CARE 19th December 2024 Current Affairs

Current Affairs Reverse Engineering – Care (19-12-2024)

News at a Glance

Environment and Ecology:  ​ Sundarbans gets its first electric ferry — but is it a viable solution?

Science and Technology: Making affordable generics more reliable

Economy: Wealth tax in India will boost economic growth — roadblock is political will

Uncertainty of poverty definiton

Polity and Governance: Electronic distraction: On politics and the ‘EVM issue’

Sundarbans gets its first electric ferry — but is it a viable solution?

Source: Down-to-earth

https://www.downtoearth.org.in/energy/sundarbans-gets-its-first-electric-ferry-but-is-it-a-viable-solution

UPSC Syllabus Relevance: GS3 Environment and Ecology

Context: electric ferries in the Sundarbans

Why in News

The introduction of electric ferries in the Sundarbans is a significant step toward sustainable transportation, but its long-term viability depends on overcoming several challenges.

Key Highlights

1. Introduction of Electric Ferries: WWF-India, in collaboration with HSBC, has launched the pilot project for electric ferries in the Indian Sundarbans. These ferries are powered by lithium-ion rechargeable batteries, replacing fuel-inefficient diesel engines.
2. Geographical Context:
   • Sundarbans, a UNESCO World Heritage Site, comprises 102 islands with 54 inhabited.
   • The region’s complex waterway network is the lifeline for over 4.6 million residents.
   • Diesel-powered boats, heavily used for transportation and tourism, contribute significantly to pollution and ecosystem degradation.
3. Pilot Implementation:
   • A retrofitted diesel boat now operates with an electric motor and battery.
   • Savings of approximately ₹500/day for boat operators due to reduced fuel costs.
   • WWF-India has set up a dedicated charging station at Kshetra Mohanpur.

Benefits of Electric Ferries

1. Environmental Benefits:
   • Reduction in greenhouse gas (GHG) emissions and oil spills.
   • Improved air and water quality, vital for the fragile mangrove ecosystem that protects against climate impacts.
2. Cost Efficiency:
   • Lower operational and maintenance costs compared to diesel boats.
   • Reduced dependency on fluctuating diesel prices.
3. Energy Efficiency:
   • EVs, even with grid electricity, are more energy-efficient and produce lower emissions than diesel engines.

Challenges

1. Power Infrastructure:
   • Frequent power outages during cyclones and other emergencies.
   • Limited renewable energy sources for charging stations.
   • High electricity tariffs in West Bengal (₹7/kWh) compared to other states like Delhi (₹3–6/kWh).
2. Financing and Affordability:
   • High initial costs for electric ferries and limited subsidies or affordable loans.
   • The need for a robust financing ecosystem to incentivize adoption.
3. Servicing Ecosystem:
   • Lack of widespread EV servicing infrastructure, especially in remote areas.
4. Energy Transition:
   • Grid electricity is still largely coal-dependent (75%), limiting the climate benefits of EVs.
   • Many abandoned solar projects need revival to supplement grid power.

Proposed Solutions

1. Renewable Energy Integration:
   • Deploy grid-connected or off-grid solar systems to power charging stations.
   • Focus on greening the grid and distributed renewable energy generation.
2. Climate-Resilient Infrastructure:
   • Design systems capable of operating independently during grid failures (e.g., battery energy storage systems).
3. Policy and Financial Support:
   • Expand EV subsidies, provide low-cost loans, and reduce tariffs for renewable energy-based electricity.
   • Strengthen state-level renewable energy targets (e.g., West Bengal to improve beyond its current 10% renewable share).
4. Awareness and Capacity Building:
   • Training for boat operators on EV maintenance.
   • Partnerships with private players to build EV charging and servicing networks.

Sundarbans

• The Sundarbans, located in the delta region of the Ganges, Brahmaputra, and Meghna rivers, is the largest mangrove forest in the world and a UNESCO World Heritage Site.
• Spread across India and Bangladesh, it is renowned for its unique ecosystem, which includes tidal waterways, mudflats, and small islands. The region is home to the iconic Royal Bengal Tiger, as well as other endangered species like the estuarine crocodile and the Indian python.
• The Sundarbans play a critical role in protecting coastal areas from cyclones and erosion, acting as a natural barrier against extreme weather events. Inhabited by millions, the region depends on fishing, honey collection, and eco-tourism for livelihood.
• However, it faces severe challenges such as climate change, rising sea levels, and biodiversity loss, necessitating urgent conservation efforts to preserve this fragile yet vital ecosystem.

