17th November 2023 Current Affairs

World's first vaccine for chikungunya

Context:

The recent approval of the world’s inaugural vaccine for chikungunya by the U.S. Food and Drug Administration (FDA) marks a significant milestone in addressing the mosquito-borne viral disease caused by the chikungunya virus (CHIKV). This RNA virus belongs to the alphavirus genus of the Togaviridae family.

 

Key Details:

  • Chikungunya Overview: Chikungunya is a viral illness transmitted through mosquitoes, primarily by Aedes (Stegomyia) aegypti and Aedes (Stegomyia) albopictus, both of which can also transmit dengue and Zika viruses.

 

  • Name Origin: The term “chikungunya” finds its roots in the Kimakonde language, where it means “to become contorted.”

 

  • Distribution: CHIKV was initially identified in the United Republic of Tanzania in 1952 and has since been found in various countries across Africa, Asia, Europe, and the Americas.

 

  • Outbreaks: The first urban outbreaks were recorded in Thailand in 1967 and in India during the 1970s. As of now, CHIKV has been detected in over 110 countries.

 

  • Transmission: The virus typically spreads through the bite of an infected mosquito, with symptoms appearing 4–8 days (range 2–12 days) post-infection.

 

  • Symptoms: CHIKV infection manifests with symptoms such as fever, intense joint and muscle pain, headache, nausea, fatigue, and rash.

 

  • Treatment: Currently, there is no specific antiviral drug treatment available for CHIKV infections.

Voice of Global South Summit

Context:

The recent inauguration of the second Voice of Global South Summit by the Prime Minister marks a significant event.

 

Description of the Voice of Global South Summit (VoGS):

  • The VoGS Summit, an initiative originating in India, serves as a shared platform for Global South countries to express their perspectives and priorities on various critical issues.

 

  • Its objective is to address common challenges encountered by developing nations through dialogue.

 

  • The summit is inspired by the Prime Minister’s vision encapsulated in the phrase ‘Sabka Saath Sabka Vikas Sabka Vishwas aur Sabka Prayas,’ aligning with India’s philosophy of

Initiation of the summit:

  • The foundation of this distinctive initiative was laid in response to recent global developments that have significantly affected the developing world.

 

  • These include events such as the COVID-19 pandemic, escalating debt, the ongoing conflict in Ukraine, and challenges related to food and energy security, among others.

 

 

  • Developing countries often find their concerns marginalized on the global stage, as existing platforms prove inadequate in addressing their challenges.

 

About Global South:

  • The term Global South refers to countries in Asia, Africa, and South America, while the Global North encompasses countries like the US, Canada, Europe, Russia, Australia, and New Zealand.

 

  • It is used to categorize countries based on economic development and historical factors.

 

  • Characteristics of Global South nations include predominantly lower-income status, often with colonial histories.

 

  • Not strictly limited to the Southern Hemisphere, many are located in the Northern Hemisphere.

 

  • The term is used as a value-free alternative to “Third World,” and major countries like Brazil, China, India, Indonesia, and Mexico are part of the Global South.

 

The Need for Classification:

This classification aids in describing economic and geopolitical differences, overcoming the limitations of East/West or First/Second/Third World classifications, recognizing the shared history of colonization, and acknowledging the emergence of economically powerful South countries.

 

Indian Context:

  • India seeks to represent the underrepresented Global South in international forums and calls for reforms in multilateral institutions like the UNSC, UN, and IMF.
  • Emerging economies like India and China aim to cooperate with other Global South countries and challenge the dominance of the Global North in international affairs.

 

Criticism of Classification:

Some critics find the term too broad and vague, questioning whether the elites of the Global South aim to challenge global capitalist structures. Concerns also arise about the neglect of Africa in the rise of Asia.

 

Significance of Global South:

  • India aims to unite Global South nations to address common concerns, fostering potential for technical and idea exchanges and cooperation in various areas.

 

  • Shared concerns such as energy security and sustainable development are highlighted.

 

Challenges for Consolidation:

  • Debates revolve around climate reparations and the exclusion of India and China.

 

  • The impact of the Russia-Ukraine War on Least Developed Countries is also a concern, as is China’s increasing influence in the Global South through initiatives like the Belt and Road.

 

Way Forward:

India needs active engagement in regional politics within the Global South and must recognize differentiation within the Global South in terms of wealth, needs, and capabilities.

Increasing Role of India in MSCI's Emerging Markets Index

Context:

India is set to expand its presence on the MSCI Emerging Markets (EM) Index by including nine new stocks, effective from November 30th.

This development will result in an increase in India’s weightage on the index to 16.3%, marking a record representation of 131 Indian stocks.

 

Overview of MSCI EM Index

  • The MSCI EM Index, a globally recognized index listed on the NYSE, is released and maintained by MSCI Inc., a leading provider of global equity indices and financial data services.

