• May 5, 2023

14th President of the World Bank to be Ajay Banga

Tags: Paper: GS2/ Important International Institutions

In News

• Recently, the Executive Directors of the World Bank selected Ajay Banga for a five-year term commencing on June 2, 2023.

More about ‘Ajay Banga’

• Indian origin:
•  Ajay Banga is the first Indian-American and Sikh-American to lead either of the two most prestigious international financial institutions: the International Monetary Fund or the World Bank.
• Previous portfolios:

• Most recently, Ajay Banga served as Vice Chairman at General Atlantic.
• Previously, he served as president and chief executive officer of Mastercard, a global organization.
• He served as the Honorary Chairman of the International Chamber of Commerce from 2020 to 2022.

• Padma Shri:

• Banga was awarded the Padma Shri in 2016, India’s third-highest civilian honor.

About World Bank

• Origin:
•  Its origins can be traced back to the Bretton Woods Conference, also known as the United Nations Monetary and Financial Conference.After the end of World War II, delegates from 44 nations met from July 1 to July 22, 1944 in Bretton Woods, New Hampshire (United States) to agree upon a series of new regulations for international financial and monetary order.
• Partnerships:
•  The World Bank Group is an international partnership comprised of 189 countries and five institutions that works to eradicate poverty and promote prosperity.
• Significance:
• The World Bank is committed to providing developing nations with financing, advice, and research to advance their economies.
• Providing middle- and low-income nations with developmental assistance, the bank’s primary function is to combat poverty.
• The five development institutions under the World Bank Group are:
• International Finance Corporation (IFC) International Development Association (IDA) International Bank for Reconstruction and Development (IBRD)
• India is a member of four of the five components of the World Bank Group. India is not a member of ICSID.
• The President of the World Bank Group:

• The President of the World Bank Group presides over the Board of Executive Directors of the International Bank for Reconstruction and Development (IBRD).
• The President also serves as the ex officio chair of the Board of Directors of the International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and Administrative Council of the International Centre for the Settlement of Investment Disputes (ICSID).

• Reports and Publication:

• World Development Report: The World Development Report is an annual report published by the International Bank for Reconstruction and Development or the World Bank since 1978.
• Global Economic Prospects: Global Economic Prospects is a flagship report of the World Bank Group that analyses global economic developments and future projections, with a particular emphasis on emerging market and developing economies.
• It is published twice annually, in January and June.
• The January edition contains in-depth analyses of contemporary policy challenges, whereas the June edition contains shorter analytical articles.

• Ease of Doing Business:

• The World Bank has discontinued issuing the ‘Doing Business’ report after an investigation revealed “data irregularities.
• The report was primarily a regulatory benchmark study.

Criticisms

• Pushing for unsustainable economic growth models:
• The Bank has also been criticized in the past for promoting unsustainable economic growth models for nations, investing significantly in fossil fuel companies to the detriment of the environment, and supporting economic changes in developing nations that have led to greater inequality.
• Undermining the sovereignty of nations:
•  Like the IMF, the World Bank is also accused of subverting the sovereignty of the nations to which it lends, as both institutions impose economic policy conditions on their assistance.
• Skwed representation:

• Lower- and middle-income countries are underrepresented in the Bank’s crucial Executive Board.
• Perhaps the most common criticism of the World Bank is that it severely under-represents the ‘global south’ in its governance structures.

• Veto power to USA:
•  Most notably, as the largest shareholder in the World Bank, the United States maintains a unique veto over the Bank’s decisions.

Way ahead

• As India seeks to propose the formation of a dedicated G20 group for the purpose of suggesting reforms for the World Bank — particularly in regard to increasing the Bank’s lending capacity for climate financing in low- and middle-income countries — Banga, if elected as the institution’s leader, would be in an ideal position to assist with these efforts.

Source: WB

India’s Organ Donation Policy

Tags: Paper :GS2/Health, Government policies & interventions

In News

• The Ministry of Health of the Union has announced that it will shortly publish a transplant manual and a standard training course for transplant coordinators.

