Daily Prelims Notes 22 March 2024

March 22, 2024
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Daily Prelims Notes

22 March 2024

Table Of Contents

1. India’s Pursuit for Lowering Cross-Border Remittance Costs

Subject: Economy

Section: External Sector

Proposal at WTO’s Ministerial Conference:
- India proposed lowering the cost of cross-border remittances at the WTO’s 13th Ministerial Conference in Abu Dhabi.
- The proposal aims to benefit low and middle-income countries, which accounted for 78% of remittances in 2023.
Request to WTO’s General Council (GC):
- India has asked the WTO’s General Council to initiate a work programme for recommendations on lowering remittance costs.
- The National Payments Corporation of India is preparing a presentation for a session on ‘cost of remittances’ at the WTO’s committee on trade in financial services in Geneva on March 25.
Highlighting the Need for Interoperability:
- India emphasized promoting interoperability and interlinkages of digital payment infrastructures for cheaper, faster, and more transparent cross-border payments.
- Global average cost for sending digital remittances is significantly lower at 4.84% compared to non-digital remittances.
Support and Interest:
- India’s proposal received support from countries like Sri Lanka, Nepal, and Bangladesh at WTO MC13.
- The European Union (EU) also showed interest in the proposal.
Next Steps:
- Pursuing the matter at the WTO in various bodies, including the WTO General Council.
- Proposal for the WTO GC to call upon the council for trade in services and committee on trade in financial services for a work programme on remittances.
Objectives of the Work Programme:
- Understanding the development impact of cross-border remittances.
- Reviewing the cost, trends, and developments in remittance services.
- Analyzing the impact of technology, new market players, providers, channels, and consumer behavior.

India’s efforts aim to make cross-border remittances more efficient, affordable, and accessible, benefiting a large segment of the global population.

India’s Proposal on Remittance Costs:

India proposed to reduce the cost of cross-border remittances to less than 3%, aligning with the UN Sustainable Development Goals.
The initiative received support from several World Trade Organization (WTO) members, except the US.

Expected Benefits:

Lowering remittance costs could potentially boost inflows of remittances into India.
It aims to reduce reliance on informal channels for remittance transfers.

Implications for Businesses:

The initiative could be particularly advantageous for Indian businesses, especially those utilizing the Unified Payments Interface (UPI).
It opens avenues for global expansion and increased competitiveness in the export market.

Remittance Statistics:

In 2023, India received a substantial $125 billion in remittances.
The associated costs of these remittances were estimated to be $7-8 billion.

Beneficiaries:

Lowering remittance costs would directly benefit the Indian diaspora, especially migrant workers abroad.
It would also support Micro, Small, and Medium Enterprises (MSMEs), potentially aiding their growth and competitiveness.

Understanding the Cost of Remittances:

Remittances are financial transfers sent by migrant workers to their families or relatives in their home countries.
The cost of remittances refers to the expenses incurred in sending money across international borders.

Components of Cost:

These costs can include various elements such as:
Bank fees,
Intermediary fees,
Compliance fees,
Operational costs, and
FX (foreign exchange) rate margin.

Technological Innovations:

Innovative technologies are emerging to reduce the total cost of cross-border transactions.
These advancements aim to streamline processes, reduce fees, and provide more efficient and cost-effective remittance options.

2. India’s ‘protected’ basmati varieties renamed & cultivated in Pak, IARI demands legal action

Subject: Geography

Section: Eco Geography

Context:

IARI has raised concerns about Pakistan’s unauthorized cultivation and marketing of IARI-bred basmati rice varieties, including Pusa Basmati-1121, PB-6, PB-1509, PB-1847, PB-1885, and PB-1886.
These varieties, accounting for approximately 90% of India’s basmati exports, are protected under Indian law,limiting their cultivation to certain regions within India and restricting seed sales.
The illegal cultivation in Pakistan undermines the rights of Indian breeders and farmers.

