INTERNATIONAL RELATIONS

1. WHAT IS CHINA’S ‘WOLF WARRIOR’ DIPLOMACY?

THE CONTEXT: Recently, the 20^th National congress of Chinese Communist Party (CCP) held and  it is widely expected that Chinese President Xi Jinping will get an endorsement for a third term as President. Under Xi, China has witnessed a unique style of governance, which differs in many ways from that of more recent Chinese leaders.

THE EXPLANATION:

As China’s position has undergone a change in world affairs over the years, Xi has advocated for a more intensive approach towards handling issues both domestically and internationally. The “wolf warrior” style of Chinese diplomacy particularly attracted attention.

What does wolf warrior diplomacy mean?

• A term that gained popularity, especially after Xi became President, “wolf warrior diplomacy” is a tactic for the Chinese government to extend its ideology beyond China and counter the West and defend itself. It is an unofficial term for the more aggressive and confrontational style of communication that Chinese diplomats have taken to in the last decade.

Why is China resorting to wolf-warrior diplomacy?

• Soaring Nationalism: Since 2010, when China’s GDP overtook Japan’s as the world’s second largest, the Chinese have become more confident and China’s foreign policy has become more assertive.
• China as a great power: The latest diplomatic offensive is also part of the official effort to project China as a great power leading the global fight against the COVID-19. China’s image suffered during the crisis due to its bungled handling of the outbreak at the early stage.
• With the assertive and ambitious Belt and Road Initiative and Maritime Silk Road, China has consolidated its influence over the Indian neighbours as almost all the neighbour sans Bhutan have shown the keen interests in joining.

2. INDIA OPPOSES G7’S JUST ENERGY TRANSITION PLAN

THE CONTEXT: The G7 nations’ plan of persuading India to start negotiations on a Just Energy Transition Partnership (JETP), an initiative of the rich nations to accelerate phasing out of coal and reducing emissions has hit a road-block.

THE EXPLANATION:

About Just Energy Transition Partnership (JETP)

• JETP, an initiative of the rich nations to accelerate phasing out of coal and reducing emissions.
• The JETP initiative is modelled for the South Africa, to support South Africa’s decarbonisation efforts.
• It aims to reduce emissions in the energy sector and accelerate the coal phase-out process.
• JETP makes various funding options available for this purpose in identified developing countries.
• The JETP was launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU)
• Following that G7 has announced for a similar partnership in India, Indonesia, Senegal, and Vietnam.
• India’s stand – India argues that coal cannot be singled out as a polluting fuel, and energy transition talks need to take place on equal terms.

Significance:

• This is significant because this approach takes into account the societal and economic development of each partner and will not try to force-feed partners a standard solution.
• That partnership—with special emphasis on the words “just” and “transition”—is about helping fund South Africa’s decarbonization by replacing coal usage with clean energy.
• At its core, the idea is to assist green transitions by making finance available from developed countries, multilateral institutions and groups of green investors.

Strong opposition:

• If the Power Ministry continues to resist, India could still get into the negotiations if the PMO decides to intervene.
• According to India’s updated NDC, it stands committed to reduce the emission intensity of its GDP by 45 per cent by 2030, from 2005 level and achieve about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3. SEA CUCUMBER

THE CONTEXT: Citing media reports of a Chinese firm investing in a sea cucumber farm in Pungudutivu, off Jaffna Peninsula in northern Sri Lanka, local fishermen have raised concern over its potential impact on their livelihoods, marine ecosystem, and land.

THE EXPLANATION:

• In 2021, Sri Lanka exported about 336 tonnes of sea cucumber to China, Singapore, and Hong Kong, according to local media reports. Desperate to find dollars to stabilise its battered economy, the Sri Lankan government appears to have identified potential for both, foreign investment and exports in breeding and selling the sausage-shaped marine animal considered a delicacy in China and Southeast Asia. Locals do not consume sea cucumbers.
• In June 2022, the Cabinet approved a proposal for a large-scale commercial sea cucumber project spanning 5,000 acres in Jaffna, Mannar, Kilinochchi and Batticaloa districts in the north and east, after Sri Lanka earned “a significant amount” of foreign exchange by exporting sea cucumbers.

Significance of Sea Cucumber?

• They are an important constituent of the marine ecosystem as they play an important role in maintaining the health of the ecosystem.
• It has no limbs or eyes, or blood.
• There are some 1,250 known species, and many of these animals are shaped like soft-bodied cucumbers.
• Demand: Sea cucumbers are in high demand in China and Southeast Asia, where they are consumed as food and used in medicine.
• This endangered species is primarily smuggled from Tamil Nadu to Sri Lanka.

