Daily Current Affairs UPSC 28 May 2024

Gold Backed Currency

Zimbabwe has recently introduced a new currency called ZiG, which is backed by gold.

Gold backed currency:

• Gold backed currency is a type of currency that has a fixed value directly linked to gold and can be converted into gold.
• The money supply of gold backed currency is limited by the available gold reserves.
• This type of currency has inherent value and has the potential for stability in the long run.

Fiat currency:

• Fiat currency is a type of currency that lacks intrinsic value and is established as legal tender by the government.
• The value of fiat currency is determined by supply and demand and is not supported by any physical commodity.
• Fiat currency gives central banks more control to print the required money.

Narva River

A new conflict has arisen between Russia and Estonia over the removal of navigation markers on the Narva River, which serves as a border between the two nations.

Dispute between Russia and Estonia over Narva River navigation markers

• Narva River is located in the Baltic Sea basin.
• It is on the eastern part of Estonia and the northwest part of the Russian Federation.
• Important transboundary water bodies in the Narva River basin include Lake Peipsi and the Narva reservoir.
• The river connects Lake Peipsi with the Gulf of Finland in the Baltic Sea.

Article 329(b)

• The Election Commission recently used Article 329(b) in the Supreme Court to limit judicial intervention in the electoral process.

Article 329 (b)  

• Article 329(b) states that elections to Parliament or State Legislatures can only be challenged through an election petition in accordance with laws made by the appropriate Legislature.
• The Supreme Court, in the Ponnuswamy judgment of 1952, ruled that once the Election Commission notifies the court of an election process, the court cannot interfere.

Linear Accelerator

• The Society for Applied Microwave Electronics Engineering & Research (SAMEER) signed a Memorandum of Understanding (MoU) with industry for the exchange of Magnetic Resonance Imaging (MRI) technology and the transfer of Linear Accelerator (LINAC) technology.

About Linear Accelerator (LINAC)

• LINAC is a device used for external beam radiation treatments for cancer patients.
• It accelerates electrons using microwave technology, which then collide with a heavy metal target to produce high-energy x-rays.
• The high-energy x-rays are directed at the patient's tumor to destroy cancer cells.

About SAMEER

• SAMEER is an autonomous Research & Development laboratory located in Mumbai.
• It operates under the Ministry of Electronics and Information Technology.

Eucalyptus Tree

Kerala Government Allows Planting of Eucalyptus Trees by Kerala Forest Development Corporation.

About Eucalyptus

• Belongs to the myrtle family and is native to Australia, Tasmania, and nearby islands.
• Most species are evergreen.
• Planted mainly for fuel wood, also used for furniture, paper, and pulp.

Concerns Related to Eucalyptus Trees

• Extensive water users and contribute to soil depletion.
• Foliage is toxic if ingested by animals and humans.
• Oil gives off flammable fumes that can be ignited by lightning or sparks.

Carbon Fiber

• Vice President inaugurates Centre for Carbon Fiber and Prepregs at National Aerospace Laboratories in Bengaluru.
• Carbon Fiber: 

1. 1.  Form of graphite consisting of thin, strong crystalline filaments of carbon.
   2. Properties include stiffness, strength, lightness, chemical resistance, heat tolerance, low thermal expansion, and recyclability.
   3. Applications in manufacturing components for automobiles, aircraft, etc.

• Prepregs:

Reinforcing fabric pre-impregnated with a resin system (thermoset or thermoplastic).

Committee on Import Licensing (CIL)

Overview of the Concerns Raised by Japan and China

• Japan and China have formally raised concerns over India's laptop import licensing measure that was announced in August last year but later reversed.
• The concerns were brought to the attention of the WTO's Committee on Import Licensing (CIL).

Role of the Committee on Import Licensing (CIL)

• The CIL was established under Article 4 of the Agreement on Import Licensing Procedures (ILP Agreement).
• The ILP Agreement aims to reduce discrimination and administrative discretion in import licensing procedures.
• The CIL supervises the implementation of the ILP Agreement.
• The committee's work focuses on reviewing specific trade concerns and ensuring transparency in import licensing procedures.

Nyishi Tribe

1. Kabak Yano makes history as first Nyishi woman to conquer Mount Everest.

2. Nyishi Tribe background.

1. Largest ethnic group in Arunachal Pradesh.
2. Believed to be descendants of Abo Tani.
3. Part of Tani Group of Tribes.
4. Not based on caste system or classes.
5. Polygyny practiced.
6. Longte festival celebrated.

