Daily Prelims Notes 20 September 2024

Daily Prelims Notes

20 September 2024

Table Of Contents

1. Why the US Fed Cut Interest Rates and its Potential Impact on India
2. Committee on MSP Proposals and Key Developments in Agriculture
3. Ahead of Amur falcon’s arrival, Manipur district bans their hunting
4. Two years of Project Cheetah: Govt outlines next steps for growing big cat population
5. India’s zinc consumption to rise to over 2 mn tonnes in next 10 years
6. White Revolution 2.0 to empower women: Amit Shah
7. India abstains from voting on UNGA resolution against Israel’s ‘occupation
8. The true cost of hospital-acquired infections
9. Ecuador enlists military to manage dam during power crisis
10. Harappan Civilisation: Unravelling the Mysteries After 100 Years of Discovery
11. Enhancing India’s Court Capacity to Tackle Money Laundering and Terror Financing: FATF Recommendations
12. India’s arms sales to Israel: Bad legally, worse ethically

1. Why the US Fed Cut Interest Rates and its Potential Impact on India

Sub: Eco

Sec: External Sector

• US Federal Reserve (Fed) Cuts Interest Rates:
  • The US Federal Reserve cut the Federal Funds Rate by 50 basis points (0.5%).
  • Lower interest rates incentivize economic activity, promote growth, and increase job creation by making it cheaper to borrow money.
  • In contrast, high interest rates can slow down economic growth and reduce employment.
• Reasons Behind the Rate Cut:
  • The Fed initially cut rates to near-zero (0.25%) during the COVID-19 pandemic to counter the economic downturn.
  • As the US economy recovered, inflation surged, exacerbated by Russia’s war with Ukraine and supply chain disruptions.
  • By March 2022, inflation reached historic levels, prompting the Fed to aggressively increase rates to 5.5% over the next 15 months.
  • With inflation moderating toward the Fed’s target of 2% and rising unemployment, the Fed began to focus on balancing price stability and employment, which are part of its dual mandate.
• Expected Future Rate Cuts:
  • The Fed is expected to cut rates further, by 50 basis points by the end of 2024, another 100 basis points in 2025, and 50 basis points in 2026.
  • These cuts are aimed at achieving a “soft landing”, reducing inflation without triggering a recession.
• Potential US Economic Impact:
  • The US economy is projected to grow at around 2% over the next few years, with unemployment expected to stabilize at around 4.4%.
  • However, factors such as the upcoming Presidential elections could lead to policy shifts that may impact growth, inflation, and employment.
  • For instance, Donald Trump has proposed import tariffs, which could fuel domestic inflation.
• Impact on India:
  • Lower US interest rates will likely encourage global investors to borrow in the US and invest in India’s markets (stocks, debt, or FDI).
  • Rupee Strengthening: Repeated US rate cuts may weaken the US dollar, leading to a stronger rupee. This would:
  • Benefit importers but hurt exporters due to less competitive pricing.
  • While the Reserve Bank of India (RBI) is under pressure to cut interest rates, India’s monetary policy is not significantly influenced by the Fed’s decisions due to different inflation targets and economic vulnerabilities.
  • Unlike the US, the RBI focuses more on GDP growth than unemployment, as GDP growth in India has historically occurred without proportional job growth.
• Key Takeaway:
  • The Fed’s decisions have a global impact, particularly on emerging economies like India. A lower interest rate environment in the US can stimulate capital inflows into India, but may also create challenges for exporters due to a stronger rupee.

2. Committee on MSP Proposals and Key Developments in Agriculture

Sub: Eco

Sec: Agri 

• Ongoing Work on Legalised MSP:
  • Union Agriculture Minister highlighted that while there is no commitment yet on the demand for a legalised Minimum Support Price (MSP), a committee is actively working on the issue.
  • The committee, led by former Agriculture Secretary Sanjay Agrawal, has held 23 meetings so far, with the final report expected soon.
• Government’s Record Procurement:
  • Mr. Chouhan emphasized that Modi government has procured higher quantities of foodgrains and pulses than any previous government, ensuring remunerative prices for farmers.
• Committee’s Formation:
  • The MSP committee was formed in 2022 after widespread farmer protests against the three now-repealed farm laws.
• Convergence of Schemes:
  • The Centre has merged the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) under the PM-AASHA scheme, aimed at better serving both farmers and consumers.
• Increased Procurement Guarantee:
  • The government has enhanced its procurement guarantee to ₹45,000 crore for pulses, oilseeds, and copra at MSP.
  • From the 2024-25 season, procurement under PSS will cover 25% of national production, allowing States to purchase more of these crops at MSP.
• Price Support Scheme (PSS):
  • Objective: To ensure farmers get remunerative prices for their produce, preventing distress sales in case of a price drop below the Minimum Support Price (MSP).
  • Procurement at MSP: Under PSS, government agencies directly procure crops at MSP from farmers, helping them secure guaranteed income even when market prices fall.
  • Operation: Implemented through nodal agencies like the National Agricultural Cooperative Marketing Federation of India (NAFED).
• Price Stabilisation Fund (PSF):
  • Objective: To moderate price volatility of essential commodities like pulses, onions, and potatoes.
  • Buffer Stock: PSF helps create and maintain a buffer stock of these commodities, which can be released in the market to stabilize prices when they rise abnormally.
  • Procurement and Distribution: Funded by the government to buy and distribute commodities at regulated prices during times of scarcity or price hikes.
  • Key Feature: It is aimed at protecting both consumers from high prices and farmers from price crashes by managing supply shocks.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

The Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is a comprehensive umbrella scheme aimed at ensuring remunerative prices to farmers for their agricultural produce. It provides flexibility to states, allowing them to choose one of its three key components for implementation.

Key Components of PM-AASHA:

• Price Support Scheme (PSS):
  • Objective: Under this scheme, the physical procurement of pulses, oilseeds, and copra is carried out by Central Nodal Agencies with the support of state governments.
  • Implementation:
    • Agencies like the National Agricultural Cooperative Marketing Federation of India (NAFED) and the Food Corporation of India (FCI) will handle the procurement.
    • The procurement costs and any potential losses incurred are borne by the Central Government as per the set norms.
• Price Deficiency Payment Scheme (PDPS):
  • Objective: This scheme aims to cover all oilseeds for which Minimum Support Price (MSP) is notified.
  • Implementation:
    • Farmers receive a direct payment of the difference between the MSP and the selling/modal price of the produce they sell in a notified market yard.
    • The process involves a transparent auction, and payments are made directly to the registered bank accounts of pre-registered farmers.
    • No physical procurement of crops occurs under this scheme; only the difference between MSP and the selling price is paid.
• Pilot of Private Procurement and Stockist Scheme (PPSS):
  • Objective: In addition to PDPS for oilseeds, states can opt for PPSS on a pilot basis, involving the participation of private stockists for procurement.
  • Implementation:
    • This is tested in selected districts or Agricultural Produce Market Committees (APMCs) for one or more oilseeds.
    • Private players can participate in the procurement process, but only one scheme (either PSS or PDPS) can be operational in a state for any particular commodity.

National Agricultural Cooperative Marketing Federation of India (NAFED) –

NAFED is an apex marketing cooperative organization under the Ministry of Agriculture, Government of India, established to promote, develop, and organize the marketing, processing, and storage of agricultural, horticultural, and forest produce.

It plays a vital role in:

• Facilitating and coordinating agricultural trade (inter-state, import, export, wholesale, and retail).
• Distributing agricultural machinery and inputs.
• Supporting the marketing and trading activities of cooperative institutions and associated partners in agricultural commodities.

Revamped PM-AASHA: No Role for Private Sector in MSP-Based Purchases

Elimination of Private Sector Involvement:

• The Agriculture Ministry has removed private sector participation in the procurement of crops at Minimum Support Prices (MSP) by discontinuing the Private Procurement and Stockist Scheme (PPPS) under the revamped PM-AASHA (Annadata Aay Sanrakshan Abhiyan) scheme.
• Introduction of Bhavantar Model for Vegetables:
  • States are now allowed to implement the Bhavantar model, initially used in Madhya Pradesh for soybean, for vegetable procurement. This model compensates farmers up to 15% of the difference between market prices and the government-set price.
• PM-AASHA Scheme Update:
  • Under the revamped PM-AASHA, States can use the Price Deficiency Payment Scheme (PDPS) for vegetables, in addition to oilseeds and pulses.
  • The PPPS was removed as no State showed interest, preferring alternatives like PDPS and PSS.
• State-Level Market Intervention:
  • For vegetables, where there is no MSP, States can declare a market intervention price. If mandi prices fall below this threshold, States will purchase at the government-declared rates.
• Issues with PPPS:
  • The PPPS pilot was launched in 2018 for oilseed procurement at 8 locations but failed due to lack of State participation and insufficient government support.
  • 15% reimbursement of MSP, including a 1% administrative cost, was provided by the Centre to private agencies, but the scheme didn’t take off due to lack of crop disposal mechanisms.
• Market Support for Farmers:
  • The revamped PM-AASHA ensures that up to 15% of the price gap between market prices and government rates will be paid to vegetable farmers, just as it is for oilseeds, to protect them from price fluctuations.

Bhavantar Bhugtan Yojana (BBY)

The Bhavantar Bhugtan Yojana (BBY), launched in October 2017 by the Madhya Pradesh government, is a price-deficiency payment scheme designed to compensate farmers when market prices for certain crops fall below the Minimum Support Price (MSP). This scheme aims to protect farmers from price crashes, offering a buffer against the volatility of agricultural markets without the need for physical procurement of crops, unlike the traditional approach for crops like wheat and rice.

