Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- G-7 and India
Context
The meeting of G7 leaders that concluded in Bavaria was attended by India as an observer.
About G7
- The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
- It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
- Initially, it was formed as an effort by the US and its allies to discuss economic issues.
- The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
- It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
- Canada joined the group in 1976, and the European Union began attending in 1977.
- The G7 is trying hard not to be yesterday’s club.
- It is still a powerful grouping, with seven of its members in the top 10 economies of the world, three of them permanent members of the UNSC.
Important outcomes of the G7 meeting
- Statement on support for Ukraine: A standalone G7 Statement on Support for Ukraine was issued.
- There was an unconditional commitment that the grouping will provide financial, humanitarian, military and diplomatic support and stand with Ukraine for as long as it takes.
- Russia was also warned that any use of chemical, biological and nuclear weapons would be met with severe consequences.
- Further intensification of sanctions against Russia was contemplated.
- Tough language on China: Significantly, the G7 final communique has tough language on China as well.
- It says there is no legal basis for China’s expansive maritime claims in the South China Sea, it calls on China to press Russia to withdraw troops from Ukraine and expresses grave concern about the country’s human rights situation.
- It calls on China to respect universal human rights and fundamental freedoms in both Tibet and Xinjiang, highlighting the issue of forced labour in the latter.
Significance of India’s observer status
- The fact is that even the G7 knows its clout has declined compared to, say, 20 years ago.
- That explains the move to invite key G20 countries as observers to its summits.
- As for India, its importance lies in the undeniable truth that no global problem can be seriously tackled without New Delhi’s involvement.
- For India, G7 summits have always been an invaluable opportunity to exchange views not just in a plurilateral format but also in the bilateral meetings on the margins of the main meetings.
- 2 statements: India has lent its name to two statements issued by the G7. One is titled “Resilient Democracies Statement” and the other is “Joining Forces to Accelerate Clean and Just Transition towards Climate Neutrality”.
- The first statement talks of democracies as reliable partners seeking to promote a rules-based international order and supporting democracy worldwide including through electoral assistance.
- The other statement to which India is a signatory is the one on clean and just transition towards carbon neutrality.
Conclusion
India’s participation in this meeting as an observer serves to advance its foreign and security policy objectives and will keep it in good stead when it assumes the G20 presidency in December.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Horn of Africa Region
Mains level: Geostrategic significance of HOA
China recently held the first China-Horn of Africa Peace, Governance and Development Conference.
Why in news?
- China has been investing across the African continent throughout the last decade.
- The conference held in Ethiopia witnessed the participation of foreign ministries from the following countries of the Horn: Kenya, Djibouti, Ethiopia, Sudan, Somalia, South Sudan, and Uganda.
Major objectives
- No doubt that china predates small nations with debt-trapping the countries.
- It focuses on increasing the infrastructural investments in African countries and converting them to security assets.
- It asserted three objectives in Africa:
- Controlling the pandemic
- Implementing a Forum on China-Africa Cooperation (FOCAC) outcomes, and
- Upholding common interests while fighting hegemonic politics
What is FOCAC?
- The FOCAC promotes China’s role in the infrastructural and societal development of the Horn.
- In the 2021 forum, the entire region of the Horn participated and four resolutions were adopted:
- Dakar Action Plan
- China-Africa Cooperation Vision 2035
- Sino-African Declaration on Climate Change
- Declaration of the Eighth Ministerial Conference of FOCAC
How has China garnered goodwill in HOA?
- HOA have benefited from China’s vaccine diplomacy.
- Beijing has also initiated the “2035 vision for China-Africa cooperation”; it aims to transform the health sector, alleviate poverty, promote trade and investments, and expand digital innovation.
- The vision also focuses on green development, capacity building, improving people-to-people exchanges and facilitating peace and security in the continent.
What are China’s primary interests/investments in the Horn of Africa?
China’s interests are related to four major areas: infrastructural projects, financial assistance, natural resources and maritime interests.
(1) Infrastructure
- Looking at Chinese investments in infrastructure, one of its landmark projects was fully funding the $200 million African Union headquarters in Addis Ababa.
- It has also made significant investments in railways; it is building the Addis-Djibouti railway line connecting the land-locked country with Eritrean ports in the Red Sea.
- China has also invested in the Mombasa-Nairobi rail link in Kenya, and has already delivered on railway projects in Sudan.
