Month: March 2023

The last few years have brought about a harsh new reality in which crises have become the norm rather than the exception. Pandemics, economic downturns, and extreme weather events were once considered tail risks, but all three have struck South Asia in quick succession since 2020. Governments across South Asia must take immediate policy action and invest in human capital to strengthen resilience and protect the well-being of future generations.

Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka are the countries of South Asia.

• Population: With a total population of over 1.8 billion people, the region is the most populous in the world.
• South Asia’s geography is diverse, with mountain ranges such as the Himalayas and the Hindu Kush, major rivers such as the Ganges, Indus, and Brahmaputra, and coastal areas on the Arabian Sea, Bay of Bengal, and Indian Ocean.
• Economy: India has the region’s largest economy, accounting for more than 70% of total GDP. Rice and wheat are staple crops in most countries, and agriculture is a major employer. The manufacturing sector also contributes significantly to the region’s economy, with textiles, clothing, and leather products being major exports.
• Climate: South Asia has a diverse climate, with the monsoon season bringing heavy rain to much of the region and causing flooding in some areas. Climate patterns vary due to the region’s geography and size. Summers in the region are hot and humid, and winters are mild.
• Climate Change Threats: Climate change poses significant threats to the region, with some areas, such as the Maldives, vulnerable to sea-level rise. Other dangers include an increase in the frequency and severity of extreme weather events like floods and droughts. The region is also vulnerable to the health effects of climate change, such as an increase in heat-related illness and infectious diseases.
• Biodiversity and Environmental Threats:
  • South Asia is home to several biodiversity hotspots, including India’s Western Ghats and the Eastern Himalayas.
  • However, the region faces serious environmental challenges, including deforestation, air and water pollution, and climate change.
  • Deforestation is a major issue in the region, with logging and land use change contributing to habitat destruction and biodiversity loss.

Analysis of a South Asian underutilised asset

• The people of South Asia are its most valuable asset, but they are underutilised:
• With nearly half of its population under the age of 24 and over one million young people expected to enter the labour force every month until 2030, the region stands to benefit from an enviable demographic dividend.
• One of the major challenges is stunting: South Asia is home to more than one-third of the world’s stunted children. A child born in the region today can expect to achieve only 48% of their full productive potential by the age of 18.
• Spending by governments on health and education: South Asian governments spend only 1% of their GDP on health and 2.5% on education. In comparison, the global average for health is 5.9% and 3.7% for education.
• The COVID-19 pandemic is a setback for the region’s human capital: The COVID-19 pandemic, which pushed an additional 35 million people into extreme poverty across South Asia, dealt an unprecedented blow to the region’s human capital. Among its most heinous consequences is an increase in learning poverty, or the inability to read and comprehend a simple text by the age of ten. During the pandemic, ineffective remote instruction increased South Asia’s learning poverty from 60% to 78%.
• The poorest and most vulnerable people fell further behind: in Bangladesh, for example, poor students lost 50% more learning than rich students. Several countries continue to show little to no signs of recovery, and students in South Asia may lose up to 14.4% of their future earnings.

Interventions with the potential to make a difference

• Affordability of education: Recent evidence suggests that even simple and low-cost education programmes can result in significant skill gains.
• For instance:
• In Bangladesh, attending an extra year of pre-school through two-hour sessions improved literacy, numeracy, and social development scores significantly.
• Six months of extra remedial classes after school in Tamil Nadu helped students catch up on roughly two-thirds of lost learning due to 18 months of school closures.
• Government teachers in Nepal ran a phone tutoring programme that increased students’ foundational numeracy by 30%.
• Robust crisis management systems: The importance of countries having strong systems in place to assist individuals and families during times of crisis. Such systems, which can include social safety nets, health care, and education programmes, can help to reduce the impact of pandemics, protect vulnerable populations, and promote resilience. Countries can better prepare to respond to potential challenges by investing in these systems before a crisis occurs.
• Utilize data and technology: Effective systems are required to respond to crises quickly while also maintaining critical services such as healthcare and education. Coordination between sectors is critical. Data and technology are critical in the delivery of services; human development systems must ensure that they are used effectively.