Variety Piracy Issues- Specific Varieties and Responses

Pakistani seed firms need only a small quantity of seeds to multiply these varieties, facilitating illegal propagation.
Pusa Basmati-1121 (PB-1121): Known for the extra kernel length of its grains, officially registered in Pakistan as ‘PK 1121 Aromatic’ and marketed as ‘1121 Kainat’.
Other Varieties:PB-6 and PB-1509 have also been adopted in Pakistan, with PB-1509 being registered as ‘Kissan Basmati’.
- Improved Pusa Basmati 1 (Pusa 1460) – First product of molecular breeding in rice in India.
- Pusa Basmati 6 (Pusa 1401) – Superior grain quality.
- Pusa RH10 – Theworld’s first superfine grain aromatic rice hybrid: It was released in 2001 for commercial cultivation in the irrigated eco-systems of Haryana, Delhi and Uttaranchal.
Newer Varieties:IARI’s latest varieties like PB-1847, PB-1885, and PB-1886, bred for disease resistance, are being grown in Pakistan, and acknowledged in YouTube videos by Pakistani farms.

Legal protection for these rice varieties:

IARI Director A.K. Singh has called for legal measures against Pakistani seed firms to protect Indian interests.
All the varieties are notified under the Seeds Act, 1966 for cultivation in the officially demarcated Geographical Indication area of basmati rice within India, covering 7 northern states.
They are further registered under the Protection of Plant Varieties and Farmers’ Rights Act, 2001. This Act allows only Indian farmers to sow, save, re-sow, exchange or share the seeds of any protected/registered varieties. Even they cannot violate the breeder’s rights by selling the seeds in branded packaged and labelled form

India’s Basmati Rice Exports:

Poised to hit a new high, with projections reaching $5.5 billion for 2023-24, driven largely by high-yielding varieties developed by the Indian Agricultural Research Institute (IARI).
India dominates markets in Iran, Saudi Arabia, and West Asia, with a preference for parboiled rice.
Pakistan’s Basmati Exports:
- Significantly lower than India’s, with exports valued at $694.55 million in 2021-22 and $650.42 million in 2022-23.
- The first seven months of 2023-24 saw a 24.3% increase in quantity and a 35.6% increase in value over the previous year.
- Pakistan enjoys an 85% share of the EU-UK market due to lower export prices facilitated by the depreciation of the Pakistani rupee.

Source: IE

3. India in undersea race to mine world’s battery metal

Subject: Geography

Section: Eco Geography

Context:

India is advancing its exploration for critical minerals in the ocean depths (under Samudrayaan Mission) to support renewable energy and clean technology, amidst increasing global competition.

Key Developments:

India holds two licenses in the Indian Ocean and has applied for two more, competing with nations like China and Russia for essential minerals such as cobalt, nickel, copper, and manganese.
The International Seabed Authority (ISA), overseeing deep-sea mineral exploration, has issued 31 licenses globally.
India’s new applications, if approved, would bring its total licenses to nearly match Russia and slightly trail China.
India, China, Germany and South Korea already have exploration licences for polymetallic sulphides in the Indian Ocean ridge area.

Exploration Areas and Challenges:

Polymetallic Sulphides: India aims to explore chimney-like mounds near hydrothermal vents containing copper, zinc, gold and silver -in the Carlsberg Ridge of the Central Indian Ocean.
Another aim is to explore the cobalt-rich ferromanganese crusts of the Afanasy-Nikitin Seamount in the Central Indian Ocean.

Environmental significance:

Renewable Energy Goals: With ambitions to greatly increase its renewable capacity by 2030 and achieve net zero emissions by 2070, India recognizes the necessity of securing critical minerals.
Despite its potential to offset land mining issues, deep-sea mining faces opposition due to possible environmental harm and insufficient understanding of deep marine ecosystems.

Geopolitical significance:

The global race for critical minerals is intensified by geopolitical tensions, especially concerning China’s dominant role in processing these materials. The US, among others, seeks to diversify supply chains through partnerships like the Minerals Security Partnership, which India has joined.
The US is not part of the race to mine international waters as it has not ratified the UN Convention on the Law of the Sea, the agreement which led to the creation of the ISA. Instead, it aims to source minerals from its domestic seabed and process ones mined by its allies from international waters.

Samudrayaan Mission (India’s Deep Ocean Mission)

Samudrayaan, or the journey into the sea, is a mission launched in 2021 to unlock the mysteries of the deep ocean for mineral resources and develop deep sea technologies for sustainable use of ocean resources.
A sub-component of India’s Deep-Sea Mission, the Samudrayaan mission aimed at supporting the Blue Economy initiatives of the Indian government by developing niche technology, vehicles to carry out subsea activities.
The MoES is the nodal ministry to implement this multi-institutional ambitious mission.
The estimated cost of the mission will be Rs 4077 crore for a period of 5 years to be implemented in a phase-wise manner – cost for the first phase (2021-2024) would be Rs 2823.4 crore.
Indian Space Research Organization (ISRO), Indian Institute of Tropical Meteorology (Pune) and Defence Research and Development Organisation (DRDO) will actively participate in this mission.
It was conceptualised based on the forthcoming Gaganyaan mission – ISRO’s attempt at a crewed mission into space – expected in late 2024 or 2025.

MATSYA 6000

It is a manned submersible vehicle developed by NIOT under the Samudrayaan mission to facilitate humans in the deep ocean in exploring mineral resources like Nickel, Cobalt, Rare Earths, Manganese, etc.
Expected to be launched in 2024-25, it would make India only one among six countries (US, Russia, Japan, France, and China) to have piloted a crewed under-sea expedition beyond 5,000 metres.
MATSYA-6000 is a spherical, titanium hull (made by ISRO) equipped with life-support, capable of floating underwater and collecting soil and rock samples from the seabed with attached robotic arms.

Source: BBC

4. Brazil heading to a rare sequence of increasing coffee crop output

Subject: Geography

Section: Eco Geography

Context:

Brazil is anticipated to mark its third consecutive year of increased coffee production, a rare achievement in its 144-year coffee history. This trend, mainly fueled by a boost in robusta bean production, is expected to continue into 2025.

Details:

This sequence of annual production increases has been infrequent, occurring only seven times previously.
Brazil, traditionally known for arabica beans favoured by premium coffee shops, is seeing robust growth in robusta production, commonly used in instant coffee.
Normally, arabica coffee production fluctuates annually, but recent extreme weather events, including droughts and frosts around 2020 and 2021, disrupted this cycle.
Post-frost recovery strategies, such as pruning and the increased use of irrigation, especially in robusta cultivation, have contributed to the continuous production growth.
The rising trend in robusta output is expected to sustain Brazil’s overall coffee productiongrowth, bypassing the arabica biennial cycle.
This ongoing increase in production signifies Brazil’s adaptability and growing dominance in the global coffee market, with robusta beans playing a pivotal role.

Coffee production in India:

Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka accounting for 71% (Kodagu alone produces 33% of India’s coffee), followed by Kerala with 21% and Tamil Nadu (5% of overall production with 8,200 tonnes).
Indian coffee is said to be the finest coffee grown in the shade rather than in direct sunlight anywhere in the world.
Almost 80% of Indian coffee is exported.

Coffea arabica:

A species of flowering plant in the coffee and madder family Rubiaceae.
Believed to be the first species of coffee to have been cultivated and is currently the dominant cultivar, representing about 60% of global production.
Coffee produced from the less acidic, more bitter, and more highly caffeinated robusta bean (C. canephora) makes up most of the remaining coffee production.
Endemic to the southwestern highlands of Ethiopia,Coffea arabica is today grown in dozens of countries between the Tropic of Capricorn and the Tropic of Cancer.
The natural populations of Coffea arabica are restricted to the forests of South Ethiopia and Yemen.

Coffea canephora (or robusta coffee):

A species of flowering plant in the family Rubiaceae.
A species of coffee plant that has its origins in central and western sub-Saharan Africa.
Coffea canephorahas two main varieties- robusta and nganda.
Grows indigenously in Western and Central Africa from Liberia to Tanzania and south to Angola.

Difference between Robusta and Arabica coffee:

Beans from C. robusta tend to have lower acidity, more bitterness, and a more woody and less fruity flavour compared to C. arabica beans.
A greater crop yield than that of arabica,
Contains more caffeine (2.7% compared to arabica’s 1.5%),
contains less sugar (3—7% compared to arabica’s 6—9%).
As it is less susceptible to pests and disease, robusta needs much less herbicide and pesticide than arabica.

Source: TH

5. Nuclear energy: fixing the finance

Subject: Science and tech

Section: Nuclear energy

Context:

On March 21, Brussels hosted the first-ever Nuclear Energy Summit, co-chaired by the Prime Minister of Belgium Alexander De Croo and the Director General of the International Atomic Energy Agency (IAEA) Rafael Mariano Grossi.

Details:

The UN Climate Change Conference (COP28) in Dubai in December 2023 highlighted nuclear energy’s essential role in achieving climate goals.
A declaration by 22 world leaders called for tripling nuclear energy capacity by 2050, aligning with the IAEA’s ‘Atoms4Netzero’ initiative.
Nuclear power is favoured for its low carbon emissions—four times less than solar farms and other renewables like wind, hydropower, and geothermal—and its ability to provide constant energy without geographical limitations.
Additionally, nuclear power plants boast low operating costs, require less land, and have a longer lifespan than other renewable sources.

