CURRENT AFFAIRS - 23/12/2023

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CURRENT AFFAIRS – 23/12/2023

CURRENT AFFAIRS – 23/12/2023

Government aims to set up 17,000 creches across the country

(General Studies- Paper II)

Source : TH

The Union Women and Child Development Ministry are set to establish 17,000 creches in Anganwadicentres across India under the ‘Palna’ scheme, with 5,222 already approved.

The initiative aims to provide quality day-care facilities for the children of working women, facilitating women’s economic participation across socio-economic groups.
Union Minister SmritiIrani released new Standard Operating Procedures (SOP) for Anganwadi-Cum-Crechecentres, outlining a comprehensive framework for administration and implementation, including roles, responsibilities, and monitoring checklists.

Key Highlights

Palna Scheme Objectives:
- Address the need for quality day-care/creche facilities for working women’s children.
- Provide a safe environment for children’s nutritional, health, and cognitive development.
- Encourage women’s gainful employment in both organized and unorganized sectors.
Initiatives Under ‘Palna’ Scheme:
- Establishment of 17,000 creches in Anganwadicentres nationwide.
- Approval of 5,222 creches to date.
- Plan to depute two additional creche workers in Anganwadis alongside existing staff.
Priority Focus:
- Initial focus on women engaged in various occupations such as agricultural and construction work.
- Aim to provide economic opportunities for women while ensuring a safe environment for their children.

Note: As of March 31, 2021, there are 13.87 lakh operational Anganwadi and mini-Anganwadi centres nationwide.

Women’s workforce participation increased to 37% in 2022.

What is Anganwadi?

Anganwadi is a type of rural child care center in India.
The term “Anganwadi” translates to “courtyard shelter” in Hindi.
These centers were introduced by the Indian government as part of the Integrated Child Development Services (ICDS) program in 1975.
The objective is to address the health, nutrition, and education needs of children under the age of six, as well as pregnant women and lactating mothers.
Anganwadi centers serve as crucial community-based facilities that provide a range of services, including:
- Nutrition Services: They offer supplementary nutrition to children and pregnant or lactating women to address malnutrition and promote healthy development.
- Health Check-ups: Regular health check-ups are conducted for children and mothers to monitor their well-being and identify any health issues early on.
- Pre-school Education: Anganwadi centers often serve as informal pre-schools, providing basic early childhood education to prepare children for formal schooling.
- Immunization: The centers play a role in promoting and facilitating immunization programs for children.
- Health and Nutrition Education: They conduct awareness programs on health, hygiene, and nutrition for mothers and the community.
- Women’s Empowerment: Anganwadi workers often engage with women in the community, providing support and information on maternal and child health, family planning, and women’s empowerment.

SahityaAkademi Awards

(General Studies- Paper I)

Source : TH

The linguistic diversity of the country is recognized by the SahityaAkademi Awards, which annually honors writers in 24 Indian languages.

This year’s selection includes works in languages such as Dogri, Gujarati, Kashmiri, Manipuri, Odia, Punjabi, Rajasthani, Sanskrit, Sindhi, Assamese, Bodo, Bengali, Telugu, Malayalam, Kannada, Santali, and more.

Key Highlights

The awards are seen as an encouragement for writers, fostering linguistic variety in a nation abundant with dialects and marginalized communities.
The piece underscores the vast possibilities the awards present, from boosting writers’ careers to promoting literary works in schools and universities, potentially preserving endangered languages.
SahityaAkademi Awards acknowledge linguistic diversity with works in 24 Indian languages.
Highlights the immense linguistic and cultural variations present in India.
Winning the SahityaAkademi Award provides encouragement for writers to continue their craft.
Increased visibility can lead to higher book sales and inclusion in educational curricula.
Potential for Translation:
- Awardees have the opportunity to be translated into other regional languages and even into English.
- This widens the reach of their work and promotes cross-cultural exchange.
Challenges in Recognition:
- TheSahityaAkademi Awards lack the immediate recognition enjoyed by global literary prizes like the Booker Prize or the Pulitzer.
- The lack of effective promotion for SahityaAkademi activities is a concern and should be worked upon.

