Warming up of the Arctic & India's Arctic Policy

• Researchers recently conducted an annual assessment of the area and found that the Arctic Circle's temperatures have been rising much more rapidly than those of the rest of the world.
• The Arctic Report Card, which The National Oceanic and Atmospheric Administration has produced since 2006 and is comprised of nearly 150 experts from 11 nations, was created this year.
• The vast region of the Arctic, covering one-sixth of the planet's landmass, is located around the North Pole.
• Environmental, commercial, and strategic external global forces are having an increasing impact on it, and as a result, it is poised to have an increasing impact on how international affairs are shaped.
• The most significant phenomenon that is altering the world's perception of the Arctic is unquestionably facing Climate Change threats in the form of the rapid melting of the Arctic Ice Cap.
• Rapid change in the Arctic region has effects that extend beyond the littoral states. To address the current issues with conservation, governance, and Arctic exploration, there is a need for international cooperation.
• Global warming has increased the evaporation and retreat of sea ice in the Arctic Ocean. The climate change-induced impacts in the Arctic Ocean could be responsible for an increase in snow cover in Siberia, a new study published in the journal NPJ Climate and Atmospheric Science stated has suggested.

Facts about Arctic Region:

• It is generally accepted to refer, to the area north of latitude 66° 34' N, as the Arctic Circle, which includes the Arctic Ocean with the North Pole at its centre.
• The Arctic Council is made up of eight Arctic nations: Canada, the Kingdom of Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States.
• Nearly four million people call the Arctic, their home, with about a tenth of them being indigenous people.
• The Arctic Ocean and its surrounding landmass have drawn significant interest from the world's scientific community and are a top research priority for decision-makers.
• The Arctic has an impact on the earth's ecosystem's biogeochemical, oceanographic, and atmospheric cycles.

Importance of the Arctic Region:

Economic Importance:

• Mineral Resources and Hydrocarbons: The Arctic region has significant reserves of quartz, zinc, lead, placer gold, and gypsum in addition to abundant coal, gypsum, and diamond deposits. A quarter of the rare earth reserves in the world are found in Greenland alone.
• There is a tonne of untapped hydrocarbon resources in the Arctic as well. equating to 30% of the undiscovered natural gas in the world.
• India is the third-largest importer of oil in the world and the third-largest consumer of energy. These resources are more accessible and feasible to extract as ice melts more quickly.
• Therefore, the Arctic may be able to help India with its needs for energy security and its lack of strategic and rare earth minerals.
• The Arctic region is also particularly significant due to the many shipping routes that run through it.

Geographic Significance:

• The Arctic aids in the circulation of global ocean currents, transporting both cold and warm water.
• Additionally, the Arctic Sea ice serves as a massive white reflector at the top of the planet, reflecting some of the sun's rays back into space and maintaining a constant temperature on Earth.

Geopolitical Importance:

• Arctic-based deterrence of China: As the Arctic ice melts, geopolitical tensions are rising to levels last seen during the Cold War. China, which is the only nation besides Russia to be building nuclear icebreakers, referred to trans-Arctic shipping routes as the Polar Silk Road and identified them as a third transportation corridor for the Belt and Road Initiative (BRI).
• In order to counter China's soft power moves in the Arctic and to meet its own interest, India came out with its Artic Policy.

About the Artic Expedition of India:

• India’s engagement with the Arctic dates back to a century when the ‘Svalbard Treaty’ was signed in February 1920 in Paris and, today India is undertaking several scientific studies and research in the Arctic region.
• Indian researchers are monitoring arctic glaciers for their mass balance and comparing them with glaciers in the Himalayan region.
• Thirteen (13) nations are observers in the Arctic Council which include France, Germany, Italian Republic, Japan, The Netherlands, People’s Republic of China, Poland, India, Republic of Korea, Spain, Switzerland, United Kingdom.
• In 2014 and 2016, India's first multi-sensor moored observatory in Kongsfjorden and the northernmost atmospheric laboratory in Gruvebadet, Ny Alesund, were launched in the Arctic region. Until 2022, India has successfully conducted thirteen expeditions to the Arctic.
• India has a significant stake in the Arctic. It is one of thirteen nations holding Observer status in the Arctic Council, a high-level intergovernmental forum that addresses issues faced by the Arctic governments and the indigenous people of the Arctic.
• India also plans to study the impact of climate change in the Arctic, to improve response mechanisms across the world. It aims to offer a better analysis of the implications of ice melting in the Arctic on global shipping routes, energy security and exploitation of mineral wealth.

