PM CARES Fund received Rs 912 crore contribution in year after Covid pandemic

Source: The Indian Express

Syllabus: GS II Polity and Governance

Context

The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) received contributions amounting to ₹912 crore during the financial year 2022-23.

About PM CARES Fund

Establishment and Administration

• Date of Establishment: March 27, 2020.
• Legal Framework: Registered under the Registration Act, 1908.
• Administrative Oversight: Directly administered by the Prime Minister’s Office (PMO).
• Management: Managed by honorary officials, including an Additional Secretary or Joint Secretary overseeing the fund.

Trustees and Advisory Members

• Ex-Officio Trustees:
  • Prime Minister (Chairperson).
  • Minister of Defence.
  • Minister of Home Affairs.
  • Minister of Finance.
• Nominated Trustees:
  • Justice K.T. Thomas (Retd.).
  • Kariya Munda (Former Deputy Speaker, Lok Sabha).
• Advisory Board Members:
  • Rajiv Mehrishi (Former Comptroller and Auditor General of India).
  • Sudha Murthy (Philanthropist and Author).
  • Anand Shah (Social Entrepreneur).

Objectives

The PM CARES Fund aims to address the following:

1. Public health emergencies.
2. Natural disasters and calamities.
3. Infrastructure creation for disaster management.
4. Funding research and relief efforts.

Features

1. Funding Sources:
   • Entirely financed through voluntary contributions from individuals, corporations, and organizations, both domestic and international.
2. Exemptions and Benefits:
   • Exempt from the provisions of the Foreign Contribution Regulation Act (FCRA).
   • Eligible for tax benefits under Section 80G of the Income Tax Act, 1961.
   • Contributions qualify as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
3. Focus Areas:
   • Strengthening healthcare infrastructure.
   • Providing assistance to individuals affected by emergencies.
   • Upgrading emergency response services.
4. Government Support:
   • Operates without direct budgetary allocation from the government.

Significance

The PM CARES Fund plays a pivotal role in enhancing national preparedness for emergencies by mobilizing resources and providing timely assistance. It exemplifies public-private collaboration in addressing critical challenges during crises. The fund’s transparent structure and focus on voluntary contributions reflect a collective effort to bolster India’s disaster management and relief capabilities.

How furry sea otters are saving California’s coastal ecosystems

Source: The Indian Express

Syllabus: GS III Environment and Wildlife

Sea Otters: Ecological Importance and Conservation

Context

A recent study underscores the ecological significance of the endangered southern sea otters in controlling invasive green crab populations at Elkhorn Slough, California. This highlights their role as a keystone species in marine ecosystems.

About Sea Otters

Classification and Habitat

• Taxonomy: Belong to the weasel family (Mustelidae).
• Scientific Name: Enhydra lutris.
• Geographical Distribution: Found along the Pacific Ocean’s coasts in North America and Asia.
• Habitat: Coastal waters, estuaries, kelp forests, and seagrass beds. They occasionally rest onshore.

Conservation Status

• IUCN Status: Endangered.

Physical and Behavioral Features

• Adaptations:
  • Webbed feet and water-repellent fur for thermal insulation and buoyancy.
  • Ability to close nostrils and ears while underwater, facilitating efficient foraging.
• Diet: Consumes up to 25% of its body weight daily, with a diet primarily comprising sea urchins, crabs, mollusks, and fish.

Role in Ecosystem Conservation

Keystone Species

Sea otters are crucial for maintaining ecological balance in marine environments. Their predatory behavior directly influences the health and stability of marine habitats.

Contributions to Marine Ecosystems

1. Kelp Forest Protection:
   • Sea otters prey on sea urchins, which, if unchecked, overgraze on kelp, leading to the destruction of these vital underwater forests.
   • Healthy kelp forests act as carbon sinks, mitigating climate change impacts.
2. Biodiversity Sustenance:
   • By controlling prey populations like green crabs and sea urchins, sea otters support a balanced food web, ensuring species diversity.
3. Seagrass Bed Restoration:
   • Indirectly contribute to the growth of seagrass beds by controlling populations of herbivorous invertebrates that feed on seagrass roots.

Conservation Challenges and Importance

• Threats: Habitat loss, oil spills, entanglement in fishing gear, and climate change.
• Significance: The ecological role of sea otters extends beyond their immediate habitats, influencing broader marine biodiversity and ecosystem services essential for human well-being.

Conclusion

The endangered status of sea otters necessitates urgent conservation efforts. Protecting these keystone species is pivotal not only for the preservation of marine biodiversity but also for sustaining ecological processes that benefit global environmental health.

Explained: Manmohanomics, in his own words

Source: The Indian Express

Syllabus: GS III Economic development

Manmohanomics: The Economic Vision of Dr. Manmohan Singh

Introduction

Dr. Manmohan Singh, an eminent economist and former Prime Minister of India, played a pivotal role in shaping India’s economic trajectory. His policies and reforms demonstrated a profound understanding of the country’s economic challenges and opportunities, earning him a distinguished place in modern Indian economic history.

Early Life and Academic Achievements

• Educational Background:
  • Earned a Tripos in Economics from Cambridge in 1957 and a DPhil from Oxford in 1962.
• Academic Contributions:
  • Served as a faculty member at the Delhi School of Economics (1969–1971), mentoring future policymakers and scholars.
• Policy Roles:
  • Held key positions such as Governor of the Reserve Bank of India and Deputy Chairman of the Planning Commission, contributing to macroeconomic planning and policy formulation.

Transition to Economic Liberalization

As Finance Minister (1991-1996):

• Economic Reforms:
  • Spearheaded transformative reforms that transitioned India from a closed, centrally-planned economy to a more open and liberalized market system.
  • Dismantled the Licence-Permit Raj, reducing bureaucratic hurdles and fostering private enterprise.

