Weekly Current Affairs (1st to 7th April 2023) Part - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India and Malaysia Agree to Settle Trade in Indian Rupees

Context: India and Malaysia have agreed to settle trade in Indian rupees.This mechanism is expected to enhance India-Malaysia bilateral trade which touched USD 19.4 billion during 2021-22.

• Malaysia is the third largest trading partner of India in the ASEAN region, after Singapore and Indonesia that account for USD 30.1 billion and USD 26.1 billion bilateral trade with India respectively.

What is the Significance of India's Move to Settle Trade in Indian Rupee?

About:

• In July 2022, the Reserve Bank of India (RBI) allowed the settlement of international trade in Indian rupees.
• In December 2022, India saw its first settlement of foreign trade in rupee with Russia – as part of the 'International Settlement of Trade in Indian Rupee' mechanism initiated by the RBI.
• In March 2023, banks from 18 countries were allowed by the RBI to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.
• It includes: Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.

Benefits of Trading in Indian Rupees

Controlling Depreciation of Rupees:

• India is a net importer and the value of the Indian rupee has been declining consistently.
• Using the rupee for international trade transactions will help check the flow of dollars out of India and slow the depreciation of the currency albeit to a “very limited extent.
• Thus most importantly, the move is expected to reduce the pressure on India’s forex reserves.

Better Pricing for Goods and Services:

• With the ability to invoice trade in Indian rupees, Indian traders can achieve better pricing for their goods and services.
• Also, this mechanism is expected to benefit both sides of the trade by reducing currency conversion spreads.

Towards Global Acceptance of Rupees:

• International trade settlements in rupee are expected to gradually contribute to the global acceptance of the currency, and later make it possible to repay loans taken from fund banks like the Asian Infrastructure Investment Bank.

Challenges

Volatility of the Indian Rupee:

• The Indian rupee is known to be volatile and subject to fluctuations in the foreign exchange market, which may make it less attractive as a settlement currency for some international traders.
• Complication in Controlling Domestic Supply:
• RBI’s report warns that the ‘internationalisation’ of the rupee can potentially limit the ability of the central bank to control domestic money supply and influence interest rates as per the domestic macroeconomic conditions.
• Ultimately, it may lead to complications in terms of formulating the monetary policy.
• Competition with Other Currencies: The Indian rupee may face competition from other major currencies, such as the US dollar, Euro, and Yen, which are already widely accepted for international trade settlements.

What is a Vostro Account?

• It is an account that domestic banks hold for foreign banks in the former’s domestic currency, in this case, the rupee.
• Domestic banks use it to provide international banking services to their clients who have global banking needs.
• The bank holding the Vostro account acts as a custodian of the foreign bank's funds and provides various services such as currency conversion, payment processing, and account reconciliation.

Conclusion

• India's willingness to take concrete steps towards de-dollarisation of its international trade and to make the rupee a tradable currency is a significant step towards internationalisation of rupees. But India must increase its exports, supported by critical reforms that include capital account convertibility, deepening financial markets to manage the large-scale inflow and outflow of capital.

Conference on Human-Wildlife Conflict

Context: Recently, the International Conference on Human-Wildlife Conflict and Coexistence was held in Oxford, the United Kingdom, which has brought hundreds of activists from 70 countries to discuss solutions to address Human-Wildlife Conflicts.

• The Conference was organized by the International Union for Conservation of Nature (IUCN), the Food and Agriculture Organization (FAO), the UN Development Programme and several other organizations together.

What does the Conference Aim at Achieving?

• Facilitate dialogue and peer-to-peer learning across sectors and actors on the topic for partnerships and collaboration across people and institutions working on human-wildlife conflict.
• Generate interdisciplinary and shared understanding of the latest insights, technologies, methods, ideas, and information from the field of human-wildlife conflict, coexistence and interactions.
• Mainstream human-wildlife conflict as one of the top global priorities in biodiversity conservation and the Sustainable Development Goals for the next decade, catalysing opportunities for working together on national, regional or global policies and initiatives.
• Identify and develop a collective way forward for addressing knowledge and implementation gaps for effective efforts to reduce and manage human-wildlife conflict.