• Initial Focus:
  • The scheme initially covered eight crops, primarily oilseeds and pulses, where government procurement is typically lower compared to wheat and rice.
  • These crops include soybean, groundnut, sesame, urad, moong, tur, masoor, and maize.
• Compensation Mechanism:
  • Farmers are compensated when the selling price (SP) of their produce falls below the MSP.
  • The actual compensation is based on the modal price, which reflects the average market price of the crop both within and outside the state.
• Compensation Calculation:
  • If a farmer’s selling price (SP) is below MSP but above the modal price, the difference between the MSP and SP is paid to the farmer.
  • If the SP is lower than both MSP and the modal price, compensation is capped at the difference between MSP and the modal price.

Example:

• For soybean, if the MSP is ₹3,050 per quintal and the modal price is ₹2,700 per quintal:
• If a farmer sells at ₹2,800 per quintal, they receive ₹250 for every quintal sold.
• If the selling price is ₹2,600 per quintal, the government will transfer ₹350 (difference between MSP and modal price), capped at that amount.
• Farmer Registration:
  • Farmers must register their crops at village-level cooperative societies and provide their Aadhaar numbers and bank account details.
  • Compensation is provided only for sales made during a specified window at the mandi (market) where they are registered.
• Direct Benefit Transfer:
  • The compensation amount is directly transferred to the farmers’ bank accounts through Direct Benefit Transfer (DBT).
• Cost Efficiency:
  • The scheme does not involve the physical procurement of crops, which reduces procurement costs and the potential for leakages in the system, saves storage and distribution costs typically associated with government procurement.

3. Ahead of Amur falcon’s arrival, Manipur district bans their hunting

Sub: Env

Sec: Species in news

Context:

• The Amur falcon (Falco Amurensis), a migratory bird species, is preparing for its annual visit to parts of Northeast India, particularly Manipur’s Tamenglong district and Nagaland.
• These birds are known locally as ‘Kahuaipuina’ in Manipur and ‘Molulem’ in Nagaland.

Protection Efforts in India:

• The falcons typically arrive in mid-October and stay about 3-4 weeks.
• Tamenglong district administration has banned hunting, catching, killing, and selling of Amur falcons.
• Air gun owners are required to deposit their weapons with village authorities during the birds’ stay.
• Nagaland has implemented similar protection measures. Nagaland has been dubbed the “Amur Falcon capital of the world” due to its conservation efforts.
• The falcons help regulate pest populations and contribute to pollination.
• Manipur started a conservation program in 2016, tagging birds with radio transmitters to track migration routes.
• An annual ‘Amur Falcon’ festival is organised in Tamenglong district.
• Nagaland conducts regular patrolling and awareness programs.
• Legal Protection:
  • The Amur falcon is protected under the Wildlife Protection Act of 1972.
  • Hunting or possessing Amur falcon meat is punishable by up to three years in prison.
• Cultural Shift:
  • Previously hunted for food, especially in Naga communities, there’s now a significant change in attitude towards protecting these birds.
  • Since 2013, there have been near-zero casualties of Amur falcons in Nagaland due to community involvement in conservation.

About Amur Falcon (Falco Amurensis):

• It is a small, agile bird of prey known for its incredible annual migration.
• Amur falcons embark on one of the longest migrations of any raptor, travelling from their breeding grounds in eastern Siberia and northern China to their wintering grounds in southern Africa. This journey covers approximately 22,000 kilometres.
• Diet: Primarily insectivorous, Amur falcons feed on various insects, including termites, locusts, and dragonflies. They may also consume small vertebrates like lizards and rodents.
• Threats: Habitat loss, hunting, and illegal trapping.
• Unique Features: These birds are distinguished by their dark plumage, white wing linings, and reddish-orange eyes and feet. They are known for their impressive aerial agility and hunting skills.

Source: IE

4. Two years of Project Cheetah: Govt outlines next steps for growing big cat population

Sub: Env

Sec: Species in news

Context:

• Project Cheetah, an ambitious conservation initiative in India, has released its 2023-24 annual progress report, highlighting key strategies and challenges in reintroducing cheetahs to the country.