About

• The National Organ and Tissue Transplant Organisation (NOTTO) is working on a Transplant Manual as a step-by-step guide for the implementation of the Hospital Organ Donation and Transplantation Program, as well as a Standard Course for the training of Transplant Coordinators.
• Four verticals for coordination, information, education, and communication (IEC), training, and human resources and accounting (HR/accounts) have been established in the NOTTO for improved program implementation.
• As a special humanitarian measure in the public interest, the Government of India has recently granted Special Casual Leaves of up to 42 days to Central Government employees who donate an organ to another person.

What organs can be transplanted?

• Various body parts, including the cornea and the heart, the stomach, hand, and intestines, and even skin and bones, can be transplanted. However, not all of these are equally prevalent.

Organ Transplantation in India

• The total number of organ transplants in the country has increased significantly from less than 5,000 in 2013 to more than 15,000 in 2022.
• The network of Organ & Tissue Transplant Organizations at the National (NOTTO), Regional (ROTTO), and State level (SOTTO) has improved coordination, allowing for greater organ utilization per deceased donor.

Laws and Rules governing Organ Transplant in India

Transplantation of Human Organs Act (THOA) 1994: 

• It was enacted to establish a system for the removal, storage, and transplantation of human organs for therapeutic purposes and to prohibit commercial transactions involving human organs.All states have now adopted THOA with the exception of Andhra Pradesh and Jammu and Kashmir, which have analogous laws. Under the Transplantation of Human Organs Act (THOA), the source of an organ may be: o a close relative (mother, father, son, daughter, brother, sister, or spouse);
• Donors who are not close relatives may only donate out of affection and attachment or for any other special purpose, with the authorization committee’s approval.
• Deceased donor, particularly after brain stem death, e.g., a victim of a traffic accident, etc., in which the brain stem is deceased and the person cannot breathe on his own but can be maintained with ventilator, oxygen, and fluids, etc. After cardiac mortality, other types of deceased donors could be donors.
• Under the Transplantation of Human Organs Act, Brain Stem Death is recognized as a legal cause of death in India, as it is in many other countries, which has revolutionized the concept of organ donation after death.
• After natural cardiac death, only a few organs/tissues (such as cornea, bone, epidermis, and blood vessels) can be donated, whereas after brain stem death, nearly 37 organs and tissues can be donated, including vital organs such as the kidneys, heart, liver, and lungs.

Human Organs (Amendment) Act 2011:

• The Transplantation of Human Organs (Amendment) Act 2011 was enacted:

• Tissues are included alongside Organs.
• The definition of ‘near relative’ has been expanded to include descendants and grandparents.
• Provision of “Retrieval Centres” and registration of these facilities for organ retrieval from deceased donors. Tissue Banks must be registered as well.
• The attendants of potential donors admitted to the intensive care unit are required to be questioned and informed about the option to donate; if they concur, the retrieval center is notified.
• Requirement of a ‘Transplant Coordinator’ in all institutions registered under the Act.
• To protect the vulnerable and the impoverished, increased penalties for organ trading are in place.
• The National Human Organs and Tissues Removal and Storage Network and the National Transplant Registry will be established.
• The Act stipulates greater caution for minors and foreign nationals, as well as a ban on organ donation from those with mental retardation.

 National Organ Transplant Programme (NOTP)

• The Government of India is implementing the National Organ Transplant Programme (NOTP) to promote organ donation and transplantation across all States and Union Territories (UTs). Program provisions include: o Establishment of State Organ and Tissue Transplant Organisations (SOTTOs) in each State/UT.
• Establishment of national, regional, and state biomaterials centers.
• Financial support for the establishment of new organ transplant/retrieval facilities and the improvement of existing facilities.
• Training for transplant specialists, such as surgeons, physicians, coordinators, etc.

• Objectives of National Organ Transplant Programme:

• To organize the procurement and distribution of organs and tissues for transplantation.
• To promote organ and tissue donation from deceased donors.
• To train necessary personnel.
• To protect vulnerable impoverished from organ trafficking.
• To monitor organ and tissue transplant services and make necessary policy/program adjustments/changes.

