October 2019

Daily Current Affairs (23-10-19)

GLOBAL WEALTH REPORT 2019 – CREDIT SUISSE

Related Topics: Reports & Indices, Wealth Distribution

News

Credit Suisse Group, a Switzerland-based multinational investment bank, has released the 10th edition of its annual Global Wealth Report.

Global Wealth Report 2019

The report tracks the growth and distribution of wealth – in terms of the numbers of millionaires and billionaires and the proportion of wealth that they hold – as well as the status of inequality around the world.

Definition of Wealth

  • Wealth is defined in terms of “net worth” of an individual.
  • This, in turn, is calculated by adding up the value of financial assets (such as money) and real assets (such as houses) and then subtracting any debts an individual may have.

Drivers of the Wealth of Nations

Overall size of the population

  • For a country with a huge population, in terms of final calculation, this factor reduces the wealth per adult.
  • However, a big population also provides a huge domestic market and this creates more opportunities for economic growth and wealth creation.

Country’s saving behavior

  • A higher savings rate translates into higher wealth.
  • The two variables share a strong positive relationship.
  • Overall, a percentage point rise in the savings rate raises the growth rate of wealth per adult by 0.13% each year on average.
  • For example, household wealth in Poland (with an 18% savings rate) would be expected to be 27% higher in mid-2019 if it had matched the savings rate of Sweden (28%).

General level of economic activity

  • The most important factor in determining the different trends in household wealth among countries is the general level of economic activity as represented by aggregate income, aggregate consumption or GDP.
  • The expansion of economic activity increases savings and investment by households and businesses, and thus raises the value of household-owned assets, both financial and non-financial.
  • But wealth and GDP do not always move in tandem. This is especially so when asset prices fluctuate markedly as they did during the financial crisis.

Key Findings of the Report

  • The average wealth per adult globally stood at $70,849.
  • North America and Europe have the highest wealth per adult at $417,694 and $153,973, respectively.
  • China has overtaken the United States to become “the country with most people in the top 10% of global wealth distribution”.
  • The report singles out India, along with China and Vietnam as the best examples of how wealth can be increased by pushing for higher economic growth.
  • Just 47 million people – accounting for merely 0.9% of the world’s adult population – owned $158.3 trillion, which is almost 44% of the world’s total wealth.
  • 2.88 billion people – accounting for almost 57% of the world’s adult population –owned just $6.3 trillion or 1.8% of the world’s wealth.
  • The bottom half of wealth holders collectively accounted for less than 1% of total global wealth in mid-2019, while the richest 10% own 82% of global wealth and the top 1% alone own 45%.
  • The global financial crisis of 2008-09 seems to decidedly hurt those at the bottom of the pyramid more than the wealthiest as inequalities within countries grew in the wake of the financial crisis.

Indian Scenario

  • Total wealth in India increased fourfold between 2000 and 2019, reaching $12.6 trillion in 2019, making India the fifth globally in terms of the number of ultra-high net-worth individuals.
  • Wealth per adult for India at $14,569 is nearly 80% below the global average.
  • 78% of India’s adult population has wealth below $10,000, while 1.8% of India’s population has more than $100,000.
  • At the other extreme, 1,790 adults have wealth over $100 million.
  • India accounts for 2% of the world’s millionaires.
  • Personal wealth in India is dominated by property and other real assets, which make up the bulk of household assets.
  • The returns from real estate have come down in the past few years, and this is a major factor that has contributed to the slowdown in the growth of household wealth.
  • India is expected to grow its wealth very rapidly and add $4.4 trillion in just five years, reflecting an increase of 43%.

Inequality in India

  • While the number of wealthy people in India has been on the rise, a larger section of the population has still not been part of the growth in overall wealth.
  • There is still considerable wealth poverty, reflected in the fact that 78% of the adult population has wealth below $10,000.
[Source: Indian Express, The Hindu, Livemint]

 

COL CHEWANG RINCHEN SETU

Related Topics: Infrastructure Development, Siachen Glacier

News

Defence Minister Rajnath Singh has inaugurated `Col Chewang Rinchen Setu’, a strategically important bridge, over Shyok river in Ladakh region.

Key Features

  • Sandwiched between strategic Karakoram and Chang Chenmo ranges, the ‘Col Chewang Rinchen Setu’ is a 430-metre bridge built at an altitude of about 15,000 feet using Micro Piling Technology.
  • It is India’s highest altitude all-weather permanent bridge, located in eastern Ladakh at nearly 45 km from the country’s border with China.
  • It is strategically located on the 255-km Darbuk-Shayok-Daulat Beg Oldie (DSDBO) section of the road between Leh and Karakoram Pass.
  • The bridge was christened after ‘Lion of LadakhCol Chewang Rinchen for his extraordinary acts of courage in defending Leh and Partapur sector.
  • The bridge has been constructed by the 50 Border Road Task Force under the Project Himank of the Border Roads Organisation.
  • The bridge’s superstructure is called ‘Extra Wide Bailey Bridge’ and it has 10 spans of 140 ft each and its width is 4.25 m.
  • The construction has been completed in record time within 15 months.

