Daily Prelims Notes 4 March 2022

March 4, 2022
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

4 March 2022

Table Of Contents

1. Impact of Russia Invasion of Ukraine on Global and Indian Economy

Topic: Economy

Context: Russian invasion on Ukraine impacting the global crude oil prices

Global Impact-War has immediate consequences for global trade, capital flows, financial markets and access to technology.

Global trade will be immediately impacted by economic sanctions on both sides. Exports and imports will be hit and the existing supply bottlenecks due to the pandemic will aggravate.
Ukraine is a major exporter of agricultural produce and their supplies will get disrupted, leading to increase in food prices. Commodity prices had already been rising and this will continue since some of the critical supplies come from Russia and China. This will cause global cost- push inflation and slow down global growth.
Global capital flows will decline since many countries would want their capital to invest at home rather than abroad due to the sanctions on financial flows. The stock markets will decline not only due to this factor but also due to increased uncertainty facing the world and the likely end of quantitative easing by Central Banks in the face of higher inflation and moves to increase interest rates.
Growth will be hit as a result of these adverse changes in consumption and investment. Budgets of nations will be impacted as military expenditures rise leading to large scale revenue deficits.
A push towards de-globalization and inward looking trade policy would further aggravate the supply chain disruption.
The current moves to freeze the assets of Russians in Western banks and to cut off credit to their companies, would force them to devise alternative international payments systems independent of the dollar.
With greater investment in armament there will be decreasing investment in social sectors which along with rising inflation would aggravate poverty and Inequalities.

Impact on India

Positive impact- Rise in agri-export
- Ukraine and Russia account for a quarter of world’s wheat exports, however closing of Black Sea trade route and economic sanctions on Russia would increase India’s competitiveness in global exports for wheat.
- High export demand for wheat – India has already shipped out 5.04 mt of the cereal in April-December 2021 – could result in lower government procurement this time, compared to the record 43.34 mt and 38.99 mt from the 2020-21 and 2019-20 crops, respectively.
- The Ukraine crisis has also led to prices of vegetable oils and oilseeds skyrocketing. The benefits of it should flow to mustard growers in Rajasthan and UP, who are set to market their crop in the coming weeks. Mustard prices are ruling at Rs 6,500-plus per quintal, which is above the MSP of Rs 5,050.
- It can act as an inducement for farmers to expand acreages under cotton, soyabean, groundnut, sesame and sunflower in the upcoming kharif planting season. That will serve the cause of crop diversification – especially weaning farmers away from paddy, if not sugarcane.
Negative Impact

India will see lower than previously forecast economic growth because of the higher commodity prices amid Russia’s invasion of Ukraine. It will expand 8.9% in the year ending March, according to data released Monday by the Statistics Ministry, which is slower than the government’s projected 9.2% expansion.

Imported Inflation-The invasion of Ukraine has upended commodity markets from oil to gas and wheat, increasing inflationary pressure.
- India will see an immediate impact on inflation with rising food prices, as Russia and Ukraine are the major suppliers of corn, barley, and sunflower oil.
- Rise in price of crude oil and natural gas- Consumer price inflation which crossed the RBI’s upper tolerance level of six per cent to 6.01 per cent in January is likely to hit the seven per cent mark as crude prices touched $116 per barrel recently
- Cost push inflation-Other prices will also rise as supply bottlenecks get aggravated due to sanctions and the war situation as Russia being the major exporter of-
  - Fertilizers
  - Raw materials for superconductor chips- neon, vanadiumetc
  - Coal (3rd largest)
  - Petroleum products
- The investment climate will deteriorate due to the uncertainty-Capital flows into the country will decline leading to a further decline in the stock markets.
- Risk of twin Deficit-
  - Every $10 a barrel increase in crude oil will see a $250 billion subsidy impact on regulated fuels in India raising the fiscal deficit.
  - The current account deficit will widen to 2.5% of gross domestic product if oil prices sustain above $100 a barrel from 1.7% in 2021-22.
    - Demand for gold is likely to increase leading to its increased import.
    - Rise in import bill of crude oil and natural gas- Though, India’s imports of petroleum products from Russia are only a fraction of its total oil import bill (<1%) and, thus, replaceable.