COMMON NAME: Sea Cucumbers

SCIENTIFIC NAME: Holothuroidea

TYPE: Invertebrates

DIET: Omnivore

Protection:

• Protected under Schedule I under the Wildlife Protection Act (WPA), 1972 so their trade is banned.
• IUCN Red List:Brown Sea Cucumber (Endangered),Blackspotted Sea Cucumber (Least Concern), Blue Sea Cucumber (Data Deficient).
• The Ministry of Environment, Forests and Climate Change imposed a total ban on harvesting and transporting sea cucumbers in 2001.

First conservation area:

• Lakshadweep has created the world’s first conservation area for sea cucumbers.
• Other than the sea around Lakshadweep Islands and Andaman Nicobar Islands, the Gulf of Mannar at the confluence of the Indian Ocean and Bay of Bengal in Tamil Nadu is also home to sea cucumbers.

4. SRI LANKA PROPOSAL TO TRANSLOCATE GAURS

THE CONTEXT: The Indian government is considering a proposal from Colombo to export a number of gaurs, or Indian bisons, to Sri Lanka to revive the population of gavaras that have been extinct in the island since the end of the 17th century.

THE EXPLANATION:

The Zoological diplomacy-

• If the project is cleared, it would be the first such agreement between India and Sri Lanka, and part of a global trend of “wildlife or zoological diplomacy”.
• The sources from Ministry of External Affairs (MEA), which received the request in August 2022, has now forwarded it to the Ministry of Environment and Forests (MoEF), “seeking comments” on the proposal to transport at least six specimens, including a bull and three to five cows.
• According to the proposal, the Sri Lankan Department of Zoological Gardens would then carry out “captive breeding a herd of about a dozen specimens over a five year period before trial reintroduction to the wild could take place in accordance with [internationally mandated] guidelines for re-introductions”.
• The suggestion for the proposal came from Sri Lankan conservationist Rohan Pethiyagoda, who was awarded the Linnean medal 2022 (U.K.­based equivalent of the Nobel prize for zoology) for his work on restoring fresh water and forest biodiversity.

ABOUT INDIAN BISONS

• Distribution: Native to South and Southeast Asia
• In India, they are found in Nagarhole, Bandipur, Masinagudi National Parks and BR Hills.
• Conservation Status: Vulnerable in IUCN Red List.
• Included in the Schedule I of the Wild Life Protection Act, 1972.

Key Facts:

• It is the tallest species of wild cattle found in India and largest extant bovine.
• Recently, the first population estimation exercise of the Indian Gaur (Bison) was carried out in the Nilgiris Forest Division, Tamil Nadu.
• Recently, the conservation breeding of Gaur was started at Mysuru zoo under the conservation breeding programme of the Central Zoo Authority (CZA)

SCIENCE AND TECHNOLOGY

5. WHAT IS QUANTUM ENTANGLEMENT?

THE CONTEXT: The 2022 Nobel Prize in physics recognized three scientists who made ground-breaking contributions in understanding one of the most mysterious of all natural phenomena: quantum entanglement.

THE EXPLANATION:

What is Quantum Entanglement?

• The quantum entanglement means that aspects of one particle of an entangled pair depend on aspects of the other particle, no matter how far apart they are or what lies between them. These particles could be, for example, electrons or photons, and an aspect could be the state it is in, such as whether it is “spinning” in one direction or another.
• The strange part of quantum entanglement is that when you measure something about one particle in an entangled pair, you immediately know something about the other particle, even if they are millions of light years apart. This odd connection between the two particles is instantaneous, seemingly breaking a fundamental law of the universe. Albert Einstein famously called the phenomenon “spooky action at a distance.”

Two entangled particles

• The spookiness of quantum entanglement emerges from the reality of quantum superposition, and was clear to the founding fathers of quantum mechanics who developed the theory in the 1920s and 1930s.
• To create entangled particles you essentially break a system into two, where the sum of the parts is known. For example, you can split a particle with spin of zero into two particles that necessarily will have opposite spins so that their sum is zero.

GOVERNMENT SCHEMES AND INITIATIVES IN NEWS

6. OLD PENSION VS NEW PENSION SCHEME

THE CONTEXT: After Rajasthan and Chhattisgarh, recently Punjab is the latest State that has announced its plan to revert to the Old Pension Scheme (OPS).

THE EXPLANATION:

OPS vs NPS: Difference 

• National Pension Scheme replaced the OPS with effect from April 1, 2004. Under the old pension scheme, retired employees received 50% of their last drawn salary as monthly pensions. In contrast, NPS is a contributory pension scheme under which employees contribute 10% of their salary (Basic + Dearness Allowance) and the Government contributes 14% towards the employees’ NPS accounts.
• The funds under NPS are managed by PFRDA-approved pension fund managers. The onus of purchasing the annuity plan from approved pension providers is on the employee under NPS. At the time of retirement, employees are required to purchase an annuity plan for a monthly pension with a minimum of 40% of the accumulated corpus. The employee can withdraw the remaining amount as a lump sum.