 

  • Global asset managers, hedge funds, banks, corporations, and insurance companies closely monitor its stock indices to allocate funds across global stock markets.

 

  • MSCI indices serve as the foundation for passive investments through exchange-traded funds (ETFs), index funds, and certain fund of funds.

 

India’s Progress on the EM Index

  • India’s weightage on the MSCI EM Index has consistently increased and is expected to double to 16.3% through the upcoming rebalancing.

 

  • Ranking second after China (29.89%) on the EM Index, India outperforms countries like Taiwan (15.07%), South Korea (11.78%), and Brazil (5.42%).

 

  • India has demonstrated strong performance, achieving a 4.75% return in the year through October, compared to MSCI EM’s -2.14%.

 

  • Over the long term, India has recorded an annualized 8.33% return over ten years, surpassing MSCI EM’s 1.19%.

 

Inclusion Criteria for Stocks

  • The weightage of stocks on the EM index is determined by free-float market capitalization, representing shares available for foreign investors to trade.

 

  • Higher market capitalization leads to greater weight and allocation. Notable Indian stocks on MSCI EM include Reliance Industries (1.34%), ICICI Bank (0.91%), and Infosys (0.87%).

 

Impact of Increased Representation

  • The inclusion of nine new Indian stocks is expected to attract passive foreign trackers, injecting $1.5 billion into these stocks and other Indian counters with increased weights.

 

  • MSCI’s adjustments involve increasing the weights of specific stocks, such as Zomato, Hindustan Aeronautics, and Jio Financial Services, potentially attracting around $160 million in passive inflows.

 

  • While heavyweight stocks like Reliance may experience minor weight reductions, the overall foreign portfolio investment (FPI) flows may not necessarily surge.

 

 

  • However, this development enhances investor sentiment, as passive investments often offer higher returns over extended periods due to lower expenses and reduced human error.

 

 

Positive Sentiment

MSCI EM’s positive review of India follows Morgan Stanley’s recent upgrade of India to the most preferred emerging market, further enhancing India’s appeal to the global investment community.

INDIA-EU Trade Dispute

Context:

India is almost done with its most heated trade disagreement, which involves information and communication technology (ICT) goods, with the European Union (EU), which is its second largest trading partner.

 

Background:

  • As of 2019, New Delhi was involved in the WTO’s dispute settlement process because it was protesting the duty it put on a lot of different ICT goods.

 

  • They include mobile phones and their parts, base stations, integrated circuits, and optical tools. They said the duty was against global trade rules and hurt their tech exports to India worth 600 million Euros.

 

  • It was thought that the disagreement would hurt India’s efforts to make more tech goods, which is an important area where India is trying to become less dependent on.

 

 

  • The EU, Japan, and Chinese Taipei all made separate complaints with the WTO on April 17, 2023, about India’s import duties on certain ICT goods.

 

  • The WTO’s dispute settlement panel decided that the tariffs were unfair and needed to be fixed in line with international trade rules.

 

  • The agreement came after a high-level Trade and Tech Council (TTC) meeting between India and the EU.

 

  • The TTC was supposed to talk about a number of unresolved problems between the two countries since the WTO does not have a working dispute resolution system.

 

 

  • The TTC with the EU is important because the EU only has one TTC with the US.

 

  • As disputes between India and the EU rise, the council wants to form technology ties with countries that share its views.

 

  • With the help of the production-linked incentive (PLI) plan, India raised the tariffs on ICT goods in order to encourage more electronic goods production.

 

 

India’s exports of electronics have been going up even though its exports of other goods have been going down this fiscal year. This shows that the current plan is working.

What kinds of things are ICT goods?

  • “Services delivered remotely over ICT networks” is what UNCTAD says ICT-enabled services are.
  • This term was used to gather information for this study, just like it was used in 2016–17.

 

Ten types of services have been named as ones that could be made possible by ICT:

  • Cellular phones
  • Computer services, such as apps for computers
  • Marketing and sales services, but not trade and leasing services
  • Services for information
  • Services for insurance
  • Services for money
  • Services for management, administration, and the back office
  • Services for licencing
  • Engineering, technical skills linked to it, and research and development

Services for education and training.

The way that the WTO settles trade disputes:

  • In an ideal world, disagreements would be settled through talks. If this isn’t possible, WTO members can ask for a panel to be set up to settle the disagreement.

 

  • There will be a report from the group, and it can be challenged in court by the WTO’s Appellate Body.

 

 

  • The Appellate Body is made up of seven people who meet regularly to hear complaints from reports made by groups in WTO member disputes.

 

  • The Appellate Body can support, change or reverse the law findings and results of a group.

 

 

  • In the event that a WTO member does not follow the suggestions made by conflict settlement, that member may face trade penalties or compensation, such as higher customs taxes.

 

  • This method is used by many WTO countries, including the EU, to make sure that trade rules are followed. On the other hand, the EU will only start a conflict settlement case if no other alternatives have worked.
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments