UPSC Essentials: Weekly news express with MCQs — From HDR to Unemployment

The Indian Express’ UPSC weekly news express covers some of the most important topics of current affairs news from this week to help you prepare for UPSC-CSE. Try out the MCQs and check your answers provided towards the end of the article.

Human Development report

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment, Major crops-cropping patterns in various parts of the country

Why in news?

—Last week, the United Nations Development Programme (UNDP) released its latest Human Development Report (HDR). Ordinarily, it is enough to look at a country’s score on the Human Development Index (HDI) and compare it to the global average and the score of some other comparable countries. The HDI is a composite of three broad parameters: longevity, education and income per capita.

Key takeaways

— This year’s HDR is quite different because for the first time in its history — the HDR has been compiled since 1990 — the global HDI value has declined two years in a row, erasing the gains of the preceding five years. And it is not just a matter of the global HDI declining; over 90 per cent of countries experienced a decline in 2020 or 2021.

—In 2021, India’s life expectancy at birth was recorded at 67.2 years; expected years of schooling at 11.9 years; mean years of schooling at 6.7 years; and gross national income per capita (2017 PPP) at $6,590. On all these four parameters, India was behind the world averages in 2021: life expectancy at 71.4 years, expected years of schooling at 12.8 years, mean years of schooling at 8.6 years and gross national income per capita (2017 PPP$) at $16,752.

—India’s rank on the Human Development Index has slipped from 130 in 2020 to 132 in 2021, in line with a global fall in HDI scores in the wake of the Covid-19 pandemic, shows the Human Development Report 2021-22 released Thursday.

—According to the report, released by the United Nations Development Programme (UNDP), India’s HDI value stood at 0.633 during 2021, which was lower than the world average of 0.732. In 2020, too, India recorded a decline in its HDI value (0.642) in comparison to the pre-Covid level of 2019 (0.645).

—Ninety percent of countries have registered a reduction in their Human Development Index value in 2020 or 2021, reversing much of the progress toward the Sustainable Development Goals.

—A large contributor to the Human Development Index’s recent decline is a global drop in life expectancy, down from 72.8 years in 2019 to 71.4 years in 2021. The last two years have had a devastating impact on billions of people worldwide when crises like Covid-19 and the war in Ukraine hit back-to-back and interacted with sweeping social and economic shifts and dangerous planetary changes.

—HDI is composite index that measures average achievement in human development taking into account four indicators: life expectancy at birth (Sustainable Development Goal 3); expected years of schooling (SDG 4.3); mean years of schooling (SDG 4.4); and gross national income (GNI) per capita (2017 PPP$) (SDG 8.5).

—Like global trends, in India’s case, the drop in HDI from 0.645 in 2019 to 0.633 in 2021 can be attributed to falling life expectancy — 69.7 to 67.2 years. India’s expected years of schooling stand at 11.9 years, and the mean years of schooling are at 6.7 years. The GNI per capita level is $6,590.

—India has also been ranked 122 on the Gender Inequality Index.

Point to ponder: The solution to India’s stunted improvement on the Human Development Index is improving access quality education.

1. MCQ:

With respect to the latest HDR which of the following statement is not true

a) India’s rank on the Human Development Index has slipped from 130 in 2020 to 132 in 2021.

b) The global HDI value has declined two years in a row, erasing the gains of the preceding five years. 

c) On three out of all parameters, India was behind the world averages of HDI in 2021.

d) Switzerland is ranked 1 with a score of 0.962 in HDI

Unemployment rate

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination:

• General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

• General Studies III: Inclusive growth and issues arising from it

Why in news?

—According to the data released by the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate in August rose to 8.3%. This is the highest unemployment rate in the past 12 months (see Table 1). In August 2021, the unemployment rate was 8.35%.

Key takeaways

—The unemployment rate is essentially the percentage of working-age people (15 years and above) who are demanding work but not able to get a job. Both aspects of the definition are important. To be counted as an unemployed person one has to both “demand” work — that is, be part of the labour force — and then fail to get a job.

—As such, the unemployment rate is calculated by looking at the labour force — that is, all the people of the working age who are demanding work — and then finding out what percentage of them are unable to land a job. That percentage is the unemployment rate.

—The underlying size of the labour force — that is, the percentage of working-age people demanding work — itself varies over time and is measured by the Labour Force Participation Rate (LFPR).

Unemployment rate = [Total unemployed / Total Labour Force]

In other words, unemployment rates are expressed as a percentage of the labour force, not the total population.

Why did the employment rate go up in August?

—Since the unemployment rate is essentially a ratio between the total unemployed and the total labour force, it can go up whenever the number of unemployed increases more than the increase in the total labour force. Reportedly, in August while the labour force increased by 4 million, the economy instead of creating new jobs, actually shed 2.6 million existing jobs.

—In other words, while the total number of unemployed went up by 6.6 million, the labour force only went up by 4 million. Hence the spike in the unemployment rate.