However, India imports around 85% of its crude oil and natural gas demands and Russia being the world’s third biggest oil producer (after the US and Saudi Arabia) and the second biggest natural gas producer (after the US) has a major share in global supply affecting the overall price of fuel and fuel related products.

Rise in bill agri import especially vegetable oils- as India imports around 90% of sunflower oil from Russia and Ukraine.
Exports are likely to be hit due to the decline in growth in the world economy and de-globalisation.
Payment delay due to economic sanctions.
Decline in exports to Russia (India exported $3.33 billion worth goods to Russia in 2021)
With capital flows declining the Balance of Payment which was already turning adverse will deteriorate further.
Consequently the rupee will weaken compared to the dollar which will aggravate inflation further.

Way forward:

Immediate Ceasefire: The world is still reeling from the Covid-19 pandemic, which hurt the poorest countries and people the most, it can ill-afford a conflict-induced slowdown.
New Security Order for Europe: The current crisis somehow results from a broken security architecture in Europe.
Reviving Minsk Peace Process: A practical solution for the situation is to revive the Minsk peace process.
India has to brace itself for some immediate challenges flowing from the Russian actions. By diversifying its import regime
Push to make in India by rising capital expenditure in critical import sectors and further push to renewable energy.
Global supply chain diversification initiatives.

2. Jal Jeevan Mission

Topic: Governance

Context: According to the latest data by the Ministry of Jal Shakti, less than half of the rural households in India have access to Piped Water Supply (PWS).

Concept:

Jal Jeevan Mission (2019)

JJM was the revamped 2009 scheme of the National Rural Drinking Water Programme (NRDWP)
Goal: To provide household tap connection to all rural households by 2024.
Aim: To provide 50% of rural population potable drinking water (55 litres per capita per day) by piped water supply.

Latest Government Data

Of the 19.27 Cr rural households, only 9.11 Cr (47.28%) have access to piped water supply and only 37% have the availability of Functional Household Tap Connection (FHTC).
For Example, States like UP (8.2%), Mizoram (9.2%) and J&K (11.4%) have poor coverage of taps with running water.
On the other hand, all the rural households of Goa, Haryana and Telangana and 3 UTs- Andaman and Nicobar Islands, Dadra & Nagar Haveli and Puducherry have access to 100% running water.
Similarly, only 18% of rural population was provided the potable drinking water.
But the ministry indicates that since the inception of JJM, more villages got access to piped water supply i.e., from 18% to 21% in FY20 and to 37% in FY21 and to 47% in FY22 and even the Budget allocation for the project has increased from ₹10,000 Cr in FY21 to ₹60,000 Cr in the latest budget.

3. States cannot tax inconsumable alcohol

Topic: Polity

Context: The Apex Court on hearing the appeal filed by the Odisha government challenging the High Court judgement held that state legislature has no authority to levy duty or tax on alcohol not meant for human consumption.

Concept:

The Constitution provides for a three-fold distribution of legislative subjects between the Union and the states, viz., List-I (the Union List), List-II (the State List) and List-III (the Concurrent List).
The constitution makers have distributed the term ‘alcohol liqour’ into two heads – for human consumption and other than for human consumption.
The former is put in Entry 51 List II authorizing the State Legislature to levy tax on them, whereas the latter is left to the Central Legislature under Entry 84List I for levy of duty of excise, the top court said.
Therefore, the state govt was only empowered to levy excise duty on alcoholic liquor for human consumption and has no power to levy excise duty on wastage of liquor after distillation.

To read about Seventh Schedule, refer https://optimizeias.com/seventh-schedule/

4. ANTI MICROBIAL RESISTANCE

TOPIC: Science & Tech

Context- In the past few years, alarmingly high resistance rates in pathogens of public health importance have been reported from Indian hospitals.

