GS Analyst: Daily Current Affairs

As per the World Bank's ‘World Development Report 2024: The Middle-Income Trap’ report, it may take India close to 75 years, China more than 10 years, and Indonesia nearly 70 years to reach one-quarter of the United States' income per capita.

Highlights of the Report:

• The report mentions the data from the past 50 years shows that countries usually hit a “trap” when they reach 10 percent of the annual US GDP per capita or middle of the range as per what the World Bank classifies as middle-income countries — equivalent to 8,0000 dollars as on date.
• By 2023-end, 108 countries with a total population of six billion (75 per cent of the world) were classified as ‘middle-income’.

What is Per-capita Income?

• Per capita income is a measure of the amount of money earned per person in a nation or geographic region.
• Per capita income is used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population.

Classification of Countries based on Income Per capita:

• Based on per capita income, the World Bank has broadly classified countries into four categories.
• Low-income countries,
• Lower-middle income countries,
• Higher-middle income countries, and
• High-income countries.

Why transition from a middle-income country to a higher status is majorly a Trap?

• Shift towards higher value economy: To progress from middle to high income, a country needs to increase the productive output of its economy. At lower levels of development, this involves a structural shift from agricultural production to the manufacture of goods and increasingly, the provision of high-value services.
• Increasing modern technologies dependence: Agriculture remains important to output and additional increases in farm productivity raise income through mechanization and the application of modern technologies.
• At the same time, the demand for rural labor falls and this excess or “surplus” labor can be utilized in an expanding manufacturing sector.
• The competitiveness of such output depends, in no small part, on relative labor costs. Labor is employed at higher levels of productivity than in agriculture but at wage levels sufficiently low to ensure that the output can be priced and marketed competitively.
• Thus, a common growth strategy for low-income countries is to expand into low-wage, low-cost, low-technology manufacturing in such items as textiles and food processing.
• Manufacturing adds to the total productive output of the economy, thus increasing income per capita.
• This pattern is adequate to move a country from low to middle income but growth will be limited if the national competitive strategy remains rooted in low-end manufacturing.

Limitations of Per Capita Income:

• Living Standards: Since per capita income uses the overall income of a population and divides it by the total number of people, it doesn't always provide an accurate representation of the standard of living. In other words, the data can be skewed, whereby it doesn't account for income inequality.
• Inflation: Per capita income doesn't reflect inflation in an economy, which is the rate at which prices rise over time. For example, if the per capita income for a nation rose from $50,000 per year to $55,000 the next year, it would register as a 10% increase in annual income for the population.
• International Comparisons: The cost-of-living differences can be inaccurate when making international comparisons since exchange rates are not included in the calculation. Critics of per capita income suggest that adjusting for purchasing power parity (PPP) is more accurate, whereby PPP helps to nullify the exchange rate difference between countries.
• Savings and Wealth: Per capita income doesn't include an individual's savings or wealth. For example, a wealthy person might have a low annual income from not working but might draw from savings to maintain a high-quality standard of living. The per capita metric would reflect the wealthy person as a low-income earner.
• Children: Per capita includes children from the total population who don't earn any income. Countries with many children would have a skewed result since they would have more people dividing up the income versus countries with fewer children.
• Economic Welfare: The welfare of the people isn't necessarily captured with per capita income. For example, the quality of work conditions, the number of hours worked, education level, and health benefits are not included in per capita income calculations. As a result, the overall welfare of the community may not be accurately reflected.

The Punjab government faces a serious funds crunch, and some experts have raised questions over the technical viability of the proposed project.

About the Need for Irrigation Water in Punjab:

• The need for irrigation in Punjab is greater as this is chiefly an agricultural region.
• The total surface area of Punjab is only 1.4% of the total area of India, but it yields approximately 12% of the cereals produced in the country. The major yielded crop is wheat.

