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Tuesday, November 16, 2021

Every additional year of education increases person’s average income by about 6.7% in India: Study

 

The study also found that every rupee invested towards the completion of school education is expected to bring an economic benefit between Rs 4.5 and Rs 8.2 in terms of the future earnings of each individual.


Every additional year of education in India increases a person’s average income by about 6.7 per cent, according to a new study that noted this return is higher for girls than boys.

The study was commissioned by the NGO, Population Foundation of India, on why the government needs to invest in young people’s health, education and well-being.

Based on an analysis of secondary data, it was found that every additional year of education in India increases a person’s average income by about 6.7 per cent.

“This return is higher for girls than boys. Each additional year of education yields an 8.6 per cent increase in women’s monthly wages, while for men the number stands at 6.1 per cent,” it said.

The study also found that every rupee invested towards the completion of school education is expected to bring an economic benefit between Rs 4.5 and Rs 8.2 in terms of future earnings of each individual, it said.

The study pegs the total cost of establishing adequate mental health facilities for adolescents at Rs 8,134 crore over the next six years. According to the findings, another Rs 2,745 crore would be needed per year to cover the treatment costs.

It projects that the cost of providing iron and folic acid tablets to school-going adolescent boys and girls and out-of-school adolescent girls would cost roughly Rs 3,000 crore per year.

Speaking on mental health issues faced by adolescents, PM’s EAC Chairman Bibek Debroy said there was a serious lack of data given that most cases are under-reported due to the stigma around such problems.

He also talked about the need to act fast to realise India’s demographic dividend. “Beyond 2035, or thereabouts, India will begin to age. Even more important is that we get our policies on these people who are entering the labour market right,” said Debroy, who released the study on Monday.

Poonam Muttreja, the executive director of the Population Foundation of India, stressed the need for collaborative action between various arms of the government and civil society organisations to work towards adolescent development.

Source: Indian Express, 16/11/21

What Xi Jinping as president for life means for China and the world

 

China is on track to becoming a global super power but will their President Xi Jinping hold them down or help them to fly


China’s Central Committee holds seven plenums every five years and its most recent, which concluded on Thursday, raises several questions surrounding the future of the Chinese Communist Party (CCP) and its Chairman, Xi Jinping. Xi appears to have an ironclad grip on the CCP and China, positioning himself as the presumed leader of the country indefinitely.

In 2016, Xi was declared a “core” leader of the CCP, a title that has only been conferred upon three other Chinese rulers, Mao Zedong, Deng Xiaoping, and Jiang Zemin. A year later, Xi incorporated a list of his speeches and policies into the Chinese constitution. In his most conspicuous manifestation of power, in 2018, China’s National Congress voted to amend the Chinese constitution by abolishing the two-term limits on the Presidency. Xi has also thus far failed to nominate a successor, which previous leaders typically do at the start of their second term. Xi looks increasingly likely to win a third term during the 2022 Chinese elections and could potentially retain power for the rest of his life.

 President for Life

A peaceful transition of power is integral to the stability of any country, as recently evidenced by Donald Trump’s efforts to discredit President Joe Biden’s electoral victory. China’s last leader for life was Mao, who oversaw one of the country’s most disastrous periods during the Cultural Revolution and Great Leap Forwards. Mao’s successor, Xiaoping spoke against the cult of personality embraced by Mao and ushered in a series of reforms that both opened the country’s economy and established limits on individual power. In a report for the Lowey Institute, Richard McGregor, and Jude Blanchette, detail the importance of an orderly transition, highlighting the fact that autocrats’ attempts to remain in power for life often trigger succession crises, formal leadership challenges or military coups. While previous Chinese dynastic power struggles were largely limited within its borders, they write, “the global impact of a 21st century succession crisis would be immense.”

Xi for his part has said that he is personally opposed to lifelong rule, but his actions indicate that he is unprepared to relinquish power anytime soon. McGregor and Blanchette argue that by removing term limits and refusing to nominate a successor, “Xi has solidified his own authority at the expense of the most important political reform of the last four decades: the regular and peaceful transition of power.” Compounding the problem, there are very few barriers between the state bureaucracy and the CCP. Describing the distinction between the two as a “mirage,” Srijan Shukla writes in an ORF report that the “matrix” structure of governance employed in China shows how “the final power lies with the party, and not the government.” As the General Secretary of the CCP, a role that notably has never had term limits, Xi wields significant sway over both the party and the Chinese government as a whole.