India’s Artic Policy:

India's Arctic policy titled “India and the Arctic: building a partnership for sustainable development” lays down six pillars:

• strengthening India's scientific research and cooperation,
• climate and environmental protection,
• economic and human development,
• transportation and connectivity,
• governance and international cooperation, and
• national capacity building in the Arctic region.

Implementing India's Arctic policy will involve multiple stakeholders, including academia, the research community, business, and industry.

India's Arctic policy aims to promote the following agenda:

• Strengthening national capabilities and competencies in science and exploration, climate and environmental protection, maritime and economic cooperation with the Arctic region.
• Institutional and human resource capacities will be strengthened within Government and academic, research and business institutions.
• Inter-ministerial coordination in pursuit of India's interests in the Arctic.
• Enhancing understanding of the impact of climate change in the Arctic on India's climate, economic, and energy security.
• Contributing better analysis, prediction, and coordinated policymaking on the implications of ice melting in the Arctic on India's economic, military and strategic interests related to global shipping routes, energy security, and exploitation of mineral wealth.
• Studying linkages between polar regions and the Himalayas.
• Deepen cooperation between India and countries of the Arctic region under various Arctic forums, drawing expertise from scientific and traditional knowledge.
• Increase India’s participation in the Arctic Council and improve understanding of the complex governance structures in the Arctic, relevant international laws, and geopolitics of the region.

The National Centre for Polar and Ocean Research (NCPOR) in Goa, an autonomous institute under the Ministry of Earth Sciences, is the nodal institution for India’s Polar research programme, which includes Arctic studies.

Artic Relevance for India:

• Himalaya-Arctic Link: Despite their geographical separation, the Arctic and the Himalayas are connected and have similar problems.
• The glacial melt in the Himalayas often referred to as the "third pole," which has the largest freshwater reserves after the North and South poles, is being better understood by scientists thanks to the Arctic meltdown.
• Therefore, Arctic research is essential for Indian scientists. In keeping with tradition, India began its first research expedition to the Arctic Ocean in 2007 and subsequently established the Himadri research base in the Svalbard archipelago (Norway), where it has been conducting active research ever since.

Major Obstacles:

• Climate Change: They discussed how the region's wildlife and Indigenous people have had to adapt as a result of hotter air temperatures, melting sea ice, shorter snowfall durations, increased wildfires, and rising precipitation levels.
• The Greenland heat wave resulted in the island's ice sheet melting to its greatest extent for that time of year in more than 40 years of continuous satellite monitoring.
• The first time it had rained at the top of the ice sheet was in 2021, during a heat wave in August.
• The climate of the area is changing as a result of rising temperatures, becoming one characterised less by sea ice, snow, and permafrost and more by open water, rain, and lush landscapes.
• Global warming raises sea levels, alters ocean heat and water circulation, and may even have an impact on extreme weather phenomena like heat waves and thunderstorms.
• Scientists have warned that as sea ice melts, maritime ship traffic is increasing in the Arctic. The Bering Strait and the Beaufort Sea see the greatest increases in traffic from ships coming from the Pacific Ocean.

Way Forward

• The issue is that we are unsure of exactly how quickly ice flows and, consequently, enters the ocean.
• Studying previous sea level changes can help with the issue of not understanding the process.
• Approximately 125,000 years ago, during the most recent interglacial, Earth was almost as warm as it is today.
• To lessen and mitigate the effects of human-caused climate change on the glaciers, we urgently need to take action.

India's pension system as per Global Pension Index

The Indian pension system was recently ranked 41st out of 44 countries in the Global Pension Index.

About the Global Pension Index:

A ranking system for pension plans around the globe is done by the Mercer CFA Institute and is known as the Global Pension Index.