More about SahityaAkademi Awards

The SahityaAkademi Awards are prestigious literary honors presented annually by the SahityaAkademi, India’s National Academy of Letters.
Established in 1954, the SahityaAkademi is dedicated to promoting and fostering the development of literature in the 24 major Indian languages, including English.
The SahityaAkademi Awards were first conferred in 1955, and they recognize outstanding literary works in various genres.
Key Features of SahityaAkademi Awards:
- Categories: The awards cover a wide range of literary genres, including novels, short stories, poetry, essays, plays, and literary criticism.
- Languages: The awards encompass works in 24 languages, reflecting the linguistic diversity of India.
  - Some of the languages include Hindi, Bengali, Tamil, Telugu, Kannada, Malayalam, Marathi, Gujarati, Punjabi, Odia, Assamese, and others.
- Recognition of Regional Literature: SahityaAkademi Awards play a crucial role in recognizing and promoting regional literature, encouraging writers in languages other than Hindi and English.
Other SahityaAkademi Awards: In addition to the SahityaAkademi Awards, the Akademi also presents other literary honors, including the Bal Sahitya Award (for children’s literature), the YuvaPuraskar (for young writers), and the BhashaSamman (for significant contributions to literature in languages other than Hindi and English).

Start-ups Navigate Funding Winter

(General Studies- Paper III)

Source : TH

The “Funding Winter” phenomena is characterized by a prolonged period of low capital inflows into start-ups throughout 2022-23.

Despite the challenges, industry observers note that this phase has compelled start-ups to adopt more sustainable business practices, manage cash more efficiently, and mature as managers.

Key Highlights

The Funding Winter has encouraged a shift from excessive cash burn to a focus on profitability and niche markets.
While India is perceived as a safe destination for funds deployment, experts anticipate a resurgence in capital flows in the first and second quarters of CY24.
The evolving maturity of Indian start-ups is also highlighted through improved financial metrics, reduced losses, and a strategic emphasis on hyper niches.
Funding Winter’s Impact:
- The Funding Winter, characterized by low capital inflows, has prompted start-ups to manage businesses more efficiently without excessive cash burn.
- Start-ups are maturing as managers, shifting focus from valuations to sustainable growth.
Evolution of Start-up Strategies:
- In the past, start-ups prioritized burning cash and surviving on funding, leading to spiked valuations.
- Current trends indicate a shift towards maturity, emphasizing high Compound Annual Growth Rate (CAGR), better profitability, reduced losses, and efficient cash management.
- Start-ups are focusing on hyper niches instead of pursuing a broad range of markets simultaneously.
Funding Trends:
- In the first nine months of 2023, Indian start-ups attracted only 30-35% of the previous year’s $40 billion in funding.
- The U.S., the EU, UAE, and Japan collectively contribute 5% of total global funding and 20% of total APAC funding for Indian start-ups.

Note: “APAC funding” refers to funding or investment activities in the Asia-Pacific (APAC) region. APAC is a geographical region that includes countries in East Asia, Southeast Asia, South Asia, Australia, and the Pacific.

China bans export of rare earth processing technologies

(General Studies- Paper III)

Source : TH

China, the world’s leading processor of rare earths, has officially prohibited the export of technology crucial for the extraction and separation of these strategic metals.

This decision is part of China’s comprehensive overhaul of the “Catalogue of Technologies Prohibited and Restricted from Export,” indicating a move to tighten control over critical technologies related to national security.

Key Highlights

Additionally, the ban extends to the export of production technology for rare earth metals, alloy materials, and technology associated with the preparation of specific rare earth magnets.
This move is particularly significant as it comes amid efforts by Europe and the United States to reduce dependence on Chinese rare earths, which constitute 90% of global refined output.
Rare earths, a group of 17 metals, are vital for manufacturing magnets used in electric vehicles, wind turbines, and various electronic devices.
China’s dominance in refining rare earths, achieved through the solvent extraction process, has posed challenges for Western companies in terms of technical complexities and environmental concerns.
China currently accounts for 90% of global refined output of rare earths.

What is rare earth minerals?