Challenges Associated with Organ Donation in India

• High Burden (Demand Versus Supply gap).
• Poor Infrastructure especially in Govt. sector hospitals.
• Lack of Awareness of the concept of Brain Stem Death among stakeholders.
• Poor rate of Brain Stem Death Certification by Hospitals.
• Poor Awareness and attitude towards organ donation— Poor Deceased Organ donation rate.
• Lack of Organized systems for organ procurement from deceased donor.
• Maintenance of Standards in Transplantation, Retrieval and Tissue Banking.
• Prevention and Control of Organ trading.
• High Cost (especially for uninsured and poor patients).
• Regulation of Non- Govt. Sector.

Way Ahead

• Despite a facilitatory law, organ donation from deceased persons continues to be very poor. In India there is a need to promote deceased organ donation as donation from living persons cannot take care of the organ requirement of the country.
• Also there is risk to the living donor and proper follow up of the donor is also required.
• There is also an element of commercial transaction associated with living organ donation, which is a violation of Law. In such a situation of organ shortage, rich can exploit the poor by indulging in organ trading.
• The Ministry of Health & Family Welfare is imbibing learnings from international best practices for further policy reforms towards augmentation of organ donation and transplantation in the country which is a step in the right direction.

The 2023 World Press Freedom Index

Tags: Paper GS2/Governance/Miscellaneous

In News

• India rated 161 out of 180 nations on the World Press Freedom Index for 2023.

About the World Press Freedom Index

• Reporters Without Borders (RSF), a global media watchdog, publishes an annual report on press freedom in nations around the globe.
• It evaluates the state of journalism in 180 nations and territories and is released on May 3, World Press Freedom Day.
• • RSF defines press freedom as the capacity of journalists as individuals and groups to select, produce, and disseminate news in the public interest without political, economic, legal, or social interference and in the absence of threats to their physical and psychological safety.

Methodology used for compiling the World Press Freedom Index 2023

• The score for each country or territory is based on five contextual indicators that reflect the press freedom situation in all of its complexity: political context, legal framework, economic context, sociocultural context, and safety.
• The Index assigns each country or territory a score between 0 and 100, with 100 representing the best conceivable score (the highest level of press freedom) and 0 representing the worst.
• The press freedom map provides a visual overview of the index scores for all countries. The following are the color and classification assignments:
• [85 – 100 points] fine (green)
• [70 to 85 points] adequate (yellow).
• [55 – 70 points] problematic (light orange) o [40 – 55 points] challenging (dark orange) o [0 – 40 points] extremely critical (dark red).

Findings of the 2023 World Freedom Index

• The situation is categorized as “very serious” in 31 countries, “difficult” in 42, “problematic” in 55, and “good” or “satisfactory” in 52.
• The environment for writing is deemed “bad” in seven of ten countries and “satisfactory” in only three.
• Norway is rated first for the seventh consecutive year. Unusually, however, a non-Nordic country, namely Ireland, ranks second, ahead of Denmark in third place. The Netherlands are now sixth, a 22-place improvement from their position in 2021.
• Last Place: Vietnam (178th), China (down 4 spots to 179th), and North Korea (180th) are the only Asian nations to occupy the last three spots.
• India and Neighboring Countries: India is ranked 161st, 11 places lower than last year, Bangladesh is 163rd, Afghanistan is 152nd, Pakistan is 150th, Sri Lanka is 135th, Thailand is 106th, and Bhutan is 90th.

Source: IE

Currency and Finance Report 2022–2023

Tags: Paper :GS 3/Economy

In News

• Recently, the Reserve Bank of India’s (RBI) Department of Economic and Policy Research (DEPR) released a Report on Currency & Finance 2022-23.

