GS Analyst: Daily Current Affairs

Ivory Coast has joined the United Nations Water Convention, becoming the 10th African nation to do so. This move is aimed at enhancing cooperative water management across borders in response to growing water stress and the effects of climate change on shared water resources.

Significance for Africa

• Economic Growth and Poverty Alleviation: Africa’s water resources have the potential to stimulate economic growth, secure livelihoods, and alleviate poverty. Transboundary water resources are especially important in Africa, covering about 62% of the region’s land area.
• Climate Change Adaptation: The Niger basin, one of Africa’s most vulnerable regions to climate change, is likely to experience significant decreases in river flows, making transboundary cooperation essential.
• Water Security: Ivory Coast’s accession helps in managing water resources sustainably, which is crucial given the country’s high vulnerability to climate change and water insecurity.

Challenges and Impact

• Water Stress and Population Growth: Meeting the water needs of Ivory Coast’s 30 million residents, amidst urbanization, climate change effects, and pollution, presents significant challenges.
• Uneven Water Distribution: The north and northeast of Ivory Coast experience greater water stress, highlighting the need for effective water management strategies.

Legal and Institutional Frameworks

• Transboundary Cooperation: The UN Water Convention requires parties to cooperate for the sustainable management of shared waters, ensuring equitable use and preventing conflicts.
• Operational Arrangements: Only 25% of Ivory Coast’s transboundary basin area is currently covered by operational arrangements, indicating a need for enhanced legal and institutional frameworks.

Required Measures

• Strengthening Legal Frameworks: There is an urgent need for investment in enforcement measures to stem illegal profit flows and hold perpetrators accountable.
• Training and Coordination: Providing training for enforcement officials, extending labour inspection into high-risk sectors, and better coordination between labour and criminal law enforcement are essential.
• Comprehensive Approach: Enforcement actions must be part of a comprehensive approach that prioritizes addressing root causes and safeguarding victims.
• Sustainable Management: Parties are required to use shared waters in a reasonable and equitable way and ensure their sustainable management through cooperation.

Expansion of the Water Convention

• Upcoming Accessions: At least three more African nations, including Sierra Leone, Zambia, and Zimbabwe, are in the final stages of accession to the convention.
• Global Cooperation: The accession of these countries offers new prospects for enhanced transboundary cooperation globally, particularly in Sub-Saharan Africa, the Middle East, and Latin America.

Mains Practice Question

Q: “Transboundary water cooperation is crucial for sustainable development and climate resilience in Africa.” Discuss

The sixteenth Finance Commission, chaired by former Niti Aayog Vice-Chairman Arvind Panagariya, has begun its work. The Commission is inviting suggestions from the public on its mandate, set by the Centre.

Finance Commission's Role

• Constitutional Body: The Finance Commission is a constitutional body tasked with recommending how tax revenues collected by the Central government should be distributed between the Centre and various States.
• Vertical and Horizontal Devolution: It decides the proportion of the Centre’s net tax revenue that goes to the States overall (vertical devolution) and how this share is distributed among various States (horizontal devolution).
• Local Bodies Revenue: The 16th Finance Commission is also expected to recommend ways to augment the revenues of local bodies such as panchayats and municipalities.
• Decision-Making Process
• Vertical Devolution: This refers to the share of funds from the divisible pool that the Centre allocates to the States. The last few Finance Commissions recommended an increasing share: 32% by the 13th, 42% by the 14th, and 41% by the 15th Finance Commissions.
• Horizontal Devolution: This involves distributing the States’ share based on a formula considering factors like population, fertility level, income level, and geography.
• Additional Grants: The Centre may also provide additional grants to States for certain jointly funded schemes.

Friction Between Centre and States

• Revenue Sharing Disputes: The Centre collects major taxes, while States rely on taxes from goods like liquor and fuel. States argue they need more funds to fulfill their responsibilities, which include providing education, healthcare, and police services.
• Unmet Recommendations: States often receive less than the recommended share from the Finance Commission. For example, under the 15th Finance Commission, States received an average of only 38% of funds from the divisible pool, against the recommendation of 41%.