Concept-

The “Global burden of bacterial antimicrobial resistance in 204 countries and territories in 2019 (GRAM)” report, released last month by Lancet, provides the most comprehensive estimate of the global impact of antibiotic resistance to date.
According to the report:
- 95 million people died from drug-resistant bacterial infections in 2019, with 3,89,000 deaths in South Asia alone.
- Amongst pathogens, E coli was responsible for the most deaths in 2019, followed by K pneumoniae, S aureus, Abaumannii, S pneumoniae, and M tuberculosis.
- One pathogen-drug combination – methicillin-resistant S aureus, or MRSA – directly caused more than 1 lakh deaths.
- Resistance to two classes of antibiotics often considered the first line of defence against severe infections – fluoroquinolones and betalactam antibiotics – accounted for more than 70% of deaths caused by AMR.

WHO-GLASS portal:

On 22 October 2015, WHO launched the Global Antimicrobial Resistance and Use Surveillance System (GLASS), the first global collaborative effort to standardize AMR surveillance.
GLASS was created to support the second objective of the GAP-AMR initiative to “strengthen knowledge through surveillance and research”, and to continue filling knowledge gaps, with the aim to inform strategies at all levels.
- In 2015, WHO Member States unanimously approved a Global Action Plan to tackle AMR (GAP-AMR).
GLASS provides a standardized approach to the collection, analysis, interpretation and sharing of data by countries and seeks to actively support capacity building and monitor the status of existing and new national surveillance systems.

UN Resolution on AMR:

21 September 2016: During a high-level meeting convened by UN General Assembly, UN Member States adopted a political declaration on antimicrobial resistance (AMR).
They also called for action, and outlined initiatives carried out nationally to address AMR.

UNEA 5.2 on AMR:

UNEP) identified five major contributors to the global development, transmission and spread of antimicrobial resistance(AMR) in a new report on the sidelines of the fifth session of the UN Environment Assembly at Nairobi.
- Poor sanitation, sewage and waste effluent;
- Effluent and waste from pharmaceuticals manufacturing;
- Effluent and waste from healthcare facilities;
- Use of antimicrobial and manure in crop production;
- Releases, effluent and waste in animal production.
The report identifies focus areas for reducing the burden of AMR by focusing on prevention and mitigation actions, as well as promoting sustainable production and consumption. These include:
- Enhancing environmental governance, planning and regulatory frameworks
- Identifying and targeting priority AMR-relevant pollutants
- Improving reporting, surveillance and monitoring
- Prioritising financing, innovation and capacity development

About AMR:

Antimicrobial resistance is the resistance acquired by any microorganism (bacteria, viruses, fungi, parasite, etc.) against antimicrobial drugs (such as antibiotics, antifungals, antivirals, antimalarials, and anthelmintics) that are used to treat infections.
As a result, standard treatments become ineffective, infections persist and may spread to others.
Microorganisms that develop antimicrobial resistance are sometimes referred to as “superbugs”.

5. ICANN

TOPIC: Science & Tech

Context- ICANN rejects Ukraine request to shut Russian websites.

Concept-

About ICANN:

Internet Corporation for Assigned Names and Numbers.
ICANN is a non-profit body that administers domain names and Internet protocol addresses (IPs) globally.
It was formed in 1988 by the US Department of Commerce.
- It has become independent of US control since October 1st, 2016.
It is responsible for coordinating the maintenance and methodologies of several databases, with unique identifiers, related to the namespaces of the Internet – and thereby, ensuring the network’s stable and secure operation.
It also ensures that computers across the internet can find one another through defined unique pathways and identifiers.
ICANN is a facilitator of the security, stability, and resiliency of these identiﬁers with the objective of a single, global, interoperable Internet.
ICANN does not control Internet access or content.
ICANN is governed by an internationally diverse Board of Directors overseeing the policy development process.

6. V. O. CHIDAMBARAM PILLAI

TOPIC: History

Context- There is a controversy regarding KappalotiyaTamilan, a ﬁlm portraying the life of freedom fighter V.O. Chidambaram Pillai (VOC).