Control over the CCP and society

Xi has made a notable effort to consolidate his status within the CCP and the larger Chinese political apparatus. In 2013, he launched a much-heralded anti-corruption campaign which established his uncompromising leadership style and side-lined several of his more vocal rivals. Xi, as the Chairman of the Central Military Commission (CMC), also restructured the organisation between 2015 and 2016 in order to remove his opponents from leading positions and install his own supporters in key roles. As described by one Jamestown Foundation report, Xi has also encouraged the practice of biaotai or ritualistic declarations of loyalty by prominent regional supporters.

Inculcating his own policies and philosophy into the party’s charter he has also consolidated his position as its unquestioned leader. In a 2018 party keynote speech, Xi stated that political thoughts such as the ‘Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era’ should be used to “arm the entire party, educate the people and push forward work.” 

McGregor and Blanchette summarise his grip on the political apparatus, writing that “hardening political conformity under Xi, combined with the more banal realities of bureaucratic policies, have led to numerous officials publicly declaring fealty to Xi.”

His grip over Chinese society is also noteworthy. Through the use of extra-judicial detentions and other coercive measures combined with strict restrictions on freedom of speech, Xi has spearheaded a sustained crackdown on dissent. Targeting journalists, activists, academics and ethnic minorities, this crackdown has systematically silenced and punished anyone who dares to criticise Xi.

The CCP has also engaged in revisionist history, launching a year-long campaign for the nationwide study of Xi’s philosophy. In addition to the content taught, party leaders have also been encouraged to recruit supporters from college campuses and to establish youth wings across the state. In a more creative form of indoctrination, the CCP under Xi has also established Overseas Chinese Service Centres, a global network of offices designed in name to help the Chinese diaspora to adapt to life in different countries. While the centres likely do serve that purpose, they also encourage loyalty to Xi and promote his achievements and thoughts across the globe.

Dissent

Despite these measures, there has been limited criticism of Xi to emerge from China. After his removal of term limits, Chinese social media users took to posting images of Winnie the Pooh (who they think looks like Xi) as a subtle attempt to protest his grip on power. All mentions of Winnie the Pooh were later banned by the CCP. In another rare rebuke of the President, a law professor in Beijing, Xu Zhangrun, called on lawmakers to reverse the decision to abolish term limits. Zhangrun was subsequently arrested in 2020 but has since been released. China’s slowing economic growth and mounting governmental debt could also promote dissent amongst the middle class, who are peddled a version of Chinese economic superiority that may not always match up to their experiences in the labour market.

In Hong Kong and Taiwan, two contested territories, the criticism has been even more pronounced. In 2019, after the CCP introduced an extradition order in Hong Kong, which is a Special Administrative Region of China, mass protests erupted across the state. After activists sieged the Polytechnic University, the Chinese government oversaw a series of high-profile arrests which were met with wide-spread international condemnation. Similarly in Taiwan, which China views as a breakaway state, the country’s President, Tsai Ing wen, promised to uphold its sovereignty after Xi called for the reunification of both countries. Internationally, China has faced massive criticism over its human rights abuses, its trade practices, and its aggressive foreign policy under Xi.

Impact on China

Since Mao, China has had a series of leaders who prioritised an open, almost capitalist, economic policy and a moderate, cautious foreign policy. Under Xi, much of that has changed. As another Jamestown Foundation

 points out, Xi has shown a willingness to discount or rewrite history in a way which suits his priorities. On the 40th anniversary of the economic reforms instituted by Xiaoping, Xi failed to mention the venerated leader’s name even once. Instead, he made several references to ziligengsheng or self-reliance, a phrase regularly used by Mao. Xiaoping’s policies catapulted China into a 21st century economic powerhouse and Xi’s willingness to ignore that could be interpreted as a trajectory towards greater state control over businesses.

