Blogs - IISPPR

FINANCE

The Economics Of Pollution

Authors : Rangoli Anand Mani Shravan 1. Abstract The Economics of Pollution offers an in-depth examination of the economic ramifications of pollution and its associated externalities. The piece investigates the ways in which pollution impacts third parties who are not directly engaged in market activities, emphasizing the market inefficiencies it generates. It delves into the notion of externalities, where the consequences of a transaction extend to those not involved. Pollution is illustrated as a key example of a negative externality, inflicting damage on both the environment and public health. The article explores a range of policy strategies to address pollution, such as regulatory frameworks, market-driven solutions like taxes and tradable permits, and the involvement of government agencies. It evaluates the success of these policies in lowering pollution levels and their effects on economic efficiency. The discussion contrasts command-and-control regulations with incentive-based methods, highlighting the need to strike a balance between fostering economic growth and ensuring environmental sustainability. 2. Introduction Pollution is a serious global challenge with far-reaching effects on our environment, economy, and society. As industries expand, cities grow, and economies develop, pollution often becomes an unintended consequence, harming human health, damaging ecosystems, and disrupting the balance of nature. While economic progress brings prosperity, it also generates waste and emissions that put immense pressure on our surroundings. From an economic standpoint, pollution is a prime example of market failure. In many cases, businesses and industries do not fully account for the environmental damage they cause, leading to what economists call negative externalities. This means that the costs of pollution, such as healthcare expenses, reduced agricultural productivity, and environmental cleanup are often borne by society rather than the actual polluters. As a result, pollution levels can rise beyond what is sustainable, creating long-term economic inefficiencies and challenges. Governments, businesses, and policymakers are constantly searching for ways to reduce pollution without hindering economic growth. This is where pollution economics comes in, it examines the financial impact of pollution and explores solutions, from government regulations to market-based strategies like carbon pricing. Understanding these economic aspects is key to developing policies that strike a balance between sustainability and development. 3. The Economic Problems of Pollution Pollution has far-reaching economic consequences, affecting industries, public health, and overall societal well-being. The economic problems associated with pollution stem primarily from its classification as a negative externality, meaning that the costs of pollution are not fully borne by the entities responsible for it but are instead passed on to others (Heutel & Ruhm, 2021). These external costs create several economic inefficiencies, which include: i) Increased Healthcare Costs: Pollution, especially air and water contamination, leads to severe health problems such as respiratory diseases, cardiovascular conditions, and other chronic illnesses. Governments and individuals face rising healthcare expenses, reducing overall economic productivity and increasing the financial burden on healthcare systems. ii) Loss of Productivity: Polluted environments result in decreased worker efficiency and lost workdays due to illness. Agricultural productivity also declines as soil contamination and air pollution negatively impact crop yields. This loss of productivity affects economic growth and food security. iii) Environmental Degradation: Pollution leads to resource depletion, biodiversity loss, and ecological imbalances, affecting industries reliant on natural resources such as fishing, agriculture, and tourism. The degradation of natural resources reduces long-term economic potential (Hickel, 2020). iv) Property Devaluation: Areas with high pollution levels experience declining real estate values as they become less desirable for residential and commercial purposes. The economic consequences include lower investments, reduced tax revenues for local governments, and overall urban decay. v) High Cleanup and Mitigation Costs: Governments and businesses often have to allocate significant funds to clean up pollution, restore damaged ecosystems, and implement pollution control measures. These expenses divert resources from other critical economic and social investments. Addressing these economic problems requires policy interventions, financial incentives, and global cooperation to internalize the costs of pollution and promote sustainable practices that align economic activities with environmental well-being. 4. Types of Pollution and Their Economic Impacts Pollution manifests in various forms, each with distinct economic consequences. The most common types include air, water, soil, and noise pollution, all of which impose significant financial burdens on governments, businesses, and individuals (OECD, 2020). i) Air Pollution: a. Causes respiratory and cardiovascular diseases, increasing healthcare expenditures. b. Leads to reduced labor productivity due to illness and absenteeism. c. Damages crops and forests, affecting agricultural output and the timber industry. d. Results in acid rain, which corrodes infrastructure and increases maintenance costs. ii) Water Pollution: a. Contaminates drinking water sources, necessitating costly water purification processes. b. Harms aquatic ecosystems, leading to losses in the fishing and tourism industries. c. Disrupts agricultural activities due to polluted irrigation sources. d. Requires significant investment in wastewater treatment and cleanup efforts (Ibarraran et al., 2021). iii) Soil Pollution: a. Reduces agricultural productivity, leading to food shortages and economic instability. b. Increases land remediation costs to restore contaminated areas for safe use. c. Harms property values, affecting real estate markets and urban development. iv) Noise Pollution: a. Lowers workplace efficiency and increases stress-related health conditions. b. Diminishes property values in high-noise areas, impacting real estate markets. c. Affects tourism by reducing the attractiveness of destinations. Each type of pollution disrupts economic activities in unique ways, but all contribute to financial losses, reduced quality of life, and increased government spending on mitigation efforts. Economic policies play a crucial role in addressing these challenges by incentivizing cleaner technologies, enforcing regulations, and fostering global cooperation to create sustainable solutions for pollution control (Aguilar-Gomez et al., 2022). 5. Economic Instruments for Pollution Control To address the economic problem of pollution, governments and policymakers employ a range of economic instruments. These can be broadly categorized into command-and-control regulations and market-based instruments. i) Command-and-Control Regulations: These regulations set specific limits on pollution emissions or mandate the use of particular pollution control technologies. Examples include emission standards for vehicles and industries, technology mandates for pollution abatement, and zoning regulations. While command-and-control regulations can be effective in achieving specific environmental targets, they