Disagreements and Criticisms

• Divisible Pool Calculation: There is contention over what portion of the Centre’s overall tax revenues should be part of the divisible pool. Cesses and surcharges, not shared with the States, can constitute up to 28% of the Centre’s tax revenues, reducing the effective share for States.
• Perceived Inequities: More developed States like Karnataka and Tamil Nadu argue they receive less in proportion to their contributions, whereas States like Bihar receive significantly more than their contributions.
• Independence Concerns: Some critics believe the Finance Commission, appointed by the Centre, may not be fully independent and could be influenced politically.

Impact on Governance

• Fiscal Federalism: The Finance Commission’s recommendations impact the fiscal federalism in India, influencing how resources are shared and utilized at different levels of government.
• Economic Disparities: Disputes over revenue sharing can exacerbate economic disparities between States, affecting regional development and governance quality.

Required Measures

• Transparent Calculations: Ensure transparent and fair calculation methods for the divisible pool and distribution of funds.
• Addressing Root Causes: Strengthen mechanisms to address the root causes of revenue-sharing disputes and foster cooperative federalism.
• Enhanced Autonomy: Grant more financial autonomy to States to manage their resources and responsibilities effectively.

Mains Practice Question

Q: "Discuss the role of the Finance Commission in ensuring equitable distribution of resources between the Centre and States, highlighting the challenges faced in this process."

The changing weather patterns over the last few years have shown us extreme conditions such as severe heat, storms causing flooding in urban areas, and very cold winters. The World Health Organization (WHO) states that climate change threatens the essential ingredients of good health — clean air, safe drinking water, nutritious food supply, and safe shelter.

Key-Highlights of the WHO Report

• Health Threats: WHO estimates that between 2030 and 2050, climate change could cause approximately 250,000 additional deaths per year from malnutrition, malaria, diarrhea, and heat stress.
• Economic Impact: Direct costs to health are estimated to be between $2 billion and $4 billion per year by 2030.
• Vulnerable Populations: Those most at risk include women, children, the elderly, ethnic minorities, people with pre-existing health conditions, and those living in poverty.

Study on Climate Impact in India

• Heat and Pregnancy: A study by the Sri Ramachandra Institute of Higher Education and Research (SRIHER) in Chennai found that working in extreme heat can double the risk of stillbirth and miscarriage for pregnant women.
• Health Infrastructure: Regions with weak health infrastructure, mostly in developing countries, will struggle to cope with these challenges without significant assistance.

Public Interest Litigation on Climate Change

• Madras High Court Case: A significant public interest litigation was filed in the Madras High Court by G. Sundarrajan of the NGO Poovulagin Nanbargal. The plea highlighted the lack of a climate change component in the Environmental Impact Assessment (EIA) process for large-scale projects.
• Court’s Stance: The First Division Bench of the Madras High Court deemed the plea just and called on the Centre to reply within two weeks, indicating the potential for this case to set a precedent.

Environmental Impact Assessment (EIA)

• Climate Change Component: The EIA should include an assessment of the impact of climate change, starting from construction until the end of the project's life. This includes evaluating the carbon footprint, greenhouse gas emissions, and impact on local communities' health.
• Environmental Management Plan: A comprehensive Environmental Management Plan should be prepared to mitigate the impact and submitted for government evaluation before granting clearance.

International Examples

• Legislation in Other Nations: Countries like the Bahamas, France, Chile, the United States, China, and Australia have enacted legislation to address climate change.
• Need for Indian Legislation: Given the significant impact of climate change on India, it is crucial for the country to enact laws that aim to conserve environmental gains and prevent further degradation due to human activities.

Required Measures

• Strengthening EIA Processes: Incorporate detailed climate change assessments in EIA processes for all large-scale projects.
• Legislation and Enforcement: Enact and enforce laws that specifically address climate change impacts and promote sustainable development.
• Support for Vulnerable Populations: Develop targeted programs to support those most vulnerable to climate change impacts, including investments in health infrastructure and education.