THE PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. Consider the following statements about indicators used to calculate Global Hunger Index:

1. Undernourishment is given more weightage than child stunting.
2. Child stunting and child wasting are given equal weightage.
3. Child mortality is given less weightage than Undernourishment.

Which of the statements given above is/are correct?

1. 1 only
2. 1 and 2 only
3. 3 only
4. 1 and 3 only

Answer: B

Explanation:

Please refer to given table-

1. Addiction and return of the prodigal son READ MORE
2. How to know God READ MORE

1. Earth just had its 5th-warmest September on record READ MORE
2. Ashok Gulati writes: Balancing climate change and global nutrition READ MORE
3. Erratic weather, ineffective solutions: Annual stubble burning sets off pollution concerns again READ MORE

1. Do India’s women have the right to choose? READ MORE
2. Malnutrition challenge: India lags in meeting goal of zero hunger READ MORE
3. In Supreme Court hijab judgment, an inversion of Indian secularism READ MORE

1. Explained | The issues in the Collegium’s functioning READ MORE
2. The ‘plumbing’ of inner party democracy READ MORE
3. In Supreme Court hijab judgment, an inversion of Indian secularism READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. As wildlife diplomacy takes wing, government considers Sri Lankan proposal for translocating gaurs READ MORE
2. Neutralising antibody against multiple SARS-CoV-2 variants READ MORE
3. India to attract FDI worth $475 billion in 5 years: EY-CII report READ MORE
4. Explained | Understanding the Global Hunger Index READ MORE
5. Wildlife board nod to Kedarnath ropeway project READ MORE
6. Organic fertiliser: A must for the next green revolution Govt considering proposals for extending Rs 35,000 cr PLI scheme to more sectors READ MORE
7. Alzheimer’s disease: surprising new theory about what might cause it READ MORE India’s first aluminium freight rake introduced by Hindalco for Indian Railways READ MORE

Main Exam

GS Paper- 1

1. Earth just had its 5th-warmest September on record READ MORE
2. Do India’s women have the right to choose? READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Explained | The issues in the Collegium’s functioning READ MORE
2. The ‘plumbing’ of inner party democracy READ MORE
3. In Supreme Court hijab judgment, an inversion of Indian secularism READ MORE

SOCIAL ISSUES

1. Malnutrition challenge: India lags in meeting goal of zero hunger READ MORE

INTERNATIONAL ISSUES AND RELATIONS

1. What a third Xi term means for India READ MORE
2. India needs to play a big role to end Ukraine war READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Explained | Why did bank bailout research get the Nobel? READ MORE
2. Conceptual haze around CBDC READ MORE
3. Strengthening the agri startup ecosystem READ MORE
4. Institutions and Economy~I READ MORE
5. Institutions and Economy~II READ MORE
6. Despite moderate performance over 40 yrs, India’s economic growth set to be substantial in 2023 READ MORE

ENVIRONMENT AND ECOLOGY

1. Ashok Gulati writes: Balancing climate change and global nutrition READ MORE
2. Erratic weather, ineffective solutions: Annual stubble burning sets off pollution concerns again READ MORE

SCIENCE AND TECHNOLOGY

1. Securing India’s cyberspace from quantum techniques READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Addiction and return of the prodigal son READ MORE
2. How to know God READ MORE

Questions for the MAIN exam

1. ‘Though, the Indian Constitution is influenced by the American and European models. But the Constitution is not an unmediated legal transplant from the West’. Examine with suitable examples.
2. ‘The world is moving towards an era in which the applications of quantum physics in strategic domains will soon become a reality, increasing cybersecurity risks. India needs a holistic approach with a focus on post-quantum cybersecurity to tackle these challenges’. Discuss.

QUOTATIONS AND CAPTIONS

• Never think that war, no matter how necessary, nor how justified, is not a crime.
• The Indian Constitution was indeed influenced by the American and European models. But the Constitution was not an unmediated legal transplant from the West.
• This year’s economics Nobel offers a deeper understanding of the genesis, the propagation, and the management of financial crises.
• The thankless, complex and risky endeavour of inner party elections serves as a disincentive for most parties to attempt such an exercise.
• The challenge today is to develop technologies that supply the food and nutritional needs of the world while also addressing climate change imperatives. Today, there seems to be a lack of sync between policies and technologies. It is high time India wake up.
• The world is moving towards an era in which the applications of quantum physics in strategic domains will soon become a reality, increasing cybersecurity risks. India needs a holistic approach with a focus on post-quantum cybersecurity to tackle these challenges.
• India need a coordinated institutional framework tying together the different parts of policy making in order to navigate the increasing volatility triggered by climate change and energy transition.
• The decades-old Integrated Child Development Services and Midday Meal Scheme and the recent Poshan Abhiyaan designed to address hunger and malnourishment must be integrated holistically with health projects for better results.
• The pandemic has led to an increase in the number of agri startups that work across the value chain. But the key hitch is still the small farm size, coupled with low digital adoption by small and marginal farmers. They recommend a hub-and-spoke model that nurtures these agri startup initiatives.
• Structural reform can be supported to overcome the problems of inflation by improving productivity and easing supply constraints.
• In the last decade or so, there has been a renewed urge to implement the reform process. India has reaffirmed its policy to follow fiscal prudence, with a new time path for reducing the national fiscal deficit to 3 per cent of GDP.