February 28, 2025 No Comments

Climate Action

Geoengineering as a Climate Fix – Ethical Dilemmas for Global South. By: V S Bharadwaj, Aarushi Mahajan, Sarabel Odeyo, Anil Tamsoy

Introduction Geoengineering, or climate engineering, refers to the deliberate and large-scale alteration of the Earth’s natural landscape in an effort to counter climate change. It includes the removal of carbon dioxide and solar radiation management (SRM), which reduces greenhouse gases and reflects sunlight to cool the planet. Although geoengineering might be a viable solution to global warming problems, it raises severe moral questions, especially for the Global South. Due to their lack of finances and infrastructure, the Global South, which consists of developing countries, is more prone to the effects of climate change. As for geoengineering technologies, the implementation of these technologies could worsen inequality by changing the overall weather patterns of a region and its agricultural productivity. For example, SRM might change the amount of rainfall a region receives, and this might adversely impact agriculture in the weaker regions. The moral issues do not stop there. There are questions about who has the authority to govern this decision. The Global South doesn’t have a real voice on this matter, but it will surely feel the repercussions of SRM policies. Thus, these people are asking for the matter to be discussed globally so that the outcome is suitable for all. Technological Interventions and Their Implications Geoengineering interventions have the capacity to alleviate some of the most troubling repercussions concerning global warming. These systematic and large-scale attempts make use of technology to intervene in the climate. Such intervention is classified into a multitude of categories, and each of these categories has unique complications for the Global South. Geoengineering Interventions Types Solar Radiation Modification (SRM): This approach attempts to reflect sunlight back into space to subsequently cool the Earth. Techniques encompass stratospheric aerosol injection (SAI) as well as marine cloud brightening (MCB). As noted in prior citations, SRM appears to have the ability to reduce global temperatures but places severe environmental threats because of its multi-faceted effects at various latitudes and seasons (Wikipedia, n.d.). Carbon Dioxide Removal (CDR): This approach aims to address the removal of carbon dioxide in the atmosphere through methods such as fossil fuel power plants with carbon capture and storage, soil carbon sequestration, and other methods such as afforestation/reforestation and direct air capture. (Wikipedia, n.d.) While CDR is vital towards longitudinal moderation of climate change, its affordability and scalability are major issues. Cloud Seeding: This technology entails the use of particular chemicals into the clouds to bolster precipitation. Often this is highly effective in areas suffering from drought (Jacobo, Manzo & Zee, 2023). While cloud seeding is helpful in increasing snowpack and eliminating droughts, there is a… Repercussions for the Global South The Global South will be greatly impacted by the advances regarding geoengineering, both in a good way and a bad way: Positive Implications: Alleviation: Geoengineering interventions can offer immediate alleviation to developing nations suffering from devastating weather conditions like droughts and heat waves(Jacobo, Manzo, & Zee, 2023). Economic Opportunity: Economic infrastructure as well as agricultural productivity in vulnerable regions can be protected, which, in turn, saves us from the disasters caused by climate change due to geoengineering. Negative Implications: Sustainability Issues: Large-scale geoengineering can have drastic discontinuation of precipitation conditions and depletion of the ozone layer, which can have greatly impaired environmental ramifications (Wikipedia, n.d.). Equity and Justice: Global South can unfairly bear the consequences for geoengineering without having accurate insight in the decision-making forums and not grabbing the opportunities that is provided for them. Such processes are exclusionary and unjust and undemocratic at the same time. (CIEL, 2024). Technological Reluctance: Reliance on geoengineering alone can distract us from taking the much needed actions of reducing greenhouse gas emissions for long term sustainability (CIEL, 2024). Ethical Considerations The ethical dilemmas related to geoengineering in the Global South are complex and require thorough understanding. Inclusivity and Governance: There is less reason to believe that geoengineering governance is effective in supervising the Global South without a stronger commitment to engage the affected peoples (Kakungulu, 2024)2. Risk Assessment: There has to be geoengineering counterpart initiatives that focus on the reduction of greenhouse gasses (GHGs) emissions, which is an aid to mitigate impacts of climate change (AMS, 2024). Alternatives to Geoengineering: Climate engineering is politically and practically difficult and very risky even when there are purported rules that govern its usage. As such, focus must remain on sustainable development as the primary method of attaining these goals of mitigating emissions (CIEL, 2024). To summarize, geoengineering posits exciting possibilities for alleviating climate issues in the short run. However, its consequences on the Global South are nuanced and need a lot of attention. Global South requires guided action which enables them to engage with the world on their own terms. Hence, defining basic ethical principles and participatory means of decision making framework is important where these aims of climate change mitigation are incorporated. Power Asymmetries in Climate Governance The integration of climate geoengineering into climate governance raises significant concerns regarding power asymmetries that shape both the discourses and potential outcomes of these technologies. Geoengineering, especially techniques like stratospheric aerosol injection (SAI), has been promoted as a potential solution to global warming. However, the assumptions embedded in climate modelling practices, particularly regarding justice, often obscure the deep inequalities that underlie the deployment of such technologies (Reynolds, 2019). The dominant models of climate geoengineering tend to focus on distributional justice, emphasising the aggregate benefits and harms of inventions, typically in terms of global temperature reduction or risk mitigation. This narrow focus ignores critical issues of procedural justice, recognition justice, and corrective justice, thus failing to address how these technologies disproportionately affect marginalised populations. In particular, these geoengineering proposals often overlook the structural inequalities in global political and economic systems, wherein poorer nations in the global South, who are most vulnerable to the impacts of climate change, bear the brunt of environmental and social injustices, Meanwhile, wealthier nations in the global North, which have historically contributed to most greenhouse gas emissions, may continue to benefit from solutions like SAI, while delaying necessary transitions