Mains Practice Question

Q: "Discuss the impact of climate change on public health, with a focus on vulnerable populations, and suggest measures to mitigate these effects in the context of India."

A new report by the Delhi-based think tank Centre for Science and Environment (CSE) criticizes the European Union’s Carbon Border Adjustment Mechanism (CBAM) as an unfair burden on developing countries. The CSE report highlights how policies like CBAM shift the responsibility of decarbonizing heavy industrial sectors onto the Global South, creating obstacles to development.

Key Highlights of the Report

• Report Title: "Carbon Border Adjustment Mechanism: An Unfair Burden"
• Introduction of CBAM: The CBAM, announced in 2022, taxes imports like iron, steel, cement, aluminum, and fertilizers based on the carbon emissions used in their production. This aims to level the playing field for European companies facing stricter environmental regulations.
• Criticism by CSE: Developing countries, with less developed economies and reliance on heavy industries, will be disproportionately impacted by CBAM.
• Climate Justice: Sunita Narain, Director General of CSE, emphasizes the need for climate justice in trade policies, pointing out that developed nations are placing the financial burden of transitioning to cleaner technologies on developing countries.

Reason Behind the Situation

• Historical Emissions: Developed nations have historically emitted more greenhouse gases, yet are now imposing financial burdens on developing countries for decarbonization.
• Economic Challenges: Developing nations, already struggling with economic growth and development, face additional challenges due to the CBAM.
• Lack of Support: There is insufficient financial and technical support from developed countries to help developing nations transition to low-carbon technologies.

Impact of CBAM on Developing Countries

• Economic Burden: Developing countries may face increased production costs and reduced competitiveness in global markets due to CBAM.
• Obstacles to Development: The financial and technical challenges imposed by CBAM may hinder the economic development and industrial growth of developing nations.
• Violation of Principles: The CBAM is seen as a violation of the principle of common but differentiated responsibilities (CBDR) enshrined in international climate agreements.

Required Measures

• Revenue Allocation: The EU should allocate revenue from CBAM to support developing countries in shifting to low-carbon manufacturing.
• Increased Climate Finance: There is a need for increased climate finance for developing nations to facilitate their transition to cleaner technologies.
• Exemptions for Vulnerable Countries: The most vulnerable countries should be exempted from the CBAM tax to prevent further economic hardship.
• Sectoral Mitigation Plans: Developing countries should implement sectoral mitigation plans that outline emissions reduction targets.
• Domestic Carbon Tax: Consideration of a domestic carbon tax on exports to create a decarbonization fund.
• Greener Production Methods: Diversifying production processes for different markets, prioritizing greener methods for regions with CBAMs.

Mains Practice Question

Q: “The EU's Carbon Border Adjustment Mechanism (CBAM) poses significant challenges to developing countries. Discuss the fairness of such mechanisms and suggest measures to ensure a just transition for developing economies.”

INDIGENOUS RIGHTS NGO Survival International has released rare pictures of the Mashco Piro tribespeople in south- eastern Peru, one of the world's 100-odd uncontacted tribes.

About:

• Largest uncontacted tribe with an estimated population of over 750.
• Located in the Amazon rainforest of southeastern Peru.
• Madre de Dios Territorial Reserve was created in 2002 for their protection.
• Threats:
  • Logging concessions encroaching on traditional territories
  • Increased sightings due to pressure from outsiders

Delhi’s Lieutenant Governor V.K. Saxena has directed the state government to weigh the possibility of incorporating layered plantations, Miyawaki forests and aquatic forests in the capital for maximum land utility.

About:

• The Miyawaki forest technique, developed by Japanese botanist Dr. Akira Miyawaki, is an innovative method for creating dense, native forests. This technique has gained global recognition for its ability to restore biodiversity, combat climate change, and enhance green cover in urban areas.

