September 16, 2023 | Your One-Stop Solution for Daily Preparation
Understanding the Triffin Dilemma | Explained
Explore the Triffin Dilemma: Unraveling the Conflict Between National Currency and Global Reserve Status. Discover the economic complexities and historical examples that underscore this fundamental challenge in the international monetary system.
Highlights of the Day
1. Foreign Trade Faces Headwinds as Exports Continue to Decline, Raising Concerns of Widening Deficit
In August, India's foreign trade faced ongoing challenges as goods exports contracted for the seventh consecutive month, while services exports dipped for the first time in over a year. This decline, albeit at a reduced rate, raised concerns about a widening current account deficit. While merchandise imports fell year-on-year, they surged compared to the previous month, resulting in a ten-month high goods trade deficit. The decline in exports was partly attributed to lower petroleum prices, although some sectors showed resilience. Despite these challenges, officials remain cautiously optimistic, citing improving commodity prices and positive signs in export orders. However, they stress the need for affordable credit, marketing support, and other measures to support struggling exporters, especially small enterprises [1].
2. CJI Unveils Initiative to Enhance Transparency in Supreme Court Judge Appointments
Chief Justice of India D.Y. Chandrachud has unveiled plans to enhance transparency in the collegium system for appointing judges to the Supreme Court. He revealed that a team of scholars and researchers has developed a platform to assess the top 50 judges in the country, considering them for Supreme Court appointments. This initiative aims to provide factual data for evaluating potential judges, addressing criticism of the collegium system's lack of transparency. While the specific selection criteria remain unspecified, the process seeks to identify judges based on their performance, judgments, and other parameters. The announcement was made during the Ram Jethmalani Memorial Lecture's centenary edition [2].
3. Tata Steel and UK Government Invest £1.25 Billion to Green Port Talbot Steelworks
Tata Steel and the UK government have announced a £1.25 billion investment to transition the Port Talbot steelworks in Wales from coal to lower-emission electric arc furnaces. The deal, which includes a £500 million government grant, aims to reduce direct emissions by 50 million tonnes over a decade and secure 5,000 jobs. However, the shift to electric furnaces could potentially put around 3,000 jobs at risk, as they are less labor-intensive. The project, expected to be operational within 36 months of regulatory approvals, aims to make Tata Steel UK more sustainable and profitable. Trade unions are advocating for more job security measures [3].
4. Lead Exposure Linked to 30% of Global Cardiovascular Disease Deaths in 2019, Study Finds
Lead exposure was responsible for approximately 30% of global cardiovascular disease deaths in 2019, totaling around 5.5 million fatalities, according to a study in The Lancet Planetary Health. This research suggests that global lead exposure has health and economic costs similar to fine particulate matter 2.5 (PM2.5) air pollution. Despite the phase-out of leaded petrol, lead exposure disproportionately affects lower-income countries, with 95% of health impacts observed in these nations. In 2019, lead exposure resulted in $6 trillion in global economic losses, equivalent to 7% of the global GDP, rising to 10% in low- and middle-income countries [4].
5. India Anticipates Record Edible Oil Imports Due to Severe Rainfall Shortage and High Demand
India is on track to witness record-high edible oil imports, possibly exceeding 16 to 16.5 million tonnes by October 2023. A historic August rainfall shortage, coupled with other factors, has boosted demand for edible oils. Data from The Solvent Extractors’ Association of India reveals a 35% increase in edible oil imports in August 2023 compared to the same period in 2022. Poor rainfall and falling domestic prices have fueled this surge. Imports of vegetable oils, both edible and non-edible, also rose by 33% in August 2023. India's aim for self-reliance in edible oils is challenged by its heavy reliance on imports [5].
Source: The Hindu | Indian Express | DownToEarth
Practice Questions for Prelims
Q1: Which of the following statements about "Blockchain technology" is accurate?
I. Blockchain is a centralized ledger system, primarily used by governments to store sensitive information.
II. It relies on a network of computers (nodes) to validate and record transactions in a decentralized and secure manner.
III. Bitcoin is an example of a blockchain application used exclusively for digital currency transactions.
A) I only
B) II and III
C) I and III
D) II only
Q2: Which of the following statements regarding "Microplastics" is correct?
I. Microplastics are synthetic polymer particles with a size between 1 micrometer and 5 millimeters.
II. They are primarily found in marine environments but not in freshwater bodies.
III. Microplastics are not a significant concern for aquatic ecosystems.
A) I only
B) II only
C) I and III
D) None of the above
Q3: Examine the following statements about the "Nuclear Suppliers Group (NSG)":
I. NSG is a group of countries that seeks to prevent nuclear proliferation by controlling the export of nuclear materials and technology.
II. India is a member of NSG, which allows it to engage in nuclear trade without restrictions.
III. NSG was established following the nuclear tests conducted by India and Pakistan in 1998.
Choose the correct combination:
A) I and II
B) II and III
C) I and III
D) I only
Q4: Which of the following statements about "Electoral Bonds" in India is correct?
I. Electoral Bonds were introduced to promote transparency in political funding.
II. These bonds can be purchased only by individuals, not by companies or other entities.
III. The identity of the donor is not disclosed to the public or the Election Commission.
A) I and II
B) II and III
C) I and III
D) III only
Q5: Consider the following statements about "Panchayati Raj Institutions (PRIs)" in India:
I. PRIs are local self-government bodies established under the 73rd Amendment Act of the Constitution.
II. They have the power to prepare and implement plans for economic development and social justice.
III. PRIs exist only at the district level in India.
Select the correct combination:
A) I and II
B) II and III
C) I and III
D) I, II, and III
Today’s Question for Mains Answer Writing
Examine the impact of digital currencies on traditional financial systems and the economy. Discuss the regulatory challenges they pose and suggest measures for their effective integration into the mainstream financial ecosystem. (Word limit: 250 words)
Need help in writing or evaluation?
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