What is the Need for this Conference?

• Human-wildlife conflicts across the world are a major challenge to conservation of species, making coexistence with nature difficult and hinders biodiversity protection.
• Conflict-related killing affects more than 75% of the world’s wild cat species, according to the United Nations Environment programme (UNEP).
• It will provide a platform for experts from the fields of “ecology, animal behaviour, psychology, law, conflict analysis, mediation, peacebuilding, international development, economics, anthropology and others, to understand human-wildlife conflict through various viewpoints, learn from each other, and build new links and collaborations.
• Effective management of human-wildlife interactions is prescribed in Target 4 of the Kunming-Montreal Global Biodiversity Framework agreed at the UN Biodiversity Conference in December 2022.

What is Human-Animal Conflict?

About:

• Human-animal conflict refers to situations where human activities, such as agriculture, infrastructure development, or resource extraction, come into conflict with wild animals, leading to negative outcomes for both humans and animals.

Implications:

• Economic Losses: Human-animal conflict can result in significant economic losses for people, especially farmers and livestock herders. Wild animals can destroy crops, damage infrastructure, and kill livestock, leading to financial hardship.
• Threats to Human Safety: Wild animals can pose a threat to human safety, especially in areas where people and wildlife coexist. Attacks by large predators such as lions, tigers, and bears can result in serious injury or death.
• Ecological Damage: Human-animal conflict can have a negative impact on the environment. For example, when humans kill predators, it can lead to an increase in prey populations, which can then cause ecological imbalances.
• Conservation Challenges: Human-animal conflict can also pose a challenge to conservation efforts, as it can lead to negative perceptions of wildlife and make it difficult to implement conservation measures.
• Psychological Impacts: Human-animal conflict can also have psychological impacts on people, especially those who have experienced attacks or property damage. It can lead to fear, anxiety, and trauma.

Government Measures:

• The Wildlife Protection Act, 1972: This act provides the legal framework for the activities, Prohibition of hunting, Protection and management of wildlife habitats, Establishment of protected areas etc.
• The Biological Diversity Act, 2002: India is a part of the United Nations Convention on Biological Diversity. The provisions of the Biological Diversity Act are in addition to and not in derogation of the provisions in any other law relating to forests or wildlife.
• National Wildlife Action Plan (2002-2016): It focuses on strengthening and enhancing the protected area network, on the conservation of Endangered wildlife and their habitats, on controlling trade in wildlife products and on research, education, and training.
• Project Tiger: Project Tiger is a Centrally Sponsored Scheme of the Ministry of Environment, Forests and Climate Change (MoEFCC) launched in 1973. It provides havens for tigers in the country’s national parks.
• Project Elephant: It is a centrally sponsored scheme and was launched in February 1992 for the protection of elephants, their habitats and corridors.

Lokayukta

Context: The Kerala Lokayukta, has referred a case related to alleged nepotism and anomalies in the Chief Minister’s Distress Relief Fund (CMDRF) to a three-member full bench for investigation.

What is Lokayukta?

About:

• The Lokayukta is the Indian Parliamentary Ombudsman, executed into power, through and for, each of the State Governments of India.
• It is an anti-corruption authority. The object of Lokayukta system in a state is to make investigation of grievances, allegations against public servants.

Origin:

• The origin of the Lokayukta can be drawn to the Ombudsman in Scandinavian countries.
• In India, the Administrative Reforms Commission, (1966-70), had recommended the creation of the Lokpal at the Centre and Lokayukta in the states.
• Before the passing of the Lokpal and Lokayuktas Act in 2013, several states in India passed laws for creating the Institution of 'Lokayukta'.
• Maharashtra was first in this respect with its Lokayukta body established in 1971.