Future Outlook

• India’s national renewable energy goals, including 500 GW capacity by 2030, align with the Sundarbans’ need for green energy.
• Initiatives like electric ferries offer a pathway toward sustainable mobility, but achieving this vision will require collaboration among stakeholders, innovative financing, and prioritizing renewable energy investments.
• If successful, the Sundarbans can become a model for climate-resilient transport systems in vulnerable regions worldwide.

CARE MCQ

UPSC PYQ

Q1. Consider the following statements regarding the Sundarbans: 1.  The Sundarbans Biosphere Reserve is a cluster of 102 islands connected by waterways, with 54 inhabited islands. 2.  The region is a UNESCO World Heritage Site and home to several globally endangered species. 3.  Diesel-powered motorboats are the only mode of transport in the Sundarbans. Which of the statements given above are correct? A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2, and 3

Q.   Consider the following protected areas: (2012) Bandipur Bhitarkanika Manas Sundarbans Which of the above are declared Tiger Reserves? (a) 1 and 2 only (b) 1, 3 and 4 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4 Ans: (b)

Answer – 1 – A Explanation – Statement 1 is Correct. The Sundarbans is a vast mangrove forest comprising a total of 102 islands, of which 54 are inhabited. These islands are interconnected by a network of rivers, creeks, and estuaries. Statement 2 is Correct. The Sundarbans is a UNESCO World Heritage Site and is home to globally endangered species such as the Royal Bengal Tiger, estuarine crocodile, and Gangetic dolphin. Statement 3 is Incorrect. While diesel-powered motorboats are a common mode of transport in the Sundarbans, they are not the only mode. Traditional wooden boats, ferries, and in some cases, walking or bicycling within islands, are also used. Therefore, option A is the correct answer.

Making affordable generics more reliable

Source: The Hindu

https://www.thehindu.com/opinion/lead/making-affordable-generics-more-reliable/article69000243.ece

UPSC Relevance:   GS3 Science and Technology

Context: Idiopathic Pulmonary Fibrosis (IPF)

Why in News

Ustad Zakir Hussain passed away at 73 due to Idiopathic Pulmonary Fibrosis (IPF)

Background

• Generic medicines play a pivotal role in ensuring healthcare affordability, particularly in countries with significant income disparities like India.
• These drugs are bioequivalent to their branded counterparts, offering cost-effective alternatives without compromising therapeutic efficacy.
• India has capitalized on economies of scale and low production costs to emerge as a global supplier of affordable medication.
• However, ensuring the quality of generics remains critical to maintaining public confidence and healthcare efficacy.

What is Generic Medicine?

• Generic medicine is a type of pharmaceutical drug that contains the same active ingredient as a branded or innovator drug and is designed to be bioequivalent to it.
• This means it delivers the same therapeutic effect, works in the same way, and provides the same clinical benefits as the branded version. However, generic medicines are usually sold at a much lower cost than branded drugs.

• The active ingredient, which provides the therapeutic effect, is identical in both generic and branded medicines.
• Generic medicines must meet bioequivalence standards, meaning their rate and extent of absorption in the body are within an acceptable range (typically 80%–125%) compared to the branded drug.

Contribution of Generics to Healthcare Accessibility

1. Cost-Effectiveness:
   Generic medicines are typically priced much lower than branded drugs, significantly reducing out-of-pocket healthcare expenditures, which stood at 39.4% of total health expenditure in India during 2021-22.
2. Government Initiatives:
   The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) has facilitated the distribution of affordable generics through dedicated outlets. By August 2024, the scheme saved consumers approximately ₹30,000 crore by selling generic medicines worth ₹5,600 crore over a decade.
3. Improved Treatment Adherence:
   The affordability of generics alleviates the financial burden on patients, encouraging adherence to prescribed treatments and better health outcomes.

The Challenges of Quality in Generic Medicines

Despite their affordability, the efficacy of generic medicines has come under scrutiny due to concerns about quality control. These challenges include:

1. Variability in Efficacy:

Studies, such as the one conducted by the Postgraduate Institute of Medical Education and Research (PGIMER), have highlighted discrepancies in the therapeutic outcomes of generic medicines compared to innovator drugs. For example:

• In the case of itraconazole, only 29% of patients on generics achieved therapeutic drug levels within two weeks compared to 73% using the innovator drug.
• Defects like unevenly sized pellets and suboptimal drug absorption mechanisms in generics contributed to delayed or inadequate therapeutic effects.

2. Factors Contributing to Variability:

• Excipients: Variations in binders, fillers, coatings, and disintegrants can alter the dissolution, stability, and delivery mechanisms of generics, leading to suboptimal drug release or absorption.
• Manufacturing Processes: Differences in granulation methods, compression force, and tablet porosity can affect the physical and chemical properties of the drug, resulting in inconsistent therapeutic outcomes.
• Bioequivalence Thresholds: Regulatory standards allow pharmacokinetic parameters to range between 80%-125% of the innovator drug’s efficacy. While acceptable for most drugs, this variability is problematic for drugs with a narrow therapeutic index, leading to potential safety risks.
• Stability Issues: Inadequate stability testing under diverse climatic conditions further undermines drug efficacy and shelf life.