Key Points of the report:

• Long-term Goal:
  • Establish a metapopulation of 60-70 cheetahs across Madhya Pradesh and Rajasthan over the next 25 years.
  • A metapopulation refers to a species population spread over a large, interconnected landscape.
• Geographical Scope:
  • Districts of Bhind and Datia in MP, Dholpur in Rajasthan as well as Lalitpur and Jhansi in Uttar Pradesh adjacent to this landscape would be incorporated as part of the landscape depending on cheetah’s use of the region.
• Focus Areas:
  • Kuno-Gandhi Sagar landscape, spanning protected areas and forest divisions in both states.
  • This area includes about 6,800 sq km of contiguous forested habitat outside Kuno National Park, with 3,200 sq km highly suitable for cheetahs.
  • Gandhi Sagar Sanctuary area offers an additional 2,500 sq km of savannah grassland and open woodlands.
• Conservation Strategy:
  • Emphasis on protecting large, connected habitats to accommodate cheetahs’ natural behavior of exploring vast areas.
  • The landscape conservation plan is estimated to take at least 10 years to achieve its targets.
• Challenges:
  • Competition with leopards for prey in Kuno National Park.
  • Deficit in chital (spotted deer) population, a primary food source for cheetahs.
• Proposed Solutions:
  • Augment prey populations, particularly chital and blackbuck.
  • Implement captive breeding of prey species in predator-proof enclosures within Kuno National Park.
  • Address a prey deficit of about 1,500 chitals in Gandhi Sagar sanctuary.
• Current Status:
  • 20 cheetahs were initially translocated in 2022-23.
  • Currently, 24 cheetahs survive (12 adults and 12 cubs).
  • 13 cheetah deaths have been reported since the project’s inception.

Source: IE

5. India’s zinc consumption to rise to over 2 mn tonnes in next 10 years

Sub: Geo 

Sec: Eco geo

Context:

• India’s Zinc Consumption Set to Double in Next Decade.

Details:

• India’s zinc consumption is expected to increase from 1.1 million tonnes to over 2 million tonnes in the next 10 years.
• India’s current zinc consumption (1.1 million tonnes) already exceeds its production.

• Focus Areas for Growth:
  • Automotive Industry: International Zinc Association (IZA) is working to increase the use of galvanized steel in Indian automobiles.
  • Construction: Efforts are underway to establish standards for galvanized rebar in India.
  • Galvanized rebar is the new material that results after steel rods or wires are hot-dipped into zinc to create a protective coating. This coating protects the steel itself from the elements, making it stronger and more resistant to erosion.
• Global Trends:
  • Zinc demand is expected to grow by 43% in solar power applications globally.
  • The wind energy sector is set to double by 2030.
  • Energy storage solutions are projected to increase seven-fold over the next five years.
• India’s Potential:
  • As the world’s fastest-growing economy, India is seeing increased zinc consumption in critical sectors.
  • The steel production and rapid infrastructure growth present significant opportunities for zinc use.
  • Incorporating zinc in infrastructure can reduce annual corrosion costs, which currently account for nearly 5% of India’s GDP.

Zinc College 2024 event:

• The projection was shared by the International Zinc Association (IZA), at the Zinc College 2024 event.
• Zinc College is organised every two years by the International Zinc Association (IZA) in partnership with a member company.
• Hindustan Zinc Ltd is the partner of Zinc College 2024.

About Zinc:

• Zinc is a naturally occurring metallic element that plays a crucial role in various industries and human health.
• It is known for its corrosion resistance, malleability, and ductility.
• Zinc is an essential trace mineral for humans, involved in numerous biological processes.

Global Zinc Production:

• The global zinc market produces about 13.5 million tonnes annually.
• Global average per capita zinc use is 4-5 times higher than India’s.
• In the automotive sector, 90-95% of global production uses galvanized steel, compared to only 23% in India.
• Major Producers: China, Peru, Australia, and India are the leading zinc producers globally.
• Production Methods: The primary methods for zinc production are:
  • Pyrometallurgical Process: This involves roasting zinc concentrate to produce zinc oxide, followed by smelting to extract metallic zinc.
  • Hydrometallurgical Process: This method involves leaching zinc from ore with an acid solution and then extracting zinc from the solution through electrolysis.

Zinc Production in India:

• Significance: India is a major zinc producer and consumer, contributing significantly to the global market.
• Production Regions: Zinc production in India is concentrated in Rajasthan, Andhra Pradesh, and Karnataka.
• Domestic Consumption: India’s domestic zinc consumption is driven by various industries, including galvanizing, brass and zinc alloys, and zinc-based chemicals.
• Imports and Exports: India both imports and exports zinc and zinc products to meet domestic demand and supply requirements.

Source: BS

6. White Revolution 2.0 to empower women: Amit Shah

Sub: Eco

Sec: Agri

Context:

• Union Home and Cooperation Minister Amit Shah recently launched the standard operating procedure (SOP) for ‘White Revolution 2.0’, a scheme aimed at boosting India’s dairy sector.

