August 05

TOPICS COVERED

1. Kerala asks Centre to declare landslides a ‘national disaster’

2. Nine children killed in M.P. as house wall collapses

3. MGNREGS: States fall behind in paying unemployment aid (GS Paper-II: Schemes)

4. Ceramic: a material for the ages (GS Paper-III: S&T)

5. The psychology of extravagance (GS Paper-III: Inequality)

6. S talked by polio,Gaza faces another siege (GS Paper-III: Internal security)

7. Election overhang (GS Paper-III: Industry)

8. Medieval-minded (GS Paper-II: FR)

9. What do scientists make of the Budget? (GS Paper-III: S&T)

 

 

 

MGNREGS: States fall behind in paying unemployment aid (05 August)

Only ₹90,000 released in 2023-24 as allowance for workers who are not provided jobs under the scheme; report says such figures do not reflect true demand and rural economic distress

• In 2023-24, only ₹90,000 was released by various States as "unemployment allowance" under the MGNREGS.
• This amount is significantly lower than the ₹7.8 lakh released in 2022-23.
• The Economic Survey 2024 highlighted that these figures do not accurately reflect the true unmet work demand.
• Work is often unavailable for beneficiaries, and block-level functionaries may not register work demand in real time.
• As a result, the formal data on MGNREGA work demand may not represent the actual demand and current rural economic distress.
• The Economic Survey 2024 noted a flaw in the MGNREGS reporting system, where work demand is only recorded when employment is provided, potentially to reduce state liability for unemployment allowance.
• According to MGNREGA 2005, if employment is not provided within 15 days, individuals are entitled to a daily unemployment allowance.
• The allowance is one-fourth of the wage rate for the first 30 days and half of the wage rate for the remainder of the financial year.
• Low disbursal of unemployment allowance is a recurring issue.
• In 2022-23 and 2023-24, only six States paid the allowance.
• In 2021-22 and 2020-21, only three and four States paid it, respectively.
• In 2019-20, no State disbursed the allowance.
• Nikhil Dey of MKSS said that the unemployment allowance in MGNREGS was meant to ensure accountability and enforce the law’s guarantee of employment.
• Despite its importance, the allowance is often underutilized due to administrative issues.
• States are responsible for the low figures of unemployment allowance, but the issue is complex.
• Job cardholders frequently do not receive receipts for their demand, which can be due to inefficiency or reluctance from block-level administration.
• State governments often struggle with under-budgeting for the scheme by the central government, impacting the disbursal of the allowance.
• The Parliamentary Standing Committee on Rural Development's February report highlighted issues with unemployment allowance disbursal.
• The Ministry of Rural Development responded by stating they would "look into it."
• The Committee recommended that the Centre address the issue at the highest level with States and Union Territories.
• This action is suggested to ensure States fulfill their legal obligation to provide the unemployment allowance.

Ceramic: a material for the ages (05 August)

• Ceramic materials are made by heating nonmetallic, inorganic substances to high temperatures.
• The term "ceramic" comes from the Greek word "keramos," meaning "potter's clay," reflecting its historical use in pottery.
• Evidence shows that ceramics have been used for over 25,000 years.
• Archaeologists have found ceramic pottery and figurines from ancient civilizations, such as those in the Indus Valley and Keezhadi in Tamil Nadu.
• The colors, shapes, and designs of these ceramics provide insights into their origins and manufacturing processes.
• Ceramics are durable and resistant to high temperatures, acids, chemical erosion, and compression.
• However, they are brittle and can shatter easily, and they don't handle sliding stress well.
• The study of ceramics and their microscopic properties is known as ceramography.
• Ceramics are used in various modern applications, including:
  • Space shuttle heat shields
  • Microwave furnaces
  • Abrasives
  • Varistors and semiconductors
  • Nuclear fuel
  • Fighter aircraft windows
  • Tomographic scanners
• High-temperature superconductivity in ceramics led to a Nobel Prize in Physics for two scientists in 1987.

