Daily Prelims Notes 16 December 2020

December 16, 2020
Posted by: OptimizeIAS Team
Category: DPN

Table Of Contents

1. Total Factor Productivity and Growth

Subject: Economy

Context: The moot question now before the economy is even though growth will revive in 2020-21, how soon will it move to a higher trajectory and how soon will it be in the zone of non-inflationary sustainable levels.

Concept:

This requires higher investment relative to GDP supported by increased financial savings in the economy and augmentation of total factor productivity in terms of physical and human capital investment.

Economic growth

Economic growth is a function of the quantity of inputs such as labour and capital employed for productive purposes, along with factor productivity.
It is intuitive that if more people are employed, more goods and services would be produced. Over time, due to a rise in population, labour employed increases and due to accumulation, capital also increases in an economy.
A rise in productivity enables an economy to grow faster with the same set of labour and capital being employed. It is important to recognize the factors responsible for growth to address the current slowdown.

Total Factor Productivity

Total factor productivity (TFP) is derived as a ratio of the total production and weighted average of inputs such as labour and capital.
The measure gives us the growth in real output, which is in addition to the growth in inputs such as labour or capital employed for productive purposes.
So TFP gives us the relationship between the quantity of factors employed and the output in an economy. A higher TFP implies higher growth with the same set of labour and capital employed.

2. LA NINA

Subject: Geography

Context: A cold wave in Delhi brought the night-time or minimum temperature down to 4.1 degrees Celsius, the lowest for the season so far this year, as per the IMD.

Concept:

There has been significant snowfall in Western Himalayan region states and cold winds blowing from this area towards Delhi is causing temperatures to dip.
States like Himachal Pradesh recorded snowfall over the last few days under the influence of a Western Disturbance, which also brought light showers to Delhi.
After the passing of this Western Disturbance, the cloud cover cleared, resulting in higher radiation at night time, which also caused temperatures to dip.
Also , La Niña climate pattern, which is currently active, is also resulting in lower temperatures across the globe.

La-Nina

It means the large-scale cooling of ocean surface temperatures in the central and eastern equatorial Pacific Ocean, together with changes in the tropical atmospheric circulation, namely winds, pressure and rainfall.
It has the opposite impacts on weather and climate as El Niño, which is the warm phase of the El Niño Southern Oscillation (ENSO).

Weather changes because of La Nina:

The Horn of Africa and central Asia will see below average rainfall due to La Niña.
East Africa is forecast to see drier-than-usual conditions, which together with the existing impacts of the desert locust invasion, may add to regional food insecurity.
It could also lead to increased rainfall in southern Africa.
It could also affect the South West Indian Ocean Tropical Cyclone season, reducing the intensity.
Southeast Asia, some Pacific Islands and the northern region of South America are expected to receive above-average rainfall.
In India, La Niña means the country will receive more rainfall than normal, leading to floods.

3. FSDC

Subject: National Organization

Context: The Financial Stability and Development Council (FSDC) discussed measures that may be needed to support the financial sector for achieving faster real economic growth and achieving the overall macroeconomic targets.

Concept:

The Financial Stability and Development Council (FSDC) was constituted by an Executive Order of the Union Government as a non-statutory apex body under the Ministry of Finance in 2010.

Council Members

The Finance Minister is the Chairman of the FSDC.
Members of FSDC include Heads of the Financial Sector Regulators listed below:
Reserve Bank of India (RBI)
Insurance Regulatory and Development Authority (IRDA)
Securities and Exchange Board of India (SEBI)
Pension Fund Regulatory and Development Authority (PFRDA)
Other members are Finance Secretary, Chief Economic Advisor and Secretary of the Department of Financial Services.

Member Reforms

The government reconstituted the FSDC to include the following Members in the Council:
Minister of State responsible for the Department of Economic Affairs (DEA)
Secretary of the Department of Electronics and Information Technology
Revenue Secretary
Chairman of the Insolvency and Bankruptcy Board of India (IBBI)
The reconstitution would make FSDC more broad-based to incorporate changes in the economic regulatory framework of the country.

Functions of FSDC

The Financial Stability and Development Council was established as an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
The body envisages to strengthen and institutionalize the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of the economy.
It must be noted that no funds are separately allocated to the council for undertaking its activities.

4. HIMALAYAN SEROW

Subject: Environment

Context: A Himalayan serow has been sighted for the first time in the Himalayan cold desert region. The animal was spotted near Hurling village in Spiti, Himachal Pradesh.

