CAO Daily Editorial analysis for UPSC IAS 15-October, 2017

Current Affairs Only Daily Editorial Analysis for Competitive Exams


15th October, 2017

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Healing by machine {Science and Technology}

(The Hindu)


Context

This article deals with use of artificial intelligence in health organizations

Artificial intelligence (AI), defined as an ability for machines to exhibit reasoning and learning similar to humans, is a reality today. Despite fears — some well-founded, some not — AI is on course to transform society and disrupt many spheres of human activity.

Health care is one of the well-entrenched traditional domains that will be radically challenged by the advent of intelligent health systems a.k.a ‘Dr. Computer’.

However, the ethical and emotional aspects of health care, founded upon the strong physician-patient relationship, will pose challenges.

How will AI be used in health? 

Digital assistants that perform repetitive tasks and provide clinical decision support are the low-hanging fruits of this sector. They save time and increase productivity for highly-skilled health care workers such as doctors, while also enabling less-skilled workers to undertake complex tasks

Merits of using AI in health

  • Decreased Costs–When healthcare providers take advantage of the connectivity of the healthcare solutions, patient monitoring can be done on a real time basis, thus significantly cutting down on unnecessary visits by doctors. In particular, home care facilities that are advanced are guaranteed to cut down on hospital stays and re-admissions.
  • Improved Outcomes of Treatment– Connectivity of health care solutions through cloud computing or other virtual infrastructure gives caregivers the ability to access real time information that enables them to make informed decisions as well as offer treatment that is evidence based. This ensures health care provision is timely and treatment outcomes are improved.
  • Improved Disease Management – When patients are monitored on a continuous basis and health care providers are able to access real time data, diseases are treated before they get out of hand.
  • Reduced Errors– Accurate collection of data, automated workflows combined with data driven decisions are an excellent way of cutting down on waste, reducing system costs and most importantly minimizing on errors.
  • Enhanced Patient Experience–The connectivity of the health care system through the internet of things, places emphasis on the needs of the patient. That is, proactive treatments, improved accuracy when it comes to diagnosis, timely intervention by physicians and enhanced treatment outcomes result in accountable care that is highly trusted among patients.
  • Enhanced Management of Drugs –Creation as well as management of drugs is a major expense in the healthcare industry. Even then, with IoT processes and devices, it is possible to manage these costs better.
  • Doctors will need to adapt to a new role, shedding unneeded skills while gaining new ones, but still having a major role to play.

 Risks involved

When shared inappropriately, health information may damage reputations or destroy careers amongst other things. Furthermore, streamlining and digitizing health data and its subsequent expanded use is likely to strain the data centers.2

As patient monitoring is expanded to the use of devices that are wearable and at home, clinicians that are charged with monitoring those chronic conditions as well as the inclusion of predictive analysis increases demands on the data center and facility infrastructure.

Security of data is also another risk factor that is likely to increase with an increase in the level of data being shared. The volume of data is bound to increase significantly hence the need to shield this information from cyber attacks


Across the aisle: The real world beckons the PM {Economic Policy}

(Indian Express)


Context

This article explains us hoe economic slowdown is different from recession

Slowdown vs Recession

Economic Slowdown

 A decline in growth is simply the economy slowing down, but the economy is still growing. A recession occurs when the economy is contracting, when there is negative growth. In other words, it occurs when GDP goes down from one period to another.

Recession

  • It is a significant decline in economic activity spread across the economy lasting for more than a few months. It is characterised by fall in GDP, fall in income, fall in production, increase in unemployment etc.
  • A common rule of thumb for ascertaining recession is continuous 2 quarters of negative GDP growth.
  • It happens frequently.
  • It normally strikes different countries at different time periods.

Slowdown & Recession in India’s context

Slowdown

Certain sectors of the economy had recorded positive growth and he gave the examples of car sales (12 per cent), sale of commercial vehicles (23 per cent), sale of two wheelers (14 per cent) and increase in air traffic, air freight and telephone subscribers. The Prime Minister is right, some sectors are growing — but only very few are — and that is why the economy is witnessing what is called a slowdown.

While some sectors are growing, examples of sectors that have witnessed negative growth or a decline in output are:

  • mining and quarrying: (-) 0.66 %
  • manufacturing: 1.17
  • construction: 2.0
  • agriculture, forestry & fishing: 2.34

Together, these four sectors account for 40 per cent of the economy and that explains the slowdown,

The NPA MessPM, PM Narendra Modi, Indian Economy, Indian Economic Condition, Narendra Modi Economy, Indian Express, Indian Express News

The government has also made a complete mess of the NPA problem. Instead of empowering bank managements, it has made whimsical appointments and transfers, charged bank managers with corruption, and frightened them into inaction.

The government is not able to create a ‘bad bank’, as it had hinted earlier, to take over the bad loans. Nor is the government able to recapitalise the banks. The bank credit system is in a shambles.

All about NPA

NPAs can be classified in three categories

Sub_standard Assets: With effect from March 31, 2005, a substandard asset would be one, which has remained NPA for a period less than or equal to 12 months.

Doubtful Assets: With effect from March 31, 2005, an asset would be classified as doubtful if it has remained in the sub_standard category for a period of 12 months.

Loss Assets – A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly. In other words, such an asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some rescue or recovery value.

Reasons for Occurrence of NPAs

NPAs can be termed as “Bad Loans” or defaults. It is the failure to meet financial obligations, non-payment of a loan installment. These loans can occur due to the following reasons:

  • Normal banking operations
  • Bad lending practices
  • Incremental component (due to internal bank management, like credit policy, terms of credit, etc…)
  • Competition banks are enormously selling unsecured loans

The Problems caused by NPAs: NPAs do not just reflect badly in a bank’s account books, they adversely impact the national economy.

 Impacts of NPAs

  • Depositors do not get rightful returns and many times may lose uninsured deposits. Banks may begin charging higher interest rates on some products to compensate Non-performing loan losses
  • Bank shareholders are adversely affected
  • Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of good projects and failure of bad investments
  • When bank do not get loan repayment or interest payments, liquidity problems may ensue.

Result of NPAs on an organization

  • Decrease profitability.
  • 2. Reduce capital assets and lending limits.
  • 3. Increase loan loss reserves.

How to reduce NPA? – Non Performing Assets can be reduced by taking some major steps by the banks. Some steps are as follows by which bank can reduce NPA


 

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