About the report 

• The report, titled “Towards a Greener Cleaner India,” does not reflect the views of the Reserve Bank of India; rather, it is based on the findings and conclusions of the Department of Economic and Policy Research contributors.
• It examines four main aspects of climate change to assess future obstacles to India’s sustainable high growth.
• These include the unprecedented magnitude and rate of climate change, its macroeconomic consequences, repercussions for financial stability, and policy options for mitigating climate risks.

Major Findings 

• The cumulative total cost of climate change adaptation in India is projected to reach?85,6 lakh crore (at 2011-12 prices) by 2030.
• India’s aim of achieving net zero emissions by 2070 would necessitate an accelerated reduction in the energy intensity of its GDP of approximately 5% per year and a significant improvement in its energy mix in favor of renewables to approximately 80% by 2070-71.
• India’s green financing needs are anticipated to be at least 2.5% of GDP per year until 2030 in order to close the infrastructure gap caused by climate events.
• According to the results of a climate stress test, public sector banks (PSBs) may be more susceptible than private sector banks.
• However, the global measurement of climate-related financial hazards is not yet complete.
• CBDCs can be more energy-efficient than many current payment methods, such as credit and debit cards.
• The CBDC aids in reducing emissions by eliminating printing, storage, transportation, and replacement of tangible currency.

Recommendations 

• In order to accelerate and stimulate green finance in the country and to meet climate objectives, India must implement a broad-based carbon pricing system consistent with emerging global best practices and implement a carbon tax.
• In addition, the report suggested implementing an Emissions Trading System (ETS) linked to green taxonomy and encompassing all economic sectors, which can partially balance subsidy and tax.
• As a supplement to the annual budget, public expenditure on climate change and related issues must be accurately recorded and reported in a climate budget report.
• India should investigate ways to improve access to technology and critical mineral resources through multilateral, regional, and bilateral strategic partnerships, and intensify efforts to address the variability in wind and solar power supply by employing appropriate energy storage technology and demand management mechanisms utilizing smart grids.
• Complementing green building standards with Internet of Things (IoT)-based monitoring and AI and ML to manage and reduce energy demand; o Increasing climate-resilient agriculture; o Producing green hydrogen from renewable energy; and investing in carbon capture and storage technologies.
• Through various regulations, central banks could require banks and other financial institutions to consider climate and environmental concerns.

Future Outlook 

• A balanced policy intervention that ensures progress across all policy instruments would allow India to achieve its green transition goals by 2030, making the net-zero goal attainable by 2070.

Source: TH

Go First submits a voluntary insolvency petition

Tags: Paper: GS3/ Indian Economy & related issues

In News

• Go Airlines (India) Ltd (Go First) has voluntarily filed for insolvency with the National Company Law Tribunal (NCLT).

Why this drastic step?

• The decision was made by the Wadia Group-owned airline, which employs more than 5,000 people, due to a severe cash crisis.
• Go First took the action because Pratt & Whitney’s International Aero Engines were supplying an increasing number of defective engines. This forced the airline to suspend 25 aircraft, or roughly half of its Airbus A320neo fleet as of May 1, 2023.
• According to the airline, the engine supplier has failed to repair these engines and/or provide sufficient spare leased engines as required by its obligations under the applicable agreements.

National Company Law Tribunal (NCLT)

• About: The NCLT is a quasi-judicial authority established to deal with civil corporate disputes originating under the Companies Act.
•  It was founded on the advice of the V. Balakrishna Eradi committee.
• Primary Court: New Delhi
• Objectives: Issues decisions regarding Indian companies.
•  Under the Insolvency and Bankruptcy Code of 2016, the NCLT is responsible for adjudicating the insolvency resolution procedure for corporations and limited liability partnerships.
•  The NCLT bench consists of a President, 16 judicial members, and nine technical members.
• What are Voluntary Insolvency Proceedings?

• Voluntary insolvency indicates that the business has acknowledged that it is insolvent.
• It is a process in which a company declares it cannot pay its debts and requests assistance to resolve the situation. When a business becomes insolvent, it can enter voluntary liquidation.
• This procedure refers to the dissolution of a company with the consent of its shareholders and creditors. It is a time-bound procedure that must be concluded within 270 days of the date the Voluntary Liquidation was initiated.

Sequence of Steps under IBC

India’s Aviation Industry

• About:
•  India has become the world’s third-largest domestic aviation market and is expected to surpass the United Kingdom as the world’s third-largest air passenger market by 2024. Additionally, Indian aviation contributed 5% to the GDP and created a total of four million employment.
• Advantages:

• The aviation industry provides global connectivity, which is essential for the development of international trade and commerce.
• By providing a comprehensive transportation network, it plays a vital role in promoting tourism. The promotion of the tourism industry benefits the economy and labor market as well.
• The aviation industry has played a significant role in natural disasters and even conflicts.

• Challenges to the Aviation Sector

• Financial: During the Covid-19 pandemic, the aviation industry faced severe financial difficulties.
• Infrastructure: Many airports in the United States are outdated and require modernization, while others are located in difficult-to-reach locations, which can cause congestion, delays, and safety issues.
• Skilled Workforce: The high cost of training is one of the primary obstacles to developing a skilled workforce. Aviation training is costly and necessitates substantial infrastructure and equipment investments.
• Due to high taxes and other levies, the price of ATF in India is among the highest in the globe.
• Given the possibility of terrorist attacks and other security threats, aviation security is an important concern for the industry.
• Environmental Issues: The aviation industry contributes considerably to greenhouse gas emissions, which contribute to global warming.

Source: IE

Artificial Intelligence Act of the EU

Tags: Paper  GS3/ Science & Technology, Information Technology

In News

• The European Parliament obtained a preliminary agreement on a new draft of the ambitious Artificial Intelligence Act of the European Union.

Provisions of the Act

• Aims:

• Bringing transparency, trust, and accountability to artificial intelligence, and establishing a framework to mitigate risks to the EU’s safety, health, fundamental rights, and democratic values.
• Strike a balance between promoting the adoption of artificial intelligence and mitigating or preventing the evils associated with certain applications of the technology.

• Provisions:

• Act defines AI as “software developed with one or more of the techniques that can, for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations, or decisions affecting the environments in which they interact.” It identifies artificial intelligence (AI) tools based on machine learning and deep learning, knowledge- and logic-based approaches, and statistical approaches.
• The Act identifies four risk categories: unacceptable, elevated, limited, and minimal.
• The Act prohibits, with few exceptions, the use of technologies in the intolerable risk category. These include the use of facial and biometric identification systems in public spaces that operate in real time.
• The Act places a significant emphasis on artificial intelligence in the high-risk category, prescribing a number of pre- and post-market requirements for developers and users of such systems.AI used in healthcare, education, employment, etc. is included. Before releasing high-risk AI to the market, “conformity assessments” are required. In addition, it complies with mandatory post-market monitoring requirements, such as recording performance data and ensuring continuous compliance.
• AI systems in the category of limited and minimal risk, such as spam filters and video games, can be used with a few restrictions, such as transparency requirements.
• Generative AI systems, such as the language-model-based ChatGPT, will be required to disclose any copyrighted materials used in the development of their systems.
• The regulatory framework proposal of the EU states, “As artificial intelligence is a rapidly evolving technology, the proposal has a future-proof approach that allows rules to adapt to technological change.”

Global AI regulations

• AI Bill of Rights (AIBoR) of the United States as a guide or a compendium rather than a binding law.

China’s regulations target specific categories of AI and algorithms. It instructed businesses to “promote positive energy,” not to “threaten national security or the social public interest,” and to “explain” when they damage the legitimate interests of users.

• India: NITI Aayog has released a series of papers on Responsible AI for All. However, the government has no plans to pass a law or regulate the development of artificial intelligence in the country.”