Systemic Issues in India’s Drug Regulation

India’s regulatory framework for drug quality is plagued by systemic issues that compromise public trust in generics:

1. Decentralised Drug Regulation:

• Drug regulation in India is divided between the Central Drugs Standard Control Organisation (CDSCO) and State Drug Regulatory Authorities (SDRAs).
• SDRAs hold significant authority, leading to inconsistent enforcement of quality standards across states. Manufacturers exploit this fragmented system to operate under weaker regulatory oversight.
• Past committees like Bhatia (1954), Hathi (1975), and Mashelkar (2003) have consistently recommended centralisation, but these proposals remain largely unimplemented.

2. Inadequate Stability Testing:

• The CDSCO mandated stability testing in 2018, requiring manufacturers to demonstrate that drugs maintain their quality under specified climatic conditions. However, implementation has been inconsistent, and older generics approved before 2018 are not retrospectively tested.

3. Higher Drug Impurity Standards:

• India’s Pharmacopoeia permits higher impurity levels compared to international standards like those of the U.S. FDA or European Union. The rejection of stricter ICH (International Council for Harmonisation) guidelines on grounds of cost undermines India’s ability to ensure drug safety.

The Need for Reform

Addressing these challenges requires a multi-pronged approach:

1. Centralised Drug Regulation:

• States must relinquish control over drug regulation to establish uniform enforcement of quality standards.
• Strengthening the CDSCO with increased resources, personnel, and authority is essential.

2. Enhanced Stability Testing:

• Stability testing protocols must be uniformly enforced across all generics, including retrospective applicability to drugs approved before 2018.
• Periodic reassessment of approved generics should be mandated to ensure compliance with updated standards.

3. Stricter Quality Standards:

• Aligning India’s Pharmacopoeia with international benchmarks will improve the quality of generics and enhance their credibility in global markets.

4. Comprehensive CDSCO Overhaul:

• The CDSCO must be reorganised to deliver robust regulatory safeguards through stringent protocols, regular inspections, and effective enforcement mechanisms.
• More central drug-testing labs should be established to ensure the timely evaluation of drug quality.

Balancing Affordability and Quality

• Generic medicines are indispensable for ensuring equitable access to healthcare. However, affordability must not come at the cost of quality.
• By centralising regulation, enforcing stricter standards, and ensuring robust quality control, India can enhance public confidence in generics and strengthen its position as a global leader in affordable healthcare.

CARE MCQ

UPSC PYQ

Q2 Consider the following statements regarding bioequivalence in generic medicines: 1.  Bioequivalence ensures that a generic medicine has the same therapeutic effect as a branded medicine. 2.  Bioequivalence thresholds typically allow pharmacokinetic parameters to vary between 80%–125% of the innovator drug. Which of the statements given above is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2

Q.   Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? (2019) Genetic predisposition of some people Taking incorrect doses of antibiotics to cure diseases Using antibiotics in livestock farming Multiple chronic diseases in some people Select the correct answer using the code given below. (a) 1 and 2 (b) 2 and 3 only (c) 1, 3 and 4 (d) 2, 3 and 4 Ans: (b)

Answer 2– A Explanation – Statement 1 is Correct: Bioequivalence means that a generic medicine delivers the same amount of the active ingredient into the bloodstream at a similar rate and extent as the branded (innovator) medicine under the same conditions. This ensures that the generic medicine has the same therapeutic effect as the branded medicine. However, while bioequivalence confirms therapeutic similarity, differences in excipients or manufacturing processes may sometimes lead to minor variability in outcomes for specific patients. Statement 2 is Correct: Regulatory agencies like the US FDA and India’s CDSCO permit bioequivalence ranges of 80%–125% for key pharmacokinetic parameters, such as Cmax (maximum concentration of the drug in the bloodstream) and AUC (area under the concentration-time curve). These thresholds account for minor variability in absorption and metabolism while ensuring that the generic drug remains therapeutically equivalent. However, this range can pose challenges for drugs with a narrow therapeutic index (NTI), where even small differences can affect efficacy or safety. Therefore, option A is the correct answer.

Wealth tax in India will boost economic growth — roadblock is political will

Source: Indian Express

https://indianexpress.com/article/opinion/columns/wealth-tax-in-india-will-boost-economic-growth-roadblock-is-political-will-9733091/?ref=opinion_hp

UPSC Relevance: GS3 Economy

Context: Wealth Tax and Inequality

Why in News

Wealth tax is considered a tool for reducing economic inequality by taxing the assets of the wealthiest individuals, redistributing the funds for public goods, and curbing speculative investments.

What is Wealth Tax?

• Wealth tax is a form of tax levied on the net wealth of individuals, families, or entities.
• This tax is usually imposed on the value of assets owned by a taxpayer, which could include real estate, stocks, bonds, business interests, and other financial assets, minus any liabilities such as debts.
• Wealth tax is generally calculated annually, and the rate can vary based on the value of the assets and the country’s specific tax laws.

Key Features of Wealth Tax:

1. Taxable Assets: Wealth tax typically applies to tangible and intangible assets such as:
   • Real estate (excluding a primary residence, in some cases)
   • Financial assets (stocks, bonds, savings, etc.)
   • Jewelry, art, and other valuable collectibles
   • Business interests or ownership in companies
2. Threshold: Countries often set a minimum threshold of wealth below which the wealth tax does not apply. For instance, only individuals whose net worth exceeds a certain amount are required to pay the tax.
3. Tax Rate: Wealth tax rates can vary significantly, ranging from 0.5% to 2% or higher, depending on the value of the wealth.

Wealth Tax and Its Relation to Inequality

Wealth tax is directly related to addressing economic inequality by redistributing wealth from the rich to the public sector, which can fund social programs aimed at reducing poverty and improving education, health, and infrastructure. Here’s how wealth tax impacts inequality:

1. Redistribution of Wealth:

• Reducing Wealth Concentration: Wealth tax targets the wealthy who own a disproportionate share of national wealth. In countries where the top 1% or 5% own a significant portion of the wealth, wealth tax can reduce this concentration by taxing accumulated assets, thus encouraging a more equitable distribution of wealth across the population.
• Funding Public Services: The revenue generated from wealth tax can be used to fund social programs, public goods, and services, such as healthcare, education, and social security, which disproportionately benefit lower-income groups. This can reduce poverty and improve overall living standards, helping to level the playing field.

2. Wealth Tax as a Tool to Address Economic Inequality:

• Addressing the Wealth Gap: In many economies, there is a growing disparity between the rich and poor. Wealth tends to accumulate at the top, while the majority of the population faces stagnant or low wages. Wealth tax targets the richest individuals who have significant assets but may not contribute their fair share in income taxes. By taxing their wealth, governments can increase public revenue, which can be used to reduce inequality.
• Reducing Speculation and Bubbles: Wealth tax could discourage speculative investments in the stock market and real estate, sectors that tend to benefit the wealthiest individuals. By taxing wealth held in these assets, the government can cool down asset bubbles and encourage investments in more productive sectors of the economy. This could lead to more job creation and higher wages for the broader population, reducing income inequality.

3. Impact on Black Income and Tax Evasion:

• Addressing the Black Economy: Wealth tax can also help reduce the black economy, or unreported income, by targeting assets that are often hidden or underreported. In many developing countries, wealth is held in informal or hidden forms, making it difficult for governments to tax them effectively. With digital records and greater transparency, wealth tax can help identify and tax assets that were previously not part of the formal economy, thus increasing the tax base and reducing inequality.

4. Promotion of Economic Growth:

• Encouraging Productive Investment: By imposing a wealth tax on non-productive assets (like luxury homes or stocks), individuals might be incentivized to invest in more productive assets, such as businesses, infrastructure, or innovation. This could drive economic growth and create more employment opportunities, benefiting the broader population and reducing income inequality over time.

Tax Collection and the Tax-to-GDP Ratio

• Union Budget 2024-25: The editorial highlights that the government’s estimated tax collection is 11.78% of the GDP, with 7% coming from direct taxes. When including state and local taxes, the total tax-to-GDP ratio reaches around 17%. This figure is relatively low compared to most other countries, where the ratio tends to be higher. A lower tax-to-GDP ratio means that the government has insufficient revenue to invest adequately in social sectors like education and health. This lack of investment ultimately leads to low productivity, low incomes, and weak demand, which in turn slows down economic growth.

Black Income and Inequality

• Black Income Generation: According to Oxfam, the wealthiest 1% in India earns 22% of the national income, and this share is expected to grow to 40% for the top 5%. This results in a highly skewed distribution of income. Despite reforms to broaden the tax base, the number of taxpayers remains low. Only 6.5% of the population (about 90 million people) pay taxes, and only 15 million are effective taxpayers. Additionally, half of the 90 million file nil returns, and the rest contribute negligible taxes.
• The article emphasizes that most of the black income comes from the top 3%, and if measures were taken to curb this, more tax revenue could be generated. The real challenge, however, lies in taxing services, the dominant sector in India’s economy, which remains inadequately taxed.