The psychology of extravagance (05 August)

• A recent family wedding highlighted the stark display of wealth by an Indian billionaire, showing a disconnect from the country's issues of inequality and poverty.
• Economists Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi published a study in March 2024 on income and wealth inequality in India.
• In 2022-23, the top 1% of Indians held 22.6% of the income and 40.1% of the wealth.
• The top 1% possessed an average of ₹54 million in wealth, 40 times the average Indian.
• The bottom 50% and middle 40% held ₹0.17 million (0.1 times the national average) and ₹0.96 million (0.7 times the national average), respectively.
• The wealthiest 10,000 individuals owned an average of ₹22.6 billion in wealth, 16,763 times the average Indian.
• Nearly 90% of billionaire wealth was held by upper castes, with Other Backward Classes owning less than 10%, Scheduled Castes 2.6%, and Scheduled Tribes having no representation among the wealthiest.
• NITI Aayog reported that 135 million Indians escaped multidimensional poverty between 2016 and 2021, including improved nutrition.
• However, a 2022 report by international organizations, including the World Health Organization, revealed that 56.5% of Indians couldn't afford a healthy diet.
• The average cost of a healthy diet in Asia was $4.20 PPP per person per day.
• Nearly 790 million Indians can't spend ₹350 daily on healthy food.
• The wedding mentioned earlier cost around $600 million (₹5,000 crore).
• In comparison, the family's business group spent ₹1,271 crore ($152 million) on corporate social responsibility in 2022-23.
• This disparity raises questions about billionaires' motivations for spending more on extravagant events than on social welfare.
• Thorstein Veblen, an American economist, explored the extravagance of affluent societies in his work "The Theory of the Leisure Class."
• Veblen argued that wealthy individuals use "conspicuous consumption" to display their wealth and reputability.
• They host expensive events and give valuable gifts to showcase their opulence, making it impossible for others to emulate their level of spending.
• This "invidious pecuniary comparison" drives wealthy individuals to distinguish themselves through wasteful expenditure.
• Harvard professor Michael J. Sandel's political philosophy further examines the mindset that justifies such wasteful spending.
• Michael J. Sandel, in "The Tyranny of Merit," attributes the entitlement mentality of the rich to their belief in absolute ownership of their wealth and freedom to spend it.
• Sandel uses John Rawls’s “negative argument” (success depends on early life circumstances) and Friedrich Hayek’s “affirmative argument” (the successful should contribute to the community) to support his views.
• Sandel argues that ignoring these realities leads the rich to believe their talents entitle them to their wealth, while the poor deserve their fate due to a lack of merit.
• This mentality justifies the rich spending lavishly to boost their social standing and look down on the poor as "losers."
• Wedding extravaganzas often exclude the poor and ordinary people, allowing the elite to celebrate in isolation.
• The "lower classes" may be entertained separately, reinforcing their lower status and the billionaire host's perceived generosity.
• The poor and middle class often accept their lower status and believe in the upper class’s right to wealth and lavish spending.
• A Mumbai mechanic expressed acceptance of a billionaire's spending, desiring only basic infrastructure improvements.
• Sociologist Michèle Lamont notes that many middle-class American workers feel little resentment toward the wealthy, believing in meritocracy and fair reward distribution.
• This acceptance reflects a psychological capture by the rich, perpetuated by the myth of meritocracy, despite religious teachings aimed at enlightening the deprived masses.

Rights of the underprivileged

• The Koran teaches that wealth is god-given and the rich hold it as trustees for the poor.
• The underprivileged have a recognized right to wealth, not just charity.
• This doctrine redefines wealth ownership and elevates the rights and dignity of the poor to be equal to the rich.
• The Koran also suggests that human fortunes are due to circumstantial randomness.
• Michael Sandel emphasizes this idea, urging the meritocratic rich to recognize their success as partly due to luck.
• Sandel's moral philosophy challenges the individualism that shapes the mindset of billionaires.