What is tracked by this index?

• The index acknowledges that comparing pension systems around the world is neither simple nor straightforward.
• Population requirements, economic growth, government revenue, regulatory maturity, and the growth of the private market are all different.

Three factors are used to rank countries in the index:

• Adequacy: What benefits can retirees expect to receive in the future?
• Sustainability: Will the current systems be able to deliver despite the demographic and financial difficulties.
• Integrity: Are private pension plans governed in a way that fosters long-term public trust?

India's position:

The pension system in India is ranked 41st out of the 44 nations the 2022 edition of this index takes into account.

Low consistently:

• Although that is a low ranking, it is also crucial to remember that India has consistently performed poorly on this index, even in 2011, when only 16 countries were examined.

Ongoing Debate Between OPS and NPS in India:

The Old Pension Scheme (OPS):

• The pension for federal and state government employees was set at 50% of the last drawn basic pay.
• The only people who can receive a pension after retiring are those who work for the government.
• The old pension plan's income is not subject to tax.
• Issues: The main issue was that the pension liability was still unfunded, meaning that there was no corpus created specifically for pensions that would grow over time and could be used to make payments.
• The OPS was also unsustainable because, like existing employees' salaries, pensioners benefited from indexation, or what is known as "dearness relief," which would cause pension liabilities to continue to rise.
• Improved medical facilities would prolong life expectancy, which would result in longer payouts.

NPS: The National Pension Scheme

• NPS is a portable, cost-effective, flexible, and easily accessible retirement savings account.
• Contributions: Under the NPS, a person can contribute to both his retirement account and his social security/welfare benefits with the help of his employer.
• NPS is set up on a defined contribution basis, meaning that the subscriber makes contributions to his account and does not have any defined benefits available when the system is terminated.
• The amount of wealth that has been accumulated depends on the contributions made and the income from investments made with that wealth.
• Beneficiaries: Both resident and non-resident Indians between the ages of 18 and 60 (as of the date on which the NPS application was submitted) are eligible to invest.
• Performance: The NPS has grown its subscriber base over the past eight years and increased the amount of assets it manages.
• PFRDA is in charge of regulating NPS.
• The Government of India established the Pension Fund Regulatory and Development Authority (PFRDA) through the PFRDA Act 2013
• PFRDA was established to protect the interests of subscribers to pension fund schemes by creating, regulating, and growing pension funds with the goal of promoting old age income security.

NPS's importance compared to OPS

• Concerns about the old pension framework's coverage, sustainability, and scalability led to the decision to switch to NPS.
• According to research done in the early 2000s, India was facing unmanageable and unsustainable levels of implicit pension debt due to central (civil) employees, state government employees, and the funding gap of the employee pension scheme.
• Furthermore, only a small portion of the entire labour force benefited from this framework.

Information about the pension:

• When a person is no longer employed, a pension provides them with a monthly income.

Need for the Pension:

• In comparison to youth, one's productivity declines with age.
• Old age security due to the growth of the nuclear family
• Migration of younger members of the family
• Increase in living expenses
• Lengthened lifespan
• A guaranteed monthly income guarantees an honourable retirement.

Global Data recommends:

• For the first time in human history, adults 65 and older outnumber children under the age of five, according to the World Economic Forum.
• There is a risk associated with longevity, even though it might be lower in a nation with a relatively younger population profile like India.
• The concept of longevity risk refers to the possibility that as life expectancies rise, insurance and pension funds may require more funding because people are living longer than expected.

Highlights of the inadequacy of India's pension system:

• Currently employed individuals make up at least 85% of the workforce, and these individuals are likely to remain uninsured or receive only social security benefits as they age.
• 57% of elderly people receive no income assistance from public funds, and 26% receive social pensions as a means of reducing poverty.
• As government ex-workers (or their survivors), 11.4% of the elderly receive defined benefits, accounting for 62% of system costs.

Way Forward

• The Indian pension system desperately needs reform, and switching back and forth between OPS and NPS is not reform.
• Reform must address the futuristic need of India’s rising old-age population in the coming years.