Topics
- The Shifting Dynamics of International Trade and India’s Use of Rupee in Global Transactions
- Addressing Health Vulnerabilities in Urban Areas Amid Climate-Driven Challenges
- Why Loneliness is becoming a big social issue
The Shifting Dynamics of International Trade and India's Use of Rupee in Global Transactions
Introduction: India as a Prominent Trading Partner
- Since March 2018, India has gained recognition as a favored trading partner, with numerous advanced and developing countries entering currency swap arrangements to extend credits in settling transactions.
- This status became even more prominent when the Ukraine-Russia war erupted in early 2022, leading to sanctions against Russia by the United States and the European Union.
The Unforeseen Shift: Indian Rupee in International Transactions
- The imposition of sanctions directly targeted Russian financial institutions, compelling both Russia and India to explore alternative routes for settling payments.
- Given Russia’s significant role as a crude oil supplier to India, a unique solution emerged – using the Indian rupee for transactions between the two nations.
Rupee Vostro Accounts and Payment Settlement
- To facilitate trade payments, a system involving Rupee Vostro accounts in Russian banks was established. Authorized dealer banks in India manage these accounts, ensuring smooth payment settlements.
- Indian importers pay in rupees to these accounts against invoices from Russian suppliers.
- This arrangement covers various commodities, including mineral fuels, crude oil, and air defense systems.
- Likewise, Indian exports to Russia can also be settled in rupees.
Challenges in the System
- However, a challenge arose due to Russia’s sustained trade surplus.
- Russia hesitated to accumulate more Indian rupees in the Vostro account, given the rupee’s lower rank in the global currency hierarchy and potential depreciation risks.
- This hesitation posed a threat to the viability of the agreement.
Innovative Solutions and Historical Precedents
- Facing limited options, Indian refiners resorted to settling payments for Russian oil imports using the Chinese yuan, leveraging Russia’s acceptance of yuan payments for its oil exports to China.
- This move recalls historical precedents, particularly India’s bilateral trade and clearing arrangements with the former Soviet Union in the 1950s.
A Broader Geoeconomic Shift
- The evolving geoeconomic landscape has prompted countries to seek local currency solutions to trade and payment settlements.
- An example is the rupee-dirham agreement between India and the United Arab Emirates, aimed at avoiding exchange risks and streamlining transactions for both nations.
- Similar negotiations are underway with Indonesia to establish a similar agreement using the rupiah.
Toward a New Financial Architecture
- The use of local currencies such as the Indian rupee, Russian rouble, Chinese yuan, UAE’s dirham, and Indonesia’s rupiah underscores a notable shift in global trade dynamics.
- This trend signifies a movement away from relying on hegemonic currencies from advanced economies in the North and a move towards establishing a new financial architecture centered on currencies from the South.
Conclusion:
While challenges related to political differences and currency disparities may arise, the growing reliance on local currencies for trade settlement points toward a future where the dominance of North-based currencies is challenged.
As countries in the South form stronger economic ties and overcome these challenges, a new era of financial architecture seems to be on the horizon, marking a significant departure from the existing exploitative order.
Source: The Hindu
Addressing Health Vulnerabilities in Urban Areas Amid Climate-Driven Challenges
Context:
- The monsoon season in India has gained significant media attention due to widespread devastation caused by cyclonic storms, floods, and heavy rainfall.
- While recovery efforts are underway, the looming threat of water and vector-borne diseases, particularly in vulnerable urban areas, demands attention.
- The vulnerability of households to climate change-induced events has been studied, emphasizing the heightened risk faced by urban populations.
- Here we will explore the need for a resilient urban health-care system and the integration of disease management efforts in the face of increasing climate-related challenges.
Vulnerability of Urban Areas to Diseases:
- Urban Vulnerability: Urban households, especially in underdeveloped parts like slums and settlements, are highly vulnerable due to poverty and lack of social security. They are more prone to water and vector-borne diseases, such as typhoid, cholera, dengue, and malaria.
- Climate Impact: Households from climatically vulnerable states are at greater risk of suffering from malaria, emphasizing the connection between climate and disease prevalence.
