainty principle, so it is impossible to know them with great certainty.
• According to this principle, we can’t obtain the information about a particle’s position, say, until we actively check for it.

What do we mean by Fractal Dimensions?

• Fractals in Quantum Physics: Fractals are shapes that have non-integer dimensions, used in quantum physics to describe complex systems.
• Fractals in Nature: Fractals are patterns that repeat at different scales.The Koch snowflake, for example, has a fractal dimension of about 1.26.

Visualizing Fractals in Different Scales

• Fractals in Nature: Fractal patterns are visible in natural phenomena like tree branches, clouds, and river networks.
• Fractals in Quantum Materials: In quantum materials, such as neodymium nickel oxide and graphene, fractal patterns can be observed in the arrangement of magnetic domains or electron density.

Applications of Fractals

• Early Uses: Fractals were initially used to understand random particle movements, like Brownian motion.
• Diverse Applications: Today, fractals are used in various fields, including technology, space research, and biology.
• Studying Complex Systems: Fractals help in understanding complex systems that exhibit patterns at different scales.

Importance of Fractals

• Beyond Geometry: Fractals are important in understanding complex patterns in both quantum physics and natural phenomena.
• Complexity from Simple Rules: Fractals show how complex patterns can emerge from simple rules, offering insights into the quantum world and the natural environment.

Quantum Mechanics and Wave-function Collapse

• Measuring Particles: In quantum mechanics, when you measure a particle’s property, such as its position, you affect its wave-function.
• Wavefunction Defined: The wave-function is a mathematical function that describes all possible states of a particle.When it collapses, it results in a single state.
• Particles in Multiple States: Before measurement, a particle can exist in multiple states or locations simultaneously.

8. Cauvery basin lost nearly 12850 sq. km of green cover

Subject : Environment

Section: Protected Areas

Context:

• A paper on the Cauvery Basin is published by scientists and researchers at the Indian Institute of Science (IISc), Bengaluru.

Study findings:

• Natural vegetation on nearly 12,850 sq. km of land (46%) in the Cauvery basin was lost in the 50 years from 1965 to 2016.
• The quantum of reduction of dense vegetation was 35% (6,123 sq. km) and that of degraded vegetation, 63% (6,727 sq. km).
• Karnataka has lost much more than any other State in the basin.
• It accounts for three-fourths of the lost cover, while Tamil Nadu’s share is around one-fifth.
• Areas that suffered adverse changes in the extent of forest cover include the Brahmagiri Wildlife Sanctuary, Bandipur National Park, Nagarhole National Park and the Cauvery Wildlife Sanctuary.
• In respect of the Bannerghatta National Park, the moist deciduous forest area, which was about 50% in 1973, stood at 28.5% in 2015 due to “anthropogenic pressure” on the National Park and its environs.

Cauvery basin:

• The Cauvery basin extends over the states of Tamil Nadu, Karnataka, Kerala and the Union Territory of Puducherry.
• It spans nearly 2.7% of the total geographical area of the country.
• It is bounded by the Western Ghats on the west, by the Eastern Ghats on the east and south and by the ridges separating it from the Krishna Basin and Pennar Basin on the north.
• The three main physiographic divisions of the basin are the Western Ghats, the plateau of Mysore and the Delta. The Western Ghat region is mountainous and covered with thick vegetation.
• The major reservoirs in the Cauvery basin are Krishnaraja Sagar, Mettur (Stanley), Hemavathy, Kabini, Harasngi, Lower Bhavani and Grand Anicut.
• The Cauvery River is one of the major rivers of the peninsular India.
• It rises at an elevation of 1,341 m at Talakaveri on the Brahmagiri range near Cherangala village of Kodagu district of Karnataka and drains into the Bay of Bengal.
• In size, it is smaller than the Godavari, the Mahanadi and the Krishna.
• Major left bank tributaries:  Harangi, the Hemavati, the Shimsha and the Arkavati.
• Major Right bank tributaries: the Lakshmantirtha, the Kabbani, the Suvarnavati, the Bhavani, the Noyil and the Amaravati.

9. Climate change having devastating impact on migratory species

Subject : Environment

Section: Climate change

Context:

• A report on migratory species has been published by the Convention on the Conservation of Migratory Species of Wild Animals (CMS), on the sidelines of COP28.

Impact of climate change and biodiversity loss on Migratory species:

• Impacting the habitats, food availability and reproduction cycles of the migratory species, poleward range shifts of terrestrial animals, changes in the timing of migration, increases in parasite loads in African Elephants and Lions, and increased probability of deaths and survival due to extreme weather conditions such as heatwaves, and torrential rains among others.
• Effects on breeding success, especially with temperature-sensitive animals such as penguin, turtles, and crocodiles etc and their survival.
• Warmer temperatures are affecting the timing and abundance of food availability such as plankton blooms.
• Some vulnerable migratory species to climate change are- Cold-water copepods, Little penguins, Shag, Migratory albatrosses (Laysan and black-footed albatross), Greater Flamingos, Bitterns, Redshank, Afro-Palearctic migratory passerines (Barn Swallow chick), krill and Northern Lapwing.
• Higher temperatures resulted in decreased hunting frequency among birds and a reduction in food consumption.
  • High temperatures are linked to increased mortality in Great Reed Warblers, though their reproduction has been benefiting from improved rearing conditions.
• The climate change tends to affect terrestrial mammals such as ungulates, herbivores and others as a decline in rainfall resists their food availability.

Role of various species in mitigating impacts of climate change:

• Whales that have long life spans play a crucial role in carbon capture. Each whale has an estimated potential to sequester 0.062 megatonnes of carbon annually.
• Mammals like bats help to maintain biodiversity through seed dispersal,saiga antelopes help improve the resilience of grasslands by preventing wildfires and vultures help reduce disease transmission and risk of spread of zoonotic disease spillover to humans.

Conservation of Migratory Species of Wild Animals (CMS) or Bonn convention:

• It is an environmental treaty of the United Nations.
• 129 countries plus the European Union are the members. Maldives is the latest country to join it.
• CMS provides a global platform for the conservation and sustainable use of migratory animals and their habitats. CMS brings together the States through which migratory animals pass, the Range States, and lays the legal foundation for internationally coordinated conservation measures throughout a migratory range.
• As the only global convention specializing in the conservation of migratory species, their habitats and migration routes, CMS complements and co-operates with a number of other international organizations, NGOs and partners in the media as well as in the corporate sector.
• Migratory species threatened with extinction are listed in Appendix I of the Convention.
• Migratory species that need or would significantly benefit from international cooperation are listed in Appendix II of the Convention.

Source: Down To Earth