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News 1: Wholesale inflation slowed to an 11-month low at 12.4% in August

Background:

  • Inflation based on the Wholesale Price Index (WPI) eased in August to the slowest pace since last September at 12.4%, from 13.9% in July, with food being the sole segment to report faster price gains at 9.93% as it rebounded from July’s three-month low of 9.41%.

Wholesale price Index

  • Base year: 2011 – 12
  • Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions.
  • The index basket of the WPI covers commodities falling under the three Major Groups namely Primary Articles, Fuel and Power and Manufactured products.
  • WPI basket does not cover services.

News 2: U.S. weighs China sanctions over Taiwan

Background:

  • The U.S. is considering options for a sanctions package against China to deter it from invading Taiwan, with the European Union coming under diplomatic pressure from Taipei to do the same, according to sources familiar with the discussions.
  • The idea is to take sanctions beyond measures already taken in the West to restrict some trade and investment with China in sensitive technologies like computer chips and telecoms equipment.

One China principle and One China policy:

  • The People’s Republic of China follows the One China Principle, which sees Taiwan as an inalienable part of China, with its sole legitimate government in Beijing. The US acknowledges this position but not necessarily its validity.
  • The US follows the One China Policy, meaning that The People’s Republic of China was and is the only China, with no recognition for the Republic of China (ROC, Taiwan) as a separate sovereign entity. The US refuses to give in to the PRC’s demands to recognize Chinese sovereignty over Taiwan.

India – Taiwan:

  • India and Taiwan do not have formal diplomatic relations but since 1995, both sides have maintained representative offices in each other’s capitals that function as de facto embassies.

News 3: Set up new regulator for medical devices, says panel

Background:

  • The department-related Parliamentary Standing Committee on Health, has expressed, Central Drugs Standard Control Organisation (CDSCO) is falling short in effectively regulating the medical devices industry. The organisation in its existing structure and expertise is more pharma centric.

Committee recommendations:

  • More certified medical devices testing laboratories,
  • Robust IT-enabled feedback- driven post-market surveillance system
  • Medical device registry, particularly for implants to ensure traceability of patients to assess performance of implants.
  • New legislation should set up a new regulator at different levels for regulating the medical devices industry.
  • Adequate common infrastructure including accredited laboratories in various regions of the country for standard testing will significantly encourage local manufacturers to get their products tested for standards and such measures undertaken will also help in reducing the cost of production which ultimately will improve the availability and affordability of medical devices in the market.
  •  The Ministry needs to work in synergy with State governments and impart the necessary skills to the local medical device officers and also devise a mechanism to regularly designate State Medical personnel as Medical Device/Medical Device Testing Officers so that the mandate of the legislation can be implemented effectively.
  • The Ministry should allow the new regulator to involve institutions such as IISC, CSIR, DRDO and network of IITs to test medical devices for safety and efficacy.
  • A single-window clearing platform for application of licence for manufacturing, export, import shall integrate all these bodies involved in the regulation of medical devices.

Central Drugs Standard Control Organisation (CDSCO):

  • Ministry: Ministry of Health and Family welfare
  • Objective: The Central Drugs Standard Control Organization (CDSCO) is the Central Drug Authority for discharging functions assigned to the Central Government under the Drugs and Cosmetics Act.
  • Regulatory control over the import of drugs, approval of new drugs and clinical trials, meetings of Drugs Consultative Committee (DCC) and Drugs Technical Advisory Board (DTAB), approval of certain licenses 

News 4: Union govt. push for use of Hindi

Background:

  • The Ministry of Home Affairs (MHA) has written to the Ministry of External Affairs to promote the use of Hindi for official work in banks, public sector undertakings, embassies and other government offices located in foreign countries.

Encouragement of Hindi:

  • In 2017, MHA accepted most of the recommendations contained in the 2011 report of a parliamentary standing committee on Hindi.
  • Some of the recommendations were: option to write exams in Hindi, minimum knowledge of Hindi must for government jobs, 50% government advertisements in Hindi, railway tickets should be bilingual with Hindi being one of the languages and announcement at railway stations in “C” category (non-Hindi speaking) such as Tamil Nadu, Karnataka, Andhra Pradesh, Telengana and Kerala should be in Hindi.
  • In 2017, the Ministry said that the websites of all the Union Ministries and the offices under their control should be bilingual and the Hindi pages should also be compulsorily uploaded while updating the website.
  • Hindi Diwas is celebrated on 14th September to commemorate the date 14 September 1949 on which a compromise was reached—during the drafting of the Constitution of India—on the languages that were to have official status in the Republic of India.