Veblen good   A Veblen good is a product for which demand increases as the price increases. This is because such goods are seen as status symbols and are valued for their exclusivity. Unlike typical goods where demand falls as prices rise, Veblen goods have an upward-sloping demand curve. Characteristics of Veblen Goods High-Quality and Exclusive: These goods are usually well-made and luxurious. Status Symbols: They are sought after by wealthy consumers who value their exclusivity. Upward-Sloping Demand Curve: As the price rises, the demand for these goods increases. Examples of Veblen Goods Designer jewelry Expensive watches Luxury cars Contradiction to Conventional Market Forces Veblen goods contradict the basic law of demand, which states that demand decreases as prices increase. For Veblen goods, higher prices make them more desirable to status-conscious consumers. If the price of these goods is lowered, they lose their appeal because they become less exclusive. Comparison with Giffen Goods Veblen Goods: Luxury items like designer clothes and high-end cars. Demand increases with price due to their status symbol value. Giffen Goods: Essential goods like rice or potatoes. Demand increases with price due to lack of substitutes. Giffen goods are rare and debated among economists. Causes of the Veblen Effect Perceived Quality: Higher prices are often associated with better quality, even if it's not true. Exclusivity: Consumers feel more exclusive and important when purchasing expensive goods. Limited Availability: Items that are hard to obtain, like rare art pieces, command higher prices due to their scarcity.

 

2024_08_05                                  MAINS PRACTICE QUESTION   Essay Paper   Question: The Intersection of Wealth, Vanity, and Socio-Economic Disparities in India.                                   (500 Words/62 Marks)   प्रश्न: भारत में धन, घमंड और सामाजिक-आर्थिक असमानताओं का अंतर्संबंध।                  (500 Words/62 Marks)   Approach:   The conspicuous consumption and extravagant displays of wealth by the ultra-rich in India, particularly during events such as weddings, starkly highlight the deep socio-economic disparities in the country. Despite the visible inequality, there is often a surprising acceptance or even admiration of such lavishness among the middle and lower classes. This phenomenon can be understood through the lenses of Thorstein Veblen's theory of conspicuous consumption and Michael J. Sandel's critique of the entitlement mentality of the rich. Additionally, religious and philosophical doctrines have long argued for the moral responsibility of the wealthy towards the less fortunate.     Conspicuous Consumption and Socio-Economic Inequality: Analyze how Veblen's concept of conspicuous consumption is manifested in modern Indian society. Evaluate the impact of such extravagant displays of wealth on the socio-economic fabric of the country. Entitlement Mentality and Social Responsibility: Explain Michael J. Sandel's arguments regarding the entitlement mentality of the rich and their implications for social justice. Discuss the role of meritocracy in shaping the attitudes of the wealthy and its acceptance among the less affluent. Moral and Ethical Perspectives on Wealth Distribution: Compare and contrast the moral philosophies of Sandel and religious teachings, such as those from the Koran, on the responsibilities of the wealthy. Propose measures that can bridge the gap between the wealthy and the underprivileged, emphasizing both ethical considerations and practical solutions. Policy Implications and Future Directions: Critically assess current policies addressing income and wealth inequality in India. Suggest policy interventions that can mitigate the adverse effects of wealth concentration and promote a more equitable society. Instructions: Your essay should be well-structured and logically organized, with clear introductions and conclusions for each section. Use appropriate references and citations to support your arguments. Ensure that your discussion reflects a deep understanding of the theoretical frameworks and their application to contemporary Indian society. Highlight both the challenges and potential solutions, demonstrating a nuanced perspective on the issue of wealth inequality.   Note: Use relevant examples and case studies to support your arguments. Reflect on the broader implications of wealth disparity for India's socio-economic development and suggest a balanced approach to foster inclusivity and social justice.

 

Stalked by polio, Gaza faces another siege (05 August)

• The UN describes biological weapons as those that spread disease-causing organisms or toxins.
• War results in mass deaths of humans, animals, and plants.
• Climate change highlights the importance of animals and plants for ecosystems and carbon sequestration.
• War leaves behind toxic effects from explosives and debris, impacting generations.
• Armies in motion and their operations have large carbon footprints.
• Climate change can aid the spread of disease-causing microbes.
• War's toxic outcomes hinder the ability to respond to these microbial threats.
• Conflict operations can exacerbate the situation by destroying hospitals, blocking medical aid, and cutting off essential supplies, as seen in Gaza.