How can nuclear energy be financed?

Financing nuclear energy, crucial for its large-scale adoption as a primary energy source, hinges on advancements in nuclear technology and financial strategies.
Innovations such as Small Modular Reactors (SMRs) and improved safety measures are pivotal in reducing nuclear risks and stigma, potentially attracting tech startups into this traditionally government-dominated sector.
Despite technological progress promising significant carbon emission reductions, with an IAEA study indicating half of the reductions by 2050 may come from emerging technologies, financial support from Multilateral Development Banks (MDBs) and private investors remains scarce.
The World Bank’s last nuclear project loan was in 1959, underlining the urgent need for policy reassessment to enable private or blended finance models in nuclear energy funding.

Has the cooperative model worked?

The cooperative model has proven successful in funding nuclear energy projects, with notable examples in France, South Korea, Russia, and the U.K.
This approach involves a consortium of investors raising market credit and assuming full project responsibility.
Finland’s ‘Mankala’ model showcases a cooperative finance structure where companies share the construction and operational costs of energy producers, benefiting from cost-based energy access without dividends.
Such financial innovation, coupled with market support and low-interest rates, can significantly advance nuclear energy.
Globally, 440 nuclear reactors contribute a quarter of the world’s low-carbon energy, with an increase indicated by 60 reactors under construction and 110 planned, particularly in Asia and notably in China.
China aims to escalate its nuclear energy production to 10% by 2035 and 18% by 2060.
Despite the expansion, challenges in nuclear infrastructure development and financing persist, as highlighted by the termination of NuScale Power’s SMR project in Utah and the financial difficulties faced by industry giants Westinghouse and Areva.

What about India?

India’s nuclear power, despite offering cost-effective energy solutions compared to solar power, constitutes only 1.6% of its renewable energy mix due to concerns such as stigma, safety risks, regulatory challenges, high initial costs, and project delays.
However, recent liberalization in the nuclear sector, including inviting $26 billion in private investments and plans to significantly increase nuclear capacity to 22,480 MW by 2031-2032, signals a positive shift.
Prime Minister Modi’s engagement with the Prototype Fast Breeder Reactor (PFBR), which can simultaneously produce fuel and power, highlights progress towards a more self-reliant and ambitious nuclear industry in India.

Atoms4NetZero

It is an IAEA initiative that supports efforts by Member States to harness the power of nuclear energy in the transition to net zero. The initiative provides Member States and stakeholders including industry, financial institutions, and international organizations with technical expertise and scientific evidence on the potential of nuclear energy to decarbonize electricity production as well as hard-to-abate sectors such as industry and transport.
As countries grapple with the climate crisis and growing energy security concerns, nuclear energy is increasingly recognized for the role it can play in an accelerated transition to net zero. Nuclear power currently provides about 10% of the world’s electricity, equivalent to about a quarter of all low-carbon electricity. Atoms4NetZero seeks to inform policymakers and decision-makers on the potential way forward for nuclear power as the reliable backbone of clean, affordable, resilient and more secure energy transitions.

Source: TH

6. Ministry of Environment tightens rules on bioplastics

Subject: Environment

Section: Pollution

Context:

The Environment Ministry has introduced stricter regulations for labelling disposable plasticware as ‘biodegradable’.

Details:

Products must meet the new standard of leaving no microplastics behind to be considered biodegradable.
There are two main technological solutions to tackle plastic waste pollution:biodegradable and compostable plastics.
- Biodegradable plastics are treated before sale, aiming for natural decomposition, but there’s a lack of tests to confirm complete degradation.
- Compostable plastics can degrade but require industrial or large municipal waste management facilities.

Microplastics:

Microplastics, defined as solid plastic particles insoluble in water and ranging from 1 µm to 1,000 µm in size, have emerged as a significant pollutant in rivers and oceans.
With the ban on single-use plastic in 2022, there has been a heightened focus on biodegradable plastics as an alternative.