White Revolution 2.0- Empowering Women and Fighting Malnutrition:

• Main Objectives:
  • Empower women through formal employment in milk procurement
  • Combat malnutrition by increasing milk availability
  • Increase cooperative-led milk procurement from 660 lakh liters to 1,000 lakh liters per day
• Women’s Empowerment:
  • Recognizes women’s contribution to household work and dairy sector
  • Aims to include women in formal employment through milk procurement
  • Example: In Gujarat, 36 lakh women are involved in the dairy sector, generating ₹60,000 crore in business
• Cooperative Sector Reforms:
  • Plans to establish Primary Agriculture Cooperative Societies (PACS), dairy, and fishery cooperatives in every panchayat
  • Aims to strengthen cooperative institutions at tehsil, district, and state levels
• Addressing Malnutrition:
  • Increased milk availability expected to benefit poor and malnourished children
  • Emphasizes the role of mothers in combating child malnutrition
• Financial Inclusion:
  • ‘Cooperation among Cooperatives’ initiative piloted in Gujarat
  • Opened bank accounts for cooperative institutions in cooperative banks
  • Provided debit and credit cards to women in Primary Cooperative Societies and Milk Producers Committees
  • Results: Over 4 lakh bank accounts opened, ₹550 crore deposited in two districts
• Government Support:
  • Minister assures full budgetary support for the program
  • Considers it a high-priority area for the government
• Gujarat pilot project:
  • Already opened 9 lakh accounts with ₹4,000 crore deposits in cooperative banks in Gujarat
  • ​​Under this, a total of 2,600 micro-ATMs have been distributed

White Revolution:

• Also known as Operation Flood, it was a major dairy development program that transformed India from a milk-deficient nation to the world’s largest milk producer.
• Launched in 1970 by the National Dairy Development Board (NDDB)
• Implemented in three phases: Phase I (1970-1980), Phase II (1981-1985), and Phase III (1985-1996).

• Key Architect:
  • Dr. Verghese Kurien, known as the “Father of the White Revolution”
  • Founder-chairman of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand
• Main Objectives:
  • Increase milk production
  • Augment rural income
  • Ensure fair prices for consumers
• Implementation Strategy:
  • Created a national milk grid linking milk producers throughout India with consumers in over 700 towns and cities
  • Reduced seasonal and regional price variations
  • Ensured that producers get a major share of the price consumers pay
• The Anand Pattern:
  • Based on the successful model of Amul Dairy in Anand, Gujarat
  • Three-tier structure: village dairy cooperatives, district-level unions, and state-level federations
• Achievements:
  • Increased milk production from 20 million metric tonnes in 1960 to 198 million metric tonnes in 2019-20
  • Made India the world’s largest milk producer, surpassing the United States in 1998
  • Created a national milk grid, connecting rural producers with urban consumers
  • Improved the income and nutrition of millions of rural families

About National Dairy Development Board (NDDB)

The National Dairy Development Board (NDDB) is a statutory body set up by an Act of Parliament of India.

It is under the jurisdiction of Ministry of Fisheries, Animal Husbandry and Dairying, Government of India.

It was founded by Dr. Verghese Kurien.

The main office is in Anand, Gujarat with regional offices throughout the country.

The Board was created to finance, support and support producer-owned and controlled organisations. Its programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions.

The National Dairy Development Board was created in 1965, fulfilling the desire of the then prime minister of India — the late Lal Bahadur Shastri to extend the success of the Kaira Cooperative Milk Producers’ Union (Amul) to other parts of India.

7. India abstains from voting on UNGA resolution against Israel’s ‘occupation

Sub: IR

Sec: Int Org

Context:

• India, along with 42 other nations, abstained from a UN General Assembly resolution urging Israel to end its occupation of Palestinian territories within 12 months.
• Earlier, India had abstained from voting on a UNHRC resolution that called for immediate ceasefire in Gaza.

About the resolution:

• The resolution demands Israel’s immediate withdrawal from Palestinian territories and holds Israel accountable for violations of international law.
• The resolution also demands that Israel must be held accountable for any violations of international law in the occupied Palestinian territory, including any violations of international humanitarian law and international human rights law.
• Israel must bear the legal consequences of all its wrongful acts, including by making reparation for the injury, including any damage, caused by such acts.
• The resolution was based on the recommendation of the International Court of Justice (ICJ).

Voting:

• The resolution was adopted with 124 nations in favor, 14 against, and 43 abstentions, including India. Japan voted in favour.
• Countries Abstaining: Australia, Canada, Germany, Italy, Nepal, Ukraine, and the United Kingdom were among the nations that abstained.
• Opposition to the Resolution: Israel and the US voted against the resolution, which called for legal consequences for Israel’s continued presence in the Occupied Palestinian Territory.

What India said:

• We have been strong advocates of dialogue and diplomacy. We believe that there is no other way to resolve conflicts.
• India reiterated that only a two-state solution achieved through direct and meaningful negotiations between both sides will lead to enduring peace.
• India said that effort should be directed towards bringing the two sides closer, not drive them further apart.
• The abstention was a marked departure from India’s record of voting in favour of resolutions that demand Israel to withdraw troops from Palestinian territory.

