Daily Prelims Notes 13 December 2023

December 13, 2023
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

13 December 2023

Table Of Contents

1. Pompe Disease

Subject : S&T

Section: Health

Context: India’s first Pompe disease patient passes away

What is Pompe Disease:

Pompe disease, also called Glycogen Storage Disease Type II, is a rare genetic disorder resulting from a deficiency of the enzymeacid alpha-glucosidase (GAA).
This enzyme is essential for breaking down glycogen into glucose within the lysosomes of cells.
The prevalence of Pompe disease varies, with estimates ranging from 1 in 40,000 to 1 in 300,000 births.
It occurs in diverse ethnicities and populations, with varying ages of onset and severity, leading to a spectrum of clinical presentations.

How does Pompe disease affect an individual:

Pompe disease exhibits varying degrees of severity and symptom progression among individuals.
Key symptoms include progressive muscle weakness affecting both skeletal and smooth muscles, leading to mobility challenges and difficulties in daily activities.
Motor skill delays, particularly in achieving milestones like sitting, crawling, and walking, are common in affected children.
Prolonged muscle weakness can result in bone degeneration, causing joint contractures and skeletal deformities.
Respiratory complications, including weakened respiratory muscles and potential breathing difficulties, are prevalent, especially during physical exertion or while lying down.
Cardiac involvement may occur, leading to symptoms like heart palpitations, fatigue, and chest pain, with the possibility of hypertrophic cardiomyopathy—thickening of heart muscle walls.
The disease’s impact on daily living is significant, as patients may face challenges in performing routine activities independently. Assistive devices such as wheelchairs and respiratory support equipment may become necessary for those affected by Pompe disease.

How is Pompe disease diagnosed:

The diagnosis of Pompe disease employs a comprehensive approach involving various assessments:
- Enzyme Assays: These tests measure the activity of acid alpha-glucosidase (GAA), the enzyme deficient in Pompe disease. Enzyme assays are often conducted on blood or skin cells to evaluate GAA activity levels.
- Genetic Testing: Genetic analysis is performed to identify specific mutations in the GAA gene associated with Pompe disease. This helps confirm the genetic basis of the condition.
- Clinical Evaluations: Healthcare professionals consider the patient’s symptoms and medical history as part of the diagnostic process. Clinical assessments contribute valuable information to the overall diagnosis.
The combination of enzyme assays, genetic testing, and clinical evaluations allows for an accurate and comprehensive diagnosis of Pompe disease. This approach is crucial for timely intervention and effective disease management.

Is Pompe disease curable:

Pompe disease currently lacks a cure, but there are available treatment options aimed at managing symptoms and enhancing the patient’s quality of life.
Enzyme Replacement Therapy (ERT) is a well-established treatment approach, involving the infusion of the deficient enzyme to reduce glycogen accumulation and address the underlying enzymatic deficiency.

2. The Advocates Amendment Bill, which aims to weed out ‘touts’

Subject :Polity

Section: Legislation in news

Context: The Advocates Amendment Bill

More about the news:

The Advocates Amendment Bill, 2023, was passed in the Lok Sabha during the first day of Parliament’s Winter Session.
The bill aims to eliminate ‘touts’ from the legal system by repealing the Legal Practitioners Act, 1879, and amending the Advocates Act, 1961.
The bill focuses on reducing unnecessary enactments in the statute book and eliminating obsolete laws.

What does the now-repealed 1879 Act state

The Legal Practitioners Act, enacted in 1880, aimed to consolidate and amend the law related to legal practitioners in certain provinces.
The Act applied to areas in West Bengal, Uttar Pradesh, Punjab, Bihar, Madhya Pradesh, Assam, Orissa, and Delhi, and could be extended to other states by their governments.
Section 2 defined “legal practitioner” to include advocates, vakils, or attorneys of any High Court.
It also introduced the term “tout,” referring to someone who procures employment for a legal practitioner in exchange for remuneration.
The Advocates Act of 1961 repealed most provisions of the 1879 Act but retained elements related to its extent, definitions, and powers to frame and publish lists of touts.

What is the Advocates Act of 1961:

The Advocates Act of 1961 was enacted to amend and consolidate the law concerning legal practitioners and the establishment of Bar Councils and an All-India Bar.
Before its enactment, legal practitioners were governed by three Acts – the Legal Practitioners Act of 1879, the Bombay Pleaders Act of 1920, and the Indian Bar Councils Act of 1926.
The need for judicial administration reforms post-independence prompted the Law Commission to recommend repealing the 1879 Act in its 249th Report, titled ‘Obsolete Laws: Warranting Immediate Repeal’.
The All-India Bar Committee also provided recommendations in 1953, contributing to the passage of the 1961 Act.

What does the Advocates Amendment Bill, 2023, say:

The Advocates Amendment Bill, 2023, has been passed in the Lok Sabha to eliminate ‘touts’ from the legal system.
The bill repeals the Legal Practitioners Act, 1879, and amends the Advocates Act, 1961, with the aim of reducing superfluous enactments and eliminating obsolete laws.
The new Section 45A allows High Courts and district judges to frame and publish lists of touts.
Individuals can contest their inclusion in such lists before publication.
If found to be a tout, their names will be published and displayed in every court.
The Bill also imposes penalties for acting as a tout while included in such a list.

3. Global Partnership on Artificial Intelligence (GPAI) Summit

Subject :IR

Section: Groupings

Context Modi inaugurated the GPAI summit

More about the news:

India is hosting the Global Partnership on Artificial Intelligence (GPAI) Summit in New Delhi, where Prime Minister Narendra Modi inaugurated the event.
The summit aims to reach a consensus among the 29 member countries on a declaration document outlining the proper use of AI, establishing guardrails for the technology, and promoting its democratization.
Prime Minister Narendra Modi, addressing the summit, emphasized the dual potential of AI as a significant development tool for the 21st century but also as a potential factor in its destruction.
He called for a global framework to establish guardrails for responsible AI use and stressed the need for extreme caution in deploying AI, citing its impact on current and future generations.
PM Modi raised concerns about deep fakes, cybersecurity, and cyber-terrorism resulting from unchecked AI development, proposing an audit mechanism to categorize AI tools based on their capabilities.
He highlighted the importance of ethical AI use and mentioned India’s negotiations with GPAI member countries to achieve consensus on a declaration document outlining proper AI use, technology guardrails, and democratization.
PM Modi announced India’s upcoming AI mission to provide AI compute power for startups and innovators, promoting AI applications in sectors like agriculture, health, and education.
The mission aims to extend AI skills to Tier 2 and Tier 3 cities, with ethical AI use as the guiding principle for the global framework.
PM Modi emphasized that AI’s power lies in connecting people, and its responsible use can drive economic growth, equality, and social justice.
The Theme of GPAI is Advancing Responsible AI in Public-Sector Applications

What is Global Partnership on AI summit:

The Global Partnership on Artificial Intelligence (GPAI) is a multi-stakeholder initiative which aims to bridge the gap between theory and practice on AI by supporting cutting-edge research and applied activities on AI-related priorities.
Its establishment was announced during the 2018 G7 Summit by Canadian PM Justin Trudeau and French President Emmanuel Macron.
GPAI was officially launched on June 15, 2020
The Global Partnership in Artificial Intelligence is described as the ‘fruition of an idea developed within the G7.’
At present, GPAI has twenty-nine member states i.eAustralia, Belgium, Brazil, Canada, Czech Republic, Denmark, France, Germany, India, Ireland, Israel, Italy, Japan, Mexico, the Netherlands, New Zealand, Poland, the Republic of Korea (South Korea), Singapore, Slovenia, Spain, Sweden, the United Kingdom, the United States, and the European Union (EU).
India joined the GPAI in 2020 as a founding member.
Its Secretariat is hosted at the OECD.
Currently,India has assumed the presidency Global Partnership on Artificial Intelligence (GPAI) for 2022-23
The 2022 GPAI Summit took place in Tokyo, Japan

What is the composition and structure of GPAI

GPAI has a Council and a Steering Committee, supported by a Secretariat hosted by the OECD, and two Centers of Expertise: one in Montreal (CEIMIA, the International Centre of Expertise in Montreal for the Advancement of Artificial Intelligence) and one in Paris (at INRIA, the French National Institute for Research in Digital Science and Technology).
These Centers of Expertise will facilitate GPAI’s four working groups and their research and practical projects, across various sectors and disciplines. The working groups will initially focus on four themes:
- Working Group on Responsible AI (Montreal)
- Working Group on Data Governance (Montreal)
- Working Group on the Future of Work (Paris)
- Working Group on Innovation and Commercialization (Paris)

What is the Legal Framework Related to AI in India:

In India, there are currently no specific legal regulations governing the use of deepfake technology. However, existing laws can be applied to address the misuse of this technology, covering aspects such as Copyright Violation, Defamation, and cybercrimes.
For instance, the Indian Penal Code, which addresses defamation, and the Information Technology Act of 2000, which pertains to sexually explicit material, could potentially be used to combat malicious deepfake usage.
The Representation of the People Act of 1951 contains provisions that prohibit the creation or dissemination of false or deceptive information about candidates or political parties during election periods.
Additionally, the Election Commission of India has established regulations requiring registered political parties and candidates to obtain prior approval for all political advertisements on electronic media.
Despite these measures, they may still be inadequate in fully addressing the multifaceted challenges arising from AI algorithms, including the potential risks associated with deepfake content.

What are the Recent Global Efforts to Regulate AI:

The world’s inaugural AI Safety Summit, hosted at Bletchley Park in the UK, saw 28 major nations, including the US, China, Japan, the UK, France, India, and the European Union, unite in signing a declaration emphasizing the necessity for global action to address the potential perils of AI.
The declaration underscores the recognition of significant risks stemming from potential deliberate misuse and unintended control challenges in advanced AI, particularly in domains such as cybersecurity, biotechnology, and the spread of disinformation.
In response to these concerns, the US President issued an executive order aiming to fortify defenses against AI-related threats and exercise regulatory oversight over safety standards applied by companies in the assessment of generative AI systems like ChatGPT and Google Bard.
During the G20 Leaders’ Summit held in New Delhi, the Indian Prime Minister advocated for the creation of a global framework governing the development of “ethical” AI tools.
This shift in New Delhi’s stance signifies a transition from a position of non-interference in AI regulation to a proactive approach, involving the formulation of regulations grounded in a “risk-based, user-harm” perspective.

4. Game-changer Gene therapy offers new hope for those with sickle cell disease

Subject : S&T

Section :health

Context:

Gene therapy offers new hope for those with sickle cell disease.

Introduction

Less than a month after the U.K. drug regulator approved Casgevy, the gene therapy to treat people above 12 with sickle cell disease and beta thalassemia, the U.S. FDA has approved two gene therapies — Casgevy and Lyfgenia — to treat sickle cell disease in patients over 12. Its decision on approving Casgevy gene therapy for treating beta thalassemia is expected by March 2024.

Gene therapy

Gene therapy is a technique that uses a gene(s) to treat, prevent or cure a disease or medical disorder. Often, gene therapy works by adding new copies of a gene that is broken, or by replacing a defective or missing gene in a patient’s cells with a healthy version of that gene.
Both inherited genetic diseases (e.g., hemophilia and sickle cell disease) and acquired disorders (e.g., leukemia) have been treated with gene therapy.
It is a direct way to treat genetic conditions as well as other conditions. There are also other related approaches like gene editing. There are many different versions and approaches to gene therapy and gene editing.
It all rests on understanding how genes work and how changes in genes can affect our health. Researchers all over the world are studying many different facets of gene therapy and gene editing.

Beginning of gene therapy using the CRISPR-Cas9 tool

These landmark decisions mark the beginning of gene therapy using the CRISPR-Cas9 tool to treat diseases that could otherwise be cured only through bone marrow transplantation.
While Lyfgenia uses a disabled lentivirus as a vector to introduce into the blood stem cells a new gene for haemoglobin that mimics the healthy version, Casgevy uses the gene-editing tool of CRISPR-Cas9 to disable a particular gene (BCL11A) that turns off foetal haemoglobin production in blood stem cells.
While about 10% of adults continue to produce foetal haemoglobin, in others, the BCL11A gene prevents the production of foetal haemoglobin. By disabling the BCL11A gene, foetal haemoglobin that is produced, which does not have the abnormalities of adult haemoglobin, helps treat patients with sickle-cell disease or beta thalassaemia.
In clinical trials, 28 of 29 sickle-cell disease patients who received Casgevy gene therapy were relieved of the debilitating effects of the disease for a year; for beta thalassaemia, 39 of 42 patients did not require blood transfusion for one year, and in the remaining three the need for blood transfusion reduced by more than 70%.
In the case of clinical trials involving Lyfgenia, 30 of 32 sickle cell disease patients did not suffer from severe blocked blood flow caused by sickle cells, while 28 of 32 patients did not experience any blocked blood flow events six to 18 months post-infusion.

Huge potential and huge expenditure

Since both gene therapies use patients’ own blood cells for gene editing, the number of patients who can potentially be treated will be huge as these treatments do not rely on matching bone marrow donors.
But in reality, these treatments would be exorbitantly expensive. Also, much like bone marrow transplantation, only certain hospitals will be equipped to extract a patient’s blood stem cells and use the genetic editing tool to the stem cells before reinjecting them, thus limiting the number of beneficiaries.