50-WORD TALK

• In order to enhance its regional status vis-a-vis China, India takes its role in the Quad very seriously. And yet, New Delhi’s refusal to slam Russia’s aggression risks generating tensions within the group. Firstly, this is because both China and Russia oppose the Quad. Secondly, Japan, the US and Australia have imposed some of the harshest sanctions on Moscow. India has been a party to Quad’s joint statements that support ‘democratic values’ and ‘democratic resilience’.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

SOCIAL ISSUES AND SOCIAL JUSTICE

1. WHAT IS THE GLOBAL HUNGER INDEX AND WHY IS INDIA TRAILING?

THE CONTEXT: Recently, India ranks 107 out of 121 countries on the Global Hunger Index in which it fares worse than all countries in South Asia barring war-torn Afghanistan.

THE EXPLANATION:

HIGHLIGHTS OF THE REPORT:

• India’s score of 29.1 places it in the ‘serious’ category.India also ranks below Sri Lanka (64), Nepal (81), Bangladesh (84), and Pakistan (99). Afghanistan (109) is the only country in South Asia that performs worse than India on the index.
• China is among the countries collectively ranked between 1 and 17 having a score of less than five.
• India’s child wasting rate (low weight for height), at 19.3%, is worse than the levels recorded in 2014 (15.1%) and even 2000 (17.15%), and is the highest for any country in the world and drives up the region’s average owing to India’s large population.
• Prevalence of undernourishment, which is a measure of the proportion of the population facing chronic deficiency of dietary energy intake, has also risen in the country from 14.6% in 2018-2020 to 16.3% in 2019-2021. This translates into 224.3 million people in India considered undernourished out of the total 828 million people undernourished globally.
• India has shown improvement in the other two indicators – child stunting has declined from 38.7% to 35.5% between 2014 and 2022 and child mortality has also dropped from 4.6% to 3.3% in the same comparative period. On the whole, India has shown a slight worsening with its GHI score increasing from 28.2 in 2014 to 29.1 in 2022. Though the GHI is an annual report, the rankings are not comparable across different years. The GHI score for 2022 can only be compared with scores for 2000, 2007 and 2014.
• There are 44 countries that currently have “serious” or “alarming” hunger levels and “without a major shift, neither the world as a whole nor approximately 46 countries are projected to achieve even low hunger as measured by the GHI by 2030”.

ABOUT THE REPORT:

The Global Hunger Index (GHI) is a tool for comprehensively measuring and tracking hunger at global, regional, and national levels. GHI scores are based on the values of four component indicators – undernourishment, child stunting, child wasting and child mortality. The GHI score is calculated on a 100-point scale reflecting the severity of hunger, where zero is the best score (no hunger) and 100 is the worst.

GHI is based on four indicators:

• The proportion of undernourished in a population
• The proportion of children under the age of five suffering from wasting (less weight in proportion to their height)
• The proportion of children under five suffering from stunting (low height in proportion to their age)
• The mortality rate of children under five

ECONOMIC DEVELOPMENTS: INFRASTRUCTURE

2. THE LEADS (LOGISTICS EASE ACROSS DIFFERENT STATES) INDEX 2022

THE CONTEXT: LEADS (Logistics Ease Across Different States) 2022 was released recently by the Ministry of Commerce and Industry.

THE EXPLANATION:

• The LEADS survey assesses the views of various users and stakeholders involved in the value chain of logistics sector. This survey is conducted recognize the enablers, hindrances and gaps within the logistics ecosystem.
• This annual survey ranks logistics ecosystem of each state and union territory across India using data received from stakeholders (perception data) and states and union territories (objective data).
• The LEAD 2022, unlike the former versions, adopted the classification-based grading, with states and union territories classified under four broad categories – coastal states, hinterland/landlocked states, northeastern states and union territories.
• This indigenous data-backed index assesses the logistics infrastructure, services, and human resources across 36 states and union territories.
• It provides three performance categories – Achievers (states and UTs achieving 90 per cent or more), Fast Movers (states and UTs scoring between 80 and 90 per cent), and aspirers (states and UTs with percentage scoring below 80 per cent).
• The 15 states and UTs that have been categorized as achievers in the logistics index chart 2022 are Andhra Pradesh, Assam, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand.
• The fast movers in the latest report are Kerala, Madhya Pradesh, Rajasthan, Puducherry, Sikkim and Tripura.
• 15 states and UTs categorized as aspirers are Bihar, Chhattisgarh, Goa, Mizoram, Andaman and Nicobar Islands, Lakshadweep, Ladakh, Nagaland, Jammu and Kashmir, and Arunachal Pradesh.
• The index aims to boost the logistics performance across India, which is critical for reducing the cost of transactions and boosting international and domestic trade.
• The LEADS 2022 will assist in the implementation of the PM Gati Shakti National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP) by identifying gaps in the existing logistics services, infrastructure and regulatory environment.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3. NITI AAYOG REPORT ON LEAD POISONING IN INDIA

