THE INTERNATIONAL AFFAIRS

EXPLAINED: HOW A G-7 BAN ON RUSSIAN GOLD WOULD WORK

THE CONTEXT: Recently, the Group of Seven nations will formally announce a ban on Russian gold imports in the latest round of sanctions over Vladimir Putin’s invasion of Ukraine.

THE EXPLANATION:

• The US says Russia has used gold to support its currency as a way to circumvent the impact of sanctions. One way to do that is by swapping gold for a more liquid foreign exchange that is not subject to current sanctions.
• Some experts say since only a few countries are implementing the gold ban, the move is largely symbolic, while others, including those in the administration, say a ban on imports of Russian gold will target its ability to interact with the global financial system.

How much gold does Russia have?

• According to data, Russia’s gold is the second most lucrative export after energy and nearly 90% of the revenue comes from G-7 countries, “cutting that off, denying access to about $19 billion of revenues a year, that’s significant.”
• “It can’t acquire what it needs to modernize its defence sector, to modernize its technology, to modernize its energy exploration,” Blinken said.
• Russia began increasing its gold purchases in 2014 after the US issued sanctions on Russia for Putin’s invasion of Crimea. The country holds $100 billion to $140 billion in gold reserves, roughly 20% of the holdings in the Russian Central Bank, according to US officials.

What other measures have been made on the gold trade?

• In March 2022, the US and its allies moved to block financial transactions with Russia’s Central Bank that involve gold, aiming to further restrict the country’s ability to use its international reserves. That came after calls from members of Congress to restrict Russia’s gold trade.
• The Treasury Department issued guidance that American individuals, including gold dealers, distributors, wholesalers, buyers, and financial institutions, are generally banned from buying, selling or facilitating gold-related transactions involving Russia and the various parties that have been sanctioned.
• Russia appears to have defaulted on its foreign debt for the first time since the 1917 Bolshevik Revolution, and the US and its allies are taking aim at the former Soviet Union’s second-largest export industry after energy — gold.

VALUE ADDITION:

What is G7?

• The G7, originally G8, was set up in 1975 as an informal forum bringing together the leaders of the world’s leading industrial nations.
• Composition: The summit gathers leaders from the European Union (EU) and the following countries: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
• The major purpose of the G-7 is to discuss and deliberate on international economic issues. It sometimes acts in concert to help resolve other global problems, with a special focus on economic issues.

How did G7 become G8?

• Russia was formally inducted as a member in the group in 1998, which led G7 to become G8.
• However, Russian President Vladimir Putin’s condemnable act of moving Russian troops into eastern Ukraine and conquering Crimea in 2014 drew heavy criticism from the other G8 nations.
• The other nations of the group decided to suspend Russia from the G8 as a consequence of its actions and the group became G7 again in 2014.

 

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

BAN ON IDENTIFIED SINGLE-USE PLASTIC ITEMS FROM 1ST JULY 2022

THE CONTEXT: According to the Ministry of Environment, Forest and Climate Change, the Government of India notified the Plastic Waste Management Amendment Rules, 2021, on 12 August 2021, India will ban the manufacture, import, stocking, distribution, sale and use of identified single-use plastic items, which have low utility and high littering potential, all across the country from July 1, 2022.

THE EXPLANATION:

• The adverse impacts of littered single-use plastic items plastic on both terrestrial and aquatic ecosystems, including in marine environments are globally recognized. Addressing pollution due to single-use plastic items has become an important environmental challenge confronting all countries.
• In the 4th United Nations Environment Assembly held in 2019, India piloted a resolution on addressing single-use plastic products pollution, recognizing the urgent need for the global community to focus on this very important issue. The adoption of this resolution at UNEA 4 was a significant step. In the recently concluded 5th session of the United Nations Environment Assembly in March 2022, India engaged constructively with all member states to develop a consensus on the resolution for driving global action on plastic pollution.
• The Government of India has taken resolute steps for mitigation of pollution caused by littered Single-Use Plastics. The list of banned items includes –earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene (Thermocol) for decoration, plastic plates, cups, glasses, cutlery such as forks, spoons, knives, straw, trays, wrapping or packing films around sweet boxes, invitation cards, cigarette packets, plastic or PVC banners less than 100 micron, stirrers.
• The Plastic Waste Management Amendment Rules, 2021, also prohibit the manufacture, import, stocking, distribution, sale and use of plastic carry bags having a thickness less than seventy-five microns with effect from 30th September 2021, and having a thickness less than the thickness of one hundred and twenty microns with effect from the 31st December 2022.
• CPCB Grievance Redressal App has been launched to empower citizens to help curb the plastic menace. For wider public outreach, the PRAKRITI – mascot was also launched on 5th April 2022.

VALUE ADDITION:

Why do we need to ban single-use plastic?

