DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam –13th June 2024
Archives (PRELIMS & MAINS Focus) HIGH SEAS BIODIVERSITY TREATY Syllabus Prelims – ENVIRONMENT Context: Grethel Aguilar, the director general of the International Union for Conservation of Nature (IUCN), urged countries worldwide “to strive for a fully functional High Seas Biodiversity Treaty”. Background:- The high seas are those areas of the world’s oceans that are outside national jurisdictions. They constitute a huge chunk of the world’s oceans and are home to a wide variety of biodiversity. About HIGH SEAS BIODIVERSITY TREATY The United Nations agreement on biodiversity beyond national jurisdiction or BBNJ Agreement, also referred to by some stakeholders as the High Seas Treaty or Global Ocean Treaty, is a legally binding instrument for the conservation and sustainable use of marine biological diversity of areas beyond national jurisdiction. It is an agreement under the United Nations Convention on the Law of the Sea (UNCLOS). The text was finalised during an intergovernmental conference at the UN on 4 March 2023 and adopted on 19 June 2023 Here are some key points about the treaty: Protection Beyond Borders: While countries are responsible for the conservation and sustainable use of waterways under their national jurisdiction, the high seas now have added protection from such destructive trends as pollution and unsustainable fishing activities. Cleaner Oceans: The treaty aims at strengthening resilience and contains provisions based on the polluter-pays principle as well as mechanisms for disputes. It addresses the issue of toxic chemicals and plastic waste flooding into coastal ecosystems. Sustainable Management of Fish Stocks: More than one third of global fish stocks are over-exploited, according to the UN. The treaty underlines the importance of capacity building and the transfer of marine technology. Legal Framework: The treaty provides a legal framework for addressing various stressors affecting the marine environment in the high seas. Addressing Planetary Crisis: The treaty is crucial for addressing the triple planetary crisis of climate change, biodiversity loss, and pollution. The treaty recognizes traditional knowledge. It has articles regarding the “polluter-pays” principle, and different impacts of human activities including areas beyond the national jurisdiction of the countries making those activities. The agreement was adopted by the 193 United Nations Member States. Before the treaty can enter into force, it needs to be ratified by at least 60 UN member states. However, only seven countries — Belize, Chile, Mauritius, Federated States of Micronesia, Monaco, Palau and the Seychelles — have ratified the treaty. India has neither signed nor ratified the treaty. Greenpeace called it “the biggest conservation victory ever”. The main achievement is the new possibility to create marine protected areas in international waters. Source: Down To Earth STICKY INFLATION Syllabus Prelims & Mains – ECONOMY Context: RBI in its recent monetary policy review decided to retain the repo rate, for eighth time in a row, due to concerns of sticky inflation. Background: Therepo rate is the interest rate at which the RBI lends money to commercial banks. When RBI wants to incentivise economic activity in the broader economy, it reduces the repo rate, which makes it cheaper for banks to borrow from it and lend onwards to customers. When it wants to disincentivise economic activity, it raises the repo rate, which makes it costly for everyone in the economy to borrow money. Key Takeaways Sticky inflation refers to a phenomenon where prices do not adjust quickly to changes in supply and demand, leading to persistent inflation. When prices are sticky, inflation can persist even if the economy operates below its potential level. Sticky inflation has been a concern for many central banks, making it difficult to control inflation. Simply put, if inflation stays persistently high (‘sticky’), it would necessitate the RBI to keep raising interest rates — or, at the very least, keep them at a high level for a longer period — and, in doing so, hurt India’s economic There is a constant tradeoff between maintaining price stability (read containing inflation) and boosting growth (which hopefully creates jobs and reduces unemployment). Why is the RBI not cutting interest rates? Currently, the retail inflation rate has been coming down closer to the 4% mark. In fact, it has stayed within the so-called “comfort zone” of the RBI — anywhere between 2% and 6% — since September 2023 and yet, the RBI has not changed the repo rate since February 2023. There are four broad reasons for it: One, despite keeping the repo rate consistently high, the retail inflation has not dropped to touch the 4% mark since January 2021. Although it has declined, the rate of its decline has been very gradual. In fact, the RBI has expressed its concern over the stickiness of inflation. Two, the RBI does not cut the repo rate as soon as the overall inflation rate falls to (or below) the 4% target in any one month. The RBI has to be convinced that inflation rate will stay around the 4% mark sustainably. The RBI’s policy statement predicts that inflation is likely to fall below the 4% target in the near future but that fall would only be due to temporary reasons. Three, as explained earlier, the RBI typically cuts the repo rate when it finds that economic activity needs a boost. However, India’s gross domestic product (GDP) growth rate has been surprisingly strong over the past year in particular. Under the circumstances, it is unlikely that repo rates are holding back India’s economic growth. Four, although not articulated by the RBI per se, the decision may have to do with India’s forthcomingUnion Budget. Most economists are waiting to see how the political compulsions of a coalition government will impact the Centre’s commitment to fiscal deficit — the amount of money the government intends to borrow from the market. Higher than anticipated fiscal deficit has implications for both inflation (if more fresh money is printed) or interest rates (if there is less money for the private sector to borrow). Source: Indian Express INTERNATIONAL ORGANIZATION OF MIGRATION (IOM) Syllabus Prelims – INTERNATIONAL Context: The International Organization for Migration (IOM) reported at least 49 migrants died and 140 others were missing after their boat capsized
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