THE CONTEXT: The report, prepared jointly by government think tank Niti Aayog and the Council of Scientific & Industrial Research (CSIR), it highlighted the growing concern of lead poisoning among children under 19 years of age in India.

THE EXPLANATION:

• A new report by the CSIR and NITI Aayog found that India has the highest health and economic burden caused by lead poisoning.
• It analysed 89 data sets from 36 researches that were carried out between 1970 and 2014 to confirm the findings of the 2020 report of the UNICEF and the non-profit Pure Earth.
• The 2020 report found that India accounted for 275,561,163 of the total 800 million children who were poisoned by lead across the world. This means that 50 per cent of children in India suffered lead poisoning.
• This report also found that lead poisoning costed 5 per cent of the Indian GDP because of low economic productivity and lesser lifetime earnings. It also caused 2.3 lakh premature deaths in the country.
• The NITI Aayog-CSIR report assessed lead poisoning caused by battery recycling, occupational hazards like lead mining, smelting, welding, soldering and automobile repatriating as well as other sources like adulterated spices, cosmetics and traditional medicines.
• It found that lead poisoning continues to spike in India despite the phasing out of usage of lead in petrol – the major source of lead poisoning – by the year 2000.
• The recent study confirmed that India has the highest prevalence of lead poisoning among children under the age of 19.
• This is causing slow, irreversible brain damages that are adversely affecting the children’s intellectual capabilities and causing other health complications.
• The report found that Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh and Andhra Pradesh have the highest average blood lead levels (BLL) among the Indian states. They accounted for 40% the total Indian population with high average BBL.
• The report called for the implementation of national and state-level policies to tackle the issue of lead poisoning.
• These include identification of at-risk population through BLL monitoring, finding the sources of spike in BLLs and sensitization of healthcare workers to strengthen the monitoring, detection and treatment against lead poisoning.
• It also recommends conducting targeted research and intervention to identify new sources of lead poisoning.

VALUE ADDITION:

About Lead Poisoning:

Lead is a naturally occurring toxic metal found in the Earth’s crust. Its widespread use has resulted in extensive environmental contamination, human exposure and significant public health problems in many parts of the world.

KEY FACTS:

• Lead is a cumulative toxicant that affects multiple body systems and is particularly harmful to young children.
• Lead in the body is distributed to the brain, liver, kidney and bones. It is stored in the teeth and bones, where it accumulates over time. Human exposure is usually assessed through the measurement of lead in blood.
• Lead in bone is released into blood during pregnancy and becomes a source of exposure to the developing fetus.
• There is no level of exposure to lead that is known to be without harmful effects.
• Lead exposure is preventable.

DISASTER MANAGEMENT

4. GLOBAL STATUS OF MULTI-HAZARD EARLY WARNING SYSTEMS — TARGET G

THE CONTEXT: The report titled “Global Status of Multi-Hazard Early Warning Systems — Target G” was jointly released by United Nations Office for Disaster Risk Reduction (UNDRR) and the World Meteorological Organization (WMO) on the occasion of International Day for Disaster Reduction (October 13).

THE EXPLANATION:

• The findings of the report are based on the assessment of the data from the Sendai Framework Monitor (SFM) – an online tool the enables the member states to report their progress on the targets of The Sendai Framework (2015-2030).
• Target G of the Sendai Framework seeks to increase the availability of and access to multi-hazard early warning systems (MHEWS) and disaster risk information and assessment by the year 2030.
• The recently released report found that 50 per cent the countries in the world do not have early warning systems to prepare against natural disasters.
• Africa, South America and several countries in Arab and Caribbean region have very low coverage of MHEWS.
• On average, at least 40% of countries in every region have reported the use of MHEWS.
• Less than half of Least Developing Countries (LDC) and only 33 per cent of Small Island Developing Countries have MHEWS.
• The number of deaths in countries with limited early warming coverage is eight times higher than in countries with substantial to comprehensive coverage.
• An early warning system is up to the mark if it covers the four elements – risk knowledge, technical warning and monitoring service, communication and dissemination of warnings and community response capability.
• The recent report called for the increased investment in all these elements, with a particular focus on risk knowledge to improve disaster planning and boosting capacity of at-risk community for early action.
• It also called for increasing investments in data and technology for strengthening hazard monitoring, faster warning dissemination and better tracking of progress.
• It also recommends rating of effectiveness of the MHEWS, especially in Least Developed Countries and Small Island Developing countries.