Israel’s statement

• In July, Israel's Health Ministry found poliovirus in Gaza's sewage.
• The Israel Defense Forces (IDF) started vaccinating soldiers in Gaza.
• As of July 21, no clinical polio cases were reported by the IDF, but an outbreak was expected.
• Gaza's healthcare is severely compromised, with only a third of hospitals functional.
• Israeli bombings and ground forces have restricted access to medical aid, making polio diagnosis unlikely except by aid workers.
• Poliovirus can only replicate in human cells, indicating some Gaza residents are infected.
• On July 29, Gaza's Health Ministry declared a polio epidemic.
• The severity of infections is unknown.
• Allowing the virus to spread conflicts with global efforts to eradicate polio, now mostly limited to rural Pakistan and Afghanistan.
• The virus in Gaza is vaccine-derived poliovirus type 2

The danger of spread

• If Gaza's medical conditions don't improve quickly, the infectious poliovirus could spread further, endangering the Israeli population.
• The Global Polio Eradication Initiative highlights that fragile states, especially those in conflict, are vulnerable to poliovirus outbreaks.
• In 2022, Malawi and Mozambique reported their first wild poliovirus cases in three decades due to disrupted immunization drives during the COVID-19 pandemic.
• Gaza's immunization rates dropped from 99% to 89% by late 2023.
• Israel claims to have delivered 0.3 million vaccines to Palestinians in Gaza since October 2023.
• Despite this, the IDF plans to continue military operations and has advised soldiers to avoid drinking Gaza's water, providing them with bottled water instead.

Damaged infrastructure

• Israel has damaged water infrastructure in Gaza, preventing wastewater treatment.
• Raw sewage flows directly into the sea, where children are bathing, raising the risk of poliovirus spread through contaminated water.
• Some Israeli public health experts have called for a ceasefire to prevent a "polio epidemic among Gazan and Israeli babies."
• WHO Director-General Tedros Adhanom Ghebreyesus announced the organization is sending over one million polio vaccines to the region.
• If Israel continues harmful actions and denies better living conditions and healthcare to Gazans, the consequences could be akin to biological warfare.

Election overhang (05 August)

Imation remains a concern as price pressures broaden beyond food

• In June, production in India's eight core infrastructure sectors slowed down due to reduced state spending on public works following the general election and extreme heatwaves.
• Output in five of the core sectors either grew more slowly or contracted compared to the previous year.
• Overall core sector growth dropped to 4%, the lowest in 20 months.
• Refinery products, with the highest weight in the Index of Eight Core Industries (ICI), saw a 1.5% decline in output.
• Electricity generation fell by 3.6% from May’s peak, with annual growth slowing from 13.7% to 7.7%.
• Steel production decreased by 4% from the previous month due to decreased demand from the heatwaves, with annual growth slowing to 2.7%.
• Coal production grew by 14.8%, up from 10.2% in May, providing a positive note amid the overall slowdown.
• The HSBC India Manufacturing PMI for July slightly decreased to 58.1 from 58.3 in June, indicating a minor slowdown in manufacturing activity.
• The survey found that manufacturing output and new orders grew more slowly.
• A significant increase in input costs led manufacturers to raise selling prices at the highest rate in nearly 11 years.
• Costs for coal, packaging, paper, rubber, and steel have risen, suggesting a broadening of inflation beyond just food prices.
• The Reserve Bank of India's Monetary Policy Committee faces a challenge in managing inflation as price pressures extend to various sectors.

The core sectors They are fundamental to India's economic growth and development. These eight key industries form the backbone of the nation's infrastructure and play a vital role in supporting other sectors. The core sector under Ministry of Commerce and Industry, Government of India. The Eight Core Sectors: · Coal: 10.33% · Crude Oil: 8.98% · Natural Gas: 6.88% · Refinery Products: 28.04% · Fertilizers: 2.63% · Steel: 17.92% · Cement: 5.37% · Electricity: 19.85% Coal: A primary source of energy for power generation in India. Crude Oil: Though India imports a significant portion of its crude oil needs, domestic production remains crucial for energy security. Natural Gas: An increasingly important cleaner-burning fuel source for power generation and industrial applications. Refinery Products: The processing of crude oil into various petroleum products like petrol, diesel, and LPG. Fertilizers: Essential for agricultural productivity, ensuring food security for the nation. Steel: A critical material for construction, infrastructure development, and various industrial applications. Cement: The binding agent used in construction activities, vital for building infrastructure and housing. Electricity: The foundation of modern economies, powering homes, industries, and essential services.