February 28, 2025 No Comments

Health

The Impact of Sleep Deprivation on Cognitive Function and Daily Life

Khushi Jain , Bhumi Sharma ‘Sleep Deprivation’ or Insufficient sleep to meet an individual’s physiological and psychological needs is getting more common day by day due to lifestyle changes, work schedules and even health-related concerns. Many people, motivated by the need to be the best , prioritize their work, social meetings and activities, or even their screen time over sleep, leading to a delay in melatonin production which in turn disrupts their biological clock and sleep-wake cycles. Without proper sleep, individuals can show a significant decline in various areas of cognitive abilities like alertness, vigilance, attention and concentration. Evidence also suggests that sleep deprivation can also affect higher order cognitive processes, such as problem solving and decision making, as many of these higher order capabilities are believed to be moderated by the prefrontal cortex, which is supposed to be affected by prolonged sleep disturbance. The Link Between Repetitive Negative Thinking and Sleep Disturbances Consistent with prominent theories of psychopathology, research has reliably shown repetitive negative thinking (RNT) to be a central characteristic of many psychiatric conditions (Beck & Clark, 1988; Borkovec, Alcaine, & Behar, 2004; Rachman, 1997)(Stewart et al., 2018). RNT can manifest in many ways including worry, rumination, and obsessing, but has the shared feature that it is exhibited as frequent negative thoughts that are difficult to control (Ehring & Watkins, 2008). In addition to being characterized by elevated RNT, many psychiatric disorders are also characterized by disruptions in the duration and timing of sleep (Apa, 2013; Boivin, 2000; Harvey, 2008, 2011; Wulff, Gatti, Wettstein, & Foster, 2010)(Stewart et al., 2018). Harvey, Murray, Chandler, and Soehner (2011) argue that sleep disturbance should be viewed as a transdiagnostic process, as it is a feature of most psychiatric conditions. For example, sleep disruptions are reported by up to 90% of those experiencing an acute depressive episode (Wulff et al., 2010) (Stewart et al., 2018). A number of studies document a relationship between Repetitive Negative Thinking (RNT) and reductions in sleep duration or quality (Fairholme et al. 2013; Guastella and Moulds 2007; Harvey 2002; Thomsen et al. 2003; Zoccola et al. 2009) (Nota & Coles, 2014). For example, sleep deprivation has been linked to increased rumination and decreased mood (Baglioni et al. 2010; Pilcher and Huffcutt 1996; Walker 2009) (Nota & Coles, 2014). However, there is still more to be learned about the relation between RNT and sleep duration. Experimental studies that induce rumination or worry prior to sleep have been shown to reduce sleep quality (Gross and Borkovec 1982; Vandekerckhove et al. 2012) and naturally occurring levels of RNT have been shown to prospectively predict sleep quality (Takano et al. 2012) (Nota & Coles, 2014). The Link Between Social Isolation, Loneliness, and Sleep Disturbances A large number of older people encounter both objective and subjective types of social isolation and sleep disorders. Social isolation increases a person’s risk of a wide range of adverse health outcomes and premature death. Social isolation can cause poor sleep quality that has been proposed as one of the possible mechanisms by which social isolation affects people’s health and quality of life. (Azizi-Zeinalhajlou et al., 2022) Another similar factor is loneliness, which can be defined as the feeling of being separate from others, and has been identified as one key aspect of social factors that influence health (Cacioppo and Hawkley (2003) proposed that sleep disturbance is a mechanism through which loneliness influences health, citing two studies led by (Cacioppo (2002a, 2002b) in which lonely persons reported lower sleep quality and showed lower sleep efficiency and higher levels of wake time after sleep onset than non-lonely persons. Therefore, it is essential to comprehend these issues and address them through various treatment plans. The Impact of Sleep Deprivation on Psychological Functioning Sleep deprivation or insufficient sleep is very intricately connected to negative thinking. As we know, lack of rest and proper sleep makes the brain more volatile and more susceptible to emotional reactions and distressing thoughts and feelings. When the brain does not get enough sleep, the prefrontal cortex, which oversees rational thinking, weakens, whereas the amygdala, responsible for processing emotions, becomes increasingly reactive. These imbalances cause a lot of irregularities in an individual, such as frequent mood swings, increasing anxiety as well as ruminating or over-fixating on a problem. Chronic sleep deprivation plays a role in escalating mild symptoms of disorders like anxiety and depression but it also majorly increases the risk of developing serious mental health conditions and disorders. Prolonged sleep deprivation disrupts the brain’s neural pathways, especially those involved in emotional regulation and stress response, which reduces the brain’s ability to recover from emotional strain and cope with daily stressors. Over time, this disruption can have lasting psychological effects, as the brain’s resilience against stress weakens, making it more susceptible to mood disturbances and mental health disorders (Jansen & Narayan, 2024). There is sufficient evidence to show the relationship between sleep disturbance and negative thinking. Sleep is an important factor to consider in developmental psychopathology (Meltzer, 2016). In adults, higher levels of RNT are associated with longer sleep onset latency and poorer sleep quality (Guastella & Moulds, 2007; Nota & Coles, 2015; Zoccola, Dickerson, & Lam, 2009). Further, an initial study in adults that incorporated both sleep duration and sleep timing components in one study found that sleep timing uniquely impacted RNT. Specifically, delayed sleep timing was associated with higher levels of RNT (Nota & Coles, 2015). This can have a serious effect on a person’s mental, emotional and physical well-being. Studies have shown that prolonged insufficient sleep can reduce the size of the hippocampus, which deals with memory and emotional regulation, making one more susceptible towards mental health conditions like anxiety and depression. Due to sleep deprivation, the brain loses its ability to regulate emotions and process information which leads to heightened stress responses and difficulty in concentrating. It can also tamper with the production of neurotransmitters like serotonin and dopamine, which plays an important role in stabilizing mood. This can cause

February 28, 2025 No Comments

International Relations

Global Governance and Sustainable Development: Assessing the Effectiveness of SDGs in Fostering International Cooperation and Partnerships for the 2030 Agenda

The Sustainable Development Goals (SDGs) set forth and adopted by the United Nations in 2015 are essentially the blueprints for achieving or bringing about world peace, prosperity, and environmental sustainability. The specific focus of the 2030 Agenda, however, is to put such agreements into action, demanding international cooperation in several areas such as poverty and economic disparities, climate change, and governance.
While global partnerships under SDG 17 regarding mobilization of resources, requisite channels of knowledge exchange, and economic collaboration are really good, it makes use of very poor tools such as Official Development Assistance (ODA) and South-South cooperation that one can see their heads hanging low in terms of innovation and infrastructural development of poor countries. Not that they do not have the potential to take these facilities to greater heights; they have the potential, although cut down by the following factors: financial disparity, political instability, and governance inefficiency. WTO has a major role in the integration of trade policies with the SDG objectives, but this integration needs to be overhauled to meet future sustainability imperatives.
Though remarkable progress has been made in areas of poverty alleviation, education, and renewable energy, enormous challenges such as financing gaps, weak governance, and fragmented policy implementation persist. Strengthening institutional frameworks and participation and making promises stand up in the cash are all necessary for achieving the 2030 Agenda. This article, through various visions, evaluates whether or not the SDGs and its member institutions have led to effective global partnerships through institutional and financial mechanisms and policy frameworks.