Plastic Waste Management (Amendment) Rules, 2024: Key points

Defines biodegradable plastics as those that can degrade biologically in environments like soil or landfill without leaving behind microplastics.
The amendments lack specific guidance on chemical tests for establishing the absence of microplastics or the required reduction level to deem microplastics eliminated.
The amendment provides that the manufacture of carry bags and commodities shall be permitted to be made from compostable plastics or biodegradable plastics.
This is subject to mandatory marking and labelling laid down under the rules and regulations of the Food Safety and Standards Authority of India (FSSAI) for food contact applications.
The rules require the manufacturers of compostable plastic or biodegradable plastic carry bags or commodities to obtain a certificate from the CPCB before marketing or selling.
Every manufacturer of commodities made from plastic shall-
- Ensure processing of the pre-consumer plastic waste generated in the form of rejected or discarded material at the stage of manufacturing and
- Report to the State Pollution Control Board or Pollution Control Committee concerned.

Issues with the amended rules:

The exact definition of biodegradable plastic remained unclear, leaving several firms, including those utilizing technologies like Symphony’s, without clarity.
The Central Pollution Control Board (CPCB) has faced criticism for not issuing ‘provisional certificates’ for biodegradable products, as their criteria require 90% degradation over two years, with no specific guidelines for interim assessment.
Manufacturers showing partial degradation, such as 5% in 45 days, were denied certification due to this lack of clarity in the rules.

Rules on Plastic Waste Management so far:

Plastic-waste management rules, 1999: Its aim was to restrict the use of plastic carry bags (thickness 20 µm or less) and prevent food from being packaged in recycled plastic.
Plastic Waste Management (Amendment) Rules, 2003: It diluted the restriction on carry bags but mandated registration of manufacturing units with regional pollution control authorities.
Plastic Waste Management (Amendment) Rules, 2011: For the first time, there was a national law proposing a ban on the use of plastic materials in sachets to store, pack or sell gutkha, tobacco, and pan masala.
Plastic Waste Management (PWM) Rules, 2016: It included many progressive propositions, like ‘polluter pays’ and ‘extended producer responsibility’.
Plastic Waste Management (Amendment) Rules, 2021: The rules aim to prohibit the use of specific single-use plastic items, which have “low utility and high littering potential” by 2022.

Source: TH

7. US surgeons have transplanted a pig kidney into a patient

Subject: Science and tech

Section: Health

Context:

Doctors in Boston announced Thursday they have transplanted a genetically modified pig kidney into a 62-year-old patient.

More on news:

Massachusetts General Hospital said it’s the first time a pig kidney has been transplanted into a living person.
Previously, pig kidneys have been temporarily transplanted into brain-dead donors.
Two men received heart transplants from pigs, although both died within months.
The announcement marks the latest development in xenotransplantation, the term for efforts to try to heal human patients with cells, tissues, or organs from animals.

About Xenotransplantation:

It is any procedure that involves the transplantation, implantation or infusion into a human recipient of either
- (a) live cells, tissues, or organs from a nonhuman animal source, or
- (b) human body fluids, cells, tissues or organs that have had ex vivo contact with live nonhuman animal cells, tissues or organs.
The development of xenotransplantation is, in part, driven by the fact that the demand for human organs for clinical transplantation far exceeds the supply.

8. Aspects of inequality of India

Subject: Economy

Section: National Income

Context:

A new working paper, titled “Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj”, by World Inequality Lab has estimated that “inequality declined post-independence till the early 1980s, after which it began rising and has skyrocketed since the early 2000s.

More on news:

The paper, which has been co-authored by Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi, combines data from national income accounts, wealth aggregates, tax tabulations, rich lists, and surveys on income, consumption, and wealth to arrive at the results.

Here are the main takeaways:

Growth in average incomes

According to the WIL paper, between 1960 and 2022, India’s average income grew at 2.6% per year in real terms (that is, after removing the effect of inflation).
This period can be broadly divided into two halves: “Compared to a real growth rate of 1.6% per year between 1960 and 1990, average incomes grew by 3.6% per year between 1990 and 2022”.
It further states that the periods 2005-2010 and 2010-2015 saw the fastest growth at 4.3% and 4.9% per year respectively.

Emergence of very high net worth individuals

The period between 1990 to 2022 witnessed a rise in national wealth and the emergence of very high net worth individuals (those with net wealth exceeding $1 billion at market exchange rate; this number increased from 1 to 52 to 162 in 1991, 2011 and 2022 respectively.