8. The true cost of hospital-acquired infections

Subject: Science

Sec: Health

Context:

• An orthopaedic surgeon and a well-known hospital from Mumbai are facing litigation due to a post-operative infection following a knee replacement surgery.
• In another case from Bangalore, a patient who had been in the Intensive Care Unit (ICU) for over two weeks, ventilator-associated Acinetobacter pneumonia, a serious Hospital-Acquired Infection (HAI).

Hospital-Acquired Infection (HAI):

• HAIs are infections that patients acquire while receiving treatment for medical or surgical conditions.
• According to a study published by the International Nosocomial Infection Control Consortium (INICC), the prevalence of HAIs can be up to 20 times higher in low and middle-income countries compared to high-income areas.

Risk Factors:

• Prolonged hospital stays
• Invasive procedures (surgery, catheterization)
• Weakened immune systems
• Use of broad-spectrum antibiotics

Prevention Strategies:

• Regular and proper handwashing by healthcare workers.
• Use of sterile techniques during procedures and when handling catheters and IV lines.
• Judicious use of antibiotics to prevent resistance.
• Regular monitoring and reporting of infection rates to identify and address outbreaks.

Common Types

• Surgical Site Infections (SSIs): Infections at the site of a surgical procedure.
• Ventilator-Associated Pneumonia (VAP): Pneumonia that develops in patients on mechanical ventilation.
• Catheter-Associated Urinary Tract Infections (CAUTIs): Infections linked to urinary catheters.
• Central Line-Associated Bloodstream Infections (CLABSIs): Infections from central lines used for medication or fluid administration.

Country perspectives:

• In the US, insurance system does not reimburse costs associated with certain HAIs. This policy incentivises hospitals to prevent such infections.
• Also, Hospitals do not charge patients for the cost of managing HAIs, enhancing accountability.

Indian scenario:

• India faces unique challenges due to its diverse healthcare standards and high levels of Anti-Microbial Resistance (AMR).
• Despite many hospitals in India obtaining Joint Commission International (JCI) accreditation, a standard that upholds international healthcare quality, there is no obligation for these institutions to publicly disclose their HAI rates.
• Though all NABH (National Accreditation Board for Hospitals) accredited hospitals generate the HAI quality indicator data on a monthly basis, they are not mandated to publicly disclose the data.

Proposed Solutions:

• All NABH and JCI-accredited hospitals should be required to disclose their HAI rates on a common platform.
• Hospitals should avoid charging patients for HAI treatments.
• Creating awareness to distinguish between hospital-acquired and community-acquired infection.
• Insurance companies could mandate that a portion of payouts be used to enhance infection control standards.

9. Ecuador enlists military to manage dam during power crisis

Sub: IR

Sec: Places in news

Context:

• Ecuador’s military began supporting operations at a major dam, following a government decision to implement a series of eight-hour nightly power cuts across the country.

Power crisis in Ecuador:

• Ecuador is highly dependent on hydropower for its energy requirements.
• Ecuador is experiencing severe drought conditions affecting hydropower generation.
• Lack of maintenance of existing dams is also a cause for the power crisis.
• The Ecuadorian government has ordered eight-hour nightly power cuts across the country to manage electricity supply.
• The measure aims to prevent widespread blackouts and maintain grid stability.

About Ecuador:

• Ecuador is a South American country located on its west coast.
• It is bordered by Colombia to the north, Peru to the south and east, and the Pacific Ocean to the west.
• Equator passes through the country.
• The Galapagos Islands are territory of Ecuador.
• Ecuador’s capital Quito is one of the highest capital cities in the world, at about 2,850 meters.

10. Harappan Civilisation: Unravelling the Mysteries After 100 Years of Discovery

Sub: History

Sec: Ancient India

Why in News:

The centenary of the discovery of the Harappan civilisation is being commemorated on September 20, 2024, marking 100 years since the announcement of this monumental archaeological find.

Historical Significance of the Discovery: The 1924 Announcement

Date: September 20, 1924

Publication: The Illustrated London News

Author: John Marshall, then Director General of the Archaeological Survey of India (ASI), revealed the discovery of what is now known as the Harappan civilisation.

Headline: First Light on a Long-forgotten Civilisation: New Discoveries of an Unknown Prehistoric Past

Description: The article highlighted the discovery of an ancient civilisation, which we now refer to as the Indus Valley or Harappan civilisation, covering present-day India, Pakistan, and Afghanistan.

INDUS VALLEY CIVILISATION/HARAPPAN CIVILISATION

Indus Valley Civilization was the first major civilization in South Asia, which spread across a vast area of land in present-day India and Pakistan (around 12 lakhs sq.km).

The time period of mature Indus Valley Civilization is estimated between BC. 2700- BC.1900 ie. for 800 years. But early Indus Valley Civilization had existed even before BC.2700.