Rare Earth Minerals (REMs) are a group of 17 chemically similar elements found in the Earth’s crust.
Despite the name, these elements are not necessarily rare but are often dispersed in low concentrations, making their extraction and processing challenging.
The 17 rare earth elements (REEs) are:
- Lanthanum (La)
- Cerium (Ce)
- Praseodymium (Pr)
- Neodymium (Nd)
- Promethium (Pm)
- Samarium (Sm)
- Europium (Eu)
- Gadolinium (Gd)
- Terbium (Tb)
- Dysprosium (Dy)
- Holmium (Ho)
- Erbium (Er)
- Thulium (Tm)
- Ytterbium (Yb)
- Lutetium (Lu)
- Scandium (Sc)
- Yttrium (Y)
These elements exhibit unique properties that make them crucial components in various technological applications.
Rare earth minerals are used in the manufacturing of a wide range of products, including magnets for electric vehicles, wind turbines, smartphones, batteries, fluorescent lights, and other high-tech devices.

How India chooses its Republic Day chief guest?

(General Studies- Paper II)

Source : The Indian Express

President Emmanuel Macron of France has been invited as the Chief Guest for India’s 75th Republic Day celebrations, confirmed by the Ministry of External Affairs.

This prestigious invitation holds significant diplomatic importance, and being the Chief Guest is considered the highest honor in terms of protocol for a visiting dignitary.
The role involves participation in various ceremonial activities, including a guard of honor, wreath-laying at Rajghat to honor Mahatma Gandhi, banquets hosted by the President and Prime Minister, and calls by other high-ranking officials.

Key Highlights

The symbolism of the Chief Guest’s visit reflects participation in India’s pride and happiness, fostering friendship and diplomatic ties between the two nations.
The choice of the Chief Guest is a carefully considered decision with political and diplomatic implications.
Protocols for Choosing India’s Republic Day Chief Guest:
- Choosing the Chief Guest for India’s Republic Day parade is a meticulous process that begins almost six months before the event.
- The Ministry of External Affairs (MEA) plays a central role in the selection, considering various factors to extend the invitation.
- The primary consideration is the nature of the relationship between India and the invited country, encompassing political, commercial, military, and economic interests.
- The invitation itself symbolizes the pinnacle of friendship between the two nations.
- Historical associations, such as membership in the Non-Aligned Movement (NAM), have also influenced the choice of Chief Guests.
- The first Chief Guest in 1950 was President Sukarno of Indonesia, a founding member of NAM.
- Approval Process:
  - MEA seeks approval from the Prime Minister and the President after finalizing potential candidates.
  - Indian ambassadors discreetly ascertain the availability of the potential Chief Guest.
  - MEA presents a list of potential candidates, recognizing the challenges of the busy schedules of heads of state.
  - Discretion is crucial, as no formal invitation is made until the availability is confirmed.
- Official Communication and Planning:
  - After approval, official communication intensifies between India and the invitee’s country.
  - Territorial divisions within the MEA work on agreements, and the Chief of Protocol details the program and logistics.
  - Detailed programs for the visit and Republic Day ceremonies are shared between Protocol Chiefs.
  - Planning involves collaboration between the Government of India, state governments the dignitary might visit, and the government of the invited country.
- Potential Challenges During the Republic Day Visit:
  - While meticulous planning goes into organizing the Republic Day visit, unforeseen circumstances can pose challenges, demanding preparedness and flexibility from organizers.
  - Health issues or untimely weather events are potential disruptors that must be anticipated and addressed through thorough contingency planning.
  - An anecdote shared by Ambassador Singh highlighted a situation where an aide-de-camp attempted to breach protocol, emphasizing the need for strict adherence to established practices.
  - Media Perception:
    - Recognizing the media’s role, organizers aim to present the visit positively, as the media party accompanying the guest reports back to their country.
    - Perceived success and courtesy extended during the visit contribute to fostering good relations.
  - Visual Coverage Importance:
    - In the modern world, visual coverage holds significant importance.
    - Programs and protocols are designed with an understanding of the visual impact to showcase India’s traditions, culture, and history.
  - International Praise for India’s Ceremonies:
    - Various chief guests and their Ambassadors in New Delhi have praised India’s ceremonies and the protocol accorded to them.
    - India’s hospitality reflects its rich cultural heritage and traditions.
The Chief Guest position on Republic Day is not merely ceremonial; it carries diplomatic weight and can open new possibilities to further India’s interests globally.

Credit ratings: the Government view

(General Studies- Paper III)

Source : The Indian Express

The Finance Ministry recently released a collection of essays titled “Re-examining Narratives,” aiming to present alternative perspectives on crucial economic policies impacting India’s long-term growth.

Chief Economic Advisor V Anantha Nageswaran explained that the document critiques the “opaque methodologies” employed by global credit rating agencies in determining sovereign ratings.

Key Highlights

The first essay in the collection focuses on criticizing the methodologies of major credit rating agencies and illustrates, through Finance Ministry calculations, how these methodologies adversely affect India.
The government aims to shed light on the potential shortcomings in the assessment of India’s creditworthiness.
Significance of Sovereign Ratings:
- Sovereign ratings evaluate the creditworthiness of governments, acting as indicators for global investors regarding a government’s capacity and willingness to repay debts.
- Similar to an individual’s credit rating influencing loan approval and interest rates, sovereign ratings impact a country’s ability to borrow from international investors.
- Governments with higher ratings enjoy lower interest rates, while those with lower ratings face higher borrowing costs.
- Impact on Businesses:
  - As the government is considered a safe investment, its sovereign rating influences the interest rates for businesses within the country.
  - Lower sovereign ratings can result in higher borrowing costs for businesses, hindering economic development.
- Global Investment and Developing Countries:
  - Developing countries, including India, often possess abundant labor, land, or mineral resources but face a scarcity of capital.
  - Sovereign ratings play a crucial role in these countries’ access to global capital.
  - Poor sovereign ratings can impede developing countries’ ability to borrow from wealthy investors, limiting their capacity to leverage natural strengths and hindering economic progress.
  - Conversely, favorable ratings can facilitate easier access to capital, fostering productivity and poverty alleviation.
- Main Global Credit Rating Agencies:
  - Sovereign credit ratings have a long history predating Bretton Woods institutions, such as the World Bank and the International Monetary Fund.
  - The three primary and globally recognized credit rating agencies are Moody’s, Standard & Poor’s (S&P), and Fitch.
  - Historical Background:
    - Moody’s: Established in 1900, Moody’s is the oldest credit rating agency.
      - It issued its initial sovereign ratings just before World War I.
    - Standard & Poor’s (S&P): Standard Statistics, the precursor of S&P, began rating government bonds in the 1920s.
    - Fitch: While not explicitly mentioned in the provided text, Fitch is another major credit rating agency globally.
  - Credit Rating Evolution:
    - The credit rating agencies played a pivotal role in assessing sovereign creditworthiness, contributing to the financial landscape.
    - The US and European countries have traditionally maintained favorable credit ratings, although global events have influenced these ratings over time.
  - Government’s Criticism:
    - The Finance Ministry has identified three key concerns with the methodologies employed by global credit rating agencies, namely Moody’s, Standard & Poor’s, and Fitch.
    - Opacity and Bias Against Developing Economies:
      - The government argues that the methodologies are opaque and appear to disadvantage developing economies.
      - For example, the Finance Ministry points out Fitch’s preference for high foreign ownership in the banking sector, which may unfairly disadvantage countries where the public sector dominates banking.
      - The assessment overlooks the developmental role of public sector banks in promoting financial inclusion.
    - Non-Transparent Selection of Experts:
      - The government contends that the experts consulted for rating assessments are chosen in a non-transparent manner, adding complexity to an already difficult-to-interpret methodology.
    - Lack of Clarity in Assigned Weights:
      - The Finance Ministry notes that rating agencies do not clearly convey the assigned weights for each parameter considered in their assessments.
      - While Fitch provides numerical weights for some parameters, they state that these are for illustrative purposes only, contributing to ambiguity.
    - Specific Issues in Methodology:
      - The government points to a table illustrating Fitch’s judgment of sovereign risk, highlighting four main pillars and their sub-components.
      - Key points of contention include the use of the composite governance indicator (based on the World Bank’s Worldwide Governance Indicators) and the incorporation of subjective assessments through the “Qualitative Overlay” variables.
      - The WGI uses a host of indices and reports such as the World Economic Forum Global Competitiveness Report, Economist Intelligence Unit, etc. to assess several aspects of a country that may not be captured by hard economic data.
      - These include freedom of expression, freedom of media, rule of law, corruption, quality of regulation, etc.
      - The Finance Ministry argues against excessive reliance on subjective appraisals, emphasizing that the influence of the composite governance indicator and perceived institutional strength outweighs other macroeconomic fundamentals in determining credit rating upgrades.
    - Government’s Calculation Findings:
      - According to the government’s calculations, the composite governance indicator and perceived institutional strength have a significant impact on the chances of earning an upgrade for developing economies.
      - The government asserts that such indicators rely on arbitrary benchmarks, often criticized for being constructed from perception-based surveys, creating challenges for developing nations seeking credit rating upgrades.