February 28, 2025 No Comments

Public Policies

Intersectionality in Indian Politics: Beyond Age and Gender

Intersectionality in Indian Politics: Beyond Age and Gender Anmol Yadav, Nandini Singh & Divyasri S N 1.Introduction By Anmol Yadav A crucial perspective for comprehending how caste, class, age, gender, and other characteristics interacting to influence political inclusion in India is intersectionality. This chapter compares the advantages enjoyed by others with the exacerbated obstacles encountered by marginalized groups, such as young women from underprivileged castes or rural areas. It draws attention to the systemic difficulties and achievements of people negotiating these intersections through case studies and historical research. The chapter examines present policies, highlighting their inadequacies in dealing with the complexities of crossing identities, and advocates for a more integrated approach to policy making. Intersectionality-based quotas, capacity-building efforts, and increased data collecting are among the recommendations for promoting inclusive government. Moving beyond isolated issues of youth and gender, this chapter advocates for a comprehensive framework that promotes equal representation and guarantees that India’s political system reflects its population’s variety. 2.Defining Intersectionality By Anmol Yadav The term “intersectionality” coined by Kimberlé Crenshaw describes how overlapping social identities result in distinct experiences of privilege or disadvantage. Intersectionality is very important in India, as caste, religion, gender, class, and geography all influence society. Just as young tribal men face different hurdles than urban youth, Dalit women face different political obstacles than upper-caste women. By providing insights into systemic disparities, intersectionality aids in the dissection of these overlapping inequalities. It finds chances for alliances and group efforts in addition to examining marginalization. By incorporating intersectionality into Indian politics, officials may promote inclusive representation and address the underlying causes of inequality. 3.Understanding Intersectionality in Indian Politics By Anmol Yadav 3.1 Historical Perspective Since the independence movement brought disparate groups together, intersectional identities have developed in Indian politics. While individuals like Jawaharlal Nehru and Mahatma Gandhi promoted an inclusive worldview, leaders like B.R. Ambedkar tackled caste-based inequality in addition to colonial tyranny. Women, Dalits, Muslims, and tribal people made substantial contributions while being marginalized in popular narratives; figures such as Sarojini Naidu, Begum Rokeya, and Ambedkar brought attention to the interaction of caste, class, gender, and religion. Demands for linguistic and cultural recognition led to the linguistic restructuring of states in 1956, which was a turning point in identity politics. Caste and class dynamics interacted with regionalism, as seen by statehood movements in Gujarat, Maharashtra, and Andhra Pradesh. Crucial events highlighted the links between caste and class, such as the Mandal Commission’s recommendations for OBC reservations in the 1980s. Similarly, the 1985 Shah Bano case brought attention to the linkages of religion and gender in political discourse. These instances show how caste, gender, and religion have a significant impact on Indian politics. 3.2 Theoretical Framework Kimberlé Crenshaw’s introduction of the idea of intersectionality offers a useful prism through which to examine the overlapping and interconnected systems of privilege and discrimination. Ambedkar’s views on gender and caste in India are highly relevant to intersectional research. Caste, according to Ambedkar, was a system of gradated inequality that afflicted women and Dalits in diverse ways. Additionally, intersectionality is consistent with feminist ideas that challenge gender-based inequalities and Marxist theories that tackle class injustice. Scholars such as Gopal Guru, Kancha Ilaiah, and Uma Chakravarti have developed similar frameworks in India, looking at the ways that gender, caste, and class interact to influence the lived experiences of marginalized groups. Guru’s idea of “Dalit women’s standpoint” draws attention to the unique difficulties that Dalit women encounter as a result of being marginalized in both patriarchal and caste systems. The ability of intersectionality to examine the interactions between many identities within the socio-political environment makes it applicable to comprehending Indian political systems. REFERENCES Intersectionality and Political Mobilization: Exploring How Gender Intersects with Other Identities, such as Ethnicity, Religion, and Economics Psychology of Intersectionality of Gender as Well as Other Forms of Identity: Obstacles and Dilemmas Confronting Women’s Participation in Policy Making-Vandana Singh Electing Women in Ethnically Divided Societies: Candidates, Campaigns, and Intersectionality in Bihar, India Mapping the Margins: Intersectionality, Identity Politics, and Violence Against Women of Color- Kimberle Crenshaw “Intersectionality in Practice: Reflecting on India’s Affirmative Action Policies” by Surinder Jodhka in Economic and Political Weekly (EPW). 4. Contemporary Relevance of Intersectionality in Politics By Nandini Singh 4.1. Case Studies of Political Leaders Several political leaders in India embody the principles of intersectionality, challenging multiple axes of marginalization. Mayawati, a Dalit woman leader, redefined political power structures as the four-time Chief Minister of Uttar Pradesh. Chandrashekhar Azad, the leader of the Bhim Army, has emerged as a voice for Dalit rights while aligning with broader issues of constitutional democracy and social justice. Grace Banu, a Dalit transgender activist, challenges systemic exclusion through advocacy for transgender rights. Her political engagement highlights how caste and gender identity compound discrimination, reinforcing the need for inclusive policy making. 4.2. Discussion (Palanithurai, 2005) Studies have shown that female political representatives are more concerned with social issues such as health, poverty alleviation, community development, and family welfare. Gender equality is an essential element for the sustainable progress of any nation. The goal of all- round development of the nation can be achieved only by ensuring the equal participation of both genders in various fields. In India, women are worshiped as goddesses and on the other hand, they are discriminated against. If seen, the root cause of gender inequality in Indian society lies in the patriarchal system. Eminent sociologist Sylvia Walby studied the patriarchal system prevalent in Indian society, stating that “Patriarchalism in the process and system of social structure in which man dominates, oppresses and exploits women”. The exploitation of women due to gender differences is an age-old cultural phenomenon of Indian society. The patriarchal system in the society has gained its legitimacy and acceptance from our religious beliefs, be it Hindu, Muslim or any other religion. Gender-based discrimination is widespread in India. Here, from birth to death, from education to employment, from family to political level,

February 28, 2025 No Comments

Decent Work and Economic Growth

Green Jobs and Inclusive Growth: Examining the Intersection of SDG 8 (Decent Work) and SDG 13 (Climate Action) in Promoting Sustainable Employment

Green jobs are of utmost importance in economic development while addressing climate challenges, corresponding with SDG 8 (Decent Work & Economic Growth) and SDG 13 (Climate Action). As green transitions drive industries to shift towards sustainability, sectors like renewable energy, sustainable agriculture, and circular economy are becoming hotbeds for job creation. However, just transitions must prepare for job losses, skill shortages, and require government policy support. The role of government, business, and finance for green investment and reskilling programs must coexist. We have a chance for supporting sustainability-oriented employment that can create a resilient economy for the sake of people and the planet.

February 28, 2025 No Comments

FINANCE

Investigating Modern Credit Risk Management

Authors : Rangoli Anand, Mani Shravan 1. Abstract Financial markets serve as the backbone of the global economy, facilitating capital flow, economic stability and investment growth. However, these markets are inherently volatile and influenced by a complex interplay of economic, regulatory and psychological factors. This research article examines three crucial aspects of financial markets: the causes of market volatility and the effectiveness of risk management strategies, the role of financial regulations in ensuring market stability and the impact of behavioral finance on investment decisions. Psychological biases such as confirmation bias, overconfidence and herd behavior often lead investors to make irrational decisions, contributing to market inefficiencies. By analyzing these biases and exploring strategies to mitigate their effects, such as investor education, diversified portfolio management and the use of technology, this article highlights the importance of informed decision-making in financial markets. A comprehensive understanding of these elements is essential for individuals and institutions to navigate risks and achieve long-term financial stability. 2. Introduction Financial markets, a place that deals with the trading of financial securities, such as stocks, bonds, forex and derivatives, are like the skin and bones of the global economy that constantly activates and drives economic growth and financial future worldwide. Global financial markets are vital drivers of economic activity, yet they are inherently complex and susceptible to sudden shifts, volatility and a wide spectrum of risks. To navigate through this web of issues and foster a resilient financial system, certain things stand out as absolutely essential. Risk management practices to deal with market shocks, sound regulatory framework to ensure stability throughout the landscape of markets and a deep understanding of behavioral finance to decipher the human-thought process to help investors make well-informed investment decisions, are three of the most essential tools in financial markets. This article delves into these three crucial facets of the financial world to foster a better understanding among readers about the functionality of financial markets. 3. The Volatility of Financial Markets A multitude of internal and external variables contribute to the inherent volatility of financial markets. Market speculation, unforeseen geopolitical developments, or abrupt changes in the economy can all cause volatility. Although short-term volatility can lead to worry, it also offers traders and long-term investors the chance to profit from market movements (Danielsson et al., 2018). But too much volatility can cause systemic risks that undermine financial stability, panic selling, and liquidity crises. For investors, legislators, and institutions to successfully mitigate possible financial losses and make well-informed decisions, they must have a thorough understanding of the fundamental causes of market volatility. 3.1 Analyzing the Factors Contributing to Market Volatility Market volatility refers to rapid and unpredictable price movements in financial markets. It is driven by a combination of economic, political, and psychological influences, making it a fundamental aspect of market behavior. Understanding the causes of volatility is crucial for investors, policymakers, and institutions to navigate risks effectively. i) Economic Data: Variations in key economic indicators, such as GDP growth, employment rates, and inflation, influence investor confidence and market stability. A positive jobs report may boost stock prices, whereas rising inflation can create uncertainty, leading to sharp market corrections. ii) Political Events: Elections, policy changes, and geopolitical conflicts introduce uncertainty, affecting both domestic and global markets. Unexpected policy shifts, such as tax reforms or trade restrictions, can impact investor sentiment and cause sudden market movements. iii) Corporate News: Earnings reports, acquisitions, regulatory penalties, and executive changes can lead to significant fluctuations in stock prices. Strong earnings may trigger buying pressure, whereas financial scandals or poor performance can lead to sharp declines (Koelbel, 2023). iv) Global Events: Market disruptions caused by international trade disputes, pandemics, and climate-related disasters can have a cascading effect. The COVID-19 pandemic, for instance, led to unprecedented volatility, reflecting uncertainty regarding economic recovery and corporate performance. v) Central Bank Policies: Interest rate hikes or cuts, monetary easing, and liquidity injections significantly impact asset valuations. A surprise rate hike can drive down equity prices, while expansionary policies often lead to market rallies. vi) Investor Behavior: Emotional responses, particularly fear and greed, influence trading patterns. Panic selling during downturns and speculative buying in bull markets can exaggerate price movements, leading to heightened volatility. vii) Market Sentiment: The collective psychology of investors plays a pivotal role in asset price fluctuations. News cycles, social media trends, and expert predictions often drive rapid shifts in demand and supply, even in the absence of fundamental changes. Although volatility is often perceived as a risk, it also presents opportunities for traders and investors who can capitalize on market swings. However, without effective risk management strategies, excessive volatility can erode investment value and destabilize financial markets. 3.2 The Effectiveness of Risk Management Strategies in Mitigating Market Risks To navigate unpredictable markets, individuals and institutions must implement proactive risk management measures. A well-structured approach ensures stability and minimizes losses during turbulent times. i)Diversification: Spreading investments across multiple asset classes, industries, and geographical regions reduces exposure to sector-specific downturns. For example, a portfolio containing equities, bonds, and commodities is less vulnerable to economic shocks than a stock-heavy portfolio. ii) Asset Allocation: Adjusting portfolio composition based on risk tolerance and macroeconomic conditions helps balance risk and return (Li et al., 2023). Conservative investors may favor bonds and fixed-income securities, while aggressive investors might allocate more to equities and alternative investments. iii) Regular Monitoring and Review: Markets evolve rapidly, requiring investors to reassess their holdings periodically. A disciplined review process helps in identifying underperforming assets, rebalancing allocations, and capitalizing on emerging opportunities while staying aligned with financial goals. iv) Hedging: Using derivatives such as options and futures contracts provides a safeguard against adverse market movements. For instance, purchasing put options can protect against potential stock declines, ensuring stability during market downturns. v) Stop-Loss Orders: Implementing pre-determined exit strategies prevents excessive losses by automatically selling assets when they reach a specified price threshold. This strategy is particularly useful in volatile environments where emotions can cloud rational decision-making. vi) Stress Testing and Scenario Analysis: Financial institutions