Challenges in Disease Management:
- Coordination Challenges: Disease management officials face pressure during the post-monsoon period as diseases spread across states due to population movement, necessitating coordinated efforts.
- Resilient Health System: Rebuilding the urban primary health-care system is crucial. It must be resilient, capable of responding to emergencies, and adaptable to changing public health needs.
Rebuilding Urban Health Systems:
- Investment and Focus: Increased public investment, particularly in vulnerable urban areas, is essential. The National Urban Health Mission is a step forward, but more attention is needed.
- Special Funds: Statutory institutions like the Finance Commission should allocate funds to build resilient health systems in vulnerable urban areas, extending attention beyond cities to towns.
- Complex Urban Health Governance: The COVID-19 pandemic underscores the need for coordinated efforts, data sharing, and regulation in urban health governance.
Transition to Comprehensive Health System:
Integrated Approach: The current vertical disease control programs should shift towards a comprehensive health system approach. Integration of front-line workers across disease management programs can create a multi-purpose, accountable cadre.
Resource-Constrained Environment: Planning and management must consider the increasing frequency and intensity of climate-driven events, preparing for future challenges.
Conclusion:
The monsoon-induced challenges in India highlight the urgency of addressing health vulnerabilities in urban areas.
The integration of disease management efforts, investment in resilient health systems, and a comprehensive approach to public health programs are essential steps toward building adaptive and responsive urban health systems.
As climate change-related events become more frequent and severe, proactive measures are crucial for safeguarding public health and well-being.
Source: The Hindu
Why Loneliness is becoming a big social issue
Introduction: The Emerging Loneliness Crisis
- In the context of India’s caste-ridden and class-divided society, various problems and pathologies have been observed, from socio-economic inequality to religious bigotry and patriarchal violence.
- However, a new concern arises: the increasing prevalence of loneliness across diverse sections of Indian society.
- While there might be a tendency to believe that strong family and kinship ties mitigate loneliness, changing dynamics indicate a different reality.
Changing Social Dynamics and Loneliness
- Loneliness is no longer confined to rich and developed societies; it has seeped into India’s societal fabric.
- This shift is evident in gated communities within urban centers, among the seemingly crowded yet lonely individuals, and even in the eyes of elderly parents yearning for connection with their distant, “successful” children.
- Loneliness also affects ambitious young students pursuing mythical success in an isolating hyper-competitive world.
Evidence and Impact of Loneliness
- Citing a study from 2022, the note highlights that 20.5% of Indian adults experience moderate loneliness, while 13.3% suffer from severe loneliness.
- Loneliness is described as a depersonalizing experience, an alienation from social connectivity that generates warmth and care.
- This loneliness surge can be attributed to societal shifts prioritizing time and speed, neglecting the importance of personal relationships and unhurried interactions.
The Role of Time and Speed
- The modern world’s obsession with productivity and efficiency has eroded surplus time for genuine human connections.
- The fast-paced nature of life further intensifies this problem, as individuals rush through existence without the opportunity for reflection, connection with nature, or relaxed communication.
- This rush is evident in express highways, airports, and metro stations, which symbolize a deeper societal malaise.
Superficial Connectivity in the Digital Age
- Paradoxically, the digital age fosters a sense of superficial connectivity while undermining direct face-to-face interactions.
- The illusion of connection through social media fails to replace the ecstasy of genuine, personal interactions.
- The note points out how parents and children sit at the same dining table but remain engrossed in their smartphones, missing out on real connections due to the virtual reality surrounding them.
Loneliness Among Students
- The education system contributes to the loneliness crisis, as students are transformed into competitors and their worth is judged solely by placements and salary packages.
- This intense pressure leads to communication breakdowns, anxiety, depression, and loneliness.
- Alarming data from prestigious institutions like IITs underscores the severity of the problem, with thousands dropping out and some resorting to suicide.
Conclusion: The Need for a Revolution
To combat the growing loneliness crisis, the note advocates for a structural, cultural, and psychic revolution.
It emphasizes the restoration of values that truly matter—love over materialism, calmness over mindless speed, and the nurturing of the self over egotistic possessions.
A collective shift towards these values is essential to address the profound existential crisis of loneliness in Indian society.
Source: The Tribune
