Daily Current Affairs – 04 September 2017

Syllabus and News : #GS 2  #Important International institutions, agencies and fora- their structure, mandate.

Modi arrives in Xiamen to attend BRICS Summit

• Prime Minister Narendra Modi arrived in Xiamen to attend the BRICS Summit. During his two day visit, Mr. Modi is also expected to hold a series of bilateral meetings including with Russian President Vladimir Putin and other BRICS leaders.

BRICS Summit

• China has invited Egypt, Kenya, Tajikistan, Mexico and Thailand as guest countries for the Summit.
• The summit will be held under the theme “BRICS: Stronger Partnership for a Brighter Future.”
• It will be held in Xiamen, Fujian Province in September 2017 under China’s Chairmanship.

BRICS

• BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Originally the first four were grouped as “BRIC” before the addition of South Africa in 2010.

Financial Structure

Currently, there are two components that make up the financial architecture of BRICS, namely, the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). Both of these components were signed into treaty in 2014 and became active in 2015.

New Development Bank

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states.

• The New Development Bank starts with an objective of funding infrastructure projects in the developing countries and meet the aspirations of millions through sustainable development.
• The initial authorized capital of the bank is $100 bn
• The Agreement on the NDB specifies that the voting power of each member will be equal to the number of its subscribed shares in the capital stock of the bank.
• The bank is headquartered in Shanghai, China.
• The first regional office of the NDB will be opened in Johannesburg, South Africa.
• President : K V Kamath

BRICS contingency reserve arrangements

1. The BRICS Contingent Reserve Arrangement (CRA) is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.

Sources: The Hindu The Hindu Wikipedia- BRICS NDB CRA

Syllabus and News :  GS 3 Awareness in the fields of IT, Space

TRAPPIST-1 planets likely to have water

• The Earth-sized planets orbiting the ultracool TRAPPIST-1 dwarf star 40 light-years away may have substantial amounts of water and could be habitable.
• An international team of astronomers used the NASA/ESA Hubble Space Telescope to estimate whether there might be water on the seven planets orbiting in the nearby TRAPPIST-1 planetary.
• The results suggest that the outer planets of the system might still harbour substantial amounts of water.

Background

• In February 2017  astronomers had announced the discovery of seven Earth-sized planets orbiting the ultracool dwarf star TRAPPIST-1, 40 light-years away.
• Following up on the discovery, scientists used the Space Telescope Imaging Spectrograph (STIS) on the Hubble telescope to study the amount of ultraviolet radiation received by the individual planets of the system.

Sources:  The Hindu

Syllabus and News :  GS  2 Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Stirring anxiety into a melting pot

The changes in the 457 Visa Programme of Australia

Sources : The Hindu

Syllabus and News : GS 3 Conservation, environmental pollution and degradation, environmental impact assessment.

Air pollution throws shade on India’s solar success

Air pollution is diminishing India’s capacity to harness power from the sun.

Highlights of the research

• Smog and dust that is sapping solar power generation by more than 25 percent, far beyond levels previously thought.
• In the first study of its kind, U.S. and Indian scientists measured how man-made particles floating in the air and deposited as grime on solar panels combined to seriously impair sunlight from converting to energy.
• This interference causes steep drops in power generation. At present levels in India, it could amount to roughly 3,900 MW of lost energy — six times the capacity of its largest solar farm, a gigantic field of 2.5 million panels.
• Significance : These huge losses will only compound as India realises its grand solar ambitions

Sources : The Hindu

 

New Ministers

Syllabus and News : GS 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Banks’ cuppa to brew with mergers

Consolidation of public sector banks had been discussed in banking circles for many years now. The present government has took up the issue of consolidation of banks. This may be the first time in recent history that an official communication has been made by the government to the banks asking them to act on mergers.

Government’s efforts

• The government set up an ‘Alternative Mechanism’, which would comprise a ministerial group, to oversee proposals for mergers among banks
• Finance Minister stressed that the decision to create strong and competitive banks will be solely based on commercial considerations and such decisions must start from the boards of the banks.

How will the merger formalities done?