About United Nations Office for Disaster Risk Reduction (UNDRR):

• UNDRR (formerly UNISDR) is the United Nations focal point for disaster risk reduction. UNDRR oversees the implementation of the Sendai Framework for Disaster Risk Reduction 2015-2030, supporting countries in its implementation, monitoring and sharing what works in reducing existing risk and preventing the creation of new risk.
• UNISDR’s Strategic Framework 2016-2021 has a vision to substantially reduce disaster risk and losses for a sustainable future with the mandate to act as the custodian of the Sendai Framework, supporting countries and societies in its implementation, monitoring and review of progress.

SCIENCE AND TECHNOLOGY

5. SCIENTISTS HAVE SUCCESSFULLY IMPLANTED AND INTEGRATED HUMAN BRAIN CELLS INTO NEWBORN RATS

THE CONTEXT: Scientists have successfully implanted and integrated human neurons into new-born rats.

THE EXPLANATION:

• Studying of complex psychiatric disorders like schizophrenia and autism is difficult since animals do not experience them like people and human beings cannot be used for the research.
• Human brain cells made using stem cells in perti dishes do not grow to the size of human neurons and their isolation from human body makes it difficult to study the symptoms of the neurological disorders.
• These limitations are addressed by implanting and integrating a group of human brain cells called organoid into the brains of new-born rats.
• Integration of human brain cells in new-born rats helps research psychiatric disorders and test treatment against them.
• Only young rats are used for the implantation since brain stops developing after a certain age in rats. This limits how the implanted brain cells integrate.
• The researchers found that the organoids can grow relatively large in young rats, covering about one-third of the rat’s brain.
• The integration was tested by blowing air across the rats’ whiskers, which triggered electrical activity in the human neurons. This means that the human tissue in the brain was able to process the external stimulation of the rat’s body.
• The researchers also tested and concluded that the implanted human neuron can send signals back to the rat’s body.
• The technique was recently used to study the Timothy Syndrome. The researchers found that organoids made using brain cells of patients with Timothy Syndrome grew more slowly and displayed less electrical activity than those from healthy people.
• This study will play a major role in improving the current understanding about human brain development and neurodevelopment disorders.
• However, implanted neurons did not replicate the key features of the developing human brain.
• The implantation of human neurons in rats does not make them more human-like because of the limitations on how deeply these neurons integrate with the rat brain.
• However, these barriers may not exist in species closely related to humans like primates and thus causes ethical concerns over progressing further into the experiment.

GOVERNMENT SCHEMES AND INITIATIVES IN NEWS

6. WHAT ARE RYTHU BHAROSA KENDRAS?

THE CONTEXT: Recently, an Ethiopian delegation led by the country’s Agricultural Minister Dr Meles MekonenYimer is in Andhra Pradesh (AP) to study the first-of-its kind Rythu Bharosa Kendras (RBKs), which have been set up by the AP Government.

THE EXPLANATION:

According to the officials, that Ethiopia has shown keen interest in the RBKs. Since the country wants to increase its agriculture output, it seeks to improve the quantity and quality of yields, reduce production costs, and provide newer skills to its farmers.

What are Rythu Bharosa Kendras?

• Set up for the first time in the country, the RBKs are unique seeds-to-sales, single-window service centres for farmers that have been set up across the state.
• They are a one-stop solution to all farmers’ needs and grievances. RBKs sell pre-tested quality seeds, certified fertilisers and animal feed. Farmers can purchase or hire farm equipment, and even sell their produce at the prevailing MSP in the RBKs.
• Touted as role models for the country, agriculture and horticulture officials manning the RBKs also provide services like soil testing and make recommendations — on which crops to sow, and quantity and type of fertiliser to be used. The state government also pays crop insurance, procures grains and makes payments to farmers through the RBKs.

Have the RBKs proved to be helpful to farmers?

• RBKs facilitate interaction between farmers, agriculture scientists, and agriculture extension officers right at the village level. Apart from providing services and items for sale, RBK officials demonstrate new farm equipment and provide training to farmers.
• Based on inputs provided by officials after soil testing and weather conditions, many farmers have changed their cropping patterns and benefited immensely, according to the state Agriculture Department. The RBKs have been responsible for elimination of spurious seeds and uncertified and dangerous fertilisers, which can cause crop damage and failures.
• Over 10,700 RBKs — multi-functional kiosks with digital Aadhar authentication equipment — have been set up across the state. The RBKs, staffed by agriculture and horticulture graduates, help farmers decide the crops they should cultivate in a scientific manner.
• They also assist in selling their produce at MSPs, through supporting systems of e-cropping, geo-tagging, and the CM App through which payments are made to farmers. AP CM who floated the RBK concept says it is a game-changer for Andhra Pradesh’s farmers.
• The Centre has recently nominated the RBK concept for the Food and Agriculture Organisation’s “Champion’’ award. Officials say several agrarian countries are expressing interest in understanding the RBK concept and seek to implement it in their countries.