Principles of the Miyawaki Method

• Native Species Selection: The Miyawaki method emphasizes planting native species suited to the local climate and soil conditions. These species are naturally adapted to the environment, promoting a balanced ecosystem.
• Dense Planting: Plants are densely packed in small areas, often 3-4 saplings per square meter. This mimics natural forests, encouraging competition and faster growth.
• Soil Preparation: The soil is enriched with organic matter, such as compost and mulch, to enhance its fertility and water retention capacity. This provides a robust foundation for plant growth.
• Diverse Plant Layers: The forest is composed of different plant layers, including shrubs, sub-trees, and canopy trees. This diversity replicates natural forests and supports various wildlife species.
• Minimal Maintenance: After the initial establishment phase, Miyawaki forests require minimal maintenance. They are self-sustaining, reducing the need for human intervention over time.

Benefits

• Rapid Growth: Miyawaki forests grow 10 times faster than conventional forests. They achieve a mature state in 20-30 years, compared to 200-300 years for traditional forests.
• Biodiversity Enhancement: By using native species, Miyawaki forests support local flora and fauna, promoting biodiversity and ecological balance.
• Carbon Sequestration: These forests absorb carbon dioxide more effectively than monoculture plantations, helping mitigate climate change.
• Urban Green Spaces: Miyawaki forests can be established in urban areas, improving air quality, reducing urban heat island effects, and providing recreational spaces for residents.
• Water Conservation: The dense foliage and ground cover reduce soil erosion and enhance groundwater recharge, contributing to water conservation.

The latest summer census taken up for sarus crane sightings shows that their count has risen across Uttar Pradesh (UP). However, the bird could not be sighted in Ghaziabad district.

About

• The Sarus Crane (Grus antigone) is the world's tallest flying bird, known for its striking appearance and graceful behavior.
• The sarus crane is easily distinguished from other cranes in the region by its overall grey colour and the contrasting red head and upper neck.
• Diet: Sarus Cranes are omnivores, feeding on a variety of plants, grains, insects, and small vertebrates. They forage in shallow water and wetland areas.
• Breeding: They are monogamous, forming lifelong pairs. Breeding occurs during the monsoon season in India, with nests built in shallow water using plant material.
• IUCN Status: Vulnerable

India's recent diplomatic maneuvers, including Prime Minister Modi's visit to Moscow amidst the ongoing Ukraine conflict, have sparked a debate on the concept of strategic autonomy. This debate highlights the challenges and imperatives for India to maintain its independent foreign policy in a rapidly changing global order.

Stress Points in India-U.S. Relations:

• Discrepancies over Russia: India's neutral stance on the Russia-Ukraine conflict, characterized by continued energy cooperation with Moscow, has created friction with the U.S. and its allies, who view this as support for Russia.
• Public Criticisms: Recent public comments by U.S. officials, including the National Security Adviser and the U.S. Ambassador to India, have highlighted the perceived inconsistencies in India's strategic partnership with the West.
• Historical Context: India's strategic autonomy, rooted in its non-aligned movement post-independence, has always aimed at balancing relations with major powers to serve national interests.

Great Power Rivalry and India's Position:

• Evolving Global Order: The unipolar world led by the U.S. is shifting towards a multipolar one, with China's rise and Russia's assertive military actions challenging the Western-dominated global order.
• Strategic Balancing: India seeks to navigate this complex landscape by maintaining its strategic autonomy, ensuring it is not drawn into any single alliance system while engaging with multiple power centers.
• Russia's Role: Despite Russia's closer ties with China, India's defense and energy partnerships with Russia remain crucial. This relationship is seen as an opportunity to reframe the bilateral ties on more equal terms.

Positive-Sum Approach to Strategic Autonomy:

• Multilateralism: India advocates for a multilateral global order that reflects contemporary geopolitical realities, aiming for a more representative international system.
• Engagement and Independence: Strategic autonomy does not imply isolationism but promotes active engagement with various power centers based on informed national interests.
• Broader Benefits: India's energy trade with Russia helps stabilize global oil markets, and its balanced foreign policy can moderate Russia-China relations, contributing to global stability.