• Pollution: One of the biggest threats to plastic bags is that they threaten the environment. Plastic bags pollute the land and water, since they are lightweight, plastic materials can travel long distances by wind and water.
• Non-renewable: Only 1-13% of the plastic items are recyclable, the rest ends up either buried in the land or water bodies, eventually reaching the oceans, leading to pollution of water bodies and killing of marine life. With climate and environment becoming a rising global concern, plastic pollution and plastic waste management have become the point of worry.
• Energy-intensive: The production of plastic material are very energy-intensive. They require a lot of water for their production. Thus using plastic bags is not advisable.
• Threat to aquatic life: Being non-recyclable, plastic bags end up in the oceans. While they reach, they break up into tiny little pieces and are consumed by wildlife. Thereby leading to health issues or even death. Many animals also get entangled or trapped in plastic bags.
• Harmful to human health: Toxic chemicals from plastic bags can damage the blood and tissues. Frequent exposures can lead to cancers, birth defects, impaired immunity, hormone changes, endocrine disruption and other serious ailments.

Negative Impact of plastic ban:

• The Plastic industry in the country employs about 40 lakh people. A ban on plastics will affect the industry, leading to job loss and economic slowdown.
• A piece of plastic bag cost no more than 10-15 paise which is much cheaper than a paper bag costing 20-25 paise per piece. The plastic ban would Impact cost of the products and would lead to inflation.

Positive Impact of plastic ban:

• It will help in tackling air pollution and water pollution.
• It will save Many marine lives.
• It will reduce health issues in humans due to pollution.
• It will spread nationwide awareness about the harmful effects of single-use plastic.
• The plastic ban forces the customer to buy recyclable plastic bags and reuse of disposable bags. This can also encourage reuse of the bags.

THE ECONOMIC DEVELOPMENT

EXPLAINED: WHAT IS THE GST COUNCIL, AND WHAT DOES IT DO?

THE CONTEXT: Recently, the 47th meeting of the Goods and Se

rvices Tax Council began in Chandigarh, almost marking five years of the tax system coming into effect on July 1, 2017.

THE EXPLANATION:

Over these five years, the GST setup has gone through numerous changes, and the ongoing two-day meeting is expected to look at matters such as the GST compensation to states, and the imposition of taxes on some currently-exempt goods and services.

What is the GST Council?

• The Goods and Services Tax regime came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016. More than 15 Indian states then ratified it in their state Assemblies, after which the President gave his assent.
• The GST Council – a joint forum of the Centre and the states — was set up by the President as per Article 279A (1) of the amended Constitution.
• The members of the Council include the Union Finance Minister (Chairperson), the Union Minister of State (Finance) from the Centre. Each state can nominate a minister in charge of finance or taxation or any other minister as a member.

Why was the Council set up?

• The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
• It also decides on various rate slabs of GST.
• For instance, an interim report by a panel of ministers has suggested imposing 28 per cent GST on casinos, online gaming and horse racing.

What has changed this time?

• The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
• The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST and recommendations of the Council “are the product of a collaborative dialogue involving the Union and States”. This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.
• The council’s meeting is also likely to focus on the issue of extension of the GST compensation regime beyond June 2022. This was a special mechanism by which states were assured that their revenues would not be affected by the new GST system. Some states are already demanding that the compensation be continued.
• Earlier, the Council had agreed to extend the levy of compensation cess till 2026, but only for repayment of the borrowings made in the aftermath of the pandemic to provide compensation to states.

THE SCIENCE AND TECHNOLOGY

UPSC ESSENTIALS: ONE WORD A DAY- PSYCHE

WHAT IS THE PSYCHE?

• Psyche is an asteroid. What makes it unique is that it appears to be the exposed nickel-iron core of an early planet, one of the building blocks of our solar system.
• This asteroid is in between Mars and Jupiter and is orbiting the Sun.

What is NASA’s Psyche mission?

• NASA’s Psyche mission is a journey to a unique metal asteroid orbiting the Sun between Mars and Jupiter.
• Psyche was selected in 2017 as part of NASA’s Discovery Program, which is a line of low-cost competition missions led by a single principal investigator.

What are the main objectives of the mission?

• To understand how planets and other bodies are separated into layers such as cores, mantles, and crusts.
• To examine an asteroid made of metal.
• To explore early eras of the solar system.

 

THE SECURITY AFFAIRS

WHAT IS HERMIT, THE PEGASUS-LIKE SPYWARE THAT TARGETED ANDROID, AND IOS DEVICES?

THE CONTEXT: ‘Hermit’ is the latest sophisticated spyware in the news, and it is believed to have targeted iPhones and Android devices in Italy and Kazakhstan. Hermit’s deployment – the spyware has been developed by an Italian vendor called RCS Lab – was first reported by cyber security researchers at the Lookout, a San-Francisco-based cybersecurity firm.