Technological and Urban Excellence

At its peak, the Harappan civilisation was a “technological powerhouse” with advanced town planning:

Water harvesting systems

Reservoirs and sullage systems

Massive fortification walls

Bronze and copper metallurgy

Stadium, warehouses, seafaring boats

Bead-making and terracotta crafts

Seals made of steatite, inscribed with realistic motifs and scripts.

Chronology of the Harappan Civilisation

Phases of the Civilisation

Early Harappan Phase: 3200 BCE to 2600 BCE

Mature Harappan Phase: 2600 BCE to 1900 BCE

Late Harappan Phase: 1900 BCE to 1500 BCE (Decline)

Geographical Spread

The civilisation spanned across India, Pakistan, and Afghanistan, flourishing along the banks of the Indus and Saraswati rivers.

1,500 sites in India (Gujarat, Haryana, Rajasthan, Maharashtra, etc.), 500 sites in Pakistan, and several sites in Afghanistan.

Northernmost Site: Manda, located in Jammu (now in Jammu and Kashmir, India).

Easternmost Site: Alamgirpur, located in Uttar Pradesh, India.

Westernmost Site: Sutkagen Dor, located near the Makran coast of Pakistan.

Southernmost site: Daimabad, Maharashtra.

The Roots in Mehrgarh

Archaeologists, like R.S. Bisht, point to Mehrgarh in Balochistan (Pakistan) as the precursor to the Harappan civilisation, dating back to 7000 BCE.

Period: Neolithic (around 7000 BCE).

Economy: Early agriculture (barley, wheat, cotton) and animal domestication (cattle, sheep, goats).

Burial Practices: Elaborate burials with grave goods.

Early Cotton Cultivation: Evidence of cotton farming around 5000 BCE.

11. Enhancing India’s Court Capacity to Tackle Money Laundering and Terror Financing: FATF Recommendations

Sub: IR

Sec: Int org

Why in News

The Financial Action Task Force (FATF) has released its mutual assessment report on India, highlighting the need for significant reforms to reduce the backlog of pending money laundering and terror financing cases. The report emphasizes the urgency to enhance the capacity of the Indian court system and strengthen the Enforcement Directorate (ED) to address delays in prosecutions.

Key Recommendations from the FATF Report

Increasing Court Capacity for Money Laundering Cases: The FATF report urges India to expand the capacity of its court system to deal with a large number of pending money laundering (ML) trials. Suggestions include increasing the number of specialized prosecutors and judges in the Enforcement Directorate (ED) to speed up prosecutions.

Addressing Delays in Terror Financing (TF) Prosecutions: Along with money laundering, the FATF stresses the need for swift action to reduce delays in terror financing cases. Specific proposals include making systemic changes to improve prosecution efficiency and expedite court trials.

Challenges Due to Constitutional Petitions: Between 2018 and 2022, trials under the Prevention of Money Laundering Act (PMLA) were stalled due to 121 constitutional petitions challenging various provisions of the law. The Supreme Court ruling in July 2022 (Vijay Madanlal Chowdhary vs. Union of India) upheld the provisions of the PMLA, allowing prosecutions to resume.

Recommendations for Enhancing Financial Investigation and Anti-terror financing Capabilities

Financial Network Analysis: particularly concerning money laundering linked to human trafficking and migrant smuggling.

Targeted Financial Sanctions: to ensure that all relevant entities receive real-time updates on suspicious transactions.

Non-Profit Organization (NPO) Sector: The FATF recommends that India adopt a risk-based approach to prevent the misuse of the non-profit organization (NPO) sector for terror financing (TF).

Politically Exposed Persons (PEPs): The report identifies a technical gap, noting that the definition of Politically Exposed Persons (PEPs) is absent in PMLA rules.

About Politically Exposed Persons (PEPs): A Politically Exposed Person (PEP) is an individual entrusted with a prominent public function, making them vulnerable to risks like money laundering, corruption, or bribery. Due to these risks, FATF Recommendations require additional Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) measures for business relationships with PEPs, their family members, and close associates.

These measures are preventive and do not imply that all PEPs engage in criminal activities. Effective customer due diligence, including identifying PEPs through external sources like databases, is essential for compliance, though the use of such databases is not mandatory.

Enhancing DNFBP Supervision: The FATF calls for an increase in supervisory capacity for newly established Designated Non-Financial Businesses and Professions (DNFBPs).

About Designated Non-Financial Businesses and Professions (DNFBPs):

DNFBP refer to businesses and professionals that are vulnerable to money laundering (ML) and terrorist financing (TF) risks, but fall outside the traditional financial sector.

According to FATF, DNFBPs include real estate agents, dealers in precious metals and stones, lawyers, accountants, notaries, and trust and company service providers.

These entities, acting as gatekeepers, are exposed to high-risk transactions, such as large cash payments or complex financial arrangements, making them crucial in anti-money laundering (AML) and counter-terrorist financing (CFT) efforts. FATF Recommendations require DNFBPs to implement customer due diligence and report suspicious activities to prevent misuse of their services​.