Need of AI Regulation

• Omnipresence: AI is capable of conducting a vast array of tasks, such as voice assistance, music recommendation, car driving, cancer detection, etc.
• Black Box: Many AI tools are essentially black boxes, meaning that not even their designers can explain how they generate a specific output.
• Complex and inexplicable AI tools have already led to false arrests. GPT-4, for instance, is capable of generating versatile, human-competitive, and authentic-appearing content, which may contain inaccuracies and use the copyrighted works of others.
• Industry stakeholders, including Twitter CEO Elon Musk and Apple co-founder Steve Wozniak, signed an open letter requesting that AI laboratories halt the training of AI models more powerful than GPT-4 for six months, citing potential threats to society and humanity.

Challenges in AI regulation

• AI is a complex and swiftly evolving technology, making it difficult for regulators to comprehend its capabilities and potential risks. Occasionally, even developers are unable to elucidate the operation of an algorithm.
• Privacy and security: The ability of AI systems to collect, store, and analyze enormous quantities of personal data raises privacy and security concerns. Companies criticize transparency requirements out of concern that it could lead to the disclosure of trade secrets.
• Accountability: It can be difficult to hold individuals or organizations liable for the actions of AI systems, especially if the systems are autonomous and constantly changing.
• International coordination: Because AI is a global technology, effective regulation requires international coordination. However, various nations may have distinct regulatory approaches and priorities.

Way forward for AI Regulation

• Compliance is central to the implementation of policies. Policymakers should consider how regulations and implementation mechanisms could be modified to reduce innovation-related costs and obstacles without compromising safety or the public interest.
• Multi-stakeholder approach: Artificial intelligence can be a major driver of economic growth and social progress if industry, civil society, government, and the public support the development of the technology and implement checks and balances to assure accountability.
• International cooperation: In the context of numerous interdependent technological applications and the global reach of AI technology, international engagement and cooperation, as well as regulatory harmonization, are essential.

Source: TH

Navratna Status was given to Rail Vikas Nigam Limited (RVNL).

Tags: Pepar GS3 / Indian Economy & Related issues

In News

• Rail Vikas Nigam Limited (RVNL), a Ministry of Railways Central Public Sector Enterprise, has been granted Navratna Status.In September 2013, the company was accorded Mini-Ratna status.

About RVNL

• RVNL was incorporated as a PSU in 2003 with the following functions: undertaking project development and execution of works spanning the entire project life cycle.
• Creating Project-specific SPVs for specific operations, if necessary.
• Upon completion of a Railway project by RVNL, its operation and maintenance will be assumed by the relevant Zonal Railway.

Benefits of Navratna status

• When a company achieves Navratna status, its financial and operational independence are expanded.
• It enables the company to invest up to Rs 1 trillion, or 15 percent of its net worth, in a single project without government approval.
• They will also be permitted to establish joint ventures, alliances, and overseas subsidiaries.

Source: PIB

MSTPP, or Maitree Super Thermal Power Plant

Tags: Paper: GS 3/Energy

In News

• Maitree Super Thermal Power Plant (MSTPP) in Bangladesh represents NTPC’s first international capacity expansion.

About Maitree Super Thermal Power Plant (MSTPP)

• The location of the Maitree Super Thermal Power Plant (MSTPP) is Rampal, Mongla, Bagerhat, Bangladesh.
  • NTPC has recently added Unit-1, a 660 MW capacity of the 1320 MW (2×660) o The addition brings NTPC’s total installed capacity to 72304 MW.
  • This demonstrates the company’s global reach and commitment to providing dependable and sustainable power.
  • The project was executed in collaboration with the Bangladesh-India Friendship Power Company Pvt Ltd.

NTPC

• Founded in 1975, NTPC aspires to be the world’s largest and finest power major.
• It is India’s largest power utility, with an installed capacity of 72,304 MW (including joint ventures), and plans to become a 130 GW company by 2032.
• It has well-integrated Rehabilitation & Resettlement and Corporate Social Responsibility (CSR) policies with its primary business of establishing power projects and generating electricity.
• It became a Maharatna company in May 2010.
• It is the second-ranked Independent Power Producer(IPP) on the Platts Top 250 Global Energy Companies list.

Source: ET