What are volcanoes and why is the Iceland so volcanically active?

(General Studies- Paper I)

Source : The Indian Express

The Fagradalsfjall volcano in southwest Iceland erupted on December 18, following weeks of intense earthquakes and tremors.

While lava flows from the volcano have slowed down, the Icelandic Meteorological Office warns of the potential for new vents to open.
The eruption, initially releasing hundreds of cubic meters of lava per second, led to the evacuation of nearly 4,000 people from the threatened fishing town of Grindavik.

Key Highlights

This marks the third eruption of the Fagradalsfjall volcano in the past two years, with its dormancy ending in March 2021 after over 6,000 years.
Iceland, known for its high volcanic activity, typically experiences eruptions every four to five years.
However, the frequency has increased since 2021, approaching one eruption per year.
Types of Volcanoes and Iceland’s Volcanic Activity:
- According to the US Geological Survey, volcanoes are openings or vents where lava, tephra (small rocks), and steam erupt onto the Earth’s surface.
- They can be located on land or in the ocean and form when material hotter than its surroundings is ejected onto the Earth’s surface.
- This material includes magma (underground) and lava (on the surface), ash, and gases.

Formation of Volcanoes:Volcanoes can form through three main mechanisms:
- Divergent Boundaries: Tectonic plates move away from each other, allowing magma to fill the space, forming underwater volcanoes.
- Convergent Boundaries: Plates move towards each other, causing Earth’s crust to melt and rise as magma.
- Hotspots: Hot areas inside the Earth, where heated magma rises due to reduced density.
Volcanic Types:
- The British Geological Survey outlines that the type of volcano is determined by factors such as magma viscosity, gas content, magma composition, and the manner in which magma reaches the surface.
- Two main types of volcanoes are identified based on their characteristics:
  - Stratovolcanoes: These have steep sides, a cone-shaped structure, and are associated with explosive eruptions.
    - StratoVolcanoes are also called Composite Volcanoes.
  - Shield Volcanoes: Characterized by a low profile resembling a shield lying on the ground, they typically have less explosive eruptions.
- Other Volcanic Features:
  - Apart from the main types, various volcanic features can form from erupted magma, including cinder cones and lava domes.
  - Additionally, there are diverse processes that shape volcanoes
  - - Iceland’s Volcanic Activity:
      - Iceland is situated on the Mid-Atlantic Ridge, part of the world’s longest mountain range, where the Eurasian and North American plates are gradually moving apart.
      - This geological activity results in volcanic rift zones, causing the Earth’s crust to fracture.
      - Molten rock or magma rises to the surface, leading to eruptions of lava and ash.
      - Iceland is positioned over a hotspot, contributing to increased volcanic activity.
      - Hotspots represent areas of intense geothermal activity beneath the Earth’s surface, leading to the upwelling of magma.

What is the Mid-Atlantic Ridge?

The Mid-Atlantic Ridge is a continuous mountain range running down the center of the Atlantic Ocean, extending for about 16,000 kilometers (10,000 miles). ]
It is the longest mountain range in the world.
The ridge is characterized by a central rift valley with elevated peaks on either side.