UPSC Daily Current Affairs | Prelim Bits 14-05-2020
iasparliament
May 14, 2020
Helicopter Money
Helicopter money is an unconventional monetary policy tool, which involves printing large sums of money and distributing it to the public, to stimulate the economy during a recession (decline in general economic activity) or when interest rates fall to zero.
Recently, the Telangana Chief Minister suggested that the helicopter money can help states to come out of the economic chaos created by Covid-19 pandemic.
The term was coined by American economist Milton Friedman, It basically denotes a helicopter dropping money from the sky.
Under such a policy, a central bank "directly increases the money supply and, via the government, distribute the new cash to the population with the aim of boosting demand and inflation.
Difference between Helicopter money and Quantitative Easing
Helicopter Money
Quantitative Easing
In case of helicopter money, currency is distributed to the public and there is no repayment liability.
It does not rely on increased borrowing to fuel the economy, which means that it doesn’t create more debt.
It boosts spending and economic growth more effectively than quantitative easing because it increases aggregate demand the demand for goods and services – immediately.
It does not involve repayment liability, therefore many people argue that it’s not a feasible solution to revive the economy.
It may lead to over-inflation.
It may devalue the currency in the foreign exchange market.
Helicopter money should not be confused with quantitative easing, because both aim to boost consumer spending and increase inflation.
In case of quantitative easing, it involves the use of printed money by central banks to buy government bonds.
Here the government has to pay back for the assets that the central bank buys.
The major advantages of QE are
An Additional Tool - Bankers can be used this measure, even after interest rates are zeroed down.
It Lowers Interest Rates - Means that a higher money supply has always been linked to a fall in the interest rates.
Prevents Unemployment - In the short run, QE help employees to save their jobs.
Produces Immediate Results - It can produce desired results of the government and it’s completely under the control of government.
Disadvantages involved in QE are as follows
Leads to Inflation - Money created through QE could lead to a rise in the money supply which causes inflation.
If the economy is in a liquidity trap, then the created money might not cause any significant inflationary pressure.
But, when the economy recovers, the increased money supply may cause future inflationary pressure.
Depreciating Exchange Rate - Pursuing quantitative easing may cause the currency to fall over fears of future inflation.
CHAMPIONS Portal
Recently, the Ministry of Micro, Small and Medium Enterprises (MSME) has launched Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength (CHAMPIONS) portal.
It is a technology driven Control Room-Cum-Management Information System which utilizes modern information and communication technology (ICT) tools.
It is also fully integrated on a real time basis with the Government of India’s main grievances portal Centralized Public Grievances Redress and Monitoring System (CPGRAMS) and the Ministry’s other web based mechanisms.
The entire ICT architecture is created in house with the help of the National Informatics Centre.
Fluorometer
It is a device used to measure parameters of visible spectrum fluorescence i.e. intensity and wavelength.
These parameters are used to identify the presence and the amount of specific molecules in a medium. E.g The fluorometer can be used to detect biomolecules and proteins using the copper nanoparticles.
The device can also be modified to detect other substances such as lead and mercury.
Fluorometer can also be deployed as a screening tool for environmental and food quality testing.
Recently, researchers at the Indian Institute of Science (IISc), Bengaluru have developed a low-cost Fluorometer using copper nanoparticles to detect the presence of melamine (adulterate) in milk and dairy products.
Researchers were able to detect up to 0.1 parts per million (ppm) of melamine in water and milk, which is much lower than the acceptable limit of 1 ppm.
Melamine
Melamine is an organic base chemical most commonly found in the form of white crystals rich in nitrogen.
It is widely used in plastics, adhesives, countertops, dishware, and whiteboards.
To increase milk volume, water is added, as a result of this dilution the milk has a lower protein concentration.
Companies normally check the protein level through a test measuring nitrogen content.
The addition of melamine increases the nitrogen content of the milk and therefore its apparent protein content.
Melamine poisoning can lead to kidney-related diseases and also kidney failure.
Earlier, Food Safety and Standards Authority of India (FSSAI) had imposed a ban on all milk and milk products from China in September 2008.
In April 2019, FSSAI had recommended the extension of the ongoing ban till labs at Indian ports are equipped for melamine testing.
“RESTART” Conference
‘Rebooting the Economy through Science, Technology, and Research Translations (RESTART)’ is a digital conference organized National Technology Day.
The conference was organized by the
Technology Development Board (TDB), an autonomous organization of the Department of Science and Technology (DST) along with,
Confederation of Indian Industry (CII) - a non-government, not-for-profit, industry-led and industry-managed organization.
National Technology Day
India observes its National Technology Day on 11th May every year, It is the day India successfully tested nuclear bombs in Pokhran on May 11, 1998.
It was first observed in 1999, and aims to commemorate the scientific and technological achievements of Indian scientists, engineers.
Important technological advancements of India in year 1998 are as follows,
Operation Shakti initiative - On May 11, 1998, India detonated three nuclear bombs in the Indian Army’s Pokhran Test Range and test-fire the Shakti-1 nuclear missile.
Hansa 3 - India’s first indigenous aircraft was first tested on the same day in 1998 in Bangalore.
Successful test firing of Trishul, a short range missile made in India, was also done on the same day.
Tour of Duty
Recently, Indian Army has proposed 3 years of voluntary Tour of Duty (ToD) for civilians on a trial basis.
The Army plans to take civilians on a three- year ‘Tour of Duty’ (ToD) or ‘Three-year Short Service’ on a trial basis to serve in the force as both officers and Other Ranks (ORs).
The proposal is a shift from the concept of permanent service/job in the Armed Forces, towards internship/temporary experience for three years.
It suggests several measures to incentivize this scheme like a tax-free income for three years and a token lump sum at the end of three years of about Rs.5-6 lakh for officers and Rs.2-3 lakh for ORs.
However, there will be no severance packages, resettlement courses, professional encashment training leave, ex-Servicemen status, ex-Servicemen Contributory Health Scheme (ECHS) for the ToD officers and other ranks.
If approved it will be a voluntary engagement and there will be no dilution in selection criteria.
Toda Tribes
Toda Tribe is a pastoral tribe of the Nilgiri Hills of southern India.
They live in settlements of from three to seven small thatched houses.
They traditionally trade dairy products, as well as cane and bamboo articles, with the other Nilgiri peoples.
The Toda language is Dravidian but is the most unusual and different among the languages belonging to the Dravidian family.
Toda Embroidery is very famous it is known as pohor in Toda language.
The traditional Toda dress is a distinctive shawl which is called putukuli.
The embroidery is done by Toda women and has distinctive red and black (and occasionally blue) thread work in geometric designs on unbleached white cotton fabric.