Appointment:

• The lokayukta and upalokayukta are appointed by the Governor of the state. While appointing, the governor in most of the states consults (a) the chief justice of the state high court, and (b) the leader of Opposition in the state legislative assembly.

Tenure:

• In most of the states, the term of office fixed for lokayukta is of 5 years duration or 65 years of age, whichever is earlier. He is not eligible for reappointment for a second term.

Issues Related to Lokayukta

No Clear Legislation:

• The Lokpal and Lokayuktas Act 2013 only has one section on Lokayukta, which mandates that states must pass the Lokayukta Act within one year and there is no information about their makeup, powers, or other features.
• States, in fact, have complete autonomy over how their own Lokayuktas are appointed, how they work, and under what conditions they serve.

Delay in Resolution:

• One of the major challenges faced by the Lokayukta is the delay in the investigation and resolution of complaints.
• The Lokayukta is also dependent on the state government for funding and infrastructure, which can lead to interference and lack of independence.

Way Forward

• Strengthening the Lokpal and Lokayukta Act: The Lokpal and Lokayukta Act should be amended to provide more powers to the Lokayukta, such as the power to investigate and prosecute cases of corruption against all public servants, including the Chief Minister and the judiciary.
• Ensure Adequate Resources and Staffing: The Lokayukta offices across the country need to be adequately staffed and resourced to enable them to effectively carry out their mandate.
• Enhance Accountability and Transparency: The Lokayukta should be made more accountable and transparent in its functioning. It should regularly publish reports on its activities, investigations, and outcomes.

National Electricity Plan for 2022-27

Context: The latest draft of the National Electricity Plan (NEP), which covers the period 2022-27, marks a significant departure from its previous edition, which had focused primarily on renewable energy.

What is the National Electricity Plan?

About:

• The NEP is a crucial document that guides the development of the power sector in India. It is formulated by the Central Electricity Authority (CEA) every five years under the Electricity Act, 2003.
• The CEA formulates short-term (5-year) and prospective plans (15-year) to assess the demand for planning capacity addition and coordinate the activities of various planning agencies for the optimal utilization of resources.
• The NEP provides a review of the last five years (2017-22), capacity addition requirements for 2022-27, and projections for the period 2027-2032.
• The first NEP was notified in 2007, the Second Plan in December 2013, and the third plan which covers the detailed Plan for 2017-22 and the perspective Plan for 2022-27 was notified in 2018.

New Draft:

• It recognizes the need for additional coal-based capacity, ranging from 17 GW to nearly 28 GW, till 2031-32, over and above the 25 GW of coal-based capacity that is currently under construction.
• The draft Plan also highlights the need for significant investments in battery storage, with an estimated requirement of between 51 GW to 84 GW by 2031-32.
• It projects an increase in the Plant Load Factor (PLF) of coal-fired power plants from 55% up to 2026-27 to 62 % in 2031-32.
• It also emphasizes the challenges posed by the increasing reliance on renewables, which will require careful management and planning in the years ahead.

What is the Power Scenario of India?

What are the Related Challenges?

Reliance on Old Plants:

• India's fleet of coal-fired thermal power plants is over 25 years old and runs on outdated technology, which raises concerns about grid stability and power interruptions.

Difficult to Manage the Renewables-Dominated Grid:

• While there has been a pronounced reliance on renewable generation for meeting capacity additions, there is a lack of clarity on how the grid will be managed. The slow development of hydropower and zero-inertia solar generators has resulted in a decrease in inertia, which provides stability to the grid.

Inadequate Funding:

• If battery storage is to be relied on to back up renewable generation, it requires significant investments.
• The CEA report estimates that the total fund requirement for Battery Energy Storage Systems (BESS) between 2022-27 is approximately 14.30 lakh crore. However, the CEA has only allocated a budget of 8 lakh crore for BESS development for a 10-year period.