- It also has a viable military hardware market in Ethiopia and has built over 80 infrastructural projects in Somalia, including hospitals, roads, schools and stadiums.
(2) Debts and ‘assistances’
- With respect to financial assistance, Ethiopia, is one of the top five African recipients of Chinese investments, and also has a debt of almost $14 billion.
- China accounts for 67% of Kenya’s bilateral debt.
- In 2022, China promised to provide $15.7 million assistance to Eritrea.
(3) Mineral explorations
- The third major Chinese interest in Africa is the presence of natural resources — oil and coal. Beijing has invested $400 million in Mombasa’s oil terminal.
- China is also interested in minerals such as gold, iron-ore, precious stones, chemicals, oil and natural gas in Ethiopia.
- South Sudan, a source for petroleum products, has had continued Beijing investment in the industry since the latter’s initial entry in 1995.
(4) Maritime interest
- China’s first and only military base outside its mainland is in Djibouti.
- During his visit in early 2022, Wang hinted at China’s willingness to develop Eritrea’s coast which would connect to China’s investments in land-locked Ethiopia.
- The US has speculated that China wishes to build another military base in Kenya and Tanzania, thereby increasing its military presence in the region.
Has the Horn of Africa been welcoming of China’s presence?
- Africa has been keen on interacting with China.
- Despite the wariness surrounding China’s projects in Africa, the governments have mostly been welcoming.
- When conflict broke out in Tigray in November 2020, Addis Ababa appreciated Beijing for respecting Ethiopia’s sovereignty.
- In December 2021, Kenya defended Chinese projects in the country; President Uhuru Kenyatta maintained that China-Africa partnership was mutually beneficial.
- Similarly, in May 2022, the East African Community (EAC) welcomed Chinese investors to work in East Africa for the prosperity of the people.
Beijing’s principle of non-intervention
- Peace and stability is a mutual requirements for China and Africa.
- For Africa, Chinese investments could lead to stable environments which could help the countries achieve their peace and development objectives.
- For China, conflict in the region comes at a heavy cost.
- In Ethiopia. when the conflict broke out, over 600 Chinese nationals, working on different projects, were evacuated, putting several investments at risk.
- From a trading perspective, the region plays a significant role in achieving the objectives of the China-Africa Cooperation Vision 2035.
Why is HOA important?
- In the last decade, the region lying between Suez Canal and the Seychelles has emerged as a new geopolitical hotspot.
- It has factors like impressive economic growth of regional countries, emergence of new security threats, and the ensuing major power rivalry driving the strategic trajectory of the region.
- The straits of Bab el-Mandeb, which lies at the heart of this region, connects the energy-rich Middle East to Europe and, along with the Suez Canal, is considered a jugular vein for global trade.
Indian footprints in the region
- India has been paying greater attention to the region but still lags behind China.
- India has bolstered defence cooperation with Oman and France (which holds territories in the Southwestern Indian Ocean).
- It has signed logistics support agreements with these countries to ensure greater naval access in the region.
- Reportedly, India was in talks with Japan to grant access to Indian naval vessels at the Japanese base in Djibouti.
- India has also sought to open a military base in the Seychelles and plans to further enhance its naval presence in the Western Indian Ocean.
These efforts are directed to increase Indian leverage and limit Chinese influence in the region.
Lessons for India
- China’s move towards peace in Africa indicates a shift in its principle of non-intervention.
- It is China’s message that its presence in the continent has a larger objective and is not likely to be limited to the Horn of Africa.
- This includes an aim to project itself as a global leader and boost its international status.
- Further, the recent developments imply that China is focussing on a multifaceted growth in the continent for the long run.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-UAE Relations
PM Modi expressed gratitude to President of the United Arab Emirates Sheikh Mohamed bin Zayed (MBZ) al Nahyan for taking great care of 3.5 million Indian community in the UAE during the pandemic.
India- UAE Relations: A backgrounder
- The relation has greatly flourished especially after the accession of H. H. Sheikh Zayed Bin Sultan Al Nahyan, as the ruler of Abu Dhabi in 1966.
- The greater push has been achieved in bilateral relations when the visit of Indian PM’s to the UAE in August 2015.
- It marked the beginning of a new strategic partnership between the two countries.
- Further, the Crown Prince was invited in January 2017 as the chief guest at India’s Republic Day celebrations.
- In 2017 the two sides signed the agreement on Comprehensive Strategic Partnership (CSP).