In its most recent five-year plan, the CCP has outlined tighter regulations over much of the Chinese economy. It states that rules will be introduced to cover national security, technology, and monopolies. Shares in many Chinese companies have fallen this year following concerns over the crackdown, with high-profile companies like the Ant Group, chaired by Chinese billionaire Jack Ma, failing to escape scrutiny. In an article for Foreign Affairs Magazine, Elizabeth Economy argues that “too much party control – perhaps too much consolidated in Xi’s hands – has contributed to economic stagnation.” China’s credit ratings have also fallen sharply since 2017, with agencies such as Moody’s and S&P predicting a negative outlook over fears of overarching government control and declining economic growth. In an interview with indianexpress.com, Jean-Pierre Cabestan, a professor of political science at Hong Kong Baptist University, says that as Xi continues at the helm, China will increase its control over large businesses, but small ones will likely be spared.

According to another article in Foreign Affairs Magazine, policy making has also suffered under Xi with “decisions becoming more opaque and politicized.” This is largely because under the current political climate, ministers are unable to question Xi’s policies and fear giving him accurate information when that information undercuts his assumptions. Meanwhile, although Xi’s crackdown on corruption has been commendable, it has failed to end the patronage system in the bureaucracy and has also pardoned companies and individuals closely connected to Xi from oversight.     

China also risks greater uncertainty in the event of a succession crisis. According to data collected by McGregor and Blanchette, 41 per cent of the world’s autocrats either experience death, exile, or imprisonment within a year of leaving office. That’s true for only seven per cent of democratic leaders. Xi’s unwillingness to relinquish control could lead to domestic tensions in China which would subsequently have cascading consequences for the rest of the world.

 Impact on the rest of the world

In the early 2000s, Chinese leaders emphasised the fact that China would rise peacefully. However, under Xi, the country has assumed a far more aggressive posture. The CPP has modernised its military, employed the use of grey zone tactics in building islands in the South China Sea, has stifled civil liberties in Hong Kong and Tibet, has engaged in mass cyberwarfare, been involved with border skirmishes with India and has pursued an aggressive form of international relations known as Wolf Warrior Diplomacy. Beijing is clear in its ambitions to be a global superpower and it is willing to toe the line when it comes to means of achieving that.

Xi has also spearheaded the ambitious One Belt One Road (BRI) initiative, investing over $4.3 trillion in foreign infrastructure projects as of September 2020. Although the US has tried to counter the BRI with its Blue Dot alliance, it pales in comparison to the BRI in both scale and impact. A 2019 study by global economic consultants CEBR forecasted that the BRI would boost global GDP by $7.1 trillion per annum by 2040. However, the initiative is not without flaws. 

Many of the investments made by China come at the expense of the host nation. In Ecuador for example, China built a dam that was supposed to account for a significant amount of the country’s energy needs. In order to finance the dam and other infrastructure projects, the Ecuadorian government took a $19 billion loan from China. Today, the dam, constructed by Chinese workers, is producing a fraction of the energy it was supposed to. Regardless, according to the terms of the agreement, China still gets paid, taking 80 per cent of Ecuador’s most valuable export – oil – until the debt is settled. To finance this, Ecuador has been forced to cancel or put on hold several other development projects.

China has invested heavily in Africa, Asia, and South America under the BRI. However, as proven with Ecuador that investment often serves as a debt trap for the receiving countries. It also comes with strings attached. China has pressured many of the countries into suspending relations with Taiwan. According to Cabestan, Xi is likely to try and annex Taiwan although the US will try to prevent it. Taiwan is the world’s largest producer of semiconductor chips, a valuable commodity in various sectors ranging from tech, automobiles, and telecom. If China succeeds in annexing Taiwan, it will further entrench its place in the global economy and cause mass instability in the region.

For India, China’s border skirmishes are a particular point of concern, as are its ambitions in the South China sea and infrastructure investments in Sri Lanka and Pakistan. Countries like Australia that have tried to stand up against Beijing have been on the receiving end of Wolf Warrior Diplomacy and given how crucial a trading partner China is for India, New Delhi will be wary to risk incurring its wrath. The relationship is also aligned in China’s favour. China is India’s second largest trading partner whereas India is China’s 11th. China also exports four times the value of goods that it imports from India. In terms of the future of the relationship, Cabestan, asserts that it will include a “mixture of confrontation and cooperation.” Additionally, the “border issue won’t be solved and the great power rivalry in the Indian Ocean will continue to increase.”


Written by Mira Patel

Source: Indian Express, 16/11/21


Structural inequality and the response to global emergencies

 

Kaushik Das Gupta writes: For long, it has been apparent that a few people corner a lion’s share of the world’s resources, and exercise unfair sway in the way global wealth is used

The declaration of the just-concluded COP26 at Glasgow begins by making a reference to the Covid-19 pandemic. That was, perhaps, inevitable. The pandemic delayed the climate summit by a year and loomed large on the proceedings. High travel costs and quarantine rules reportedly resulted in several developing countries sending smaller delegations. On the eve of the meet, The Guardian relayed the warning of activists that about two-thirds of civil society organisations who usually send representatives to UNFCCC conclaves would keep away from the Glasgow COP, “making it one of the whitest climate conferences”. Health risks to those who attended were also obvious.

Yet, beyond such immediate links, there are other reasons to see the two challenges in a similar light. Covid, like climate change, is a global emergency — the interconnectedness of the world facilitated the proliferation of the virus and its mutants. Like decarbonising the world, rendering effete a virus that has no respect for national boundaries requires international cooperation. The WHO’s message at the pandemic’s outset — “No one is safe till everyone is safe” — expressed this imperative aptly. From a practical, as well as ethical, standpoint, therefore, preventing temperatures from rising catastrophically and dealing with the virus should be guided by the common purpose: Putting human well-being above parochial interests and commercial profits.

Since the early years of the climate change discourse, civil society activism has consistently refashioned the technical issue of cutting down emissions into one of ecological justice. At the core of this principle is the understanding that while the entire world is vulnerable to storms, floods and other extreme weather events, some people are more at peril than others. People in the small island nations face the risk of death, disease and livelihood disruptions because of coastal flooding and sea-level rises. Evidence from the US shows economically-strained communities of Black, Hispanics and indigenous people are more vulnerable to cyclones. As their land turns arid and crops fail, hundreds of millions of people from Central America to Africa to South Asia will be forced out of their homes. Madagascar is currently in the grip of a drought that could trigger the first climate change-induced famine.

Allied to the understanding of disproportionate vulnerabilities is the notion of “Common But Differentiated Responsibilities (CBDR)”. One of the founding principles of the UN Framework Convention of Climate Change, CBDR acknowledges that though all countries are obliged to address global warming, individual capabilities should guide the extent of each effort. It also recognises that all countries cannot be held similarly culpable for climate change — there is now enough evidence that a small percentage of the world’s population puts a disproportionately high amount of GHGs into the atmosphere.

This is where the global concord on averting a climate catastrophe has gotten fractured. Developed countries have scarcely acknowledged that the roots of climate change lie in their industrial trajectories and high per capita emissions. This denial has led them to renege on pledge after pledge on climate funding and made them stingy with technology transfer to the global south. COP26 disappointed by its failure to frame a pathway to address this long-standing issue. But then that was expected.

With the carbon space shrinking, the principle of climate justice has come under duress and its scope has become constricted. The Paris Pact refers to CBDR but makes no mention of the historical responsibilities of nations. At COP26, there was precious little to allay the fears that decarbonisation could mean denying the poorest the things that people in the developed world take for granted or assuage apprehensions that a transition to a system that produces power intermittently from solar panels or wind turbines, and requires large-scale retrofitting of national grids, would end up jeopardising energy equity in large parts of the world — including in India, which showcased its ambitious renewable energy plans at the meet. According to the IPCC, annual investments of $2.4 trillion would be required till 2035 to fund a global clean energy transition. A post-pandemic global economy might make such investments difficult, especially in the outposts of renewable energy.

Like extreme weather events, the virus takes a toll on livelihoods, and impacts social classes differentially. Amongst the lasting images of the pandemic will be that of the procession of Indian migrant workers to their native villages. Lacking even the most basic social security, these workers continue to bear the scars of one of the most stringent lockdowns even after a large number of them have returned to their workplaces.

Medically, success on the equity front is crucial in the battle against the virus. The sharing of information among research agencies facilitated the development of vaccines at an unprecedented pace. But even before the vaccines had completed their clinical trials, developed countries signed agreements with pharma majors to procure doses of the most promising jabs. It’s an irony that even as we are in the midst of the greatest global inoculation programme, vaccine inequity is a major reason for prolonging the pandemic. Latest estimates suggest that less than 10 per cent of the adult population in at least 70 countries has completed the inoculation regimen.