—There is a significant variance in the unemployment rate across states. Haryana, J&K and Rajasthan have the highest levels of unemployment rate — each with over 30% of the unemployment rate.

—In sharp contrast, there are many states with remarkably low unemployment rates as well. Chhattisgarh, for instance, has an unemployment rate of just 0.4%. Maharashtra, Madhya Pradesh, Odisha and Meghalaya — all have unemployment rates well below 3%.

—The unemployment rate is different in rural and urban area. For instance, in August, urban unemployment was 9.6% and rural was 7.7%. Only in two months — February and June — has the rural unemployment rate been higher than the urban unemployment rate.

Point to ponder: For a country in the midst of a demographic transition, unemployment is the biggest challenge. Discuss.

2.MCQ:

Disguised unemployment generally means (UPSC-CSE 2013)

(a) large number of people remain unemployed

(b) alternative employment is not available

(c) marginal productivity of labour is zero

(d) productivity of workers is low

The curbs on India’s rice exports

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment, Major crops-cropping patterns in various parts of the country

Why in news?

—The Narendra Modi government, barely four months ago, banned exports of wheat from the country, following an unexpected crop failure resulting in low procurement and depletion of public stocks. Concerns over a similar situation arising have now led it to impose curbs, albeit not outright ban, on rice shipments as well.

Key takeaways

—There are four categories of rice exports. Out of these, exports in the case of two – basmati rice and parboiled non-basmati rice –are still freely allowed. The curbs are only for the other two: raw (white) and broken non-basmati rice.

—On Thursday, the Department of Revenue in the Ministry of Finance notified the slapping of a 20% duty on exports of rice “other than parboiled and basmati rice” with effect from September 9. This would have covered all raw non-basmati rice shipments, whether of full or broken grains. However, on the same night, another notification from the Directorate General of Foreign Trade in the Ministry of Commerce and Industry imposed a blanket ban on broken rice exports. Thus, even within raw non-basmati, only export of full grain consignments would be permitted on payment of 20% duty.

—The curbs announced will affect just under half of India’s rice exports in terms of quantity and over a third by value.

Reasons for restrictions

—There are two basic reasons. The first is the possibility of India’s rice production declining significantly because of deficient monsoon rainfall in Uttar Pradesh, Bihar, Jharkhand and Gangetic West Bengal. During the current kharif cropping season from June 1 to September 9, farmers have planted 2.1 million hectares (mh) less area under rice compared to the same period last year.

—The gap was higher, nearly 4.4 mh, till the second week of August. Since the normal planting time for paddy is June-July, and any area covered after that would be of lower-yielding shorter-duration varieties, it is bound to reflect in output. Taking an average all-India rice yield of 2.7 tonnes per hectare, the hit could be in the 6-12 mt range.

—It might be even more if yields in Punjab and Haryana turn out lower due to a new virus that has caused “dwarfing” of paddy plants in many fields there.

The second has to do with stocks. Public wheat stocks on August 1, at 26.65 mt, were the lowest in 14 years for this date. While the same for rice, at 40.99 mt, was quite comfortable (albeit lower than the 44.46 mt on August 1, 2021), the government is worried about their depletion in the event of a sub-par kharif harvest. This is more so, given the political pressure to continue the free-foodgrains scheme (Pradhan Mantri Garib Kalyan Anna Yojana) beyond September. With very little wheat in government godowns, it is rice that is sustaining the public distribution system (PDS).

—The country has a 40% share of the world’s total rice exports, with its 21 mt-plus shipments last year way ahead of Thailand’s (7.2 mt), Vietnam’s (6.6 mt) and Pakistan’s (4.8 mt). India, thus, matters to the global trade in rice – unlike in wheat, where it is only an occasional large exporter . Even in 2021-22, when exports touched an all-time-high of 7.23 mt, its share in world wheat shipments was hardly 5%. India’s wheat export ban, imposed on May 13, made news largely on account of timing – in the midst of the war in Ukraine. In a normal year, it may not have.

—More than 75% of basmati exports last year were to Iran and the Arabian Peninsula countries; the US, UK, Canada and Australia added up to another 10%. In non-basmati rice, almost 55% went to African countries – including Benin, Ivory Coast, Senegal, Togo, Guinea, Madagascar, Cameroon, Djibouti, Somalia and Liberia. Another 9.5% each was accounted for by the top two individual buyers China and Bangladesh, followed by Benin and Nepal (8-9% each). Much of exports to Africa and Bangladesh consist of parboiled rice, while China’s imports were predominantly broken rice that has now been banned.

Parboiled and broken rice

—Rice is derived from milling of paddy grain produced by farmers. Paddy typically has 20-21% husk (the inedible covering of the grain) and 10-11% bran (the brown outer layer of the edible kernel). What remains after removal of the husk and bran is the white raw rice that constitutes 68-69% of paddy. The milled rice, in turn, has both whole and broken grains.

—Parboiling is a process where the paddy is soaked in water, steamed and dried while retaining its outer husk. It results in the rice becoming harder with less breakage on milling.

—The parboiled rice exported from India contains 5-15% broken grains. In raw rice, the brokens are normally up to 25%. It is the rice having 100% brokens whose exports have been prohibited.

—Out of the total 3.89 mt broken rice exports in 2021-22, 1.59 mt went to China, followed by Senegal (0.92 mt), Vietnam (0.34 mt), Djibouti (0.24 mt) and Indonesia (0.21 mt).

India’s export of rice

—More than 75 percent of basmati exports last year were to Iran and the Arabian Peninsula countries; the US, UK, Canada and Australia added up to another percent. In non-basmati rice, almost 55 percent went to African countries – including Benin, Ivory Coast, Senegal, Togo, Guinea, Madagascar, Cameroon, Djibouti, Somalia and Liberia.

—Another 9.5 percenteach was accounted for by the top two individual buyers China and Bangladesh, followed by Benin and Nepal (8-9 percent each). Much of exports to Africa and Bangladesh consist of parboiled rice, while China’s imports were predominantly broken rice that has now been banned.

Point to ponder: Due to curbs, will India’s rice exports take a massive hit?

3. MCQ:

Consider the following statements with respect to agriculural production in India and answer the question below:

1. Parboiling results in the rice becoming harder with less breakage on milling.

2. India has a 40% share of the world’s total rice exports.

Which of the statements is/are correct?

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

‘Triple dip’ La Nina and its impact on India’s monsoon

Syllabus:

Preliminary Examination: Geography

Mains Examination: General Studies I: Geographical phenomenons

Why in news?

—The Australian Bureau of Meteorology on Tuesday (September 13) confirmed the occurrence of La Niña phenomenon for the third consecutive year in the Pacific Ocean. The World Meteorological Organisation (WMO) on August 31 had stated that the oceanic and atmospheric phenomenon would last until at least the end of the year, and for the first time this century, span three consecutive northern hemisphere winters to become a ‘triple dip’ La Nina.

—The WMO predicted that the current La Nina, which began in September 2020, would continue for six months, with a 70 per cent chance of lasting till September-November 2022, and 55 per cent chance of lasting till December-February 2022/2023.

Key takeaways

—El Nino and La Nina, which mean ‘the boy’ and ‘the girl’ in Spanish, are mutually opposite phenomena, during which an abnormal warming or cooling of sea surface temperatures is observed in the Pacific Ocean along the equator, off the coast of South America. Together they constitute what is known as the El Niño-Southern Oscillation system, or ENSO for short.

—ENSO conditions can alter both temperatures and rainfall globally, due to their strong interference on global atmospheric circulations.

—It is a recurring phenomenon and the change in temperature is accompanied by changes in the patterns of upper and lower level winds, sea level pressure, and tropical rainfall across the Pacific Basin.

—Normally, El Nino and La Nina occur every four to five years. El Nino is more frequent than La Nina.

—El Niño years in India have witnessed extreme heat and below normal rainfall levels during monsoon, even though El Niño might not be the only factor or even have direct links to them. In 2014, a El Niño year, India received 12 per cent deficient rainfall from June to September.

—On the other hand, La Nina years are known to favour the Indian summer monsoon. This year, India has received 740.3 mm of rainfall, quantitatively 7 per cent higher than the seasonal average till August 30. Among the 36 states and union territories, 30 have received rainfall that is categorised as either ‘normal,’ ‘excess’ or ‘large excess.’

—Uttar Pradesh, Manipur (-44 per cent each), and Bihar (-39 per cent), however, remain the worst affected states this season.

—“The continuing La Niña is a good sign for the Indian monsoon. The monsoon rainfall, so far, has been good except in Uttar Pradesh, Bihar and neighbouring areas,” M Rajeevan, former secretary of the Ministry of Earth Sciences (MoES), told The Indian Express earlier.

—Rajeevan had termed the continuing La Nina as “abnormal”, and said, “It is surprising that it has continued for the last three years. It may be good for India but not for some other countries.” The former MoES secretary had also noted that “under climate change conditions, one must expect more such instances”.

—Climate change could be a driving factor behind such uncommon conditions. El Niño has been associated with rising heatwaves and extreme temperatures, such as in parts of the US, Europe and China recently.

—India’s Northeast monsoon rainfall remained subdued during past La Niña events, but the 2021 monsoon remains an exception in recent years, Rajeevan had pointed out. In 2021, the southern Indian peninsula experienced its wettest recorded winter monsoon since 1901, receiving a whopping 171 per cent surplus of rainfall between October and December, IMD data stated.

Point to ponder: The continuing La Niña is abnormal but a good sign for the Indian monsoon. It may be good for India but not for some other countries. Do you agree?

4. MCQ:

  1. La Nina is characterized by unusually cold ocean temperature in equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean.
  2. El Nino has adverse effect on south-west monsoon of India, but La Nina has no effect on monsoon climate.Which of the statements given above is/are correct?          

a) 1 only

b) 2 only

c) both 1 and 2

d) neither 1 or 2

Answer to the MCQs: 1 (c), 2(c), 3(c), 4(d)