Daily Current Affairs for UPSC – 6 March 2023

Daily Current Affairs for UPSC 2023

Q) Recently seen in news, the ‘Cantillon Effect’ is best related to which one of the following?

1. The merging of two tropical cyclones of the same intensity
2. Development of new bacterial strains from repetitive infection
3. An event where value of money decreases due to initial spending.
4. Creation of a new substance by applying appropriate pressure.

Daily Current Affairs for UPSC – 3 March 2023

Answer:

Explanation:

• Option (3) is correct: The Cantillon Effect is a monetary phenomenon where the initial recipients of new money see a disproportionate benefit while the latter users face a diminished effect. The term was coined by economist Richard Cantillon, who observed that the impact of monetary inflation is not evenly distributed. The financial measures, introduced across the world, to tackle slowdown has created Cantillon Effect. When new money is introduced, a few privileged individuals or groups (banks, government agencies, or wealthy business owners) have the power to spend or invest the money before it impacts the economy. When the money makes way into the hands of the general public, its value is diminished due to the initial spending and investing by privileged individuals. It can lead to wealth inequality as few privileged individuals who receive the new money can boost their wealth before the general public can access it. The new money spent and invested by the initial recipients can create inflationary pressures in the economy, impacting purchasing power for everyday goods and services of the general public.

Q) Consider the following statements about the office of ‘Lokayukta’:

1. He is appointed by the Chief Justice of the State High Court.
2. A lokayukta has the power to suspend a public servant in connection with an allegation of corruption.
3. A lokayukta remains in office for a term of five years and can be reappointed for a second term.

Which of the statements given above is/are not correct?

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. 1, 2 and 3 

Explanation:

• Statement 1 is incorrect: In states, the Lokayukta and Up-Lokayukta are appointed by the Governor. At the time of appointment, the Governor, generally, consults the Chief Justice of the State High Court, and Leader of Opposition in the State Legislative Assembly. The structure of Lokayukta does not follow a uniform pattern in all the states. Some states such as Rajasthan, Karnataka, Andhra Pradesh and Maharashtra have created the Lokayukta as well as Up-Lokayukta, while some others like Uttar Pradesh and Himachal Pradesh have created only the Lokayukta.
• Statement 2 is incorrect: A Lokayukta has the supervisory powers, that is, powers of superintendence over and to give direction regarding matters referred for preliminary inquiry or investigation:
• Power of Search and seizure.
• Power of civil court in certain cases.
• Power to utilize services of officers of the State Government.
• Power of provisional attachment of assets.
• Power related to confiscation of assets, proceeds, receipts and benefits arisen or procured by means of corruption, in special circumstances;
• Power to recommend transfer or suspension of public servant connected with allegation of corruption.
• Statement 3 is incorrect: For the Lokayukta, judicial qualifications are prescribed in the States of Uttar Pradesh, Himachal Pradesh, Andhra Pradesh, Gujarat, Odisha and Karnataka. However, no specific qualifications are prescribed in the states of Bihar and Rajasthan. The term of office fixed for Lokayukta in majority of states, is of five years duration or 70 years (Himachal Pradesh) of age, whichever is earlier; and the Lokayukta is not eligible for reappointment for a second term.

Q) With reference to ‘SWAMIH’ fund, consider the following statements:

1. It aims to build quality, affordable new housing projects in the middle-income housing category.
2. It also provides debt financing for the completion of stalled housing projects.
3. The fund is sponsored by the Ministry of Housing and Urban Affairs.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 1, 2 and 3

Explanation:

• Statement 1 is incorrect but statement 2 is correct: SWAMIH Fund has recently completed 20,557 homes since inception in 2019. In 2019, the central government launched the ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Projects’ or ‘SWAMIH’ Fund Scheme. The objective of the scheme is to provide priority debt financing for the completion of stalled housing projects falling under the affordable and middle-income housing categories. This ‘last mile financing’ of stalled projects will be extended through a Category-II AIF (Alternate Investment Fund or AIF) debt fund registered with the Securities and Exchange Board of India (SEBI). As defined in SEBI (AIF) Regulations, 2012, AIFs refer to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).
• Statement 3 is incorrect: The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group Company. The fund is considered as the lender of last resort for distressed projects. The fund has raised Rs. 15,530 crore so far with an aim to provide priority debt financing for the completion of stalled housing projects. In three years since inception in 2019, the Fund has already completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities. The Fund has also played a critical role in the growth of many ancillary industries in real estate and infrastructure sector having successfully unlocked liquidity of more than Rs. 35,000 crore.

Q) Consider the following statements about the ‘Guillain-Barré syndrome (GBS)’:

1. GBS is a genetic disease that develops as a result of changes in the chromosomal setup of human DNA.
2. GBS can be passed from one generation to another.
3. GBS is more common in adults and older people than in young people.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 3 only

Explanation:

• Statement 1 is incorrect but statement 3 is correct: Guillain-Barré syndrome (GBS) is a rare neurological disorder in which the immune system mistakenly attacks part of the peripheral nervous system, the network of nerves located outside of the brain and spinal cord. GBS can range from a very mild case with brief weakness to nearly devastating paralysis, leaving you unable to breathe independently. GBS can affect anyone. It can strike at any age (although it is more frequent in adults and older people) and both sexes are equally prone to the disorder. GBS is estimated to affect about one person in 100,000 each year.
• Statement 2 is incorrect: Guillain-Barré syndrome (GBS) is not contagious or inherited. The US Food and Drug Administration (FDA) said that a new vaccine for Respiratory Syncytial Virus (RSV) for elderly may potentially increase the risk for Guillain-Barre syndrome (GBS). Respiratory Syncytial Virus (RSV) is a highly contagious virus that causes flu-like illness in people of all ages that increases in severity with age. Currently, there is no approved vaccine or RSV.

Q) Consider the following statements about the ‘Whiskey Fungus’:

1. It develops as a result of ethanol vapours find in the vicinity of the distilleries.
2. It is injurious to both the human health as well as the surrounding environment.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation:

• Statement 1 is correct but statement 2 is incorrect: Whiskey fungus’ has been found to cover US County in a black, sooty deposit. Whiskey fungus, or Baudoinia compniacensis, thrives on ethanol vapours. It tends to cover a wide range of nearby surfaces, including construction materials, road signs, fences, outdoor furniture, and cars. It can also colonize natural materials like rock and vegetation. It was first discovered around distilleries in the Cognac region of France in the 1870s and has thrived around many distilleries worldwide including in the US and Canada. So far, researchers have not found any human health risks related to exposure to Baudoinia compniacensis, but it can damage property and kill trees.

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