Rash Behari Bose(1886-1945)

Remembering Rash Behari Bose on his birth anniversary

• Rash Behari Bose was a prominent revolutionary leader in India's freedom struggle.
• Born in Bardhaman district in Bengal.
• Inspired by the French Revolution of 1789.

Key Contributions of Rash Behari Bose

• Active member of the Yugantar group of revolutionaries under Motilal Roy's leadership.
• Acted as a link between revolutionaries in Punjab, United Provinces, and Bengal.
• Involved in the Delhi Conspiracy case in 1912.
• Founded the Indian Independence League in Tokyo in 1942.
• Played a key role in the Ghadar Movement and the formation of the Azad Hind Fauj (Indian National Army).

Values upheld by Rash Behari Bose

• Patriotism.
• Leadership.
• Courage.
• Perseverance.

"India's Trade Deficit with Top Trading Partners"

• India had a trade deficit with 9 out of its top 10 trading partners.
• Trade deficit occurs when a country's imports exceed its exports.

Current Status of India's External Trade

• China, USA, UAE, Russia, and Saudi Arabia are India's largest trading partners.
• India's trade deficit with China, Russia, South Korea, and Hong Kong increased, while it narrowed with UAE, Saudi Arabia, Indonesia, and Iraq.
• India has a trade surplus with USA, Netherlands, UK, Belgium, and Italy.

Impact of Higher Trade Deficit on Economy

Negative

• Depletion of Forex reserves due to excess imports.
• Widening current account deficit may affect credit rating and raise borrowing costs.
• Strategic implications for essential products or critical sectors.

Positive

• Access to wider range of goods.
• Increased domestic investment if deficit is driven by imports of capital goods.

Factors contributing to India's trade deficit:

• Reliance on imported inputs like crude oil and pharmaceutical ingredients.
• Changing consumption patterns leading to increased demand for consumer durables and luxury goods.
• Structural factors such as slow growth of the manufacturing sector, high logistics costs, and infrastructure bottlenecks.
• Domestic policies like inverted duty structures and frequent bans on exports of commodities.
• Other factors including underutilization of Free Trade Agreements and non-tariff barriers imposed by developed countries.

Cyclonic Storm 'Remal' Hits West Bengal and Bangladesh

1. Oman chose the name 'Remal' which means 'sand' in Arabic for a tropical cyclone that formed in the Bay of Bengal.

2. About Tropical Cyclones.

• Rapidly rotating storms originating over tropical oceans.
• Known as Cyclones, Hurricanes, Typhoons, and Willy-willies in different regions.
• Energy from condensation in cumulonimbus clouds around the storm centre.
• Eye is a calm region with subsiding air.
• Dissipate when they reach land.

3. Favourable Conditions for Tropical Cyclones.

• Sea surface temperature above 27°C.
• Presence of Coriolis force.
• Not formed near equator due to absence of Coriolis force.
• Small variations in vertical wind speed.
• Pre-existing weak low-pressure area.

4. IMD's Colour Coded Weather Warnings.

• Green: Pre Cyclone Watch (72 hours in advance).
• Yellow: Cyclone Alert (at least 48 hours in advance).
• Orange: Cyclone Warning (at least 24 hours in advance).
• Red: Post Landfall Outlook (at least 12 hours in advance).

5. Naming Process of Tropical Cyclones by WMO.

• The World Meteorological Organisation (WMO) has implemented a naming process for tropical cyclones.
• The Tropical Cyclone Regional Body (TCRB) for each ocean basin prepares a list of cyclone names.
• The WMO/ESCAP Panel on Tropical Cyclones, a TCRB, assigns names to tropical cyclones in the North Indian Ocean.
• Member countries of the panel include Bangladesh, India, Maldives, Myanmar, Pakistan, Sri Lanka, Oman, Thailand, Iran, Qatar, Saudi Arabia, United Arab Emirates, and Yemen.
• Each member country provides a list of 13 names that are used sequentially for naming tropical cyclones.

 "Neolithic Rock Carvings Discovered in Mauxi Village, Goa"

Rock carvings along the Zarme river. Carvings of animals and footprints found on meta basalt rock. Depictions of zebus, bulls, antelopes, and cupules.

Prehistoric rock paintings in India:

Upper Palaeolithic Period

• Earliest paintings in India reported from this period.
• Linear representations of animals like bison, elephants, tigers, and stick-like human figures.
• Sites: Bhimbetka, Jwalapuram.

Mesolithic Period

• Largest number of paintings from this period.
• Human scenes of hunting and community dances.
• Naturalistic animal paintings and stylistic human figures.
• Sites: Pachmarhi, Adamgarh Hills.