 

Medieval-minded (05 August)

Amendments to U.P.’s anti-conversion law worsen its unconstitutional features

• The Uttar Pradesh Assembly has amended its anti-conversion law to make it stricter.
• The original 2021 law led to over 400 cases by 2023.
• The amendments increase jail terms for unlawful conversions, with penalties of up to 20 years or life imprisonment if minors, women, or certain communities are targeted.
• The amendments also impose stiff penalties and fines for receiving foreign funds intended for unlawful conversion.
• The new law makes it harder to get bail, requiring the public prosecutor to oppose bail and proving that the accused is unlikely to repeat the offense. This is similar to provisions in other stringent laws like the NDPS Act and PMLA.
• The new amendments allow anyone to file complaints about alleged forcible or fraudulent conversions, which could lead to misuse by communal organizations and individuals against inter-faith marriages.
• Previously, only victims or close family members could file such complaints.
• The amendment aims to address cases where bail was granted because the complainants were not directly affected.
• The justification for the amendments is a claimed rise in forced conversions, but it's unclear if this is due to actual increases or misuse of the law.
• The law has faced criticism for criminalizing inter-faith marriages, declaring such marriages as void if they are deemed to be for conversion, and requiring prior notification for religious conversions.
• The amendments are seen as a violation of fundamental rights and reflect a regressive mindset contrary to democratic and constitutional values.

 

 

 

 

 

What do scientists make of the Budget? (05 August)

While in the Budget presentation the Finance Minister listed many priority areas, such as productivity and resilience in agriculture, energy security, and manufacturing and services, there are also concerns about the sidelining of basic research and stagnation in research funding as a percentage of GDP

• The Modi government launched major technology missions in supercomputing, cyber-physical systems, and quantum technologies.
• There were initiatives to boost private sector participation in space and geospatial policies.
• India successfully landed a spacecraft on the moon, becoming the fourth country to do so.
• Concerns were raised about the sidelining of basic research and stagnant research funding as a percentage of GDP.
• In Modi’s third term, the new Budget continues to focus on 'Viksit Bharat' and spurs research in climate-resilient agriculture, critical minerals, miniature nuclear energy, and energy-efficient technologies.
• The Budget prioritizes innovation, research, prototype development, and industry linkages, as emphasized by the Finance Minister.
• The Budget lists nine priorities, with additional focus on "Productivity and Resilience in Agriculture," "Energy Security," and "Manufacturing and Services."
• The "Critical Minerals Mission" and customs duty exemptions on 25 critical minerals will boost research.
• Clean energy, water supply, sewage treatment, and solid waste management are also priority areas.
• CSIR focuses on technology development in these areas.
• Plans for industrial parks in 100 cities and a dozen parks under the National Industrial Corridor Development Programme will promote indigenous technologies.
• There is an emphasis on commercializing technologies with private sector involvement.
• The Finance Minister allocated ₹6,323.41 crore for the Department of Scientific and Industrial Research for 2024-25.
• The CSIR budget increased by 10% compared to last year.
• CSIR aims to sustain R&D activities within the budget and may seek additional funds if needed.
• The Union Budget emphasizes transforming agricultural research with a focus on productivity and climate resilience.
• The Department of Biotechnology (DBT) established "speed breeding platforms" at various institutions to shorten crop development cycles, enabling four to six generations of rice in a year compared to two to three generations in field conditions.
• Agricultural crop varieties with climate resilience and high productivity traits are being developed through phenotyping and genotyping of genetic resources for various crops.
• Skilling human resources for innovation is required at the doctoral/PhD level.
• The i3C BRIC-RCB PhD program promotes multi-disciplinary learning and collaboration to solve national problems, fostering innovation and cross-disciplinary expertise in biosciences and biotechnology.
• The abolition of the angel tax is a major incentive for start-ups, especially in high-risk sectors like biotechnology.
• The 2024 Budget announcement encourages investment inflow, benefiting deep-tech life sciences start-ups.
• Provisions for FDI promotion will create a pipeline of angel-funded companies ready for VC investment post-BIRAC funding.
• R&D efforts in India are primarily academia-centric and often fail to commercialize innovations.
• The operationalization of the ANRF with a ₹1 lakh crore corpus aims to support private sector-driven research and innovation.
• Subhash Lakhotia notes that actual expenditure on S&T and higher education in 2023-2024 was less than initially allocated.
• Suggested allocations for 2024-2025 are not significantly different from 2022-2023 and may be offset by inflation.
• Increasing numbers of public and private institutions have intensified competition, reducing per capita funding compared to 2022-2023.
• There are concerns that actual available funds may not match the allocated Budget.
• The ANRF could make a small difference if operational, but the percentage of GDP allocation for R&D has not increased.
• The zero budgeting system (ZBS) and quarterly reporting create burdens for researchers, as research outcomes are often unpredictable.
• The ANRF is set to focus on basic science research and prototype development, with a ₹1 lakh crore corpus for R&D and innovation led by the private sector.
• A separate venture capital fund for space technology has potential, but the ₹1,000 crore allocation may be inadequate given the high capital requirements.
• The Budget includes measures to boost clean energy generation, such as solar and nuclear, by reducing taxes on critical raw materials and minerals.
• Allocation for the Production Linked Incentive (PLI) scheme for pharmaceuticals increased to ₹2143 crore to enhance domestic manufacturing.
• Specific measures for youth health and employment generation were expected but not included.
• Emphasis on employment generation and internships will help science students get jobs in reputable companies, encouraging careers in science beyond academia.
• The government plans to set up a ₹1,000 crore venture capital fund for space technology.
• The government will partner with the private sector to develop small reactors and nuclear energy technologies.
• The Finance Minister announced the operationalisation of the ANRF for basic research and prototype development.
• There is confusion about the inclusion of "prototype" development with "basic research," as it typically refers to initial stages of software development.
• Concerns arise that the government may focus more on translational research with technological applications, contrary to the ANRF's objectives.
• The ANRF aims to prioritize research facilities in universities and colleges, addressing the funding disparity where State-run institutions receive only 11% of funds from the Department of Science and Technology, while IITs receive 65%.
• The Budget allocation has some nominal increases but is not very exciting.
• The scientific community has long demanded higher government funding due to limited private sector investment in basic research.