Concept-

About V. O. Chidambaram Pillai:

ValliyappanOlaganathan Chidambaram Pillai was born into a Royal Family of Tuticorin.
He is also known as KappalottiyaTamizhan or “the Tamil Helmsman“.
He was a Tamil Indian freedom fighter and former leader of the Indian National Congress.
Founder of Swadeshi Steam Navigation Company in 1906 to compete against the monopoly of the British India Steam Navigation Company (BISNC).
He launched the first indigenous Indian shipping service between Tuticorin (India) and Colombo (Sri Lanka) with the Swadeshi Steam Navigation Company (SSNC), competing against British ships.
Tuticorin Port Trust, one of India’s thirteen major ports, is named after him.
Chidambaram Pillai established many institutions like YuvaneshPrachar Sabha, DharmasangaNesavuSalai, National Godown, Madras Agro-Industrial Society ltd and DesabimanaSangam.

Coral Mill Strike:

On 23 February 1908 Chidambaram Pillai gave a speech at Thoothukudi, encouraging the workers at Coral Mill (now part of Madura Coats) to protest against their low wages and harsh working conditions.
Four days later, the workers of the Coral Mill went on strike.
Chidambaram and Subramanya Siva led the strike.
- Their demands included incremental earnings, weekly holidays and other leave facilities.
Chidambaram and Siva were arrested on 12 March 1908.
The arrest was followed by widespread protest. In Thirunelveli shops, schools and colleges were closed in protest, and rioting broke out. The Thirunelveli municipal office, post offices, police stations and municipal courts were attacked.
A general strike was declared in Thoothukudi, which was the first political strike in India.

7. MUNICIPAL CORPORATIONS

TOPIC: Polity

Context- R. Priya, a 28-year-old councillor of the Dravida Munnetra Kazhagam is set to become Chennai Mayor on Friday.

Concept-

About Municipal Corporation:

A municipal corporation is a type of local government in India that administers urban areas with a population of more than one million.
The 74th Amendment Act defined the formations of urban local governments and their activities.

Composition:

The area administered by a municipal corporation is known as a municipal area.
Each municipal area is divided into territorial constituencies known as wards.
A municipal corporation is made up of a wards committee. Members are elected to the wards committee on the basis of adult franchise for a term of five years.
These members are known as councillors or corporators.
The number of wards in a municipal area is determined by the population of the city.
Some seats are reserved for scheduled castes, scheduled tribes, backward classes and women.

Administration:

The Mayor is the head of the municipal corporation, but in most states and territories of India the role is largely ceremonial as executive powers are vested in the Municipal Commissioner.
As per the amended Municipal Corporation Act of 1888, a Deputy Mayor is appointed by the Mayor.
The tenure of the Mayor and Deputy Mayor is five years.
In most Indian states mayors are elected indirectly among the council members themselves.
However, in Nine states: Haryana, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh, Telangana and Uttarakhand; Mayors are directly elected by the people and thus hold the executive powers of the municipal corporations.

Functions:

The Twelfth Schedule of the Constitution lists the subjects that municipal corporations are responsible for.
Corporations may be entrusted to perform functions and implement schemes including those in relation to the matters listed in the Twelfth Schedule.

8. WETLANDS

TOPIC: ENVIRONMENT

Context- The State government of Tamil Nadu on Thursday urged the High Court to grant four weeks for issuing a draft notiﬁcation to notify 100 wetlands under the Wetlands (Conservation and Management) Rules of 2017.

Concept-

The State government had also sent proposals to the Centre to declare 13 wetlands in the State as protected sites under the Ramsar Convention.
The proposed 13 wetlands included
- Koonthankulam,
- Chitrangudi,
- Kanji- rankulam,
- Vaduvur,
- Udayamarthandapuram,
- Vellode,
- Vedanthangal and
- Karikili bird sanctuaries.