UPSC Mains Questions:

Q. Discuss the concept of strategic autonomy in the context of India's foreign policy. How has this principle influenced India's international relations since independence?

The advent of the Global Minimum Tax (Pillar Two), adopted by over 30 countries by 2024, represents a significant reform of international tax regulations aimed at curbing profit-shifting by multinational enterprises (MNEs) and ensuring a minimum tax level worldwide.

Mechanics and Implementation of Pillar Two:

• Functionality: Pillar Two mandates MNEs with global revenues above €750 million to pay a minimum effective tax rate (ETR) of 15% in each country they operate. If the ETR falls below this threshold, a top-up tax is levied.
• Tax Collection: The supplementary tax is collected by the country where the MNE’s parent company is based, with provisions for the subsidiary’s country to collect if compliant.
• Global Adoption: Over 50 countries are in various stages of implementing Pillar Two, including the UK, Germany, Japan, and Canada, with others like Singapore and Hong Kong to follow by 2025.

Impact on Multinational Enterprises:

• Compliance Requirements: MNEs need to assess their readiness for extensive data analysis, compliance, and reporting under the new tax regime.
• Effect on Tax Incentives: The global minimum tax affects existing tax incentives and holiday schemes, leading countries to redesign these to remain competitive while compliant with Pillar Two.
• Indian MNEs' Preparations: Many Indian MNEs have started impact assessments and are preparing for ongoing compliance and tax provisioning.

India’s Approach and Budget Expectations:

• Union Budget Roadmap: Anticipation surrounds India’s upcoming budget for a clear approach to Pillar Two implementation, which is likely to include consultations with stakeholders.
• Tax Incentives and GIFT City: The interaction of Pillar Two with India’s tax system, particularly regarding incentives for Gujarat International Finance Tec-City (GIFT City), needs careful consideration.
• Global Tax Fairness: Pillar Two represents a move towards global tax fairness, necessitating a shift in mindset and adoption of new technologies by MNEs.

UPSC Mains Questions:

Q.Analyze the role of international tax regulations, such as the Global Minimum Tax, in promoting global tax fairness and reducing profit-shifting by multinational enterprises.

Tree planting schemes are a popular method for forest restoration and biodiversity support. However, these initiatives face challenges related to ecological balance, community participation, and post-planting care. The emphasis on tree planting must be critically evaluated to ensure it contributes effectively to environmental conservation. 

Challenges with Mass Tree Planting Initiatives:

• Neglect of Local Ecology: Many tree planting programs overlook local ecological contexts, often leading to adverse effects on native plant and animal habitats, as observed in grasslands and certain animal habitats.
• Lack of Community Involvement: These initiatives frequently suffer from limited community participation, which is crucial for the success and sustainability of restoration projects.
• Post-Planting Measures: Without adequate post-planting care and monitoring, the survival and growth of planted saplings are compromised, diminishing the long-term benefits of these drives.

Global and National Examples of Tree Planting Drives:

• Global Initiatives: Large-scale projects like the "One Trillion Trees Project" by the World Economic Forum, the "Great Green Wall of China," and the "10 Billion Tree Tsunami" in Pakistan have been criticized for promoting monocultures and lacking adequate post-planting care.
• Indian Context: In India, the Van Mahotsava program, initiated in 1950, aims at increasing forest cover. However, the country's challenges include forest encroachment and the loss of forest land for non-forestry purposes, complicating restoration efforts.

Strategies for Effective Forest Restoration:

• Comprehensive Planning: Restoration strategies should include adequate financial resources, technical considerations, and community engagement to ensure effective implementation.
• Alternative Approaches: Methods such as tree islands, which involve planting in small patches, may offer more cost-effective and ecologically sound alternatives to large-scale tree planting.
• Policy and Awareness: India’s policy changes and public awareness campaigns need to prioritize community participation and technical expertise to create resilient and diverse forest ecosystems.

UPSC Mains Questions:

Q. Critically analyze the effectiveness of large-scale tree planting schemes in addressing forest degradation and promoting biodiversity.