THE EXPLANATION:

What is Hermit and what exactly does it do on a device?

• Hermit is a spyware on the lines Pegasus by NSO Group. of Once installed on a device, it can record audio on the device, carry out unauthorised calls, and carry out many unauthorised activities. According to Lookout, the spyware can steal stored account emails, contacts, browser bookmarks/searches, calendar events, etc.
• It can also take pictures on the device, steal device information such as details about applications, the kernel information, model, manufacturer, OS, security patch, phone number, etc. It can also download and install APK (the app software files on Android) on a compromised phone.
• The spyware can also upload files from the device, read notifications, and take pictures of the screen. Because it can gain access to the root or the ‘privilege’ access of an Android system, Lookout’s research showed, it can uninstall apps like Telegram and WhatsApp. According to the researchers, the spyware can silently uninstall/reinstall Telegram. Except the reinstalled version is likely a compromised one. It can also steal data from the old app. For WhatsApp, it can prompt the user to reinstall WhatsApp via Play Store.
• So, once Hermit has been deployed to a phone, it can control and track data from all key applications.

 

PADMA, THE CENTRALISED PAY SYSTEM FOR THE INDIAN COAST GUARD LAUNCHED

THE CONTEXT: Recently, the Ministry of Defence launched a Pay Roll Automation for Disbursement of Monthly Allowances (PADMA), an automated Pay & Allowances module for the Indian Coast Guard.

THE EXPLANATION:

• PADMA is an automated platform leveraging the latest technology which will provide seamless and timely disbursal of Pay & Allowances to around 15,000 Indian Coast Guard personnel. This module has been developed under the aegis of the Defense Accounts Department and will be operated by Pay Accounts Office Coast Guard, Noida. The launch marked the beginning of the Centralized Pay System (CPS), the foundation of which is being laid down by the Defence Accounts Department Headquarters to provide one-stop pay accounting solutions for all organisations under the Ministry.
• The CGDA emphasized that the Government has campaigned for Digital India to ensure dedicated services and reduce manual intervention at every level & to promote E-Governance in a big way. The launch of PADMA will strengthen the Digital India concept. Also, it is an ‘Atmanirbhar Bharat’ initiative as the entire module has been designed and developed by Indian entrepreneurs assisted by domain experts.

 

THE MISCELLANEOUS

THE “STATISTICS DAY”: JUNE 29

THE CONTEXT: In recognition of the notable contributions made by Professor (late) Prasanta Chandra Mahalanobis in the fields of statistics and economic planning, the Government of India has de

signated 29th June every year, coinciding with his birth anniversary, as “Statistics Day” in the category of Special Days to be celebrated at the national level.

THE EXPLANATION:

• The objective of this Day is to create public awareness, especially in the younger generation for drawing inspiration from Professor (late) Mahalanobis about the role and importance of statistics in socio-economic planning and policy formulation.
• Every year, Statistics Day is celebrated with a theme of contemporary national importance. The theme of Statistics Day, 2022 is ‘Data for Sustainable Development.
• On this occasion, MoSPI also recognizes the outstanding contribution through high-quality research in the field of applied and theoretical statistics benefiting the official statistical system through awards instituted for this purpose. This year, the winners of P.C. Mahalanobis National Award in Official Statistics, 2022 and Prof. P.V. Sukhatme National Award for lifetime contribution in the field of statistics, 2022 will be announced during the event. The winners of the ‘On the Spot Essay Writing Competition, 2022’ for Post Graduate Students on the theme of Statistics day will also be felicitated.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

1. Which of the following pairs are correctly matched?
2. Gennova Biopharmaceuticals – mRNA vaccine
3. Oxford-AstraZeneca – Vector based vaccine
4. Zydus Cadila – DNA based vaccine
5. Novavax – Protein Subunit Vaccine

Select the correct answer using the code given below:

a) Only 1 pair

b) Only 2 pair

c) Only 3 pair

d) All pairs

ANSWER FOR 28^TH JUNE 2022

Answer: D

Explanation:

• The Telugu Ganga project is a joint water supply scheme implemented in the 1980s by Andhra Pradesh and Tamil Nadu to provide drinking water to Chennai city.
• Water is drawn from the Srisailam reservoir and diverted towards Chennai through a series of interlinked canals, over a distance of about 406 kilometres, before it reaches the destination at the Poondi reservoir near Chennai.
• The main checkpoints en-route include the Somasila reservoir in Penna River valley, the Kandaleru reservoir, the Zero Point near Uthukkottai where the water enters Tamil Nadu territory and finally, the Poondi reservoir, also known as Satyamurthy Sagar.
• From Poondi, water is distributed through a system of link canals to other storage reservoirs located at Red Hills, Sholavaram and Chembarambakkam.

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