Wetlands (Conservation and Management) Rules of 2017:

The guidelines clarified that all wetlands, irrespective of their location, size, ownership, biodiversity, or ecosystem services values, can be notified under the Wetlands Rules 2017, except river channels, paddy fields, human-made waterbodies specifically constructed for drinking water, aquaculture, salt production, recreation, irrigation purposes, wetlands falling within areas covered under the Indian Forest Act, 1927, Forest (Conservation) Act, 1980, Wildlife (Protection) Act, 1972 and the Coastal Regulation Zone Notification, 2011.
The rules stipulates for setting up of National Wetlands Committee (NWC), headed by MoEFCC Secretary, to monitor implementation of these rules and oversee work carried out by States.
NCW will also advise Central Government on appropriate policies and action for conservation and wise use of wetlands, recommend designation of wetlands of international importance under Ramsar Convention, advise on collaboration with international agencies on issues related to wetlands etc.
It stipulates setting up of State Wetlands Authority (SWA) in each State/UTs headed by State’s environment minister and include range of government officials.
SWA will develop comprehensive list of activities to be regulated and permitted within notified wetlands and their zone of influence.
The rules prohibit activities like conversion of wetland for non-wetland uses including encroachment of any kind, setting up and expansion of industries, waste dumping and discharge of untreated wastes and effluents from industries, cities, towns, villages and other human settlements.
Digital inventory of all wetlands: Mandatory for state authorities to prepare list of all wetlands and list of wetlands to be notified within six months.

What are Wetlands?

Wetland is transitional land between terrestrial and aquatic eco-systems where water table is usually at or near surface or it may be land covered by shallow water.
It supports rich biodiversity and provides wide range of ecosystem services such as water storage, water purification, flood mitigation, erosion control, aquifer recharge etc.
An estimated 63% of the country’s geographical area is made up of wetlands.
In India, 26 wetlands are identified as wetlands of international importance under the Ramsar Convention.

*** For further information refer to DPN 05 February 2022.

9. WHAT CONSTITUTES A WAR CRIME

TOPIC: Defence & Security

Context- Since Russia invaded Ukraine on February 24, its troops have increasingly hit civilian sites with airstrikes and artillery, raising concerns that war crimes are being committed.

The International Criminal Court (ICC) in The Hague announced that it would open an investigation into possible war crimes or crimes against humanity in Ukraine.

Concept-

Laws of war:

The definition of War Crimes is established by the Rome Statute of the International Criminal Court (ICC) is derived from the 1949 Geneva Conventions and is based on the idea that individuals can be held liable for the actions of a state or its military.
War crimes are defined as serious violations of humanitarian laws during a conflict.
There are specific international standards for war crimes, which are not to be confused with crimes against humanity.
The UN Office on Genocide Prevention and the Responsibility to Protect separates war crimes from genocide and crimes against humanity defines
- War crimes as occurring in a domestic conflict or a war between two states,
- while genocide and crimes against humanity can happen in peacetime or during the unilateral aggression of a military towards a group of unarmed people.
Acts that can be considered war crimes include:
- The taking of hostages, willful killings, torture or inhuman treatment of prisoners of war, and forcing children to fight etc.
But, in practice, there is a lot of gray area within that list.

Distinction, proportionality, precaution:

To decide whether an individual or a military has committed a war crime, international humanitarian law lays down three principles: distinction, proportionality and precaution.
Proportionality prohibits armies from responding to an attack with excessive violence.
- If a soldier is killed, for example, you cannot bomb an entire city in retaliation.
Precaution requires parties to a conflict to avoid or minimize the harm done to the civilian population.
the principle of distinction says that you have to be constantly trying to distinguish between civilian and belligerent populations and objects.
- For example, attacking a barrack where there are people who have said they no longer participate in the conflict can be a war crime.

About International Criminal Court:

The ICC is the world’s first permanent international criminal court.
It is governed by the International Treaty Called“ The Rome Statute”.
It investigates and tries individuals charged with the gravest crimes of concern to the international community. ICC aims to hold those responsible for their crimes and to help prevent these crimes from happening again.
India is not a party to Rome Statute along with US and China.
The Rome Statute, grants the ICC jurisdiction over four main crimes:
- The crime of Genocide
- Crimes against Humanity
- War crimes
- Crime of Aggression
ICC is not a UN organization but is has a cooperation agreement with the United Nations.