THE CONTEXT: A November 2020 decision by the Reserve Bank of India (RBI) to permit banks to “co-lend with all registered NBFCs (including HFCs) based on a prior agreement” has led to unusual tie-ups like the one announced in December 2021 between the State Bank of India (SBI) and Adani Capital. This article analyses the issue in detail.

THE ‘CO-LENDING MODEL’

• In September 2018, the RBI had announced “co-origination of loans” by banks and Non-Banking Financial Companies (NBFCs) for lending to the priority sector. The arrangement entailed joint contribution of credit at the facility level by both the lenders as also sharing of risks and rewards”, the RBI said.
• Subsequently, based on feedback from stakeholders and “to better leverage the respective comparative advantages of the banks and NBFCs in a collaborative effort”, the central bank allowed the lenders greater operational flexibility while requiring them to conform to regulatory guidelines.
• The primary focus of the revised scheme, rechristened as ‘Co-Lending Model’ (CLM), was to “improve the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and the greater reach of the NBFCs.

HOW DOES A CO-LENDING MODEL WORK?

• The Reserve Bank of India (RBI) came out with the co-origination framework in 2018, allowing banks and NBFCs to co-originate loans. These guidelines were later amended in 2020 and rechristened as co-lending models (CML) by including Housing Finance Companies and some changes in the framework.
• The primary aim of CLM is to improve the flow of credit to the unserved and underserved segments of the economy at an affordable cost. This happens as banks have lower costs of funds and NBFCs have greater reach beyond tier-2 centres.
• A minimum of 20 percent of the credit risk by way of direct exposure shall be on NBFC’s books till maturity and the balance are on the bank’s books. Upon maturity, the repayment or recovery of interest is shared by the bank and NBFC in proportion to their share of credit and interest.
• This joint origination allows banks to claim priority sector status in respect of their share of the credit. NBFCs act as the single point of interface for the customers and a tripartite agreement is done between the customers, banks and NBFCs.

BANK-NBFC TIE-UPS

• Several banks have entered into co-lending ‘master agreements’ with NBFCs, and more are in the pipeline.
• In December 2021, SBI, the country’s largest lender, signed a deal with Adani Capital, a small NBFC of a big corporate house, for co-lending to farmers to help them buy tractors and farm implements.
• SBI’s giant network includes 22,230 branches, 64,122 automated teller machines (ATMs) and cash deposit machines (CDMs), and 70,786 business correspondent (BC) outlets across the country. Adani Capital has a network of just 60 branches and has disbursed around Rs 1,000 crore, according to its website.
• On November 24, Union Bank of India entered into a co-lending agreement with Capri Global Capital Ltd (GCC), with the aim “to enhance last-mile finance and drive financial inclusion to MSMEs by offering secured loans between Rs 10 lakh to Rs 100 lakh” initially through “100+ touch points pan-India”.

CORPORATES IN BANKING

• While the RBI hasn’t officially allowed the entry of big corporate houses into the banking space, NBFCs, mostly floated by corporate houses, were already accepting public deposits. They now have more opportunities on the lending side through direct co-lending arrangements.
• This had come at a time when four big finance firms — IL&FS, DHFL, SREI and Reliance Capital — which collected public funds through fixed deposits and non-convertible debentures, have collapsed in the last three years despite tight monitoring by the RBI. Collectively, these firms owe around Rs 1 lakh crore to investors.
• While the RBI has referred to “the greater reach of the NBFCs”, many bankers point out that the reach of banks is far wider than small NBFCs with 100-branch networks in serving underserved and unserved segments.

WHAT TOOK SO LONG FOR CO-LENDING TO TAKE OFF?

• On several occasions, the Ministry of Finance has pushed for PSU banks to adopt co-lending models. Some of the PSU banks in the initial days had tied up with large non-banks. For instance, SBI had tied up with ECL Finance, a subsidiary of Edelweiss Financial Services, in September 2019.
• But some of these tie-ups didn’t take off as expected. According to bankers, banks and NBFCs both are open for these kinds of tie-ups, but the challenge was in execution at ground level.
• Some of the main hurdles were IT integration of systems as both banks and NBFCs would operate on different systems, different underwriting processes and parameters. All of these took a lot of time to solve for the marriage to happen.
• In the co-lending model, beyond technology challenges, the longevity of the relationship of Banks and NBFCs is a concern.
• The co-lending model is still in the nascent stages, and one may enter into an agreement, but over a period of time, the relationship should sustain.
• Most of these arrangements are with NBFCs that have sizable distribution but are low on capital. Most of the mid-sized well-rated NBFCs still opt for term loans over entering into co-lending models, given the complexities around integration and processes.