News 5: Drop in health Spending

Background:

  • Government spending on health as a proportion of the total health expenditure in the country has been rising in recent years, even as the overall expenditure on health has declined, official data released this week show.
  • According to the National Health Accounts Estimates 2018-19, government spending as percentage of total health expenditure increased by more than 11 percentage points over the previous five years, from 23.2% in 2013-14 to 34.5% in 2018-19.

Findings of report:

  • One of the most important findings of the 2018-19 report is that government spending as proportion of the country’s Gross Domestic Product (GDP) went down to 1.28% from 1.35% in the previous year’s(2017-18) report.
  • The total health spending — which includes spending by both government and non-government agents — declined from 3.9% of the GDP to 3.2% in the five years up to 2018-19.

Out of pocket expenditure:

  • People paying for healthcare expenses out-of-pocket made up for 48.2% of the total health expenses in the year 2018-19, down from 48.8% in the previous year (2017-18).
  • The out-of-pocket expense has decreased substantially from the 62.6% recorded in 2014-15.
  • In 2017, India was in 66th position out of 189 countries, with $100.05 per capita out-of-pocket spending, according to data from the Global Health Expenditure Database.
  • Despite the drop in India, however, out-of-pocket expenditure for the year 2018-19 stood at 2.87 lakh crore, which was equivalent to 1.52% of the GDP for the year.
  • This means people spent much more than the government, with all its health schemes and new hospitals, spent on healthcare that year.

Current health expenditure:

  • The current health expenditure — not accounting for any expenses that can be utilised over a few years — stood at Rs 5.4 lakh crore, which was 90.6% of the total health expenditure. 
  •  The Centre’s share in the current health expenditure stood at 11.71%, state governments accounted for 19.63%, local bodies 1.01%, and households (including insurance contributions) 60.11% of the current health expenditure. The rest was accounted for by corporates (as insurance contributions), NGOs, and external or donor funding.

News 6: Tale of women workers: Rapid exit from workforce, sliding earnings

Background:

  • Oxfam India released the ‘India Discrimination Report’, which is based government data on employment and labour from 2004-05 to 2019-20.
  • The figures, according to the report, are based on data from the Union Ministry of Statistics and Programme Implementation.
  • The report refers to unit level data from the 61st round of National Sample Survey on employment-unemployment (2004-05), the Periodic Labour Force Survey in 2018-19 and 2019-20, and the All-India Debt and Investment Survey by the Centre.

Findings of report:

  • The report noted that discrimination against women is so high that there is hardly any difference across religion or caste-based sub-groups, or the rural-urban divide.
  • It said all women, regardless of their socioeconomic location, are “highly discriminated”.
  • The report noted that while overall discrimination in wages for people from SC, ST and Muslims communities declined in regular/salaried jobs, it increased for women in this period — from 67.2% in 2004-05 to 75.7% in 2019-20.
  • Labour Force Participation Rate (LFPR), or the proportion of working-age population that engages actively in labour market, either by working or looking for work, for women in India declined from 42.7% in 2004-05 to 25.1% in 2021, “showing withdrawal of women from the workforce despite rapid economic growth during the same period”.
  • In 2019-20, 60% of all males aged 15 and above had regular salaried or self-employed jobs; the rate for females was 19%.

News 7: TRAI (Telecom Regulatory Authority of India):

  • Established: 1997
  • Jurisdiction: Ministry of Communication
  • The Telecom Regulatory Authority of India (TRAI) is a regulatory body set up by the Government of India under section 3 of the Telecom Regulatory Authority of India Act, 1997.
  • It is the regulator of the telecommunications sector in India.
  • Function and Mission:
    • To regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.
    • To create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society.
    • One of the main objectives of TRAI is to provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.

 

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  • In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).


    States are classified into two categories – Large and Small – using population as the criteria.

    In PAI 2021, PAC defined three significant pillars that embody GovernanceGrowth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.

    The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.

    At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.

    This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance

    The Equity Principle

    The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.

    This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.

    Growth and its Discontents

    Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.

    The Pursuit Of Sustainability

    The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.

     

    The Curious Case Of The Delta

    The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.

    Key Findings:-

    1. In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
    2. In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
    3. In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
    4. Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.

    In the Scheme of Things

    The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.

    The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).

    National Health Mission (NHM)

    • In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
    • In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.

     

    INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)

    • Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
    • Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh

     

    MID- DAY MEAL SCHEME (MDMS)

    • Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
    • Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers

     

    SAMAGRA SHIKSHA ABHIYAN (SMSA)

    • West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
    • In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three

     

    MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)

    • Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
    • In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam