21 October 2024 : Indian Express Editorial Analysis

1. THE DIGITAL WAY FORWARD      

(Source: Indian Express; Section: The Editorial Page; Page: 10)

Topic: GS2 – Governance

Context:

The article discusses the global adoption of the UN’s Global Digital Compact (GDC) and India’s leadership in promoting Digital Public Infrastructure (DPI), emphasizing the need for impact assessments to ensure inclusive and effective digital governance.

Global Digital Compact and Digital Public Infrastructure (DPI)

• The adoption of the Global Digital Compact (GDC) at the UN Summit on September 22, 2024, marks a significant milestone in global cooperation on digital governance.
• The GDC, endorsed by all 193 UN General Assembly members, reflects a unified commitment to ensuring that technology is designed, used, and governed in ways that benefit everyone.
• This follows the multi-phase initiative, Universal Safeguards for Digital Public Infrastructure (DPI), launched in 2023 by the Office of the UN Secretary-General’s Envoy on Technology (OSET) and the United Nations Development Program (UNDP).
• The initiative seeks to establish guidelines for digital infrastructure that fosters inclusivity and scalability, ensuring that the digital transformation of economies serves people from all backgrounds, particularly in the Global South.

India’s Leadership in Digital Public Infrastructure

• India has played a key role in promoting Digital Public Infrastructure, especially during its G20 presidency. The country’s massive digital identity program, Aadhaar, and its extensive use of real-time digital payments, with a record 14.96 billion transactions in August 2023, place India at the forefront of global DPI conversations.
• India’s Modular Open Source Identity Platform (MOSIP), a not-for-profit initiative, is already being adopted by 11 countries, showcasing its scalability and global relevance.
• Moreover, the World Bank’s ID4D (Identity for Development) and the G2Px program (Digitizing government-to-person payments) support the digital transformation of around 60 and 35 countries, respectively.
• However, while enthusiasm for DPI grows, early warnings emphasize the need for proper regulation and safeguards. The UN’s safeguard framework stresses that the rapid deployment of DPIs must be carefully managed to avoid potential risks and unintended consequences.

The Importance of Impact Assessments for DPIs

• As DPIs proliferate both foundationally and sectorally, the need for robust impact assessments becomes paramount. These assessments are critical not just to track the success of digital initiatives, but to guide their design improvements and ensure inclusivity.
• Without such evaluations, governments risk investing in infrastructure that may not fully achieve its intended goals or, worse, exacerbate existing inequalities.
• Initial evidence from India indicates positive macro-level outcomes from DPI-related programs. For instance, financial inclusion has significantly improved, with bank account ownership for adults increasing from 25% in 2008 to over 80% within six years, and 56% of these accounts are owned by women.
• The value of digital transactions has also surged, comprising nearly 50% of India’s nominal GDP in 2022-23.
• Yet, despite these impressive statistics, deeper questions arise concerning the true impact of DPIs on citizens’ livelihoods, incomes, and social agency. A more granular and intersectional analysis is necessary to fully understand these effects.

Challenges in Measuring DPI Impact

• One of the greatest challenges in evaluating the impact of DPI initiatives is the lack of detailed and relevant data.
• While high-level metrics, such as the number of Aadhaar enrollments or UPI transactions, offer a superficial view of DPI success, they fail to provide a complete picture of how these systems affect users at a socio-economic level.
• For example, can we quantify how UPI has contributed to the financial independence of rural women? Additionally, intersectional data is vital to examine how demographic factors such as gender, income, and education shape the outcomes of digital infrastructure initiatives.
• Current evidence often relies on anecdotal observations rather than comprehensive, data-driven analysis, making it difficult to draw clear conclusions.
• To accurately assess the socio-economic impact of DPI systems, there is a need for anonymized granular data that can reveal who benefits from digital public infrastructure and who is left behind.
• Furthermore, it is essential to understand the effects of DPI on the private sector and government entities, both as users and providers of technology.

The Path Forward: The 3Ds—Design, Data, and Dialogue

To overcome these challenges, a structured approach based on three key pillars—design, data, and dialogue can facilitate better impact assessments for DPIs.

• Design: Impact assessment mechanisms should be integrated into the initial design of DPI systems, much like privacy and security safeguards. Digital systems must be built with the capacity to collect relevant data that can provide a continuous feedback loop for improvement.
• Data: Making high-quality data available through trusted and well-governed mechanisms is crucial. While governments often minimize data collection to avoid misuse, this compromises the effectiveness of impact assessments. Trusted data collection systems can ensure both privacy and the availability of detailed, usable insights.
• Dialogue: Fostering open dialogue between stakeholders, including third-party assessment agencies, policymakers, the private sector, and civil society, is essential for building a community of ownership around DPI initiatives. Establishing clear protocols for stakeholder engagement can improve governance and accountability.

Conclusion: A Path to Inclusive Digital Transformation

• India’s confidence in DPIs is well-founded, and the country’s efforts are already contributing to transformative changes in its economy. However, institutionalizing the process of impact assessments will allow for timely corrective actions and ensure that DPI systems continue to evolve in ways that are inclusive and beneficial to all.
• The journey of digital transformation has begun, but it is far from complete. With the right strategies in place, DPIs have the potential to not only reshape economies but also improve millions of lives globally.           

What are the benefits of the GDC?

Reduces Digital Divide: The GDC proposes “digital public goods” like open-source software, open data, and AI models to ensure broader access to the digital economy and help close the digital divide. Encourages Public-Private Partnerships: The GDC envisions collaboration between governments and private entities to build shared digital infrastructure that delivers services according to stakeholders’ needs. Advances AI Governance: By establishing panels for AI governance, the GDC seeks to promote responsible and ethical use of AI with proper human oversight. Supports Sustainable Development: The GDC links digital technologies to the achievement of Sustainable Development Goals (SDGs) by enabling data collection and analysis to measure progress. Strengthens Global Cooperation: The GDC emphasizes capacity-building through partnerships, especially in fostering South-South and North-South collaborations for developing digital public goods.

PYQ: “The emergence of Fourth Industrial Revolution (Digital Revolution) has initiated eGovernance as an integral part of government”. Discuss. (150 words/10m) (UPSC CSE (M) GS-2 2020)

Practice Question:  Discuss the significance of the Global Digital Compact (GDC) adopted by the UN in 2024 and analyze India’s role in advancing Digital Public Infrastructure (DPI). What are the challenges in assessing the impact of DPI, and how can they be addressed to ensure inclusive and equitable digital transformation? (250 words/15 m)

2. WATER IN COMMON     

(Source: Indian Express; Section: The Editorial Page; Page: 10)

Topic: GS3– Environment

Context:

The article highlights the urgent findings of the Global Commission on the Economics of Water, warning that without immediate global reforms in water management, the escalating water crisis could threaten food security, economic stability, and public health worldwide.

Global Water Crisis and the Commission’s Findings

• A major assessment by the Global Commission on the Economics of Water, established by the Netherlands in 2022, has warned of an escalating global water crisis that could spiral out of control without urgent intervention.
• The Commission, drawing on insights from leading scientists and water experts, has highlighted the critical need for better water management practices, especially concerning aquifers.
• The report emphasizes that without reform, the crisis could severely impact global food production and shave 8% off global GDP by 2050, with poorer countries suffering even more, facing up to a 15% loss.
• The demand for freshwater is predicted to outstrip supply by 40% by the end of this decade, with water-stressed regions, particularly in the Third World, already experiencing severe consequences.

The Global Impact: Threat to Food Security and Economy

• One of the most alarming conclusions from the report is the potential for a catastrophic impact on global food production, with over half of the world’s food supply at risk due to dwindling water resources.
• The economic implications are also stark, with the possibility of an 8% reduction in global GDP. Poorer countries, already struggling with inadequate access to water, could experience even more devastating economic repercussions, potentially losing 15% of their GDP.
• Additionally, the report reveals a grim reality: over 1,000 children die every day due to a lack of access to safe water, primarily in economically disadvantaged nations.
• The Commission underscores the urgent need to reconsider how water is perceived and managed globally. It calls for a shift in mindset, treating water as a global common good rather than an inexhaustible resource.
• This fundamental change in approach could help in addressing the growing demand and limited supply of freshwater.