Present Concerns:

• The Issue of depleting the water table in the region has increased due to excessive irrigation as 27% area in Punjab was irrigated by canal water and 73%area from groundwater.
• Though the use of canal-based irrigation has slowly picked up in the Malwa region of the state, farmers in Majha largely prefer to depend on tubewells.
• Despite the presence of a sizable network of canals, use needs to be optimized even in Malwa as only 21% water of the Bhakra Main Line (BML) canal, 31% of the Ghaggar branch and 45% Patiala feeder are being used for irrigation by farmers.
• It is estimated that the number of tube-wells has shot up to 12.32 lakh in recent years from only 1.92 lakh in 1970.
• Area under irrigation by groundwater has increased from 55% to 73%, which has become a key concern.

Proposed Malwa Canal:

• Canal Description: A 149.53-km canal named after the Malwa region in Punjab, originating at the Harike Headworks on the Sutlej River.
• Route and Irrigation Impact: Flowing parallel to the Sirhind and Rajasthan Feeder canals, it will irrigate 2 lakh acres in seven districts.

Why New Canals are being built?

• Supplementary Water Supply: The Malwa canal will provide additional water to areas the Sirhind Feeder cannot effectively supply, especially during kharif paddy season.
• Current Supply Issues: The Ferozepur Feeder struggles to supply the Sirhind Feeder, necessitating rotational canal operation.
• Lift Pumps and Groundwater Concerns: Over 300 lift pumps operate on the Sirhind Feeder, with farmers demanding canal water due to polluted groundwater.

Why is Ground water significant?

• Groundwater is the largest source of usable, fresh water in the world.
• In many parts of the world, especially where surface water supplies are not available, domestic, agricultural, and industrial water needs can only be met by using the water beneath the ground.
• Pumping water out of the ground at a faster rate than it is replenished over the long-term causes similar problems.

Impacts of Ground water depletion:

Groundwater depletion is primarily caused by sustained groundwater pumping. Some of the negative effects of groundwater depletion:

• Lowering of the Water Table: Excessive pumping can lower the groundwater table, and cause wells to no longer be able to reach groundwater.
• Increased Costs: As the water table lowers, the water must be pumped farther to reach the surface, using more energy. In extreme cases, using such a well can be cost prohibitive.
• Reduced Surface Water Supplies: Groundwater and surface water are connected. When groundwater is overused, the lakes, streams, and rivers connected to groundwater can also have their supply diminished.
• Land Subsidence: Land subsidence occurs when there is a loss of support below ground. This is most often caused by human activities, mainly from the overuse of groundwater, when the soil collapses, compacts, and drops.
• Water Quality Concerns: Excessive pumping in coastal areas can cause saltwater to move inland and upward, resulting in saltwater contamination of the water supply.

India’s Groundwater usage profile:

Recently, over 360 people have died and more than 200 have been injured so far due to the catastrophic landslides in Wayanad, Kerala.  Such deadly landslides are being reported from the Himalayas to the Deccan Plateau increasingly.

What are Landslides and how do they occur?

• Landslides are the movement of rock, earth, or debris down a slope. They can vary in size and type, but all involve the force of gravity acting on weakened materials that make up the slope.
• Landslides can be categorized into various types, including rock falls, slides, flows, and topples, each defined by the material involved and the manner of movement.
• Landslides often occur due to natural factors such as heavy rainfall, snowmelt, volcanic activity, earthquakes, and erosion. These factors can weaken the slope material or increase the downward force on the slope.
• Human activities like deforestation, construction, mining, and poor land management can destabilize slopes, making them more susceptible to landslides.

Reasons for increasing events of landslides:

• Altitude: High altitude is the most important factor in the occurrence of landslides, be it the Himalayan region or southern India.
• For example, even in Wayanad, tourism, human activities and construction in areas with a height of at least 2,000 metres have become factors for increasing landslides.
• Apart from this, extreme weather events are also playing a big role.
• Soil profile: The soil in the Himalayan region is made up of sedimentary rock and is loose. The soil of the Deccan Plateau is made of lava and magma, which is also loose.
• Rock system: The parent rock of the Deccan Plateau is much more solid compared to the Himalayas
• If there is height and lack of vegetation and the soil is loose, it creates a scenario for landslides at both places.

How we can control landslides?