@the end

South Asia faces a difficult road ahead. The next crisis could be around the corner. A strong human development system would not only mitigate the damage, but would also help to protect lives and livelihoods. It has the potential to provide South Asia with the resilience it requires to thrive in an increasingly volatile world. While the outlook is bleak, it is important to remember that if governments act quickly, well-designed and implemented interventions can make a difference.

Source: https://www.thehindu.com/opinion/op-ed/south-asias-human-capital-is-the-resilience-it-needs/article66573073.ece

India has urged the G20 to take multilateral action to expedite the extradition of fugitive economic offenders (FEOs) and the recovery of assets both at home and abroad.

What are Fugitive Economic Offenders?

• Individuals who have fled their home country to avoid prosecution for financial crimes such as money laundering, fraud, and embezzlement are known as FEOs.
• These individuals typically engage in illegal activities involving large sums of money, causing significant harm to the economy of the country from which they have fled.

FEOs and India

• In this regard, India has enacted specialised legislation in the form of the Fugitive Economic Offenders Act, 2018.
• It defines the term- as an individual against whom a warrant of arrest in relation to a scheduled offence has been issued by any court in India and who has left the country so as to avoid criminal prosecution; or the FEO abroad, refuses to return to face criminal prosecution”.

What causes offenders to flee?

• FEOs seek refuge in countries that do not have an extradition treaty with their home country or have weak extradition laws.
• Evading justice: FEOs frequently use legal loopholes and differences in laws and regulations across countries to avoid prosecution.
• Asset offshoring: They may transfer assets to offshore accounts or invest in assets that are difficult to seize, such as real estate and art.

How do FEOs affect the economy?

• FEOs can have a significant economic impact on the country from which they fled.
• Loan defaults: They may default on loans, commit fraud, and steal large sums of money from banks and financial institutions.
• The NPA crisis can result in an increase in non-performing assets (NPAs), a slowing of economic growth, and a loss of investor confidence.

International mechanisms for FEOs

Some of the most important international mechanisms for FEOs are:

• Extradition treaties: Many countries have extradition treaties with other countries, which allow them to request the extradition of people who have fled to other countries to avoid prosecution.
• Mutual Legal Assistance Treaties (MLATs): MLATs are international agreements that allow countries to exchange information and evidence in criminal investigations and proceedings.
• International Conventions and Agreements: Several international conventions and agreements address financial crimes and establish a framework for international cooperation. For example, the UN Convention Against Corruption, the FATF, and others.
• INTERPOL: Interpol facilitates and coordinates cross-border police cooperation. It keeps a database of wanted people, including FEOs, and collaborates with member countries to find and apprehend them.
• Asset recovery mechanisms are intended to allow countries to recover assets through asset seizure and repatriation, as well as asset freezing to prevent FEOs from accessing them.

Way forward

• Domestic law reform: India can improve its domestic laws and regulations to make it easier to prosecute FEOs and recover their assets.
• Developing extradition treaties: India can work with other countries to develop and strengthen extradition treaties to ensure that FEOs cannot evade justice by fleeing to other countries.
• Increasing international cooperation: India can strengthen its ties with other countries and international organisations to facilitate the exchange of information and intelligence about FEOs.
• Seizing and repatriating assets: India can work to seize and repatriate assets obtained by FEOs through illegal means.
• Improving transparency and accountability: To prevent FEOs from exploiting loopholes and engaging in illegal activities, India can improve transparency and accountability in its financial system.

Source: https://www.thehindu.com/news/national/india-calls-upon-g-20-countries-for-faster-extradition-of-fugitive-economic-offenders/article66567960.ece

According to a recent study published in The Lancet, India is falling short of meeting 19 of the 33 Sustainable Development Goals (SDGs) indicators. Access to basic services, wasting and overweight children, anaemia, child marriage, partner violence, tobacco use, and modern contraceptive use are all critical off-target indicators.