Neolithic-Chalcolithic Period

• Pottery and metal tools depicted with less vividness and vitality.
• Predominant colors of white and red, possibly from haematite and limestone.
• Men shown as adventurous, animals depicted as youthful and majestic.
• Sites: Chambal region, Daimabad.

Significance of Prehistoric Rock Paintings:

• Artistic significance: Prehistoric rock paintings show the desire of early humans to express their experiences through art.
• Social significance: These paintings depict scenes of family life and daily activities like hunting, music, and animal fighting.
• Cultural significance: The paintings show details of clothing, food habits, and ritual practices such as community dancing and religious ceremonies.
• Environmental significance: The rock paintings include depictions of animals like horses, elephants, and bison, as well as the vegetation of the region.

"NASA's Climate Satellite Measures Polar Heat Loss"

• NASA has launched one of the two climate satellites for the PREFIRE mission.
• The PREFIRE Mission consists of two CubeSats to measure heat radiation from the Arctic and Antarctica.
• Mission will help scientists understand the Earth's heat budget and its impact on climate.

Heat Budget of the Earth

• Balance between incoming heat from the Sun and outgoing heat into space.
• Factors like Green House Gas emissions, ozone layer depletion, and melting glaciers can disrupt the heat budget.

Impact of Imbalance of Heat Budget

• Accumulated heat in Earth's components fuels global warming.
• Melting ice reduces Earth's albedo, leading to less solar energy reflection.
• Excessive heat absorption by oceans affects Oceanic Circulation like the Atlantic Meridional Overturning Circulation.

Introducing the 'Squad': US's New Minilateral Grouping

• US secretary of defence met Australian, Filipino, and Japanese counterparts to launch 'Squad' as new security arrangement.
• Growing importance of minilateralism in international relations.

About Minilateralism

• Small groups of nations collaborating to tackle problems or pursue mutual goals.
• Informal, flexible, voluntary frameworks with varied interests, shared values, or capabilities.

Reasons for rise of minilateralism

• Dysfunctional multilateral institutions lead to lack of consensus and gridlock.
• Minilaterals are more flexible and agile, allowing quicker decision making.
• Issue-based cooperation allows like-minded countries to come together on specific issues.
• Changing 'Balance of Power' with emergence of aggressive China leading to groupings like QUAD, AUKUS.

Concerns with rising Minilaterals:

• Legitimacy and inclusiveness: The lack of inclusiveness in rising Minilaterals can undermine the interests of countries in the Global South, potentially leaving them out of important decision-making processes.
• Limited resources and capabilities: Smaller groups may not have enough collective resources to effectively address complex global challenges like Climate Change, leading to potential gaps in addressing these issues.
• Tensions and divisions among countries: The potential for exclusionary bloc politics to develop within Minilaterals could create tensions and divisions among countries, particularly in areas of strategic cooperation.
• Accountability and transparency: The less formal structure and processes in Minilaterals raise concerns about inadequate democratic oversight, potentially leading to decisions being made without proper accountability and transparency.

"10-Year Sovereign Bond Yield Hits Near 1-Year Low"

The decrease in Sovereign Bond Yield can be attributed to the recent transfer of a historically high dividend payout of Rs 2.11 lakh crore from the RBI to the Government. This will bolster the government's financial position. Additionally, a drop in crude oil prices has boosted market sentiment and increased interest in buying bonds. As a result, bond prices have risen and yields have decreased.

Sovereign Bonds

• Sovereign bonds are a type of debt instrument issued by governments to raise funds.
• These bonds can be issued in both foreign and domestic currencies.
• Investors who purchase sovereign bonds receive interest payments for a specified period and the face value of the bond upon maturity.

Importance of Sovereign Bonds for Governments

• Governments use sovereign bonds as a way to finance their expenditures, similar to taking loans from the market.
• Sovereign bonds are a preferred method for governments to raise funds.

Factors Affecting Yield of Sovereign Bonds

• Creditworthiness: The perceived ability of the issuing country to repay its debts affects the yield of sovereign bonds.
• Country Risk: External and internal factors such as unrest and wars can impact a country's ability to pay its debts, affecting the yield of sovereign bonds.
• Exchange Rates: Countries with volatile economies and high inflation rates may need to offer higher interest rates on their bonds compared to more stable countries.

Bond Yields

• Bond yield refers to the profit earned from investing in a bond.
• The relationship between bond price and yield is inverse.
• When the price of a bond increases, its yield decreases.
• On the other hand, when the yield increases, the bond price decreases.
• A decrease in government bond yields leads to lower borrowing expenses for the entire economy, as corporate borrowing rates are often based on sovereign debt yields.