February 28, 2025 No Comments

Climate Action

Economic Instruments in Climate Policy

Abstract

Climate change poses significant risks to economies worldwide, affecting human resources, health systems, and overall economic stability. Economic instruments play a crucial role in mitigating climate change while fostering sustainable growth. This paper examines key economic tools such as carbon pricing (taxes vs. cap-and-trade), green subsidies, and climate finance, analyzing their effectiveness in reducing greenhouse gas emissions and promoting renewable energy adoption. Case studies, including Sweden’s carbon tax, the EU Emissions Trading System, and India’s emerging carbon market, illustrate the real-world impact of these instruments. Additionally, the paper explores the broader economic implications of climate policies on growth, investment, employment, and global trade. While these policies impose short-term costs, they drive long-term economic stability, job creation, and technological innovation. The study highlights the need for periodic evaluation and global cooperation to maximize the effectiveness of economic instruments in achieving a low-carbon, sustainable future.
Keywords: Climate Change, Economic Instruments, Carbon Pricing, Cap-and-Trade, Green Subsidies, Climate Finance, Renewable Energy, Emissions Trading, Sustainable Growth, Global Cooperation

February 28, 2025 No Comments

Public Policies

Redefining Algorithmic governance: AI for People, Policy and Progress

The article, “Redefining Algorithmic Governance: AI for People, Policy, and Progress,” explores the evolving role of artificial intelligence in shaping public policy in India. It examines how AI is being integrated into governance, from predicting drought patterns to streamlining welfare distribution; while highlighting the challenges of algorithmic opacity, data privacy, and systemic bias. The piece raises critical questions about power dynamics in AI-driven decision-making, questioning whether true authority lies with the coder designing the algorithm, the policymaker implementing it, or the AI system itself. It draws comparisons with global AI governance models, such as the EU’s risk-based regulations, China’s state-driven approach, and the US’s corporate-influenced strategies to position India’s path forward.

Going beyond mere critique, the article presents concrete policy recommendations. It calls for the creation of an Independent AI Ethics Authority (AIEA) to oversee AI deployment, the adoption of Algorithmic Impact Assessments (AIA) to evaluate AI’s social and economic consequences, and the promotion of inclusive AI design to safeguard marginalized communities. Ultimately, the article argues that AI is not just a technological tool but a political force, capable of either reinforcing inequalities or driving inclusive progress. It emphasizes the need for transparent, accountable, and people-centric AI governance to ensure that technological advancements serve democratic values and the public good.

February 28, 2025 No Comments

SOCIOLOGY

How Does Bollywood and Regional Cinema Portray Women and Violence in Films?