Rise in the percentage of income tax payers

The paper finds that the share of the adult population that filed an income tax return — which had remained under 1% till the 1990s — also grew significantly with the economic reforms of 1991.
By 2011, the share had crossed 5% and the last decade too saw sustained growth with around 9% of adults filing a return in the years 2017-2020.

Extreme levels of inequality in India

The paper finds that in 2022-23, 22.6% of India’s national income went to just the top 1%, the highest level recorded in the data series since 1922 — this is higher than even during the inter-war colonial period.
The top 1% wealth share stood at 40.1% in 2022- 23.

Extreme wealth concentration at the very top

Most of these gains came post-1991 after which point top 1% shares have been on a steep upward trend right until 2022-23.
The wealth concentration within the top 1% as well is extreme.

International comparison of income inequality

In the paper, the authors put India’s income and wealth inequality levels (as of 2022) in global perspective by comparing India with Brazil, China, France, South Africa, United Kingdom, and the United States.
If one looks at the income share of the top 10%, India stands second only second to South Africa.
If, however, one compares the income share of the top 1%, India ends up having the highest levels at 22.6%.

International comparison of wealth inequality

The picture is slightly less extreme when wealth inequality is considered.
In terms of top wealth shares (Figure 15b), we see that both with top 10% and top 1%, India comes out in the middle of the pack, with Brazil and South Africa standing out with their extreme wealth concentration levels (85.6% and 79.7% top 10% shares respectively).

Poor data leading to likely underestimation of inequality

Notwithstanding such stark findings, emphasized that the quality of economic data in India is notably poor and has seen a decline recently.
It is therefore likely that our results represent a lower bound to actual inequality levels.

Policy solution

Implementing a super tax on Indian billionaires and multimillionaires, along with restructuring the tax schedule to include both income and wealth, so as to finance major investments in education, health and other public infrastructure, could be effective measures.

9. Who are the Majeed Brigade, the Baloch militants who carried out the Gwadar attack?

Subject: IR

Section: Places in news

Context:

The Majeed Brigade of the separatist group Baloch Liberation Army (BLA) has claimed responsibility for Wednesday’s attack on a complex outside Pakistan’s strategic Gwadar Port.

More on news:

Pakistan has said eight militants and two security personnel were killed in the attack; the BLA has, however, claimed to have killed 25 security personnel.
The BLA is the most prominent of the many separatist groups in Pakistan’s restive Balochistan province.
The Majeed Brigade, which has been active since 2011, is the BLA’s dedicated suicide squad.
The unit is named after two brothers, both of whom were called Majeed Langove.
The Majeed Brigade has also attacked the Chinese Consulate in Karachi (2018), the Gwadar Pearl Continental Hotel (2019), and the Pakistan Stock Exchange in Karachi (2020), according to the South Asia Terrorism Portal.

The Balochistan context:

Balochistan, in Pakistan’s southwest, is the country’s largest and most sparsely populated province.
It has oil reserves and abundant natural resources, but the ethnic Baloch are Pakistan’s poorest and most under-represented people.
In recent years, Baloch militants have repeatedly targeted both Gwadar and Chinese nationals in the country.

About Majeed Brigade:

The BLA is the most prominent of the many separatist groups in Pakistan’s restive Balochistan province.
The Majeed Brigade, which has been active since 2011, is the BLA’s dedicated suicide squad.
The unit is named after two brothers, both of whom were called Majeed Langove.

About Balochistan:

Balochistan is a historical region in Western and South Asia, located in the Iranian plateau’s far southeast and bordering the Indian Plate and the Arabian Sea coastline.
This arid region of desert and mountains is primarily populated by ethnic Baloch people.
The Balochistan region is split among three countries: Iran, Afghanistan and Pakistan.
Administratively it comprises the Pakistani province of Balochistan, the Iranian province of Sistan and Baluchestan, and the southern areas of Afghanistan, which include Nimruz, Helmand and Kandahar provinces.
Balochistan is the largest among the 4 provinces in Pakistan.
It is located in the southwestern part of Pakistan.
It is bordered by Iran (west), Afghanistan (northwest), by Khyber Pakhtunkhwa and Punjab provinces (northeast and east),by Sindh province (southeast) and by the Arabian Sea (south).
Its southern coastline, including the Makran Coast, is washed by the Arabian Sea, in particular by its western part, the Gulf of Oman.

10. Elon Musk’s Neuralink shows first brain-chip patient playing online chess

Subject: Science and tech

Section: Awareness in Computer and IT

Context:

Elon Musk’s brain-chip startup Neuralink live streamed on Wednesday its first patient implanted with a chip using his mind to play online chess.

