Afforestation Programmes & Alternatives to the Dollar

1. India has strong legal frameworks like the Forest Rights Act (2006) and financing mechanisms such as CAMPA. Despite this, afforestation programmes often face gaps in community participation and fund utilisation. Analyse the reasons for this gap and suggest measures to enhance effectiveness.

IN NEWS: India’s forests hold the future

India’s forests are critical for climate mitigation, biodiversity, and livelihoods, forming a key part of the country’s sustainable development goals. Challenges in translating policy into practice highlight gaps in community engagement, ecological planning, and fund utilisation, underscoring that legal and financial provisions alone cannot ensure effective forest restoration.

Reasons for the Gap in afforestation programmes:

Limited Community Involvement:

• Nearly 200 million Indians depend on forests for livelihoods.
• Many plantation drives bypass communities, ignoring consent and legal claims under FRA, eroding trust and legitimacy.
• Lack of integration with joint forest management or participatory models in many states limits community ownership.

Ecological and Technical Challenges:

• Traditional afforestation focused on monocultures like eucalyptus and acacia, which are fast-growing but ecologically damaging.
• Such plantations deplete groundwater, reduce biodiversity, and are vulnerable to climate stress, making ecological outcomes uncertain.
• Local forest departments often lack expertise in ecological restoration and adaptive management.

Financial Bottlenecks:

• CAMPA holds ₹95,000 crore, but utilisation is inconsistent; e.g., Delhi used only 23% of approved funds between 2019–24.
• GIM’s own allocations are modest, heavily relying on CAMPA.
• Lack of monitoring and accountability mechanisms leads to inefficient fund deployment.

Measures to Enhance Effectiveness:

1. Strengthen Community Participation:

• Implement participatory planning, revenue-sharing, and consent-based plantations.
• Promote local leadership in forest management and integrate traditional knowledge.

2. Ecologically Informed Restoration:

• Focus on native, site-specific species to improve resilience, biodiversity, and carbon sequestration.
• Utilize existing training institutes in Uttarakhand, Coimbatore, and Byrnihat to build capacity of frontline staff.

3. Improve Fund Utilisation and Accountability:

• Use public dashboards to track survival rates, species mix, fund use, and community participation.
• Broaden CAMPA’s scope to support adaptive management and participatory approaches.
• Explore innovative financing like carbon credits and biochar programmes to supplement funds.

Legal and financial frameworks exist, but alignment of ecological priorities, community participation, and accountable fund management is essential. By integrating these elements, India can transform afforestation from a target-driven programme into a sustainable, inclusive movement, supporting climate goals and rural livelihoods.

Source:https://www.thehindu.com/opinion/op-ed/indias-forests-hold-the-future/article70239892.ece

2. The BRICS countries are exploring alternatives to the dollar-dominated financial system, including the BRICS Cross-Border Payments Initiative (BRICS Pay). Analyse the motivations behind this initiative and its potential implications for global financial governance.

IN NEWS: How BRICS is challenging SWIFT

The BRICS countries—Brazil, Russia, India, China, and South Africa—have increasingly sought to reduce dependence on the U.S. dollar-dominated financial system. The BRICS Cross-Border Payments Initiative (BRICS Pay) is a key step in this direction, reflecting a desire for greater financial sovereignty, resilience against sanctions, and enhanced regional and inter-member trade facilitation.

Motivations behind BRICS Pay:

1. Reducing Exposure to Dollar and Western Sanctions:

• Western sanctions on Russia in 2014–15 highlighted the vulnerability of dollar-based systems.
• Including Iran in 2024, a country historically under sanctions, underscores the BRICS motivation for an independent financial mechanism.

2. Enhancing Financial Sovereignty:

• The dominance of SWIFT and G-10 central banks gives Western powers significant control over global payments.
• BRICS Pay offers member states control over cross-border settlements, potentially bypassing U.S. financial leverage.

3. Strengthening Intra-BRICS Trade and Investment:

• Settlements in national currencies reduce currency conversion costs and exchange rate risks.
• Supports local currency direct investment, currency swaps, and payments in domestic currencies.

4. Leveraging National Payment Infrastructures:

• Existing systems like India’s UPI, China’s CIPS, Russia’s SPFS, and Brazil’s Pix provide technological readiness to create an interoperable network.

Potential Implications for Global Financial Governance:

• Challenge to Dollar Hegemony: Widespread adoption of BRICS Pay may gradually reduce reliance on the U.S. dollar for international transactions.
• Alternative Financial Architecture for Developing Countries: Mirrors initiatives like the New Development Bank and Contingent Reserve Arrangement, offering a framework for financial cooperation outside Western dominance.
• Geopolitical Realignments: Could strengthen South-South cooperation, giving emerging economies greater leverage in global trade and finance.
• Operational Limitations: Full interoperability among diverse national systems is complex, and individual member ambitions (e.g., promoting UPI or CIPS) may delay cohesion.

BRICS Pay represents a strategic blend of economic and geopolitical objectives, aiming to provide financial autonomy and foster regional cooperation. While technological and political challenges exist, its successful implementation could gradually reshape the global financial landscape, offering emerging economies an alternative to the dollar-centric system.

Source:https://www.thehindu.com/news/international/how-brics-is-challenging-swift-explained/article70241519.ece#:~:text=The%20BRICS%20Cross%2DBorder%20Payments,international%20money%20transfers%2C%20and%20which