• Improving surface and subsurface drainage: Because water is a main factor in landslides, improving surface and subsurface drainage at the site can increase the stability of a landslide-prone slope. Surface water should be diverted away from the landslide-prone region by channeling water in a lined drainage ditch or sewer pipe to the base of the slope. The water should be diverted in such a way as to avoid triggering a landslide adjacent to the site. Surface water should not be allowed to pond on the landslide-prone slope.
• Ground water can be drained from the soil using trenches filled with gravel and perforated pipes or pumped water wells.
• Excavating the head: Removing the soil and rock at the head of the landslide decreases the driving pressure and can slow or stop a landslide. Additional soil and rock above the landslide will need to be removed to prevent a new landslide from forming upslope. Flattening the slope angle at the top of the hill can help stabilize landslide-prone slopes.
• Buttressing the toe: If the toe of the landslide is at the base of the slope, fill can be placed over the toe and along the base of the slope. The fill increases the resisting forces along the failure surface in the toe area. This, in turn, blocks the material in the head from moving toward the toe. However, if the toe is higher on the slope, adding fill would overload the soil and rock below the toe, thus causing a landslide to form downslope of the fill.
• Constructing piles and retaining walls: Piles are metal beams that are either driven into the soil or placed in drill holes. Properly placed piles should extend into a competent rock layer below the landslide. Wooden beams and telephone poles are not recommended for use as piles because they lack strength and can rot.

Early Warning System in India:

• LEWSs at the regional scale are used to assess the probability of landslide occurrence over a priori-defined warning zones, typically through forecasting and monitoring of meteorological variables, to give generalized warnings to communities and institutions working with hazard mitigation measures.
• Geological Survey of India (GSI), Ministry of Mines in collaboration with the British Geological Survey (BGS) under the National Environmental Research Council (NERC), UK funded, multi-consortium LANDSLIP project (www.landslip.org) has developed a prototype regional Landslide Early Warning System (LEWS) for India, and the same is currently being evaluated and tested by GSI in two pilot areas in India (Darjeeling district).
• GSI through the LANDSLIP project (www.landslip.org) is engaged in developing an experimental regional Landslide Early Warning System (LEWS) based on rainfall thresholds since 2017.
• The LANDSLIP research has developed a prototype model in 2020 based on the terrain-specific rainfall thresholds for two test areas (Darjeeling district, West Bengal, and the Nilgiris district, Tamil Nadu).

According to a new study, High levels of artificial light at night (ALAN) are making tree leaves tougher and harder for insects to eat, posing a threat to urban food chains.

About Light Pollution:

• Light pollution, defined as the presence of unwanted, inappropriate, or excessive artificial lighting, can have numerous negative impacts.
  
  
• These range from disturbing migrating birds and newly hatched sea turtles to marring wilderness experiences and landscape beauty.
  
  
• Light pollution has increased about 10 percent each year over the past decade, making it one of the most drastic changes humans have made to the environment.

Impacts:

• Artificial lights that run all night, like streetlights, can make leaves grow tougher and less appetizing for insects.
  
  
• Artificial light has increased levels of night-time brightness by almost 10%: most of the world’s population experiences light pollution every night. Because plant properties affect their interactions with other plants and animals, any changes to plants caused by artificial light could have a significant impact on the ecosystem.

Effect on Mammals and Birds:

• Mammals– Mammals such as bats, raccoons, coyotes, deer, and moose can experience difficulty foraging for food at night due to over illumination. They risk exposure to natural predators and increased mortality due to night vision impairment. They also experience a decline in reproduction that leads to a shrinking population.
  
  
• Birds– Birds such as owls and nighthawks use moonlight and starlight to hunt and migrate at night. Artificial lights sources can overwhelm natural light sources, causing birds to be drawn to or fixated on the artificial lights. This results in birds deviating from their intended migration route, flying until they experience exhaustion and collapse.

Insurance companies have jacked up premiums on health and life insurance policies this year which, together with the 18% Goods and Services Tax (GST), has made insurance less affordable for many sections of the country’s population.

