27 April 2024

• Economy: India's household net financial savings declined to 5.3 per cent of GDP in FY 2022-23, a 47-year low.
• International Organisations: UNCTAD rebranded as "UN Trade and Development" while retaining the acronym UNCTAD.
• Food Security: The Global Report on Food Crises 2024 finds 281.6 million people in 59 countries face acute food insecurity.
• Health: WHO finds immunisation has saved 154 million lives over 50 years, primarily through measles vaccines.
• Ocean Economy: IUCN released a Blue Economy report calling for sustainable use of ocean resources.
• EU Law: The European Parliament passes the Corporate Sustainability Due Diligence Directive (CSDDD).

GS area: Economy (savings, investment, growth)

India's household net financial savings fell to 5.3 per cent of GDP in FY 2022-23, the lowest in 47 years, according to National Statistical Office data.

Key facts:

• Household savings structure: In India, household savings comprise physical savings (real estate, gold) and financial savings (bank deposits, shares, insurance, pension funds). Net financial savings = gross financial savings minus financial liabilities (mainly household borrowings).
• Decline drivers: Households took on higher debt (personal loans, credit cards, home loans) while savings flows stagnated. Post-COVID consumption recovery and loan-funded spending explain part of the trend.
• Investment puzzle: A decline in household savings need not reduce total investment if government and corporate savings fill the gap. However, sustained low household savings can constrain the domestic investment pool.
• Macroeconomic risk: If household savings decline alongside government deficits, India would need to rely more on foreign capital, increasing current account vulnerability.
• Gold and physical savings: India's household gross savings (physical + financial) remain higher as a share of GDP than most emerging economies. Households continue to save heavily in gold and real estate.

Static linkage: economy, savings, investment.

GS area: International Organisations, International Relations

The United Nations Conference on Trade and Development (UNCTAD) has been rebranded as "UN Trade and Development" while retaining its official acronym UNCTAD.

Key facts:

• UNCTAD: Founded in 1964. Headquartered in Geneva. The main UN body dealing with trade and development from a developing-country perspective.
• Rebranding rationale: The term "conference" implied a one-time event. The rebrand to "UN Trade and Development" reflects its permanent institutional role.
• Key reports: UNCTAD publishes the World Investment Report (foreign direct investment data) and the Trade and Development Report annually.
• UNCTAD vs WTO: The WTO (World Trade Organisation, 1995, successor to GATT 1947) is the binding multilateral trade law body. UNCTAD is analytical and advisory, advocating for developing countries.
• India's relevance: India has historically used UNCTAD forums to argue for preferential treatment in trade, technology transfer, and commodity price stabilisation.
• Special Drawing Rights (SDRs): UNCTAD frequently calls for reform of the international monetary system, including greater SDR allocation to developing countries.

Static linkage: international organisations, international trade.

GS area: International Relations, Economy (food security)

The annual Global Report on Food Crises (GRFC) found 281.6 million people in 59 countries face acute food insecurity in 2024.

Key facts:

• GRFC: A multi-partner initiative coordinated by the Food and Agriculture Organisation (FAO), the UN World Food Programme (WFP), and the EU.
• Acute food insecurity (IPC Phase 3 and above): People in "Crisis" or worse conditions, requiring urgent humanitarian assistance.
• Primary drivers (2023 data):
  1. Conflict (70 per cent of the acutely food-insecure population): Sudan, DRC, Afghanistan, Myanmar.
  2. Economic shocks: Rising food and energy prices, especially in low-income countries.
  3. Weather extremes (El Nino 2023): Eastern and Southern Africa.
• India's context: India's Global Hunger Index ranking (2023: 111 out of 125) is contested by the government, which disputes the methodology.
• FAO: United Nations Food and Agriculture Organisation. Founded in 1945. Headquartered in Rome. Publishes the State of Food Security and Nutrition in the World (SOFI) annually.

Static linkage: food security, international organisations, environment.

GS area: Health, International Organisations

A landmark WHO-led study found that immunisation saved approximately 154 million lives over the past 50 years, of which 60 per cent were attributed to measles vaccination.

Key facts:

• Measles vaccine's outsized impact: Measles is highly infectious (reproduction number R0 of 12-18). A single dose provides 93 per cent protection; two doses provide 97 per cent. Before vaccination, measles killed 2.6 million people per year.
• EPI (Expanded Programme on Immunisation): Launched by WHO in 1974 to ensure all children worldwide receive vaccines against six diseases: tuberculosis, polio, diphtheria, pertussis, tetanus, and measles.
• India's Universal Immunisation Programme (UIP): Launched in 1985. India vaccinates approximately 2.67 crore infants per year. Polio was eradicated from India in 2014.
• GAVI (Vaccine Alliance): A public-private global health partnership funding vaccines for low-income countries. Co-funded by BMGF, UNICEF, WHO, and World Bank.
• COVID-19 vaccines: Over 13 billion COVID-19 vaccine doses were administered globally (as of 2024), the fastest mass vaccination campaign in history.

Static linkage: health, international organisations.

GS area: International Relations, Economy (trade, environment)

The European Parliament passed the Corporate Sustainability Due Diligence Directive (CSDDD) in April 2024, requiring large EU companies to identify and address human rights and environmental risks in their global supply chains.

Key facts:

• Scope: Applies to EU companies with more than 1,000 employees and over 300 million euros in global turnover. Also applies to non-EU companies with significant EU market activity.
• Requirements: Companies must assess their global supply chains for adverse human rights impacts (child labour, forced labour, unsafe conditions) and environmental risks (emissions, biodiversity, toxic pollution).
• Consequence for India: Indian exporters to the EU (textiles, gems, chemicals, agriculture) may face due diligence audits and disclosure requirements from their EU buyers.
• Transposition: EU member states have 2 years to transpose the directive into national law.
• Related measures: EU Battery Regulation (supply chain due diligence for batteries), the EU Deforestation Regulation (requires proof that commodities are deforestation-free).

Static linkage: international trade, environment, governance.

• IUCN Blue Economy Report: The International Union for Conservation of Nature called for strengthened ocean governance, sustainable fisheries management, and marine protected areas as pillars of a sustainable Blue Economy. The report estimated over 3 billion people depend on marine and coastal biodiversity for their livelihoods.
• MGNREGS wage hike: The government revised MGNREGS wages upward by an average of 7 per cent with effect from April 2024. The revised rates range from Rs 247 per day (Chhattisgarh) to Rs 374 per day (Haryana).
• India and IMF's World Economic Outlook (April 2024): IMF projected India's GDP growth at 6.8 per cent for FY 2024-25, making it the fastest-growing major economy, ahead of China's projected 4.6 per cent.