Wealth Tax as a Solution

• Wealth Tax: The editorial proposes the introduction of a wealth tax to address the issue of low tax collection. Unlike income, wealth (in the form of real estate, financial assets, and stocks) is more easily recorded and visible, making it easier to tax. The wealth of India’s richest is largely financial and often held in the stock market or real estate, which is often registered, even if under benami (proxy) ownership.
• The failure of wealth tax in India previously is attributed to the complicated design of the tax system, with concessions and loopholes that allowed the rich to evade it. With the advent of digital records, the editorial argues that wealth tax could be more effectively implemented today, provided there is political will.

Impact on the Stock Market and Wealth Valuation

• The editorial illustrates how a wealth tax could impact the stock market. For example, if the wealth tax were applied at 2%, it could reduce the value of stocks by affecting their price-to-earnings (P/E) ratio. In the case of Reliance Industries, where the current P/E ratio is 25, the editorial suggests that the wealth tax would lead to a lower return for shareholders, driving investment away from speculative assets (like stocks) and into safer instruments like bank fixed deposits.
• This would result in a decline in stock valuations, making speculative bubbles less likely and directing investment toward more productive sectors, which could potentially boost economic growth.

Wealth Tax Feasibility in India

• The editorial concludes that wealth tax is feasible in India, particularly with the infrastructure provided by digital records. If implemented correctly, it could raise substantial revenue for public goods and social services like education, healthcare, and infrastructure. This would lead to a more productive workforce, higher economic growth, and a reduction in inequality.
• Additionally, wealth tax could reduce the black economy, leading to higher tax collection and further boosting government revenue for social investments. The primary roadblock to its successful implementation is political will. The government would need to overcome resistance from powerful vested interests to make this tax a reality.

Potential Challenges of Wealth Tax:

1. Capital Flight: High wealth taxes could lead to the wealthy moving their assets abroad to avoid taxation, resulting in capital flight. This could reduce the funds available for investment in the country’s economy.
2. Asset Valuation: Determining the correct value of assets, especially intangible ones like art, businesses, or real estate, could be complex and lead to disputes or loopholes.
3. Administrative Challenges: The implementation of wealth tax requires a robust system of asset tracking and valuation. Without adequate infrastructure and political will, it can be difficult to effectively collect wealth taxes, especially in countries with large informal economies.

Conclusion:

• The editorial argues that wealth tax, if structured correctly, can be a solution to India’s low tax collection and income inequality. It provides a way to raise funds for essential public goods and services, stimulate economic growth, and reduce dependence on regressive indirect taxes.
• However, its success depends on the government’s ability to implement it effectively, which would require strong political will and a commitment to addressing the deep-rooted issue of black income generation.

CARE MCQ

UPSC PYQ

Q3. Consider the following statements regarding Wealth Tax: 1.  Wealth tax is levied on the net wealth of individuals, including assets such as real estate, stocks, and business interests. 2.  Wealth tax is universally applied to all assets, without any exemptions or thresholds. 3.  The revenue generated from wealth tax can be used to fund public goods and services, reducing income inequality. Which of the statements given above is/are correct? A. 1 only B. 1 and 3 only C. 2 and 3 only D. 1, 2, and 3

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (2016) (a) mining operation by multinational companies in resource-rich but backward areas (b) curbing of the tax evasion by multinational companies (c) exploitation of genetic resources of a country by multinational companies (d) lack of consideration of environmental costs in the planning and implementation of developmental projects Ans: (b)

Answer 3– B Explanation – Statement 1 is correct as wealth tax is levied on the net wealth, including various types of assets.  Statement 2 is incorrect because wealth tax usually applies above a certain threshold and may have exemptions.  Statement 3 is also correct as the revenue generated can be used for public services, which helps reduce inequality. Therefore, option B is the correct answer.

Uncertainty of poverty definition

Source: DownToEarth

https://www.downtoearth.org.in/governance/who-is-poor-in-india-rti-reply-to-dte-shows-government-uncertain-about-defining-poverty-no-data-on-bpl-households-since-2013

UPSC Syllabus Relevance: GS3- Economy

Context: Absence of a clear definition of poverty

Why in News

The Union government’s response to a Right to Information (RTI) query reveals significant gaps in official poverty data.

Overview

• The recent RTI response received by Down To Earth (DTE) raises significant concerns about the availability, clarity, and relevance of data regarding poverty in India.
• It highlights challenges in defining poverty, the methodology of estimation, and the lack of updated official statistics.

Lack of Updated Official Poverty Data

• Old Estimates Still in Use:
  The RTI response revealed that the Indian government still refers to poverty estimates from 2011-12, based on data from the 68th round of the National Sample Survey Office (NSSO). These estimates are a decade old and were calculated using the Tendulkar methodology, which measures poverty through monthly per capita consumption expenditure (MPCE).
• Outdated Poverty Line Thresholds:
  • Rural Areas: Rs 816 per person per month.
  • Urban Areas: Rs 1,000 per person per month.
  • For a family of five, the poverty line was Rs 4,080 in rural areas and Rs 5,000 in urban areas.
    These thresholds are outdated given inflation and changing socio-economic conditions over the past decade.
• 2011-12 Estimates:
  • Total BPL population: 270 million.
  • Rural BPL population: 216.7 million.
  • Urban BPL population: 53.1 million.
• Absence of Recent Data:
  No updated poverty survey or estimates of income-related poverty have been conducted since 2011-12, leaving policymakers to rely on outdated statistics for current poverty alleviation schemes.

Multidimensional Poverty Estimates

• Shift in Focus to Multidimensional Poverty Index (MPI):
  The RTI response referred to the National Multidimensional Poverty Index: A Progress Review 2023, prepared in collaboration with the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
• Progress in Multidimensional Poverty:
  • Between 2015-16 and 2019-21, 135 million people escaped multidimensional poverty.
  • Multidimensional poverty reduced from 24.85% (2015-16) to 14.96% (2019-21).
  • According to a 2024 discussion paper, MPI reduced further to 11.28% in 2022-23, with 248 million people escaping multidimensional poverty since 2013-14.
• Definition of Multidimensional Poverty:
  MPI measures poverty across three dimensions—health, education, and living standards—using 12 indicators such as nutrition, child mortality, years of schooling, access to drinking water, sanitation, and housing.
• Key Limitation:
  MPI does not include income or consumption expenditure data, which is a critical measure of poverty. Thus, while it highlights progress, it does not fully capture income-related deprivation.

Issues with Current Definitions and Policies

• No Official Definition of Poverty:
  The RTI revealed that India lacks a singular, official definition of poverty. While earlier estimates relied on consumption expenditure, the focus has now shifted to multidimensional indicators, creating ambiguity in defining the “poor.”
• Impact on Policymaking:
  • Flawed Targeting: Poverty alleviation schemes, such as the Public Distribution System (PDS), rely on outdated income-based poverty lines, potentially excluding deserving beneficiaries.
  • Lack of Clear Benchmarks: Without updated poverty data, assessing economic progress and designing effective social welfare programs becomes challenging.
• Inter-Ministerial Confusion:
  The Ministry of Statistics and Programme Implementation redirected the RTI query to NITI Aayog, which further suggested approaching state governments and other ministries. This reveals a lack of centralized accountability or updated records on poverty.

Key Methodologies in Measuring Poverty

• Tendulkar Methodology (Used in 2011-12):
  • Based on consumption expenditure, adjusted for inflation.
  • Used MPCE thresholds (Rs 816 rural, Rs 1,000 urban) to estimate the poverty line.
• Multidimensional Poverty Index (Recent Focus):
  • Considers broader dimensions beyond income, such as health, education, and living standards.
  • Provides a more holistic view of deprivation but excludes income and consumption data.

Implications for Poverty Alleviation Programs

• Mismatch Between Data and Reality:
  • The reliance on decade-old income-based poverty thresholds fails to capture the current socio-economic realities, including inflation and the rising cost of living.
  • Multidimensional poverty measures progress in non-income aspects but do not address economic deprivation directly.
• Risk of Flawed Policies:
  • Using outdated data undermines the effectiveness of welfare schemes like PDS, MGNREGA, and housing programs, as they may fail to account for the actual number of people living in poverty today.
• Need for Updated Surveys:
  • Regular consumer expenditure surveys and income-related poverty estimates are essential for accurate targeting of government programs.

Conclusion: The Way Forward

The RTI response underscores the urgent need for updated, comprehensive poverty data in India. Key recommendations include:

1. Conduct Regular Surveys:
   Revive and update the consumer expenditure surveys to capture income-related poverty statistics accurately.
2. Revisit Poverty Thresholds:
   Adjust poverty lines to reflect inflation and changing living standards.
3. Harmonize Data Collection:
   Establish a centralized system to consolidate poverty data across dimensions (income, health, education) and avoid inter-ministerial confusion.
4. Policy Adaptation:
   Base welfare schemes on updated and multidimensional poverty data to ensure effective targeting and impact.

The current reliance on outdated data risks excluding vulnerable populations from much-needed social benefits, ultimately undermining India’s developmental goals. Addressing these gaps is critical for ensuring that poverty alleviation policies are effective and equitable.

CARE MCQ

UPSC PYQ

Q4.  Which of the following statements accurately reflects the challenges and methodologies related to poverty estimation in India? The Tendulkar methodology for poverty estimation focuses solely on income-based measures, ignoring non-monetary dimensions of poverty. The Multidimensional Poverty Index (MPI) provides a more holistic view by including factors such as health, education, and living standards but excludes income-related poverty. Official poverty data in India has not been updated since the 2011-12 National Sample Survey (NSSO) expenditure survey. a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2, and 3

Q. .In a given year in India, official poverty lines are  higher in some States than in others because (2019) (a)  poverty rates vary from State to State (b) price levels vary from State to State (c) Gross State Product varies from State to State (d) quality of public distribution varies from State to State Ans (b)

Answer 4- B Explanation Statement 1 is incorrect because the Tendulkar methodology does take into account consumption expenditure, which is a proxy for income, but it does not ignore other dimensions like basic consumption patterns. Statement 2 is correct as the Multidimensional Poverty Index (MPI) includes health, education, and living standards, focusing on broader poverty aspects, but it does exclude income-related measures. Statement 3 is correct because official poverty data in India has not been updated since the 2011-12 NSSO expenditure survey, and there has been a lack of new surveys for income-based poverty estimation. Therefore, option B is the correct answer.

­­­Electronic distraction: On politics and the ‘EVM issue’

Source: The Hindu

https://www.thehindu.com/opinion/editorial/%E2%80%8Belectronic-distraction-on-politics-and-the-evm-issue/article69000915.ece

UPSC Relevance: GS2 Polity and Governance

Context: issue of Electronic Voting Machines (EVMs) and Voter Verifiable Paper Audit Trail (VVPAT)

Why in News

The issue of Electronic Voting Machines (EVMs) and Voter Verifiable Paper Audit Trail (VVPAT) has been a subject of debate, with concerns over their transparency and security in elections.

EVM (Electronic Voting Machine):

An Electronic Voting Machine (EVM) is an electronic device used to conduct elections, replacing the traditional paper-based voting system. EVMs were introduced to make the election process faster, more efficient, and less prone to human error.

• How EVMs Work:
  • Voters cast their votes by pressing a button next to the candidate’s name on the EVM screen.
  • The machine records the vote digitally and stores it in an internal memory.
  • The votes are counted electronically after polling concludes, with results declared quickly.
• Controversies and Issues with EVMs:
  • Allegations of Manipulation: Over the years, there have been allegations that EVMs can be tampered with, leading to manipulated results. These claims usually arise after election defeats. Critics argue that the machine’s programming could be altered to favor certain candidates or parties.
  • Lack of Transparency: Since EVMs store votes digitally and the process is not easily visible to the public, there is a perception of a lack of transparency. This fuels doubts about the integrity of the election.
  • Malfunctioning or Errors: Instances of EVM malfunctioning or failing to register votes properly have been reported in some elections. While these are usually dismissed as technical errors, they can raise concerns among voters and political parties about the reliability of the machines.

VVPAT (Voter Verifiable Paper Audit Trail):

VVPAT is a system linked to the EVM that allows voters to verify that their vote has been cast correctly. It is a paper trail system designed to address concerns about EVM reliability and ensure transparency in the voting process.

• How VVPAT Works:
  • After a voter casts a vote on the EVM, a paper slip is generated showing the candidate’s name and the vote. The voter can view this slip through a transparent window before it is dropped into a sealed box.
  • The paper slip is used as a backup, in case of disputes or challenges about the EVM results.
• Issues and Challenges with VVPAT:
  • Verification Discrepancies: In some instances, voters have claimed that the paper trail (VVPAT) did not match the vote recorded on the EVM, leading to suspicions of malfunction or tampering.
  • VVPAT Counting Disputes: The VVPAT slips are not counted during the initial vote tallying process. However, they can be used for audit purposes in case of discrepancies. There have been debates about whether a sufficient number of VVPAT slips should be counted to ensure that the EVMs are functioning correctly.
  • Technical Issues: There have been cases where VVPAT machines malfunctioned or were not properly connected to the EVMs, resulting in some voters not being able to verify their votes.

Link Between EVM and VVPAT:

• The introduction of VVPAT was seen as a solution to the issues surrounding EVMs, particularly accusations of vote tampering. VVPAT provides a paper record that can be cross-checked in case of disputes, enhancing the transparency and credibility of the electoral process.
• However, despite the safeguards offered by VVPAT, concerns over the security and transparency of EVMs persist, with critics arguing that both systems need more rigorous checks and audits.