About Financial Action Task Force (FATF): It is an inter-governmental body responsible for setting standards and policies to combat money laundering and terrorist financing globally.

Objective: Establish global standards and promote policies to prevent money laundering and terrorism financing, at both national and international levels.

Origins and Mandate

Established: 1989 at the G7 Summit in Paris to address money laundering.

Mandate Expansion: In 2001, FATF’s scope expanded to include combating terrorism financing.

Headquarters: Paris, France.

Membership

FATF consists of 40 members, including major countries like the United States, India, China, Saudi Arabia, Britain, Germany, France, and the European Union.

India’s Membership: India joined FATF in 2010.

FATF Grey List and Blacklist

Black List: Countries involved in terror financing and money laundering, categorized as Non-Cooperative Countries or Territories (NCCTs), are placed on this list. The list is updated regularly.

Currently, North Korea, Iran, and Myanmar are on the blacklist.

Grey List: Countries with shortcomings in countering terror financing and money laundering are placed on the grey list as a warning of potential blacklisting.

Consequences of Being on the Blacklist

Countries on the blacklist are denied financial aid from global institutions like the IMF, World Bank, ADB, and EU. They face international financial sanctions and economic restrictions.

India’s Performance in FATF Evaluation

Out of 40 parameters examined by FATF, India received the highest rating in 37.

FATF Plenary Report: The plenary held in Singapore between June 26-28, 2024, recognized India’s “high level of technical compliance” with FATF standards.

“Regular Follow-Up” Category: India was placed in the “regular follow-up” category, a distinction shared with only four other G20 countries, including the UK, France, and Italy. Countries in this category are required to submit a follow-up report to FATF once every three years.

About Prevention of Money Laundering Act, 2002 (PMLA): It was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds.

Imprisonment: The offender can face imprisonment for not less than three years, extending up to seven years. In some instances where the crime involves specified offenses, imprisonment can extend up to 10 years.

Monetary Penalty: In addition to imprisonment, a penalty of Rs. 5 lakhs can be imposed on the offender.

Enforcement Directorate (ED): The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offenses of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include enforcement of following Acts:

The Prevention of Money Laundering Act, 2002 (PMLA): It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.

The Foreign Exchange Management Act, 1999 (FEMA): It is a civil law enacted to consolidate and amend the laws relating to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market in India.

The Fugitive Economic Offenders Act, 2018 (FEOA): This law was enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.

12. India’s arms sales to Israel: Bad legally, worse ethically

Sub: IR

Sec: Int Conventions

Context:

• Supreme Court of India refused to halt arms sales to Israel amid Gaza conflict.
• The Court said that it was beyond its jurisdiction to direct the Government of India to not export materials to any country, as it was a matter which was completely within the domain of foreign policy.
• The supreme court’s verdict has been criticised for not respecting international humanitarian laws.

Violation of international humanitarian law:

• UN issued a statement in February 2024 stating any transfer of weapons or ammunition to Israel that would be used in Gaza is likely to violate international humanitarian law and must cease immediately.
• UN urged member states to refrain from transfer of weapons if it is expected to violate international humanitarian law.
• Such transfers are prohibited even if the exporting State does not intend the arms to be used in violation of the law.

International obligations:

Geneva Convention:

• Common Article 1 (CA1) of the Geneva Convention places a responsibility on states to refrain from supplying military equipment and arms that are likely to be used in, or facilitate, serious violations of international humanitarian law or international human rights law.
• Article 16 of Responsibility of States for Internationally Wrongful Acts (2001) also has the same provision
• India signed the Geneva Conventions in 1949 and ratified it in 1959.
• India, as a state party to the four Geneva Conventions, is bound by their provisions.
• Also, Article 51 of the Constitution requires India to abide by its international obligations.

Genocide Convention:

• The Genocide Convention was the first human rights treaty adopted by the General Assembly of the United Nations in 1948.
• India ratified the Genocide Convention in 1950.
• It places an obligation on all states, whether or not they have ratified the Genocide Convention to prevent Genocide.

Arms Trade Treaty:

• The Arms Trade Treaty, which came into force on December 24, 2014, established the first comprehensive international legal framework governing the export of military equipment and arms.
• Article 6 of the treaty outlines three key prohibitions on arms exports: (i) if it violates United Nations Security Council measures under Chapter VII of the Charter, particularly arms embargoes, (ii) if it contravenes relevant international obligations of international agreements of the involved parties, and (iii) if it is potentially used for grave breaches of the Geneva Conventions or in the commission of other serious international crimes.
• India has not signed the treaty.

Wassenaar arrangement:

• The Wassenaar Arrangement, established in 1996, is a voluntary export control regime aimed at promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies.
• India is a participatory state but the obligations under Wassenaar Arrangement are not legally binding.