-
Volume 3
Introduction
The volume 2 of the economic survey covers issues of topics like Climate change, trade policy, Trans Pacific Partnership and miscellaneous sectors.
Climate change and sustainable development:
21st Conference of Parties in Paris in December 2015 was held to frame an agreement for post 2020 period for countries to take action against climate change. A new set of Sustainable Development Goals [SDG] with 17 goals with 169 targets were adopted in 2015 to replace Millennium development goals. These have to be achieved by the next 15 years.
India has adopted a self determined target of reducing emission density of its GDP by 33% by 2030 compared to 2005 levels. Secondly to install 40% of its installed power capacity from non fossil based fuels. Create a carbon sink of 3 billion tones of CO2 equivalent by additional forest cover till 2030.
China is highest polluter in terms of emissions and USA is highest in terms of per capita emissions.
21st COP was of the UNFCCC [united nations framework convention on climate change] and it wanted an agreement to be followed by all countries unlike the Kyoto protocol. Here the bottom up approach was advocated with each country asked to determine its own emission reduction target.
1. Common but differentiated responsibilities: All nations have to bear responsibility and work towards reducing emissions.
2. National determined contributions: parties are required to provide their emission reduction targets and update these every 5 years.
3. Mitigation: The peak value of emissions should be reached faster however this should be different for developed and developing countries. Developed countries were asked to support developing countries for implementation as this would help the developing countries keep an increased reduction target.
4. Adaptation: To build resilience to climate change and reduce vulnerability adaptation support would be needed by developing countries.
5. Finance: Developed countries should provide support financially to developing countries for adaptation and mitigation.
6. Technology development and transfer: Collaborative approach to research and development and access to technology.
7. Transparency: Information provided by all countries shall be technically reviewed unlike Kyoto protocol where developing countries provided data and it was
India has launched a International solar alliance – a platform of solar energy rich countries to collaborate and develop commonly agreed approach.
Fig 1: Paris COP
Global Climate Fund: UNFCCC has created it and it is the largest fund with pledged resources of $10 billion by developed countries to developing. USA is the highest pledged donor.
Global Environment facility: Setup in 1992 after the biodiversity and climate change conventions of Rio De Janeiro. It provides funds for both Climate change adaptation and mitigation
Trade Policy 2015 – 2020
Aim: to increase Indian exports to $900 billion
1. Merchandise export from India scheme: notified exports to notified markets
2. Service export from India scheme: incentives to service providers in India
3. Capital goods if sourced from Indian manufacturers the export obligation is reduced to 75%.
4. Faster and paperless communications with committees of Director general of free trade.
5. Mandatory documents for import / export are reduced to three and electronic payments for application fee now available.
6. Single window customs clearance to promote fast trade
10th ministerial conference at Nairobi, Kenya [held for the first time in an African nation]. The decisions taken were to move towards abolishing export subsidies in developed nations, public stockholding for food security purposes, preferential treatment to Less developed countries [LDC].
Official YouTube Channel of UPSCFEVER - #1
Trans-Pacific Partnership and its implications for India:
1. Indian imports could increase by $10 billion and exports by $5 billion if India becomes a part of the extended free trade agreement being considered by Asia Pacific Economic cooperation.
2. India's export share to USA and Europe might shift to other TPP countries like the textile and apparel business to Vietnam.
3. Openness of Indian economy to services and trade is less compared to TPP countries and India will have to lower its tariff rates to be competitive.
4. Domestic manufacturing would face severe competition if tariff barriers are removed.
5. Government procurements for achieving social and economic objectives and employment generation will have to be removed.
6. Stricter IPR rules shall affect generic medicine market of India.
7. Flexibility of countries to impose export restrictions on food shall affect government during food scarcity.
8. Labor norms shall become more stringent and increase cost of production
9. Environmental norms shall be tightened to prevent subsidies to fishery sector. This affects Indian governments programs
Recent updates about the Trans Pacific Partnership
TPP was the largest trade pact and the most ambitious in terms of engagement. It was to be signed between US and 11 other Pacific rim nations and would have reduced tariff for trade between these nations. The impact of this would have felt to 800 million people in these 12 nations and would have benefitted around 40% of the world trade. A single market would have been created on the line of the European Union.
TPP was first agreed during the 2005 APEC summit and after painstaking negotiations would have become a reality. However the deal needs to be ratified by the US Congress to be implemented in US. However the withdrawal of the US shall make the pact less attractive.
The goods and services would have become cheaper as customs duties would have been removed. The members of TPP would have got greater access to each others markets. The goods of other countries would have become less competitive and so the TPP was highly beneficial.
However some studies had said that the TPP wouldn’t have benefitted larger , developed nations as manufacturing jobs would go to cheaper nations. The US was interested in this pact as it had the potential to increase the influence of US in the Pacific rim as a counter to China. The TPP would have ensured that the laws in force regarding labor, intellectual property rights and environment would be applied to all members of the TPP.
Thus the TPP would have standardised trade and manufacturing in these nations to US Standards. But now with the withdrawal of US, there is a need for another large economy to step and be a part of the pact. China seems to be interested in this and thus the withdrawal of US has given a chance to China to increase its influence in the Pacific rim region.
Miscellaneous:
Swachh bharat mission aims to make India free of open defecation by scientific management of municipal solid waste in 4041 statutory towns of the country by 2019.
National heritage city development and augmentation Yojana [HRIDAY]: preserving the soul and unique qualities of heritage cities.
Atal mission for rejuvenation and transformation [AMRUT]: development of basic urban infrastructure in 500 cities. Cities with population of 10 lakh and above can get 1/3rd of funding and rest can get ½ of the funding. Other funds have to be arranged by local governments or state governments.
Swadesh darshan for development of theme based tourism circuits. Pilgrimage rejuvenation and spirituality augmentation drive [PRASAD] for development and beautification of tourism sites. PRASAD targets dometic tourists with religious sentiments and to augment tourism infrastructure at tourist places.
Mission Indradhanush is for vaccination against 7 preventable diseases for all by 2020 viz. diphtheria, whooping cough, tetanus, polio, TB, measles and hepatitis B.
Official YouTube Channel of UPSCFEVER - #1
Chapter Review
Score more than 80% marks and move ahead else stay back and read again!