Significance

  • The construction of the bridge is part of the strategic roads under construction to facilitate faster movement of the military.
  • Keeping in view the current security situation, strengthening Indian borders is the need of the hour.
  • Border area development is an integral part of Central Government’s plan and the bridge is a part of that strategy.
  • The bridge not only connects Durbuk with Daulat Beg Oldie but also links the people of Ladakh and all interior areas of Jammu and Kashmir with the rest of the country.

Opening of Siachen for Tourism

  • Defence Minister has announced after inaugurating Col Chewang Rinchen Setu that the Siachen area is now open for tourists and tourism.
  • There is already a civil trek from the Siachen Base Camp to the Kumar post located at about 15,500 feet facilitated by the Army.
  • While it was supposed to be annual, it was cancelled on several occasions due to weather and border tensions.

About Siachen Glacier

  • It is located in the Eastern Karakoram range in the Himalayas, just northeast of Point NJ9842 where the Line of Control between India and Pakistan ends.
  • It is the Second-Longest glacier in the World’s Non-Polar areas.
  • It is the world’s highest battlefield.
  • It is part of Ladakh which has now been converted into a Union Territory.

[Source: PIB, Business Standard]

 

‘TECHSAGAR’ NATIONAL REPOSITORY

Related Topics: Cyber Technology, Data Security Council of India

News

National Cybersecurity Co-ordinator’s office, in partnership Data Security Council of India (DSCI), has opened the India’s first national cyber technology repository portal, TechSagar (techsagar.in).

About Techsagar

  • It is a platform to discover India’s technological capability through a portal.
  • The portal will list business and research entities from the IT industry, startups, academia, and individual researchers.
  • It is a consolidated and comprehensive repository of India’s cyber tech capabilities which provides actionable insights about capabilities of the Indian Industry, academia and research across 25 technology areas.
  • The technology areas include Internet of things (IoT), Artificial Intelligence (AI), Machine Learning (ML), blockchain, cloud & virtualisation, robotics & automation and wireless & networking.

Why Techsagar?

  • It will allow targeted search, granular navigation and drill down methods using more than 3000 niche capabilities.
  • As of now, the repository features 4000+ entities from industry, academia and research including large enterprises and start-ups providing a country level view of India’s cyber competencies.
  • It will be frequently updated with new entities and information to maintain its relevancy and usefulness.
  • As India aspires to become a trillion dollar digital economy, the repository will facilitate new opportunities for businesses and academia to collaborate, connect and innovate in future.
  • It also endeavours to provide direction for a strategic cyber roadmap of the country in R&D, industry development, and strengthening the preparedness of national security.

[Source: Livemint, dsci.in]

 

FACTS OF THE DAY

RAIL DHANDORA
  • Rail Dhandora, an exclusive Android mobile application, has been launched for the railway personnel and customers for the hassle-free working and transactions with the Railways.
  • It is the fourth project developed by Information Technology Cell of Passenger Marketing Wing of Southern Railway.
  • The earlier apps developed were for Passenger Census, the Rail Partner App and the Portable Ticketing System known as P-UTS currently under trial.
  • The mobile application will be handy for the train ticket examiners (TTEs) since passenger fare tables can be viewed offline also.
  • Important general forms required for passengers like concessions as well as forms for employees such as leave application forms, PF application forms, travelling allowance forms, no objection certificate for applying for passport are available in the app.
ATHIJEEVIKA SCHEME
  • Kerala government has accorded administrative sanction for ₹50 lakh for the implementation of a scheme envisaged by the Department of Women and Child Development, under which a one-time aid will be offered to families who are orphaned and rendered helpless because of the death of their breadwinners.
  • Under the scheme named ‘Athijeevika’, women who have to shoulder the responsibility of their families following the death of their husbands or breadwinners or any other catastrophe that has afflicted their families, would be given a one-time assistance of a maximum of ₹50,000 to help them survive the crisis.
  • The State government had envisaged the scheme to help these women find their feet in such dire crises and to prevent many families from committing suicide.
  • The annual income of the family should be below ₹50,000 to be eligible for this scheme.
CORAL COLONIES DISCOVERED IN KOVALAM
  • According to Friends of Marine Life (FML), a local marine research group, coral colonies have been discovered in two locations in the sea off southern Thiruvananthapuram coast.
  • FML scuba divers identified the nine coral types with the help of the Aquatic Biology and Fisheries Department of Kerala University.
  • The corals include Favites flexuosa, Goniastrea retiformis, Montipora digitata, Montipora hispida, Pavona varians, Acropora digitifera, Favites, Pavona venosa and Porites lichen.
  • The significance of the discovery was that the coral colonies were reported from the two locations for the first time.
WHITE BELLBIRD – WORLD’S LOUDEST BIRD
  • Bellbirds have the loudest bird calls yet documented in the world, according to a study which found that their mating songs pack more decibels than the screams of howler monkeys and the bellows of bisons.
  • According to the study, published in the journal Current Biology, the male white bellbird’s mating call is about three times louder than screaming phias — the previously loudest bird singer.
  • The birds had some intriguing anatomical features like unusually thick and developed abdominal muscles and ribs, which according to the researchers, might be related to their singing.

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