As Prime Minister (2004-2014):

• Economic Growth:
  • Oversaw India’s fastest economic growth phase, significantly reducing poverty and improving living standards.
• Challenges:
  • Faced criticism for corruption allegations and perceived “policy paralysis” during his second term.

Key Economic Principles and Insights

On Planning vs. Markets:

• Recognized the limitations of centralized planning without efficient public administration.
• Advocated for market-driven growth while acknowledging the need for state intervention in economies with underdeveloped infrastructure.

On Inequality and Wealth Redistribution:

• Warned against socio-economic disparities where a privileged elite enjoys luxury while the majority struggles for basic needs.
• Opposed populist policies targeting wealth redistribution, emphasizing trust between the government and private sector.

On Trade and Export Potential:

• Championed an open trade policy to harness the potential of export-led growth.
• Criticized early planners’ export pessimism, highlighting its role in driving economic development.

On Public Sector Enterprises (PSUs):

• Called for greater autonomy and accountability in PSUs to enhance efficiency and reduce losses.
• Highlighted the adverse impact of political interference, outdated technologies, and price controls.

On Education, Health, and Women’s Empowerment:

• Advocated for universal primary education, better healthcare, and women’s literacy to boost societal productivity.
• Stressed the importance of nutrition and sanitation to unlock India’s human potential.

Key Contributions to Economic Reforms

Economic Liberalization (1991):

• Introduced measures promoting fiscal discipline, reducing trade barriers, and attracting foreign investment.
• Emphasized the role of private enterprise in driving economic growth.

Focus on Governance and Public Policy:

• Advocated for institutional reforms to curb corruption and enhance administrative efficiency.

Legacy and Challenges

Achievements:

• Transformed India into a globally recognized economic power.
• His reforms catalyzed sustained economic growth and structural shifts in the economy.

Criticism:

• His later tenure as Prime Minister was marred by allegations of corruption and coalition compulsions, which led to policy stagnation.
• Accused of being overly accommodating to coalition pressures, impacting governance effectiveness.

Broader Impact

Dr. Singh’s economic policies laid the foundation for India’s modern economic framework, focusing on:

1. Balancing state intervention with market liberalization.
2. Promoting inclusive growth.
3. Undertaking long-term institutional reforms to ensure sustainable development.

Conclusion

Dr. Manmohan Singh’s pragmatic and visionary approach reshaped India’s economic landscape. His leadership during the liberalization era and his focus on reforms across governance, trade, and social sectors continue to serve as a cornerstone of India’s economic transformation. Despite the challenges of his later tenure, his legacy stands as a testament to informed and thoughtful policymaking, which remains relevant for India’s ongoing development journey.

RBI sets up 8-member panel on ethical use of AI

Source: The Indian Express

Syllabus: GS III Science and Technology

RBI Forms Panel for Responsible and Ethical AI Adoption in Financial Sector

Why in News?

• The Reserve Bank of India (RBI) has constituted an eight-member committee to establish a Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector.
• The committee, headed by Pushpak Bhattacharyya (IIT Bombay), will:
  • Assess global and domestic AI adoption in financial services.
  • Review regulatory frameworks.
  • Identify associated risks.
  • Recommend governance and compliance measures for ethical AI use.
• Supported by RBI’s fintech department, the committee is expected to submit its report within six months.

Ethical Use of AI in the Financial Sector

Background

• The integration of Artificial Intelligence (AI) in the financial sector has revolutionized operations, offering improved efficiency, decision-making, and customer experiences.
• Ethical AI use is essential to ensure trust, fairness, and compliance with regulatory standards.

Need for Ethical AI Use

1. Fairness and Non-Discrimination:

1. AI systems for credit scoring, loan approvals, and fraud detection must avoid biases.
2. Example: Biased algorithms denying loans to specific groups can lead to legal and reputational risks.
3. Solution: Use balanced training data to avoid perpetuating historical biases.
4. Transparency and Explainability:

2. Customers and regulators should understand AI decisions.
3. Example: Robo-advisors should provide clear justifications for investment recommendations.
4. Data Privacy and Security:

3. Compliance with data protection regulations like GDPR or India’s Personal Data Protection Act (2023) is crucial.
4. Example: AI-driven fraud detection systems should use anonymized datasets to protect identities.
5. Accountability and Oversight:

4. Human oversight is needed to address errors or ethical concerns in automated systems.
5. Periodic audits ensure system accountability.
6. Avoiding Over-Reliance on Automation:

5. Blending AI with human judgment is crucial for complex decision-making.
6. Example: AI flags potential investment risks, but financial experts make final decisions.

Steps Taken by India to Promote Ethical AI Use

1. Formation of RBI’s FREE-AI Committee:
2. A dedicated committee to ensure responsible and ethical AI adoption.
3. Regulatory Sandbox Initiatives:
4. RBI’s sandboxes foster innovation while addressing risks like bias, security, and transparency.
5. Guidelines on Data Privacy and Security:
6. India’s Personal Data Protection Act, 2023 mandates strict adherence to data protection norms.
7. MuleHunter.ai:
8. RBI’s AI/ML-based system to identify and tackle mule accounts used for financial fraud.
9. National Strategy on AI (NSAI):
10. NITI Aayog’s framework emphasizes responsible AI use across sectors, including finance.

Conclusion

Ethical AI use in the financial sector ensures innovation without compromising fairness, transparency, or security. By adhering to these principles and leveraging AI responsibly, financial institutions can maintain trust and deliver sustainable societal benefits.