WHAT ARE THE OPPORTUNITIES?

• The co-lending model, if it takes off and is executed rightly, will ensure delivery of credit to the unserved and underserved.
• The real gap of credit exists with the segments such as small and medium businesses, credit to lower and middle-income groups, rural areas, etc.
• The opportunity can be taken up by digital lending start-ups and mid-size NBFCs, and they can actually marry their strength of distribution with bank’s funds.
• As banks are flushed with funds, they can cater to vast customers as NBFCs have reached in tier-3 and tier-4 cities. On the execution side, it really needs to be tested at ground level.

RISK IN CO-LENDING

• The move by big banks to tie up with small NBFCs for co-lending has come in for criticism from several quarters.
• Under the CLM, NBFCs are required to retain at least a 20 per cent share of individual loans on their books. This means 80 per cent of the risk will be with the banks — who will take the big hit in case of a default.
• The terms of the master agreement may provide for the banks to either mandatorily take their share of the individual loans originated by the NBFCs on their books or to retain the discretion to reject certain loans after due diligence prior to taking them on their books.
• Interestingly, the RBI guidelines provide for the NBFCs to be the single point of interface for customers and to enter into loan agreements with borrowers, which should lay down the features of the arrangement and the roles and responsibilities of the NBFCs and banks. In effect, while the banks fund the major chunk of the loan, the NBFC decides the borrower.

CAN CHANGES IN THE CO-LENDING MODEL EASE CREDIT AVAILABILITY FOR THE PRIORITY SECTOR?

Though, direct assignment in a co-lending model typically with a bank calls for various critical challenges, as below.

COMPLIANCE WITH DIRECT ASSIGNMENT GUIDELINES

• The co-lending model requires that the taking over bank shall ensure compliance with all the requirements of direct assignment guidelines except the Minimum Holding Period (MHP) requirement.
• In a traditional direct assignment transaction, the direct assignment happens for a pool of assets through execution of an assignment deed, payment of stamp duty on the deed, seeking legal opinion on true sale, among others.
• Replicating the same in co-lending would mean the execution of assignment deeds for each customer, payment of stamp duty on a case-to-case basis and so on.
• This will not only increase the documentation/ procedures but also add to the cost of lending to the end borrower.

SECURITY CREATION AND RECOVERY

• The co-lending model very conveniently mentions that the co-lenders shall arrange for the creation of security and charge as per mutually agreeable terms and same for monitoring and recovery too.
• The bank which is to typically own a larger share in the exposure, would want the security to be created in its name.
• The loan is getting disbursed by the NBFC, and the security is created before even knowing the bank’s decision on its participation. It is not practically possible to create security in the name of a bank.

TAKEOVER OF LOAN AND CREDIT ENHANCEMENT

• The transaction in the co-lending arrangement involving post disbursal takeover of the bank’s share in the loan is akin to direct assignment, and the cases will be sourced as per the pre-agreed parameters.]
• Banks still want to do a 360-degree diligence within their internal policies while cherry-picking the loans and tend to follow an ideal co-origination approach.
• PSUs have always been unconvinced about the processes and practices of NBFCs.

Bottom line: Despite its multiple operational challenges, the direct assignment mode of co-lending has done justification in drawing a lot of confidence amongst the banks. The attributing factor is the familiarity of its structure and practical aspects. Riding on the same, combined with the greater objective of leveraging the collaborative efforts effectively towards financial inclusion, would certainly garner positive results in the time to come.

THE WAY FORWARD:

• To address the huge credit gap, the co-lending model is one of the right ways to go forward, but challenges around tech integrations and ground-level executions should be addressed.
• The country’s largest lender, SBI, it is actively looking at co-lending opportunities with multiple NBFCs / NBFC-MFIs for financing farm mechanisation, warehouse receipt finance, farmer producer organisations (FPOs), etc., for enhancing credit flow to double the farmers’/individuals’ income.
• The bank entered into a co-lending agreement with Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL); it is a good move.
• Finance Minister Nirmala Sitharaman in visited to Mumbai in August to meet MDs of PSU banks. The focus should be towards credit growth to support MSMEs and underserved segments.
• The necessity of making the co-lending model work to enhance affordable credit to MSME and retail sectors.
• As the economy recovers coupled with pent-up demand, these kinds of models will evolve and grow to fulfil the credit requirements of the priority sector segments.

THE CONCLUSION: The co-lending model is a necessary step to help the priority sector. Though it has many challenges, it brings confidence in India’s banking sector that is much needed to address the challenges in a pandemic time. The collaboration is an effective effort for financial inclusion would certainly garner positive results in the time upcoming time.

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