Water Management Issues: Subsidies, Agriculture, and Industrial Waste

• The report identifies several issues that have long been discussed in national contexts but have yet to be adequately addressed. For instance, in countries like India, the link between inefficient water use in agriculture and harmful subsidies has been well established.
• However, there has been little political will to push the agricultural sector towards more sustainable water usage practices. Similarly, industries are rarely held accountable for polluting water resources, with the report revealing that approximately 80% of industrial wastewater globally is not recycled.
• In India’s case, this lack of proper water management and the failure to impose penalties on industries and agriculture for their unsustainable practices have further exacerbated the water crisis. Despite being well-known issues, these problems have persisted due to political and economic challenges.

Lack of Global Governance for Water

• One of the most critical issues raised by the Global Commission is the absence of a global governance system for water. Despite the interconnected nature of water systems, there has been minimal international coordination.
• The UN, for instance, has held only one water conference in the past 50 years. The Commission calls for a global pact to conserve water, urging countries to take responsibility for their water usage and commit to sustainable management practices.
• However, such global agreements must be adaptable to the specific contexts of individual countries. In India, for example, the report places the country among those with significant transboundary water flows.
• This categorization overlooks the complex inter-state water disputes that pose serious policy challenges. Before considering international cooperation, India and similar nations must first address and resolve internal conflicts over water management.

Policy and Implementation Gaps: The Indian Context

• The report highlights a recurring issue in countries like India, where comprehensive water assessments by planning agencies often fail to translate into policy actions.
• The NITI Aayog’s 2018 report on the deteriorating state of groundwater in India is a prime example of this disconnect. Despite the dire warnings and data provided by such reports, meaningful action to conserve and manage water resources remains lacking.
• The findings of the Global Commission should serve as a wake-up call that the time for action is now. Delaying the necessary reforms in water management could have irreversible consequences, not only for individual countries but for the global community as a whole.

Conclusion: A Call for Urgent Global and Local Action

• The Global Commission on the Economics of Water has provided a stark warning about the impending global water crisis. Its findings reveal that without immediate reforms in water management, the world faces serious threats to food security, economic stability, and public health, particularly in poor and water-stressed regions.
• The report calls for a paradigm shift in how water is perceived and managed, urging countries to treat water as a global common good and to implement sustainable practices both locally and globally.
• For countries like India, addressing internal water disputes and improving governance mechanisms will be crucial before participating in global pacts. The message is clear: the world cannot afford to delay action on water management any longer.

Global Commission on the Economics of Water (GCEW)

Objective:  To make a significant and ambitious contribution to the global effort to spur change in the way societies govern, use and value water The Commission’s ultimate goal is a “Global Water Pact” to secure funding and enhance water governance globally, recognizing that the water crisis now threatens nearly all Sustainable Development Goals (SDGs) It was launched in May 2022 with a two-year mandate.  It presented the evidence and the pathways for changes in policy, business approaches and global collaboration to support climate and water justice, sustainability, and food-energy-water security. The Commission is convened by the Government of the Netherlands and facilitated by the Organisation for Economic Co-operation and Development (OECD). Working partners: The GCEW is executed by an independent and diverse group of eminent policy makers and researchers in fields such as: OECD Potsdam Institute for Climate Impact Research Indian Institute for Human Settlements University College London Australian National University University of Amsterdam

PYQ: Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario.(UPSC CSE (M) GS-3 2020)

Practice Question:  Examine the global water crisis as highlighted by the Global Commission on the Economics of Water. Discuss the major challenges in water management and suggest measures to ensure sustainable water use and equitable access to water resources. (250 words/15 m)