About Sickle cell disease

Sickle cell disease is an inherited blood disorder. It is marked by flawed haemoglobin. That’s the protein in red blood cells that carries oxygen to the tissues of the body. So, sickle cell disease interferes with the delivery of oxygen to the tissues.
Red blood cells with normal haemoglobin are smooth, disk-shaped, and flexible, like doughnuts without holes. They can move through the blood vessels easily. Cells with sickle cell haemoglobin are stiff and sticky.
When they lose their oxygen, they form into the shape of a sickle or crescent, like the letter C. These cells stick together and can’t easily move through the blood vessels. This can block small blood vessels and the movement of healthy, normal oxygen-carrying blood. The blockage can cause pain.
Normal red blood cells can live up to 120 days. But sickle cells only live for about 10 to 20 days. Also, sickle cells may be destroyed by the spleen because of their shape and stiffness. The spleen helps filter the blood of infections.
Sickled cells get stuck in this filter and die. With less healthy red blood cells circulating in the body, you can become chronically anaemic. The sickled cells also damage the spleen. This puts you are at greater at risk for infections.

5. Rajya Sabha passes Bill to regulate appointment of CEC and ECs

Subject :IR

Section: Reports

Context:

The Rajya Sabha passed a bill that revises the process for appointing the Chief Election Commissioner (CEC) and Election Commissioners (ECs), replacing the Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991.

Key Features of Election Commission Appointments Bill

Appointment Process: The President will appoint the CEC and ECs based on recommendations from a Selection Committee comprising the Prime Minister, a Union Cabinet Minister, and the Leader of Opposition in Lok Sabha.
Search Committee Role: A Search Committee led by the Cabinet Secretary will suggest candidates to the Selection Committee.
Eligibility Criteria: Candidates must have held a post equivalent to the Secretary to the central government.
Salary and Conditions: The CEC and ECs will receive salaries and benefits equivalent to the Cabinet Secretary, a change from the previous equivalence to a Supreme Court judge.

Constitutional Aspect

Constitutional Provisions: Article 324 of the Constitution allows the President to appoint the CEC and ECs but does not specify the appointment process.
Supreme Court Directive: In March 2023, the Supreme Court mandated a selection process involving the Prime Minister, Leader of Opposition, and the Chief Justice of India, until Parliament legislates otherwise.

Key Issues and Analysis

Independence Concerns: The government-dominated Selection Committee could impact the Election Commission’s independence.
Validity despite Vacancies: The Selection Committee’s recommendations will be valid even with vacancies, potentially leading to government control in appointments.
Salary and Status: Aligning the CEC and ECs’ salary with the Cabinet Secretary, determined by the government, may affect their independence compared to a salary fixed by Parliament.
Exclusion of Candidates: Limiting eligibility to senior bureaucrats may exclude other qualified individuals, particularly those with judicialexperience.
International Practices: The appointment processes for election commissions in countries like South Africa, the UK, the US, and Canada vary, with some involving judicial members or parliamentary approval.

Concerns over Independence and Selection Process

Government Influence: The Bill’s provisions for a government-majority Selection Committee and the acceptance of recommendations despite vacancies could lead to executive dominance in appointments.
Salary and Removal Parity: The change in salary equivalence and the lack of parity in the removal process of the CEC and ECs compared to Supreme Court judges raise concerns about the Commission’s independence.

Goswami Committee (1990) Recommendations

Background: The Goswami Committee on Electoral Reforms (1990) made significant recommendations regarding the Election Commission’s functioning.
Appointment Process: The Committee suggested that the CEC should be appointed by the President in consultation with the Chief Justice and the Leader of Opposition in Lok Sabha.For ECs, it recommended a similar process but included the CEC in the consultative process.
Importance of Independence: The Committee emphasized the need for the Election Commission’s independence from executive influence to ensure free and fair elections.

6. Patent exclusions — Madras High Court shows the way

Subject : S&T

Section: IPR

Context:

Madras High Court’s recent rulings on pharmaceutical patents clarify Section 3(e) and Section 3(i) exclusions, emphasizing evidence and contextual analysis for patent eligibility. The decisions highlight the necessity of bright-line rules for consistency in patent office decisions and suggest a legislative role in addressing gaps in pharmaceutical patent issues.

Key Highlights:

Recent Madras High Court judgments by Justice Senthilkumar Ramamoorthy bring clarity to pharmaceutical patent exclusions in the Indian context.
The first case, Novozymes vs Assistant Controller of Patents, interprets Section 3(e), excluding compositions that are mere aggregations.The court specifies that known aggregates can still be patent-eligible if individual components meet patent criteria.
The second case, Hong Kong and Shanghai University vs Assistant Controller of Patents, deals with Section 3(i), excluding inventions related to the treatment of humans or animals.The court providesinsights into the types of diagnoses excluded under this provision.

Key Challenges:

Lack of bright-line rules in the interpretation of patent exclusions, leaving room for ambiguity and varied decisions.
Balancing the interests of pharmaceutical innovation, public health, and preventing overbroad monopolies poses a challenge for the courts.
The need for more legislative clarity on exclusions, with suggestions for in vitro process considerations and potential compulsory licensing.

Key Terms and Phrases:

Section 3(e): Exclusion related to compositions that amount to a mere aggregation of components.
Section 3(i): Exclusion pertaining to inventions involving processes for the treatment of humans or animals.
Bright-line rules: Clear and specific guidelines for interpreting patent exclusions, ensuring consistency in decision-making.

7. 74% Indians could not afford healthy diet in 2021

Subject : S&T

Section: IPR

Context:

More than 74% of Indians could not afford a healthy diet in 2021, the Food and Agriculture Organization of the United Nations said in a report.

What is the State of Food Security and Nutrition in the World(SOFI) Report?

SOFI is an annual flagship report jointly prepared by: Food and Agriculture Organisation of the United Nations (FAO), International Fund for Agricultural Development (IFAD), United Nations Children’s Fund (UNICEF), World Food Programme (WFP) and World Health Organisation (WHO).
Aim: To inform on progress towards ending hunger, achieving food security and improving nutrition and to provide an in-depth analysis of key challenges for achieving this goal in the context of the SDG.

What are the key findings of the SOFI 2023 related to India?

Healthy diet: India has the lowest cost of a healthy diet among BRICS nations and neighboring countries. However, a significant portion of the population can’t afford it due to stagnant or decreasing incomes.
For instance, meal costs in Mumbai increased by 65% in five years, while salaries/wages only grew by 28%-37%.
Healthy diet in terms of Purchasing Power Parity(PPP): In India, a healthy diet costs 3.066 PPP dollars per person per day, the lowest among the countries considered.
PPP stands for ‘Purchasing Power Parity’.In simple terms, 1 PPP dollar in the United States should buy the same amount of goods and services as 1 PPP dollar in, say, India or Brazil.
Share of the population that is unable to afford a healthy diet in 2021: In India, 74% were not able to afford a healthy diet, the fourth highest share among the nations considered.
Change in the cost of a healthy diet over the years across regions: Between 2019 (before the COVID-19 pandemic) and 2021, the expense of maintaining a healthy diet increased by almost 9% in Asia — the highest across regions.
Change in the number of people unable to afford a healthy diet over time across regions: Between 2019 and 2021, Asia and Africa saw the highest growth in the number of people who could not afford a healthy diet.
In Asia, South Asia had the highest number of people (1.4 billion) and the highest share (72%) who could not afford a healthy diet.

What is the Food and Agriculture Organization?

About:

FAO is a specialised agency of the United Nations that leads international efforts to defeat hunger.
World Food Day is celebrated every year around the world on 16th October. The day is celebrated to mark the anniversary of the founding of the FAO in 1945.
It is one of the UN food aid organisations based in Rome (Italy). Its sister bodies are the World Food Programme and the International Fund for Agricultural Development (IFAD).

Initiatives Taken:

Globally Important Agricultural Heritage Systems (GIAHS).
Monitors the Desert Locust situation throughout the world.
The Codex Alimentarius Commission or CAC is the body responsible for all matters regarding the implementation of the Joint FAO/WHO Food Standards Programme.
The International Treaty on Plant Genetic Resources for Food and Agriculture was adopted by the Thirty-First Session of the Conference of the FAO in 2001.

Flagship Publications:

The State of World Fisheries and Aquaculture (SOFIA).
The State of the World’s Forests (SOFO).
The State of Food Security and Nutrition in the World (SOFI).
The State of Food and Agriculture (SOFA).
The State of Agricultural Commodity Markets (SOCO).

8. India’s extreme rainfall ‘corridor’

Subject :Geography

Section: Physical geography

Context:

The Indian monsoon has well-known features, such as the onset of the monsoon, the withdrawal, the active and break periods, and the low-pressure systems (or monsoon depressions).
Every aspect of the monsoon has been affected by global warming.

Where does extreme rain occur?

India’s monsoon forecasts rely heavily on its relation to the El Niño and the La Niña phenomena, although this relation holds only about 60% of the time.
A new study has found that a remarkable stationary element exists in terms of where synchronised extreme rainfall events occur.
The large-scale extreme rainfall events are actually simultaneous or near-simultaneous heavy rain episodes that are strewn across a ‘highway’ that extends from parts of West Bengal and Odisha to parts of Gujarat and Rajasthan.
This corridor has remained unchanged from 1901 to 2019.

What does this mean for the monsoon’s stability?

Traditional statistical methods tend to miss the complex relations between multiple nodes of rainfall centres.
This study shows that the most active nodes have followed this ‘highway’ for more than a century.
The link lengths between nodes, or the scales of synchronicity, have remained nearly constant, at an average value of about 200 km.

What do the findings mean for forecasts?

Researchers had earlier considered that stationary elements no longer exist in climate systems because of global warming. But the Indian monsoon is able to synchronise heavy rain events as well as stick to the ‘highway’ for such a long time.
One of the main factors for this synchronised and stable heavy rainfalls is the range of mountains running along the west coast and across Central India.
This finding will help in better predictions and forecasts of heavy rainfall.
It will also help in reducing risk in the fields of agriculture, water, energy, transportation, health, etc.

Source: The Hindu

9. Have earthquakes really increased in India due to activation of Almora Fault?

Subject :Geography

Section: Physical geography

Context:

There has been an increase in the number of earthquakes in January to November, 2023 compared to the last three years and it was mainly attributed to the activation of the Almora fault in Western Nepal.

Details:

However, various geologists reject the theory that Almora fault is active.
None of the faults in the Himalayas — Main Boundary Thrust, North Almora Thrust or South Almora Thrust — are active.

Thrust fault:

A thrust fault is a break in the Earth’s crust. There are two thrusts in Kumaon, Uttarakhand: One is the South Almora Thrust and the other is the North Almora Thrust.

Almora fault:

The Almora fault is a high angle west-northwest-east-souteast to northwest-southeast trending tectonic plane that separates the Garhwal group of inner lesser Himalayas in the north from Jaunsarand Dudatoli Groups of outer lesser Himalayas in the south.
This Almora Fault extends to western Nepal.
The Almora Thrust is not deep and does not reach the mantle.

Main Himalayan Thrust:

The Main Himalayan Thrust (MHT) is a décollement under the Himalaya Range. This thrust fault follows a NW-SE strike, reminiscent of an arc, and gently dips about 10 degrees towards the north, beneath the region.
It is the largest active continental megathrust fault in the world.

Source: Down To Earth

10. New Initiative to tackle debt & climate change launched by Kenya, Colombia, France

Subject :Environment

Section: Int conventions

Context:

At the COP28 in Dubai, UAE, leaders from Kenya, Colombia and France launched the Global Expert Review on Debt, Nature and Climate.

Global Expert Review on Debt, Nature and Climate:

First proposed at the Summit for a New Global Financing Pact in Paris in June 2023.
Launched by-Kenya, Colombia and France.
Under this, a coalition of experts from countries across the world is going to independently review the relationship between sovereign debt and its impacts on hindering climate ambition.

Initiatives launched at COP28, Dubai, UAE:

The UAE Leader’s Declaration on a Global Climate Finance Framework
- The declaration includes elements on, inter alia, delivering on commitments and achieving ambitious outcomes and widening the sources of concessional finance for climate action.
International taxation taskforce was launched by France with partners including Kenya, Barbados and Spain to push for new levies to raise further money for climate action, especially from rich countries.
Top multilateral development banks and international institutions announced a new global taskforce for scaling debt-for-nature swaps.
- Debt swaps are one way to change the terms of a country’s borrowing – with bilateral government lenders, development finance institutions or private banks – either by giving states more time to repay loans or reducing interest rates and the amounts they must pay back.
- With the agreement of creditors, debt swaps can help the world’s low-income countries avoid default and enable them to redeploy part of their debt repayments to invest in measures to tackle climate change, nature protection, health or
Multilateral Development Banks also released a common set of principles to track ‘nature-positive finance.’
- Nature-positive finance aims to mobilise financial institutions to ensure a nature-positive world.
- Members of the financial sector can contribute to curbing nature loss and aligning their financial flows to nature-positive outcomes.

Debt burden among developing countries:

African nations are burdened with debt acquired during the pandemic. They need to develop resilience but access to capital is hindering climate action.
Out of 52 of the most indebted countries,23 are in Africa.
Ethiopia is on the verge of joining Zambia and Ghana on the list of nations that have defaulted on sovereign debt.

Source: Down To Earth

11. Shift from WPI to PPI

Subject :Economy

Section :Inflation and Unemployment

Reason:

India plans to transition from Wholesale Price Index (WPI) to Producer Price Index (PPI) in the future.
Most G20 countries, including China, already use PPI, making it a more globally accepted practice.

Current Status:

The National Statistical Commission (NSC) is examining a working group report on the roadmap for introducing PPI.

Recommendations from the NSC are awaited before further decisions are made.

Future Plan:

Initially, both WPI and PPI may coexist. After a few years, there is a possibility of phasing out WPI, aligning with global practices.

Background:

Past Discussions:

A working group was established to determine the methodology and data requirements for the transition. In 2019, a working group was formed to revise the current WPI series, suggesting a new base year and considering the shift to PPI.

Base Year Revision:

Work is also underway to revise the WPI base year from 2011-12 to 2017-18. This revision aims to present a more realistic picture of the country’s price situation. The DPIIT issued a draft technical report suggesting changes in the base year and additions to the commodity basket.

Wholesale Price Index (WPI):

WPI measures the average change in the selling prices received by producers for their goods and services at the wholesale level.

Commodity Basket:
- It includes a representative basket of goods covering various sectors like industry, agriculture, and mining.
- WPI is calculated based on the wholesale prices of a set of commodities at a specific point in time.
- Primarily used by policymakers and analysts to assess inflation at the wholesale level.
- Helps in analyzing price movements at the early stages of the supply chain.
- In India, WPI has been historically used as a key indicator of inflation. However, there is a plan to transition to the Producer Price Index (PPI).

Consumer Price Index (CPI):

CPI measures the average change in the prices paid by consumers for goods and services they commonly purchase over time.
It includes a representative basket of goods and services commonly consumed by households.
CPI is calculated based on the prices of goods and services at the retail level, reflecting the expenses incurred by consumers.
Widely used to assess inflation from the perspective of the average consumer.
Central for adjusting wages, pensions, and other income-related aspects.
Multiple CPIs are calculated in India, such as CPI for Industrial Workers (CPI-IW) and CPI for Agricultural Laborers (CPI-AL).

Producer Price Index (PPI):

PPI measures the average change in the selling prices received by producers for their goods and services.
It includes a representative basket of goods and services produced by industries.
PPI is calculated based on the prices of goods and services at various stages of production.
Primarily used to analyze inflation from the perspective of producers.
Reflects price movements at different stages of the production process.
India is considering transitioning from WPI to PPI to align with global practices and improve the accuracy of inflation measurement.

Key Differences:

Focus:
- WPI focuses on the wholesale level, assessing price changes at the early stages of production.
- CPI focuses on the retail level, reflecting the expenses incurred by consumers.
- PPI assesses price changes at different stages of the production process.
Basket Composition:
- WPI and PPI include a basket of goods and services related to production.
- CPI includes a basket of goods and services commonly consumed by households.
Calculation Basis:
- WPI and PPI are calculated based on wholesale prices.
- CPI is calculated based on retail prices.
Usage Perspective:
- WPI and PPI provide insights from the producer’s perspective.
- CPI provides insights from the consumer’s perspective.
Policy Implications:
- CPI is crucial for adjusting income-related aspects, while WPI and PPI are vital for policy formulation related to production and industry.

About National Statistical Commission (NSC) –

The National Statistical Commission (NSC) is a statutory body in India that operates as an autonomous advisory body dedicated to enhancing the statistical infrastructure and promoting the use of reliable and timely statistical data for informed decision-making.

Establishment: The Government of India through a resolution dated 1st June, 2005 set up the National Statistical Commission (NSC). The setting up of the NSC followed the decision of the Cabinet to accept the recommendations of the Rangarajan Commission, which reviewed the Indian Statistical System in 2001. The NSC was constituted with effect from 12th July 2006 with a mandate to evolve policies, priorities and standards in statistical matters. The NSC has four Members besides a Chairperson, each having specialization and experience in specified statistical fields.
Objective: The primary objective of the NSC is to evolve policies, priorities, and standards in statistical matters, ensuring statistical coordination among various agencies involved in statistical activities, and improving the statistical system in the country.
Composition: The NSC is headed by a part-time Chairperson, and it includes a maximum of seven members. The Chief Statistician of India (CSI) and Secretary of the Ministry of Statistics and Programme Implementation (MoSPI) serve as ex-officio members.
Functions:
- Advisory Role: The NSC acts as the apex advisory body for all statistical matters, providing guidance on statistical methodology, data collection, and dissemination.
- Coordination: It promotes coordination among various statistical agencies to avoid duplication of efforts and ensure the efficient use of resources.
- Policy Formulation: The commission is involved in formulating policies related to statistical activities and recommends improvements in the statistical system.
- Review and Evaluation: The NSC reviews the functioning of the statistical system, evaluates data quality, and suggests measures for improvement.
Reports and Recommendations: The NSC submits its reports and recommendations to the government, and these play a crucial role in shaping the statistical policies and practices in the country.
Independence: The NSC operates independently in its advisory role, providing an unbiased and expert perspective on statistical matters.
Statistical Workshops and Seminars: The NSC conducts workshops, seminars, and conferences to promote awareness and understanding of statistical concepts and methodologies.
Statistical Agencies: While the NSC itself does not collect or compile statistical data, it oversees and coordinates the activities of various statistical agencies, including the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO).