More on news:

Noland Arbaugh, the 29-year-old patient who was paralyzed below the shoulder after a diving accident, played chess on his laptop and moved the cursor using the Neuralink device.
29-year-old Noland Arbaugh is the first human patient to get implanted with the Neuralink device that reads signals from the brain.
The implant seeks to enable people to control a computer cursor or keyboard using only their thoughts.
Musk in January this year announced that the first implant was successful and that the patient was able to “move a cursor” using the interface.

About Neuralink:

Neuralink is working on developing a brain-computer interface that is designed to help patients with paralysis or other conditions control computers and other electronic devices using neural signals.
The US Food and Drug Administration gave Neuralink clearance to conduct its first trial to test its implant on humans last year.
The study used a robot to surgically place a brain-computer interface in a region of the brain that controls the intention to move.

11. Sri Lanka likely to secure six-year moratorium, lower interest on debt owed to India, Paris Club

Subject: IR

Section: Int organisation

Context: Sri Lanka is close to finalising a debt treatment plan with India and the Paris Club, sources familiar with the negotiations said, pointing to a likely moratorium of up to six years and a reduced interest rate during the repayment period

Understanding the Paris Club

The Paris Club is a group of mostly western creditor countries that emerged from a 1956 meeting where Argentina agreed to meet its public creditors in Paris.
It serves as a forum where official creditors meet to address payment difficulties faced by debtor countries.
Objective: To find sustainable debt-relief solutions for nations struggling to repay bilateral loans.
Members:
- Includes countries such as Australia, Canada, France, Germany, Japan, the United States, and others.
- All 22 members belong to the Organisation for Economic Co-operation and Development (OECD).
Debt Agreements:
- The Paris Club has reached 478 agreements with 102 debtor countries since its inception.
- Total debt treated under these agreements is USD 614 billion since 1956.

Recent Developments and Sri Lanka’s Debt Scenario

Changing Landscape:
- Paris Club countries were dominant in bilateral lending in the past century.
- However, their significance has diminished in the last two decades with China emerging as the largest bilateral lender globally.
Sri Lanka’s Bilateral Creditors:
- In Sri Lanka’s case, the largest bilateral creditors include India, China, and Japan.
- Sri Lanka owes 52% of its bilateral debt to China, 19.5% to Japan, and 12% to India.

Further developments

Meanwhile, Sri Lanka got astep closer to receiving thenext instalment of the InternationalMonetary Fund’s assistance,as part of the $3 billionpackage it obtained last year, to recover from the unprecedentedfinancial crash witnessedin the island nation in2022. Authorities reached astate-level agreement with theFund on the second review ofits four-year Extended FundFacility (EFF) arrangement.Upon completion of the IMFExecutive Board’s review, SriLanka would have access to

about $337 million, takingIMF assistance it has receivedso far to $1 billion, the Fundsaid in a statement.

About Extended Fund Facility (EFF):

It is a fund created by IMF for helping economies to address serious medium-term balance of payments problems because of structural weaknesses that require time to address.
Assistance under an extended arrangement features longer program engagement to help countries implement medium-term structural reforms with a longer repayment period.
It provides for support for comprehensive programs including the policies needed to correct structural imbalances over an extended period.
Typically approved for periods of three years, but may be approved for periods as long as 4 years (repaid over 4.5–10 years in 12 equal semiannual installments unlike Stand-By Agreement facility which provides support for short period with repayment period of 3.5–5 years.)

Conditions to get help

When a country borrows from the IMF, it commits to undertake policies to overcome economic and structural problems
The IMF’s Executive Board regularly assesses program performance and can adjust the program to adapt to economic developments.
Lending is tied to the IMF’s market-related interest rate, known as the basic rate of charge, which is linked to the Fund’s Special Drawing Rights (SDR) interest rate.
EFF is guided by a country’s financing needs, capacity to repay, and track record with past use of IMF resources:
Normal access: Borrowing under an EFF is subject to the normal limit of 145 percent annually of a country’s IMF quota, (IMF quota broadly reflects a country’s position in the global economy), and a cumulative limit over the life of the program of 435 percent of its quota, net of scheduled repayments.
Exceptional access: The Fund may lend amounts exceeding these limits in exceptional circumstances provided that a country satisfies a predetermined set of criteria.