Significance of ties
- Indian Diaspora in UAE: Around 3 million Indians are living harmoniously in the UAE.
- UAE – A willing partner: As India seeks to enhance economic engagement and deepen security cooperation with the Gulf, it finds a willing partner in the UAE.
- India being a natural partner: UAE’s ‘Look East’ find partners for its economic growth and with security concerns emanating from turmoil in West Asia and growing threat from terrorism.
- Investments: UAE has a special place due to its business-friendly atmosphere, willingness to invest in the Indian economy.
- India’s West Asia policy: The UAE occupies a key place in India’s West Asia policy. The high-level visit from both sides has given a new impetus to this partnership.
Why UAE is tilting toward India?
- Turmoil in West Asia: Geopolitical conditions as Iran is threatening continuously to close the Strait of Hormuz in case there is a conflict with Saudi Arabia or US.
- Disappointment from Pakistan: UAE saw Pakistan as a partner and incorporated a deep economic and security relationship with it. But in the present day, Pakistan does not seem to be of much help to UAE.
- India as a market: India is an important destination for oil and energy purchase. UAE also recognizes exhaustible nature of its fossil fuel reserves.
- Returns on investment: UAE’s massive sovereign wealth funds can act as a great resource in the development of infrastructure in India.
- Addressing Terrorism: There has been a rising convergence between India and UAE on the terror issue and both the countries talked of the need to combat terror groups without any discrimination.
- Lack of regional consensus: Countries like Syria, Iraq, Libya and Yemen are suffering from violent conflicts. The Gulf Cooperation Council (GCC) has not produced expected results.
Economic Significance of the UAE
- UAE, due to its strategic location, has emerged as an important economic centre in the world.
- In recent years, the UAE, through its ‘Vision 2021’, has sought to diversify its economy and reduce its dependency on oil.
- Although the UAE has diversified its economy, the hydrocarbon sector remains very important followed by services and manufacturing.
- Within services, financial services, wholesale and retail trade, and real estate and business services are the main contributors.
India-UAE trade and investment ties
- India is UAE’s third largest trade partner after China and the United States.
- The UAE accounts for 8 percent of India’s oil imports and was fifth largest supplier of crude oil to India.
- The aim is to boost bilateral merchandise trade to above U.S.$100 billion and services trade to U.S.$15 billion in five years.
- As we are witnessing a big turnaround in manufacturing, the UAE would be an attractive export market for Indian electronics, automobiles, and other engineering products.
- The UAE’s investment in India is estimated to be around U.S.$11.67 billion, which makes it the ninth biggest investor in India.
Advanced technology and the knowledge economy
(1) Technology
- In 2018, India and UAE signed a MoU to generate an estimated $20 billion in the span of a decade.
- The Emirates have stepped up efforts to invest in the development of the knowledge economy by expanding the “golden visa”.
- Space is a new arena in which India and the UAE have collaborated through the work of the UAE Space Agency (UAESA) and the Indian Space Research Organization (ISRO).
- Space cooperation between India and the UAE gained quick momentum during PM Modi’s visit to the Emirates in 2015.
- The two countries are likely to work together on Emirates’ ‘Red planet Mission’.
(2) Security and Defence Cooperation
- Another significant pillar of India-UAE ties is reflected in their growing cooperation in security and defense sector.
- With the spread of radicalism in Gulf and South Asia, India looks to enhance security cooperation with UAE to counter terrorist threats and combat radicalization.
- ‘Desert Eagle II’, a ten day air combat exercise, was held between the air forces of India and UAE.
Way Forward
(1) Needs to ensure the execution of the investment projects with the required expertise
- Potential areas to enhance bilateral trade include defence trade, food and agricultural products as well as automobiles.
- Indian companies with expertise in renewable energy sector can invest in UAE.
- In defence sector, there is a need to further enhance cooperation through joint training programmes.
(2) Manifold Benefits of India-UAE Trade Agreements
- With India’s newfound strength in exports, a trade agreement with an important country such as the UAE would help sustain the growth momentum.
- As we are witnessing a big turnaround in manufacturing, the UAE would be an attractive export market for Indian electronics, automobiles, and other engineering products.
(3) Improving the relations with the GCC
- As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman and shares a common market and customs union with these nations.
- This FTA with the UAE will pave the way for India to enter the UAE’s strategic location, and have relatively easy access to the Africa market and its various trade partners.