GST Structure on Healthcare:

• Currently, GST on health and life insurance policies is fixed at 18%. Since GST encapsulates service tax, which applies to the insurance industry, its introduction has increased premium amounts.
• Before GST, life insurance premiums were subject to 15% service taxes, comprising Basic Service Tax, Swachh Bharat cess, and Krishi Kalyan cess.
• The increase from 15% to 18% impacted the end consumer — that is, policyholders — by raising their premiums amounts.
• This, along with the runaway cost of treatment — medical inflation was estimated to be 14% towards the end of last year — has made buying medical insurance difficult for many people.

The political crisis in Bangladesh focuses on the ousting of Prime Minister Sheikh Hasina and its implications on India.

Sheikh Hasina’s Tenure and Downfall:

• Youth Hope and Economic Revival: Initially a symbol of hope and economic growth, Hasina later became an adversary to students, linked to protester deaths.
• Authoritarian Tactics: Admired for anti-terror efforts, her strong-arm tactics against opponents and suppression of dissent drew significant criticism.
• Final Straw - Student Protests: Student protests over quotas intensified due to longstanding issues like vote rigging and media suppression, culminating in her downfall.

India’s Role and Challenges:

• Complicity in Repression: India’s support for Hasina included ignoring repercussions of her actions against opposition, affecting its goodwill in Bangladesh.
• Uncritical Support: Modi government’s unwavering support led Hasina to accept unpopular policies like the Citizenship (Amendment) Act, impacting her popularity.
• Engaging New Regime: India must ensure Hasina’s safety and engage with the next regime to support a peaceful transition to inclusive democracy.

Mains Question:

Q. Discuss the implications of India’s foreign policy towards Bangladesh in light of the recent political crisis involving Sheikh Hasina. How should India navigate its relationship with the new regime to ensure regional stability and mutual interests?

The recent complexities and challenges of India's green energy transition focus on state-led efforts, trade policies, and ethical considerations.

Challenges and Progress in Green Energy Transition:

• State-Led Transitions: India's green energy transition varies by state, with different policies and progress levels influencing overall success.
• Joint Responsibility: Electricity generation is a Concurrent Subject, necessitating collaboration between the Centre and states for an effective transition.
• MNRE Achievements: The Union Ministry of New and Renewable Energy has exceeded solar generation targets and improved inter-ministerial cooperation.

Trade Policy and Sustainability:

• Chinese Dominance: China's low-cost renewable energy components pose a policy dilemma for India, balancing affordability with national security concerns.
• Carbon Taxes Dilemma: Imposed carbon taxes by the US, EU, and UK challenge India's balance between sustainability and economic growth.
• Ethical Conundrum: Global warming demands cooperative governance and ethical considerations, transcending narrow national interests for a broader humanitarian goal

Mains Question:

Q. Discuss India's challenges in its green energy transition concerning state-led efforts, trade policies, and ethical considerations. How can India balance sustainability, national security, and economic growth in this context?

Lack of educational attainment and skills, plus the burden of domestic care responsibilities, push women away from the formal job market in India. This budget’s provisions can be used to, directly and indirectly, support working women through better infrastructure and transport options.

Budget Allocation and Women's Employment:

• Significant Allocation: The budget allocates over Rs 3 lakh crore for schemes benefiting women and girls, aiming to boost workforce participation.
• Current Participation Rates: Women's workforce participation is 35.9%, compared to men's 76%, with most women in low-quality self-employment.
• Government Initiatives: Initiatives include hostels, creches, women-specific skilling programs, and market access for self-help groups to promote women's employment.

Challenges and Proposed Solutions:

• Manufacturing Sector Focus: Special attention to smaller enterprises and manufacturing, crucial for women’s employment, with a package covering financing, regulatory changes, and technology support.
• Skilling Opportunities: The budget emphasizes skilling, addressing gender stereotypes in ITI courses and promoting female participation in technical trades.
• Infrastructure and Safety: Recommendations for transport and hostel facilities to improve women's access to vocational training and workforce entry.

Mains Question:

Q. Examine the challenges and opportunities the 2024-25 Union Budget presents for enhancing women's workforce participation in India. How can government initiatives address these issues effectively?