 

Critical minerals and Rare Earth Metals (Rare Earth Elements) Critical minerals are elements that are vital for the economy and national security but have a high risk of supply disruption. These minerals are essential in various high-tech applications, energy production, and manufacturing processes. The exact list of critical minerals can vary by country depending on their specific needs and supply chain vulnerabilities. Examples of Critical Minerals: Lithium: Used in rechargeable batteries for electric vehicles, smartphones, and laptops. Cobalt: Also used in batteries, particularly for its role in stabilizing battery performance. Nickel: Important for stainless steel production and batteries. Graphite: Used in battery anodes and as a lubricant. Rare Earth Elements (REEs): While rare earth elements can also be critical minerals, they are a specific subset with unique properties. Rare Earth Metals (Rare Earth Elements) Rare earth metals, or rare earth elements (REEs), are a group of 17 elements in the periodic table, specifically the 15 lanthanides plus scandium and yttrium. Despite their name, most rare earth elements are relatively abundant in the Earth's crust, but their extraction and processing are complex and environmentally challenging. They are essential for many high-tech applications due to their unique magnetic, luminescent, and electrochemical properties. Examples of Rare Earth Metals: Neodymium: Used in powerful magnets for wind turbines, electric vehicle motors, and headphones. Lanthanum: Used in camera lenses, battery electrodes, and catalytic converters. Cerium: Used in catalytic converters, glass polishing, and as a chemical oxidizing agent. Yttrium: Used in LED displays, phosphors, and superconductors. Samarium: Used in magnets, cancer treatment, and as a neutron absorber in nuclear reactors. Key Differences: Definition: Critical Minerals: Broad category of minerals essential for economic and national security with potential supply risks. Rare Earth Metals: Specific group of 17 elements with unique properties used in various high-tech applications. Scope: Critical Minerals: Includes a wide range of minerals, such as lithium, cobalt, and graphite, which are not rare earth elements. Rare Earth Metals: Limited to the 17 rare earth elements. Applications: Critical Minerals: Used in diverse applications including batteries, renewable energy, electronics, and manufacturing. Rare Earth Metals: Used specifically in applications requiring their unique magnetic, luminescent, and electrochemical properties, such as powerful magnets, LED displays, and certain types of glass and ceramics. Example Overlap: Neodymium is both a rare earth metal and a critical mineral because it is essential for high-strength magnets used in electric vehicles and wind turbines, and its supply is crucial and potentially at risk.