At the same time, several countries have begun administering booster doses. According to the WHO, six times more booster doses are being administered globally than primary ones — a development described as a “scandal” by the global health agency’s head, Tedros Adhanom Ghebreyesus. Experts have made it clear that the virus will continue to be a threat in a world dotted by pockets of inoculated populations. These warnings do not seem to have struck a chord with the vaccine hoarders.

For long, it has been apparent that very few people corner a lion’s share of the world’s resources, and exercise unfair sway in the way global wealth is used. Structural inequalities in political and economic systems are compromising humankind’s capacity to deal with emergencies such as climate change and Covid, even as science continues to create pathways for human resilience.

The sentence carrying the reference to the pandemic in the Glasgow declaration also talks about “the importance of ensuring a sustainable, resilient and inclusive global recovery”. In an unequal world, such statements are increasingly beginning to sound like homilies.

Written by Kaushik Das Gupta

Source: Indian Express, 16/11/21

Monday, November 15, 2021

Quote of the Day November 15, 2021

 

“Don't expect anything original from an echo.”
Anonymous
“प्रतिध्वनि से किसी मौलिकता की आशा न करें।”
अज्ञात

Economic and Political Weekly: Table of Contents

 

Vol. 12, Issue No. 45-46, 06 Nov, 2021

Editorials

From the Editor's Desk

From 50 Years Ago

Alternative Standpoint

H T Parekh Finance Column

Commentary

Book Reviews

Perspectives

Special Articles

Current Statistics

Postscript

Letters

World’s largest solar power park in Bhadla

 Bhadla Solar Park, located in Rajasthan, is the World’s largest solar power park.

Key Facts

  • The solar park is located in Bhadla, a dry & sandy region in Rajasthan.
  • It spans over 14,000 acres.
  • The Park comprises of 10 million solar panels at the park. These solar panels contribute to an operational capacity of 2245 MW.

Bhadla Solar Park

As of 2020, Bhadla solar park is largest solar park worldwide. It is spread over an area of 5,700 hectares in Bhadla, Jodhpur district  of Rajasthan. Park has a total capacity of 2245 MW. It had witnessed the lowest bid for solar power in India at Rs 2.44 per kilowatt-hour.

About Bhadla region

Bhadla region of the jodhpur district is officially recognized as sandy, dry, and arid region with an area of around 45 km2. It is located around 200 km north of Jodhpur and 320 km west of Jaipur. Because of its climate, this region is described as “almost unlivable”. Normal temperatures of the region are between 46-48 °C while, hot winds & sand storms occur frequently.

Commissioning of the project

NTPC had announced the commissioning of the 115 MW of capacity at this solar park on February 22, 2017. Currently, its full capacity is of 2,245 MW, making it world’s largest solar park, with its investment rising to Rs 100 billion.

Current Affairs-November 15, 2021

 

INDIA

– CBI, ED directors can now have tenures of up to 5 years instead of a fixed tenure of two years; Govt issues two ordinances
– PM transfers first installment of PMAY-G (Pradhan Mantri Awaas Yojana – Gramin) to more than 1.47 lakh beneficiaries of Tripura
– 20 Indian fishermen released from Pakistan jail in Karachi; transported to Wagah border for handover on November 15
– Five new Integrated Check Posts to be set up on India Bangladesh border

ECONOMY & CORPORATE

– PM chairs meet on cryptocurrency; concerns raised over money laundering, terror financing risks
– Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) being held on Nov 15-17; Petroleum Minister Hardeep Singh Puri to lead Indian delegation

WORLD

– UN climate talks in Glasgow, Scotland conclude with global agreement capping global warming at 1.5 degrees Celsius
– Five-day Dubai Airshow begins at Al Maktoum International Airport
– World Diabetes Day observed on Nov 14; theme: ‘access to diabetes care’
– Novelist Wilbur Smith dies in Cape Town, South Africa at 88
– Ecuador: 68 dead in prison violence in Guayaquil

SPORTS

– Australia (173/2) beat New Zealand (172/4) in final to win 2021 T20 World Cup at Dubai International Stadium
– Mercedes driver Lewis Hamilton wins Formula One Sao Paulo Grand Prix in Brazil