Concept:

The Himalayan serow, or Capricornis sumatraensis that, is a subspecies of the mainland serow (Capricornis sumatraensis).
Himalayan serow resembles a cross between a goat, a donkey, a cow, and a pig. It’s a medium-sized mammal with a large head, thick neck, short limbs, long, mule-like ears, and a coat of dark hair.
There are several species of serows, and all of them are found in Asia. Himalayan serows are typically found at altitudes between 2,000 metres and 4,000 metres (6,500 to 13,000 feet).
They are known to be found in eastern, central, and western Himalayas, but not in the Trans Himalayan region.
They are herbivorous animal.

Conservation status:

The Himalayan serow is now been categorised as ‘vulnerable’ in the IUCN Red List of Threatened Species.
It is listed under Schedule I of The Wildlife Protection Act, 1972, which provides absolute protection.

Additional Information

Serows are generally not found at this altitude, and never before has a serow been seen in the Himalayan cold desert.
Wildlife officials believe this particular animal may have strayed into the Spiti valley from the RupiBhaba Wildlife Sanctuary in adjoining Kinnaur.

5. SELECT COMMITTEE

Subject: Polity

Context: During the debate on farm bills in the both houses of the Parliament, members from opposition parties had expressed their concerns regarding several provisions and demanded for a select committtee to review the bill.

Concept:

This is formed for examining a particular Bill and its membership is limited to MPs from one House.
They are chaired by MPs from the ruling party.
Since Select Committees are constituted for a specific purpose, they are disbanded after their report.

Parliament Scrutiny of Bills:

By discussing it on the floor of the two Houses: This is a legislative requirement; all Bills have to be taken up for debate.
By referring a Bill to a parliamentary committee: There is not enough time to discuss every Bill in detail on the floor of the House. In such scenarios, the bill are referred to a parliamentary committee.
Referring of Bills to parliamentary committees is not mandatory.
Bills are not automatically sent to committees for examination.

Three broad paths by which a Bill can reach a committee :

When the minister piloting the Bill recommends to the House that his Bill be examined by a Select Committee of the House or a joint committee of both Houses.
If the minister makes no such motion, it is up to the presiding officer of the House to decide whether to send a Bill to a departmentally related Standing Committee.
Also, a Bill passed by one House can be sent by the other House to its Select Committee.

What happens after the the bill is referred to a committee?

The committee undertakes a detailed examination of the Bill.
It invites comments and suggestions from experts, stakeholders and citizens.
The government also appears before the committee to present its viewpoint.
All this results in a report that makes suggestions for strengthening the Bill.
The report of the committee is of a recommendatory nature.

6. PUBLIC UTILITY SERVICE

Subject: Social Issue

Context: AIIMS, in a petition before the court, submitted that the nurse’s union is a public utility service as defined in Section 2(n) of the Industrial Disputes Act and their strike is in violation of Section 22 of the Act.

Concept :

The Industrial Disputes act, 1947 regulates Indian labour laws. The main objective of the act is to secure harmony and peace in the work culture of Indian Industries. The act applies only to organized sector.
As per Industrial Disputes Act, 1947, Section 2(n) defines public utility service” as–
any railway service or any transport service for the carriage of passengers or goods by air
any service in, or in connection with the working of, any major port or dock
any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends
any postal, telegraph or telephone service
any industry which supplies power, light or water to the public
any system of public conservancy or sanitation
any industry specified in the First Schedule which the appropriate Government may, if satisfied that public emergency or public interest so requires, by notification in the Official Gazette, declare to be a public utility service for the purposes of this Act, for such period as may be specified in the notification:
Provided that the period so specified shall not, in the first instance, exceed six months but may, by a like notification, be extended from time to time, by any period not exceeding six months, at any one time, if in the opinion of the appropriate government, public emergency or public interest requires such extension.

7. ADVERSE EVENT FOLLOWING IMMUNISATION

Subject: Science & tech

Context: Health secretary said, we can’t deny chances of an adverse event when Covid-19 vaccination begins. In countries where immunization has already begun, especially in the UK, adverse events have taken place on the very first day.

Concept:

As vaccine-preventable infectious diseases continue to decline, people have become increasingly concerned about the risks associated with vaccines.
Furthermore, technological advances and continuously increased knowledge about vaccines have led to investigations focused on the safety of existing vaccines which have sometimes created a climate of concern.
Adverse event following immunization is any untoward medical occurrence which follows immunization and which does not necessarily have a causal relationship with the usage of the vaccine.
If not rapidly and effectively dealt with, can undermine confidence in a vaccine and ultimately have dramatic consequences for immunization coverage and disease incidence.
Alternatively, vaccine-associated adverse events may affect healthy individuals and should be promptly identified to allow additional research and appropriate action to take place.
In order to respond promptly, efficiently, and with scientific rigour to vaccine safety issues, WHO has established a Global Advisory Committee on Vaccine Safety.

8. DAKPAY APP

Subject: Current Events

Context: India Post Payments Bank (IPPB) along with Department of Posts (DoP) launched digital payment application ‘DakPay’ to facilitate easy digital transactions and other banking services.

Concept:

DakPay is a suite of digital financial and assisted banking services provided by India Post and India Post Payments Bank (IPPB) through the trusted Postal (‘Dak’) network across the nation to cater to the financial needs (‘Pay’) of various sections of the society.
DakPay UPI app allows users to create UPI ID and link multiple accounts across banks in a single mobile app. The app facilitates instant money transfers, QR based payments in merchant stores and online shopping on e-commerce websites.
The app was launched as part of its ongoing efforts to provide Digital Financial inclusion at the last mile across India.

9. S-400 & CAATSA

Subject: International Events

Context: The United States has imposed sanctions on Turkey on Monday over its acquisition of Russian S-400 air defence systems.

Concept:

The S-400 Triumf, (NATO calls it SA-21 Growler), is a mobile, surface-to-air missile system (SAM) designed by Russia.
It is the most dangerous operationally deployed modern long-range SAM (MLR SAM) in the world, considered much ahead of the US-developed Terminal High Altitude Area Defense system (THAAD).
The system can engage all types of aerial targets including aircraft, unmanned aerial vehicles (UAV and ballistic and cruise missiles within the range of 400km, at an altitude of up to 30km. The system can track 100 airborne targets and engage six of them simultaneously.
The S-400 Triumf air defence system integrates a multifunction radar, autonomous detection and targeting systems, anti-aircraft missile systems, launchers, and command and control centre. It is capable of firing three types of missiles to create a layered defence.

CAATSA:

Countering America’s Adversaries through Sanctions Act (CAATSA) was passed unanimously by the US Congress and signed reluctantly by US President Donald Trump. Enacted on August 2, 2017, its core objective is to counter Iran, Russia and North Korea through punitive measures.
With India set to get the consignment of the S-400 air defence system early next year, India is watching Washington’s moves closely.
While it has got a waiver from the outgoing Trump administration, India hopes that the incoming Biden administration would not work towards reversing the decision.

10. ESWATINI (SWAZILAND)

Subject: Geography

Context: The Prime Minister, has expressed grief over the demise of Ambrose Mandvulo Dlamini, Prime Minister of the Kingdom of Eswatini.

Concept:

Eswatini is officially known as the Kingdom of Eswatini, sometimes written in English as eSwatini, and formerly and still commonly known in English as
Eswatini is a landlocked country in Southern Africa. It is bordered by Mozambique to its northeast and South Africa to its north, west, and south.
The population is composed primarily of ethnic Swazis.
The government is an absolute monarchy, ruled by King Mswati III since 1986. Elections are held every five years to determine the House of Assembly and the Senate majority

11. GREEN BUILDINGS

Subject: Environment

Context : The Vice President of India, virtually inaugurating the 12th GRIHA (Green Rating for Integrated Habitat Assessment) Summit, organized by the GRIHA Council from Hyderabad.

Concept:

Quoting the World Green Building Council data, the Vice President said that buildings and construction account for 39% of energy-related CO2 emissions in the world and called for accelerating the process of total de-carbonization of the built environment.
Opining that the roof cooling should be an area of priority for all, he mentioned that in India, over 60 percent of roofs are made from metal, asbestos, and concrete – thus trapping heat inside buildings and contributing to heat island effect in urban areas. cool roofs can lower indoor temperatures by 2 to 4 degrees Celsius as compared to traditional roofs.
Observing that the implementation of Bureau of Energy Efficiency’s Energy Conservation Building Code (ECBC) has not been uniform across the nation, Shri Naidu appreciated the states of Telangana and Andhra Pradesh for taking a lead in this regard.
GRIHA Council has developed the Building Fitness Indicator (BFI) tool – a free-to-use self-assessment tool that allows organizations to measure the preparedness of workplaces to prevent exposure to COVID-19.