Analysis

• On-Target: Districts that did not meet the SDG target by 2021 but saw enough improvement between 2016 and 2021 to meet the target by 2030.
• Off-Target: Districts that did not meet the SDG target by 2021 and either saw a worsening or an insufficient magnitude of improvement between 2016 and 2021. If either of these trends continues, these districts will fall short of their targets by 2030.
• Indicators show progress in reducing adolescent pregnancy, tobacco use in women, multidimensional poverty, teen sexual violence, and improving access to electricity.
• Areas where more effort is required: More efforts are required to reduce anaemia in women, improve access to basic services, provide women with health insurance, and reduce anaemia in pregnant women.

Goals for Sustainable Development (SDGs)

• The Sustainable Development Goals, also known as the Global Goals, are a universal call to action to end poverty, protect the environment, and ensure that all people live in peace and prosperity.
• The United Nations adopted the SDGs in 2015 with the goal of creating a better and more sustainable future for all. As part of the 2030 Agenda for Sustainable Development, the 17 SDGs went into effect on January 1, 2016.
• India is one of the signatory countries that has pledged to meet these targets by 2030.
• Though not legally binding, the SDGs have de facto become international obligations and have the potential to reorient countries’ domestic spending priorities over the next fifteen years.
• Countries are expected to take ownership of these goals and establish a national framework for achieving them.

Targets set for each of the SDGs

• No Poverty: By 2030, end extreme poverty for all people worldwide, which is currently defined as people living on less than $1.25 per day.
• Zero Hunger: By 2030, end hunger and ensure that all people, particularly the poor and those in vulnerable situations, including infants, have year-round access to safe, nutritious, and sufficient food.
• Quality Education: Ensure that all girls and boys complete free, equitable, and high-quality primary and secondary education by 2030, resulting in relevant and effective learning outcomes.
• Gender Parity: Put an end to all forms of discrimination, violence, and harmful practises directed at women and girls everywhere. Ensure women’s full and effective participation in political, economic, and public life, as well as equal opportunities for leadership at all levels of decision-making.

So far, India’s progress towards achieving the SDGs

• SDG 1 (Zero Poverty): India has made significant strides in poverty reduction, with the poverty rate falling from 21.9% in 2011-12 to 4.4% in 2020. This progress has been aided by the government’s efforts to provide financial inclusion and social protection schemes.
• SDG 2 (Zero Hunger): India has made strides in reducing hunger, with the prevalence of malnutrition falling from 17.3% in 2004-06 to 14% in 2017-19. This progress has been aided by government initiatives such as the National Food Security Act and the Pradhan Mantri Garib Kalyan Anna Yojana.
• SDG 3 (Good Health and Well-Being): India has made strides in maternal and child health, with the maternal mortality ratio falling from 167 per 100,000 live births in 2011-13 to 113 in 2016-18. This progress has been aided by the government’s efforts to strengthen health systems and increase access to healthcare services.
• SDG 4 (Quality Education): India has made strides in improving access to education, with the gross enrolment ratio for primary school rising from 93.4% in 2014-15 to 94.3% in 2019-20. This progress has been aided by government initiatives such as the Sarva Shiksha Abhiyan and the Right to Education Act.
• SDG 5 (Gender Equality): India has made strides towards gender equality, with the sex ratio at birth rising from 918 in 2011 to 934 in 2020.
• This progress has been aided by government initiatives such as Beti Bachao Beti Padhao and the Maternity Benefit Programme.

According to the National Family Health Survey:

• Multidimensional poverty has decreased: From 2005 to 2011, the compounded annual average rate was 4.8 percent per year, and from 2011 to 2021, the rate was 10.3 percent per year.
• Declining child mortality: While there are some issues with the 2011 child-mortality data, the rate of decline in 2011-2021 for each of the MPI index’s ten components is significantly faster than in 2005-2011.
• Average decline in overall indicators: The average equally weighted decline for nine indicators was 1.9 percent per year from 2005 to 2011, and 16.6 percent per year from 2011 to 2021, which is more than eight times higher.
• Consumption inequality is decreasing: Every single household survey or analysis has revealed that consumption inequality is decreasing between 2011 and 2021. This is consistent with the previously stated finding of highly inclusive growth from 2011 to 2021.

@the end

The analysis is a valuable tool for policymakers to address gaps and focus on indicators that require more attention, thereby improving citizens’ well-being and creating a sustainable future for all.

Source: https://dashboards.sdgindex.org/profiles/india