• A bank’s board would first clear the decision to merge and then send the proposal to the ‘Alternative Mechanism’ for its in-principle approval.
• After the in-principle approval comes through, the bank will take steps in accordance with law and SEBI’s requirements .
• The final scheme will be notified by the government in consultation with the Reserve Bank of India (RBI).

What drives mergers?

1. Technological synergy
2. Geographical complementarity

When did the idea of consolidation started?

• The thinking around bank consolidation began after the current government assumed office.
• At the bankers’ retreat, known as Gyan Sangam, the idea of consolidation was first floated. In 2015, however, bank chiefs — reeling under bad loan pressure — vetoed the idea on the grounds that first they need to put their houses in order.
• The present asset quality crisis has actually became an opportunity for the government to push for consolidation.

Post-merger issues

• The likely merger would create a lot of complexities in terms of lesser core capital, high net NPLs, branch rationalisation and reduction in human resources productivity for the merged entity.
• At present, we’ve an example of the merger of SBI with associate banks and Bhartiya Mahila Bank; post merger, the merged entity fundamentals have weakened significantly,
• SBI, following its merger, has seen non-performing assets rising significantly, from ₹1.01 lakh crore (6.94%) to ₹1.88 lakh crore (9.97%).
• Of the 20 public sector banks, nine have had impaired loans in excess of 20% and 12 had common equity tier-I capital ratio below 8%. For example, if Bank of Baroda were to take over two small banks such as Dena Bank and Bank of Maharashtra, its impaired asset level could exceed 18%, analysts said.

The way forward

It is to be seen if the big banks can bear the pain of a merger and put their house in order quickly so that the objective of creating a big lender that can fund large projects is fulfilled.

Sources : The Hindu

Cotton bags to the rescue of pythons – Living with Pythons

• Under an innovative initiative ‘Living with Pythons’, herpetologist and researcher Nirmal U. Kulkarni and his team are trying to address the need for a common protocol for python rescue and release.
• As a first step to address this challenge, Mr. Kulkarni’s team has distributed 100 specially designed large python rescue snake bags to rescuers, forest department field staff and field researchers, across the country.
• These bags are made of breathable cotton material and are designed for safe handling, rescue and release of large bodied snakes like pythons. Easy to carry and wash, these bags play a major role in safety of both the snake handler as well as the snnationwide ake in times of rescue as well as release of the snake.

 

“Living with Pythons” is a initiative started to create awareness and instill appreciation about India’s three Python species. These include the Indian Rock Python (Python molurus), Burmese Python (Python bivittatus) and Reticulated Python (Malayopython Reticulatus),

Sources : The Hindu

 

Nepal-India joint military exercise begins                   

India and Nepal began their joint military exercise in Nepal focusing on counter-terrorism and forest fighting operations. The exercise – Surya Kiran – was being participated by around 300 troops each side in Rupandehi district. This is the 12th edition of Nepal-India joint military exercise. The 11th edition of the joint exercise was held in Pithoragarh in Uttarakhand.

Sources : Business Standard

 

North Korea conducts 6th nuclear test, says it was H-bomb

North Korea said it set off a hydrogen bomb in its sixth nuclear test, which judging by the earthquake it set off appeared to be its most powerful explosion yet. The test would mark a significant step forward in the North’s quest for a viable nuclear missile capable of striking anywhere in the United States. North Korea is thought to have a growing arsenal of nuclear bombs and has spent decades trying to perfect a multistage, long-range missile to eventually carry smaller versions of those bombs.

North Korea  Quick facts

Capital: Pyongyang

Supreme leader: Kim Jong-un

Premier: Pak Pong-ju

Currency: North Korean won

Sources : The Hindu

 

Juster is next U.S. Ambassador

Kenneth I. Juster  was nominated as the next U.S. Ambassador to India. The appointment will take effect once the U.S. Senate confirms him.

 

Lewis Hamilton wins Italian Grand Prix to take lead in F1 title race

Lewis Hamilton won the Italian Grand Prix with a dominant drive that sent him clear at the top of the F1 world championship for the first time in a year. The triple champion is part of Mercedes team.