Lack of Evaluation:

• There is no evaluation of the ramping rate for thermal plants under different solar generation scenarios.
• The ramping rate is the rate at which a power plant can increase or decrease its output.
• Without proper assessment, it could lead to issues such as overloading, underloading, or power interruptions.

How can the Related Challenges be Addressed?

• BESS based on Lithium-ion batteries offer a cost-effective solution to balance the grid against load fluctuations and intermittency in generation. The energy storage can provide energy time-shifting, allowing power to be used when it is needed rather than being wasted when it is generated.
• It is important to continue investing in the development of battery storage technology, as well as exploring new solutions such as water-based systems. This will help address the challenges outlined in the National Electricity Plan for 2022-27 and ensure a stable and reliable power supply in India.
• Additionally, increasing the use of hybrid generation models will help to transition to renewable energy sources while ensuring backup power is available when needed.

Vaikom Satyagraha

Context: As the year 2024 marks the centenary of the Vaikom Satyagraha, Chief Minister of Kerala and Tamil Nadu jointly inaugurated the centenary celebrations.

What is Vaikom Satyagraha?

Background:

• The princely state of Travancore had a feudal, militaristic, and ruthless system of custom-ridden government, some of the most rigid, refined and ruthless social norms and customs were seen in Travancore.
• Lower castes like the Ezhavas and Pulayas were considered polluting and various rules were in place to distance them from upper castes.
• These included a prohibition, not just on temple entry, but even on walking on the roads surrounding temples.

Contribution of Leaders:

• In 1923, Madhavan presented the issue as a resolution at the Kakinada meet of All India Congress Committee. Subsequently, it was taken up by the Congress Untouchability Committee formed by the Kerala Pradesh Congress Committee in January 1924.
• Madhavan, K.P. Kesava Menon who was the then secretary of Kerala Pradesh Congress Committee and Congress leader and educationist K. Kelappan (also known as Kerala Gandhi) are considered the pioneers of the Vaikom Satyagraha movement.

Factors Leading to Satyagraha:

• Christian missionaries, supported by the East India Company, had expanded their reach and many lower castes converted to Christianity to escape the clutches of an oppressive system that continued to bind them.
• Maharaja Ayilyam Thirunal, took many progressive reforms.
• Most important of these was the introduction of a modern education system with free primary education for all – even lower castes.
• Forces of capitalism and these reforms created new social hierarchies – which were not always congruent with traditional ones.

Beginning of Satyagraha:

• On March 30, 1924, the Satyagrahis walked in procession towards the forbidden public roads. They were stopped 50 yards away from the place where a board cautioning the oppressed communities against walking on the roads (surrounding the Vaikom Mahadeva temple), was placed.
• Dressed in khadi and wearing khadi caps, Govinda Panikkar (Nair), Bahuleyan (Ezhava) and Kunjappu (Pulaya),defied the prohibitionary orders.
• The police stopped them. In protest, the three men sat on the road and were arrested.
• Then on, every day, three volunteers from three different communities were sent to walk on the prohibited roads.
• Within a week, the leaders of the movement were all arrested.

Role of Women:

• Periyar’s wife Nagammai and sister Kannammal, played an unprecedented role in the fight.

Arrival of Gandhi:

• Gandhi arrived at Vaikom in March 1925, held a series of discussions with leaders of various caste groups and met Maharani Regent at her Varkala camp.
• The Vaikom Satyagraha was officially withdrawn on November 30, 1925 after consultations between Gandhi and W.H. Pitt (police commissioner of Travancore).
• A compromise was reached following the release of all prisoners and grant of access to roads.

Temple Entry Proclamation:

• In 1936, the historic Temple Entry Proclamation was signed by the Maharaja of Travancore which removed the age-old ban on the entry of temples.

Significance:

• Amidst rising nationalist sentiment and agitations across the country, it foregrounded social reform.
• For the first time, it brought Gandhian methods of nonviolent protest to Travancore.
• The movement continued for over 600 days, non-stop, through social pressure, police crackdowns and even natural disaster in 1924, is admirable.
• The Vaikom satyagraha saw previously unseen unity across caste lines.

Conclusion

• Till 1917, the Indian National Congress refused to take up social reform. But with the rise of Gandhi and increased activism within lower caste communities and untouchables, social reform soon found itself front and Centre of Congress’s and Gandhi’s politics.

International Court of Justice and Climate Change

Context: The United Nations General Assembly (UNGA) has asked the International Court of Justice (ICJ) by passing a Resolution to give its opinion on countries’ obligations towards Climate Change based on the U.N. Framework Convention for Climate Change (UNFCCC).

• The resolution was pushed through by one of the smallest countries in the world, the Pacific Island of Vanuatu, an island that was devastated in 2015 by the effects of Cyclone Pam, believed to have been spurred by climate change, that wiped out 95% of its crops and affected two-thirds of its population.

What does the Resolution Seek?

• The UNGA asked the ICJ to answer two questions,
  • What are the obligations of states under international law to ensure the protection of the climate system for present and future generations?
  • What are the legal consequences under these obligations for states where they, by their acts and omissions, have caused significant harm to the climate system, particularly for Small Island Developing States (SIDS) and for people who are harmed.
  • The resolution refers to international agreements like the Paris Agreement and the United Nations Convention on the Law of the Sea (UNCLOS).
• The ICJ will take around 18 months to give its opinion.

What is India’s Position?

• India has not taken a clear stance on the UN resolution, but it generally supports climate justice and accountability for Global Warming.
• The Indian government has referred the resolution to legal authorities to assess its implications and international ramifications.
• India has updated its NDC (Nationally Determined Contributions) commitments and plans to source half its electricity from renewable sources by 2030, but it did not co-sponsor the draft resolution.
• India is closely watching how major powers like the U.S. and China respond to the resolution, as their support is crucial for its implementation.
• India has emphasized that the ICJ process can only address climate change issues broadly and cannot name or profile any one country, also stressing that any attempt to impose an opinion in a "top-down" manner would be resisted.

Is the Advisory Opinion of the ICJ Binding?

• The advisory opinion of the ICJ would not be legally binding as a judgment, but it would carry legal weight and moral authority.
• It could provide important clarification on international environmental laws and streamline the process for issues related to climate finance, climate justice, and the loss and damages fund at the COP process.
• Past advisory opinions given by the ICJ, such as those on the Palestinian issue and the dispute between the U.K. and Mauritius over the Chagos Islands, have been respected.

What is the United Nations Framework Convention on Climate Change?

• UNFCCC was signed in 1992 at the United Nations Conference on Environment and Development also known as the Earth Summit, the Rido Summit or the Rio Conference.
• India is among the select few countries to have hosted the COP of all three Rio conventions on climate change (UNFCCC), biodiversity (CBD) and land (United Nations Convention to Combat Desertification).
• The UNFCCC entered into force in 1994 and has been ratified by 197 countries.
• It is the parent treaty of the 2015 Paris Agreement. It is also the parent treaty of the 1997 Kyoto Protocol.
• The UNFCCC secretariat (UN Climate Change) is the United Nations entity tasked with supporting the global response to the threat of climate change. It is located in Bonn, Germany.
• Its objective is to achieve stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous repercussions within a time frame so as to allow ecosystems to adapt naturally and enable sustainable development.

Open-Source Seeds Movement

Context: With declining public sector breeding and rising dominance of private sector in seed sector, the concept of Open-Source Seeds becomes increasingly relevant.

• 'Open-Source seeds' was first suggested by a Canadian plant-breeder - T.E. Michaels in 1999 based on the principles of Open-Source Software.
• Farmers have been sharing and innovating on seeds for centuries without claiming exclusive rights or intellectual property, similar to how programmers have been sharing and innovating on software.

What is Open-Source Software?

• OSS is software whose source code is made available to the public for anyone to view, modify, and distribute under an open source license. This license typically allows users to access and modify the source code, as well as to redistribute the software without any restriction on the use or distribution.
• The concept of OSS originated in the 1980s, but gained wider recognition and popularity in the 1990s, thanks to the efforts of the Free Software Foundation (FSF) and the Open Source Initiative (OSI).
• The benefits of OSS include the ability to customize the software to meet specific needs, a reduced cost of ownership, and the potential for greater security due to the increased transparency of the source code. In addition, OSS can foster innovation by allowing developers to build on existing software and improve it.

What are Plant Breeders’ Rights?

• The growth of the commercial seed industry, scientific plant-breeding, and the advent of hybrid seeds led to the establishment of Plant Breeders' Rights (PBR) in many countries.
• Under the PBR regime, plant breeders and developers of new varieties have the exclusive right to demand royalties on seeds and legally enforce PBRs.
• This limited the rights of farmers to use and reuse seeds and restricted their ability to innovate.
• The establishment of the World Trade Organization (WTO) in 1994 and the Trade-Related IPR Agreement (TRIPS) cast a global IPR regime over plant varieties.
• TRIPS required countries to provide at least one form of IP protection for plant varieties, which raised concerns about the freedom to innovate.
• The Green Revolution was spearheaded by public-sector breeding institutions and seeds were available as ‘open pollinated varieties’, or as reasonably priced hybrids with no restrictions on farmers to cultivate, reuse and share.
• But the genetic revolution in agriculture was led by the private sector, with seeds mostly made available as hybrids and/or protected by strong IPRs.

How is IP Protected in Agriculture?

• There are two forms of IPR protection in agriculture: plant-breeders’ rights and patents.
• Together, they restrict farmers’ rights and the freedom to develop new varieties using germplasm from IP-protected varieties.
• They have thus further consolidated the seed sector and increased the number of plant varieties covered by IPRs.

What are Open Source Seeds?

Need:

• The high prices of genetically modified seeds and IP claims triggered many problems, including the State’s intervention on Bt cotton seeds in India. As public sector breeding declined and the private sector began to dominate the seed sector, the need for alternatives became keenly felt.
• This is when the success of open-source software inspired a solution

Open-Source Model:

• An open-source model was proposed in 2002 by scientists for seeds and plant varieties, calling it the “BioLinux model”, and scholars and civil-society members alike discussed and built on it.
• In 2012, Jack Kloppenburg launched the Open Source Seeds Initiative (OSSI) in Wisconsin.
• It can be used in farmer-led seed conservation and distribution systems. There are many traditional-variety conservation and sharing initiatives in India, including those involving farmers.
• It can also be used to promote farmer-led participatory plant-breeding exercises.
• Traditional varieties often lack uniformity and aren’t of excellent quality. Open source principles can help overcome these two challenges by facilitating testing, improvisation, and adoption – all of which will ultimately be beneficial to India’s food security and climate resilience.

Are there such Initiatives in India?

• In India, the Hyderabad-based Centre for Sustainable Agriculture (CSA), part of the Apna Beej Network, developed a model incorporated into an agreement between CSA and the recipient of the seed/germplasm. It is trying to use this approach through three farmer producer organisations (FPOs).
• Worldwide, the number of seed firms using open-source models and the crop varieties and seeds made available thereunder is small but growing. India is yet to test and adopt it widely.
• Under the Plant Variety Protection and Farmers’ Rights Act (PPVFRA) 2001, farmers can register varieties as ‘farmer varieties’ if they meet certain conditions, and have the right to reuse, replant, and exchange seeds.
• However, they can’t breed and trade in varieties protected under the Act for commercial purposes.

Way Forward

• Using the open-source approach will enable farmers to gain more rights over germplasm and seeds and facilitate innovation.
• So there is a need to test this approach with farmers and the three FPOs can take the lead.