EVM Allegations and Their Legitimacy:

• EVM Manipulation Claims: Concerns have been raised about the potential for electronic tampering with EVMs after electoral defeats in recent elections. However, the editorial argues that there is no substantial evidence or credible basis for claims of EVM manipulation. No proof has been provided suggesting that EVMs are being manipulated remotely or through preprogramming.
• Contradictions in the Claims: The editorial contends that the logic behind EVM manipulation claims is flawed, especially when one considers the electoral results in various regions. Despite the dominance of one party in certain states, the party still failed to secure a majority in the 2024 general elections. This suggests that if EVM manipulation were happening, it would be highly inconsistent, which defies logical explanation.

Overlooking Other Election Integrity Issues:

• Manual Interference and Booth Capturing: While the focus on EVMs diverts attention from more pressing concerns, the editorial highlights the risks posed by old-style manual interference, such as booth capturing. In some areas, polling booths are dominated by one party, and polling agents from opposing parties are absent, which opens the door to manipulation. This issue is particularly relevant in constituencies where neutrality is compromised.
• Unexplained Voter Turnout Patterns: Another issue raised is the unexplained surge in voter turnout during the closing hours of polling. In certain instances, large turnouts have been recorded in the final hours, which has not been adequately explained by the Election Commission of India (ECI). These sudden spikes in turnout could indicate potential irregularities, but these concerns are being overshadowed by the focus on EVMs.
• Voter List Manipulation: The editorial also points to the growing pattern of large-scale additions and deletions of voter names from electoral rolls. Allegations have emerged about the selective removal of voters in certain regions. Such concerns about voter list management require more transparency, but they are often sidelined due to the ongoing EVM controversy.

Election Scheduling and Partisan Influence:

• Election Scheduling Concerns: The timing and scheduling of elections have been questioned. The editorial critiques the Election Commission’s decision to schedule recent state assembly elections in two phases, instead of conducting all elections together. This scheduling pattern has raised suspicions about the fairness and transparency of the process. A one-phase election would have been more consistent and less open to accusations of bias.
• Partisan Police Actions: Allegations of partisan police actions, where voters expected to vote against the ruling party were allegedly restrained, have further raised concerns about election fairness. Such actions, if true, could undermine the integrity of the election process, but these issues are overshadowed by the focus on EVMs.

Political and Institutional Accountability:

• The editorial stresses that while the focus on EVM manipulation might draw political attention, it risks overshadowing other serious issues that need to be addressed for a fair and transparent electoral process. These issues include voter list management, the possibility of booth capturing, and the potential misuse of electoral scheduling and policing.
• ECI’s Role: The editorial suggests that the Election Commission of India (ECI) needs to address these concerns with greater transparency. The ECI is generally seen as a neutral and credible body, but its handling of voter list discrepancies, unexpected voting patterns, and scheduling decisions has raised questions. The lack of satisfactory explanations on these matters only adds to the perception of irregularities, undermining public confidence in the electoral process.

Key Points:

• Focus on EVMs Diverts Attention: The focus on EVM manipulation is considered politically motivated, particularly when electoral defeats occur.
• No Substantial Evidence of EVM Manipulation: There is no credible proof suggesting that EVMs are being manipulated, and claims of such manipulation lack logical consistency.
• Election Integrity Issues Beyond EVMs: The editorial suggests that manual interference, voter list discrepancies, and election scheduling need more scrutiny.
• The ECI Needs to Be More Transparent: Greater transparency from the Election Commission of India is essential to maintain the credibility of the electoral process and address these concerns.

CARE MCQ

UPSC PYQ

Q5.  Consider the following statements regarding Electronic Voting Machines (EVM) and Voter Verifiable Paper Audit Trail (VVPAT): 1.  EVMs are used to record votes digitally, and the results are displayed electronically after polling ends. 2.  VVPAT is a system that generates a paper trail to verify the accuracy of votes recorded by the EVM. 3.  There have been allegations that EVMs can be tampered with, leading to concerns about the integrity of elections. 4.  VVPAT slips are always counted during the election results tallying process to ensure transparency. Which of the statements given above are correct? A. 1, 2, and 3 only B. 1, 2, and 4 only C. 2 and 3 only D. 1, 3, and 4 only

Q.    Consider the following statements: (2017) 1.  The Election Commission of India is a five-member body. 2.  The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections. 3.  Election Commission resolves the disputes relating to splits/mergers of recognised political parties. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 3 only Ans: (d)

Answer 5- A Explanation Statement 1 is correct: EVMs are used to record votes digitally, and results are counted electronically after polling. Statement 2 is correct: VVPAT is designed to generate a paper trail that allows voters to verify their vote. Statement 3 is correct: Allegations of EVM tampering have arisen, leading to concerns about the credibility of the election results. Statement 4 is incorrect: VVPAT slips are not always counted during the initial tallying process. They are used only in audit checks when discrepancies arise. Therefore, option A is the correct answer.

 

 

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