How Does Bollywood and Regional Cinema Portray Women and Violence in Films? Divyasri SN, Anmol Yadav & Nandini Singh 1. Introduction Anmol Yadav India’s perception of women and violence is shaped by cinema, a potent cultural medium that both reflects and shapes societal attitudes. Both Bollywood and regional films have an impact on public opinion in India, frequently feeding negative preconceptions. Cinema is compared to dreams in Sigmund Freud’s psychoanalytic theory, emphasizing how it shapes social conventions. Many movies still normalize violence and uphold gender inequity, even though some have progressive themes. According to a 2017 Geena Davis Institute study, women in Bollywood are significantly underrepresented, receiving only 31.5% of the screen time compared to male actors. 2. Historical Perspective Anmol Yadav Social conventions and cinematic tropes have greatly influenced how women are portrayed in Indian movies. Indian films have long employed these clichés to establish a strong emotional connection with viewers, drawing on Carl Jung’s theory of archetypes and universal symbols like the mother or the hero. Women were frequently portrayed in Bollywood’s early years (1930s–1950s) as selfless individuals who embodied virtue and parenting ideals. Devdas (1955) reaffirmed the idea that women’s value is correlated with their interactions with males, while Mother India (1957) depicted strong but conventionally constrained female roles. Nuanced depictions of women were first seen in Indian film during its heyday, which spanned the 1950s to 1970s. As an unmarried mother, Sharmila Tagore’s role in Aradhana (1969) defied social expectations. Hypermasculine themes, such as Amitabh Bachchan’s “angry young man” in Zanjeer (1973) and the action-packed Sholay (1975), which combined violence with justice, also became more popular during this time. Bollywood tended toward marketed entertainment from the 1980s to the 1990s, eschewing nuanced female characters in favor of stereotypical ones as victims or romantic interests. Negative preconceptions were reinforced by the frequent romanticization or trivialization of violence against women. Regional film, on the other hand, provided more varied representations. Bengali, Malayalam, and Tamil films explored women’s lives in more detail while capturing local sociocultural quirks. The 1964 film Charulata by Satyajit Ray delicately examined the inner lives of women. However, patriarchal storylines continued to exist, with some movies using honor or tradition to defend violence. A change has been brought about by the emergence of streaming services like Netflix and Amazon Prime, which provides room for unusual storylines and nuanced female characters. This development is changing how movies are told and how the industry makes money. 3. Bollywood and the Normalization of Violence Against Women Anmol Yadav Stalking is commonly portrayed in Bollywood as a respectable and romantic kind of courting. Male heroes who persistently seek women are portrayed in movies like Dilwale Dulhania Le Jayenge (1995) and Raanjhanaa (2013) as romantic rather than harmful. DDLJ’s famous quote, “Jaa Simran jaa, jee le apni zindagi,” for example, seems empowering at first but ultimately casts the father as Simran’s protector. With lines like “Shaadi ke baad patni ki izzat pati ke haath mein hoti hai” from Raja Ki Aayegi Baraat (1997) and “Pati Parmeshwar hota hai” from Biwi No. 1 (1999), Bollywood further reinforces negative gender stereotypes by reducing women to subservient positions. In movies like Baaghi (2016) and Kabir Singh (2019), women are also employed as plot elements for male retaliation, with their misery serving as an excuse for male violence. The assumption that women must experience pain in order to regain power is further supported by movies like Bandit Queen (1994), which examine domestic abuse through extreme retribution scenarios. Sheila Ki Jawani and Munni Badnaam Hui are two examples of item songs that further objectify women by treating them as objects for males to consume. (References – https://epgp.inflibnet.ac.in/epgpdata/uploads/epgp_content/women_studies/gender_studies/10.women_media_and_films/28._women_in_regional_films/et/6359_et_et_28.pdf Role of women in contemporary Indian cinema: A psychological perspective -Berlin school of business and innovation- https://www.berlinsbi.com/blog/role-of-women-in-contemporary-indian-cinema-a-Psychological-perspective Critical Analysis of the Representation of Women in Indian Cinema Dr. Ruchika Chaudhary https://research-communications.cmpcollege.ac.in/wp-content/uploads/2024/02/10-Dr.-Ruchika-chaudhary-Critical-Analysis-of-the-Representation-of-Women-in-Indian-Cinema-Modified.pdf The Impact of Gender Representation in Indian Films https://geenadavisinstitute.org/research/the-impact-of-gender-representation-in-indian-films/ Study on the Impact of Bollywood Films on the Youth Population in India https://www.researchgate.net/publication/383177362_The_study_on_impact_of_bollywood_films_on_the_youth_population_in_India https://www.shethepeople.tv/film-theatre/regional-films-on-feminism-jhimma-uyare-sinjar/ ) 4. Gender Stereotypes and Tropes in Indian Cinema Nandini Singh 4.1. The “Damsel in Distress” Trope Hindi cinema or should we say the whole Indian cinema has been male-oriented, it has always been in search of such a hero who talks about everyone and fights for everyone. In the inception of Indian cinema, female characters remained in historical, mythological, religious and traditional roles. The earliest change in this theme is visible in 1935 when Dadasaheb Phalke produced the film Hunterwali. Indian cinema seems to be changing with the changing society.Early years after independence, films like Patita, Ek Hi Raasta and Sadhna etc. depicted the indecisiveness of a woman, her chastity and her position in the hegemonic system of a male dominated society, but herchanged forms come to the fore in the movies made in later years.This was the period in the story of Indian cinema when women were out of the field of producing and directing films and this field was completely in the hands of men. 4.2. The “Item Girl” Phenomenon The objectification and sexualization of women in Indian films have been normalized to the extent that it is hard to imagine a film without the mandatory item number or a scene that shows the female lead in a provocative outfit. In most films, women are portrayed as mere objects of desire, and their characters are often reduced to their physical appearance and sexuality. One of the most egregious examples of this is the item number. In an item number, a woman dances to a sexually charged song, dressed in revealing clothes, and is often surrounded by men. The item number is meant to be a highlight of the film, and filmmakers believe that it is necessary to include it to attract audiences. However, it reduces women to sexual objects and sends a message that women’s bodies are for male consumption. This portrayal not only diminishes the value of women but also reinforces gender stereotypes that limit women’s choices and

February 28, 2025 No Comments

Connect With Us