12. Anarcho-capitalism and libertarian liberalism

Subject :Economy

Section :National Income

Political ideologies such as anarcho-capitalism and libertarian liberalism, which advocate for limited government involvement in economic and social matters.

Political Ideologies:
- Libertarianism and Anarcho-Capitalism: Emphasize limited government involvement in economic and social affairs. Libertarianism upholds individual liberty and limited government, while anarcho-capitalism advocates for a society without government intervention.
Advantages Advocated by Proponents:
- Personal Liberty, Innovation, Economic Efficiency: Advocates argue that these ideologies provide advantages such as personal liberty, fostering innovation, and promoting economic efficiency.
Conceptual Differences:
- Libertarianism vs. Conventional Liberalism: Barry differentiates libertarianism from conventional liberalism, highlighting the adherence to moral and economic individualism that distinguishes libertarianism.
Inclusive Development and Economic Growth:
- Structural Basis for Innovation: Proponents assert that these ideologies establish a structural basis for innovation and private enterprise, particularly in economic development and urban planning.
- Inclusive Development: Anarcho-capitalism fosters inclusive development by providing greater access to resources like water and sanitation.
Critiques and Concerns:
- Conceptual Flaws: Critics like Barry and Steinberg et al. argue that these ideologies suffer from conceptual flaws and may reinforce existing social and economic structures without addressing underlying problems.
Recent Scholarly Contributions:
- Brennan’s Work: Brennan’s work on libertarianism, including anarcho-capitalism, generates considerable discussion in economics, philosophy, and political science.
Social Capital and Economic Growth:
- Social Capital Defined: The concept of social capital, explored by Adler and Kwon, refers to the value derived from social networks and their tendencies to favor one another.
- Human Capital and Economic Growth: Sani et al. argue that human capital significantly impacts technological advancements and economic growth.
Ethics and Morality:
- Libertarian Morality: Lyer et al. discuss the psychological dispositions of self-identified libertarians, emphasizing their ethical underpinnings related to injury and justice.
Origins and Historical Context:
- Roots in Classical Liberalism: The libertarian tradition traces its roots to classical liberals who emphasized the human desire for liberty, as discussed in Wilkin’s work.
Complex Interconnections:
- Interplay of Concepts: The text suggests that the interaction of concepts such as anarcho-capitalism, libertarian liberalism, social and human capital, economic expansion, and moral foundations creates a complex fabric with potential societal ramifications.

Impact of political ideologies such as anarcho-capitalism and libertarian liberalism on Indian Economy

Limited Government Intervention:
- Potential Positive Impact: Anarcho-capitalism and libertarian liberalism emphasize limited government involvement. In theory, this could lead to reduced bureaucracy, lower regulatory burdens, and increased economic freedom, potentially fostering entrepreneurship and innovation.
Individual Liberty:
- Positive Implications: Emphasizing individual liberty could lead to a more open and free society, which might encourage individual initiatives and a dynamic business environment.
Economic Efficiency:
- Positive Outlook: Both ideologies advocate for economic efficiency. A more efficient allocation of resources and reduction in wasteful government spending could contribute to economic growth.
Innovation and Private Enterprise:
- Positive Influence: Proponents argue that these ideologies provide a structural basis for innovation and private enterprise. This could result in a more competitive business environment and technological advancements.
Inclusive Development:
- Potential Challenges: While anarcho-capitalism is seen by some as fostering inclusive development, critics argue that it might not address underlying social and economic issues. In India, with its diverse socio-economic landscape, achieving true inclusivity may require targeted interventions.
Critiques and Concerns:
- Social Disparities: Critics argue that these ideologies may inadvertently strengthen existing social and economic structures. In a country like India with significant socio-economic disparities, the impact on marginalized communities could be a concern.
Cultural and Social Context:
- Adaptation Challenges: The implementation of these ideologies might face challenges due to India’s diverse cultural, social, and economic contexts. Cultural factors, historical legacies, and the existing welfare structures might influence the acceptance and effectiveness of such ideologies.
Government Services and Welfare:
- Potential Impact: Anarcho-capitalism, which advocates for minimal state intervention, might have implications for government services and welfare programs. It could impact sectors such as healthcare, education, and social safety nets.