- This can help India to become a part of that supply chain especially in handlooms, handicrafts, textiles and pharma.
(4) Solving the issue of UAE’s Non-Tariff Barriers (NTBs)
- The UAE tariff structure is bound with the GCC (applied average tariff rate is 5%), therefore, the scope of addressing Non-Tariff Barriers (NTBs) becomes very important.
- The reflection of NTBs can be seen through Non-Tariff Measures (NTMs) mostly covered by Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NATO
Mains level: Read the attached story
Turkey has agreed to support Finland and Sweden joining the NATO military alliance after weeks of angering partners by insisting it would veto the Scandinavian countries’ accession.
What is NATO?
- NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
- It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
- Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
- NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.
Expansion of NATO: Transforming Europe
- The war in Ukraine has already changed the geopolitics of Europe and the world.
- The admission of Finland and Sweden to NATO would bring about a transformation in the continent’s security map by giving NATO a contiguous long frontier in western Russia.
- Finland and Russia share a 1,300-km border — and doubling it from the present 1,200 km, parts of it in northern Norway, Latvia and Estonia, and Poland and Lithuania.
- In addition, Sweden’s island of Gotland in the middle of the Baltic Sea would give NATO a strategic advantage.
- Furthermore, when Sweden and Finland join NATO, the Baltic Sea — Russia’s gateway to the North Sea and the Atlantic Ocean — would be ringed entirely by NATO members.
Why Nordic countries are willing to join NATO?
- Although the debate over joining NATO was ongoing in both countries for nearly three decades, Russia’s annexation of Crimea pushed both towards NATO’s “open door” policy.
- Still, there was little political consensus in either country, especially in Sweden where the Social Democrats have long been against the idea.
- However, February 24 changed everything the date on which Russia invaded Ukraine.
A knee jerk reaction?
- If Putin’s invasion of Ukraine was meant to deter NATO’s eastward expansion, the war has had the opposite effect.
- If admitted, Sweden and Finland will become its 31st and 32nd members.
Russian response
- Back in March, Russia had evoked a threatening response to take retaliatory measures by stationing its nuclear and hypersonic weapons close to the Baltic Sea.
- Russia denounced the problems with Finland and Sweden but the NATO’s expansion at the expense of these countries does not pose a direct threat to us.
- But the expansion of military infrastructure into this territory will certainly provoke their response, warned Mr Putin.
- Sweden had already said it would not allow NATO bases or nuclear weapons on its territory.
Hurdles for Finland, Sweden
- At the moment the main obstacle to their applications in Turkey, a member since 1952 and which has NATO’s second-largest army after the US.
- Turkish president Erdogan has objected to their applications on the ground that the two countries had provided safe haven to the leaders of the Kurdish group PKK.
- Many Kurdish and other exiles have found refuge in Sweden over the past decades.
- PKK is an armed movement fighting for a separate Kurdistan, comprising Kurdish areas in Turkey, Iraq, Iran and Syria.
- Neither of these countries have a clear, open attitude towards terrorist organisation.
What could Turkey gain?
- Turkey is expected to seek to negotiate a compromise deal to seek action on Kurdish groups.
- Erdogan could also seek to use Sweden and Finland’s membership to wrest concessions from the United States and other allies.
- Turkey wants to return to the US-led F-35 fighter jet program — a project it was kicked out of following its purchase of Russian S-400 missile defense systems.
- Alternatively, Turkey is looking to purchase a new batch of F-16 fighter jets and upgrade its existing fleet.
How does this affect Turkey’s image in the West?
- Turkey is reinforcing an image that is blocking the alliance’s expansion for its own profit.
- It also risks damaging the credit it had earned by supplying Ukraine with the Bayraktar TB2 armed drones that became an effective weapon against Russian forces.
Is Turkey trying to appease Russia?
- Turkey has built close relations with both Russia and Ukraine and has been trying to balance its ties with both.
- It has refused to join sanctions against Russia — while supporting Ukraine with the drones that helped deny Russia air superiority.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST Council
Mains level: Read the attached story
The 47th meeting of the Goods and Services Tax Council began in Chandigarh, almost marking five years of the tax system coming into effect on July 1, 2017.
What is the GST Council?
- The GST regime came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016.
- More than 15 Indian states then ratified it in their state Assemblies, after which the President gave his assent.
- The GST Council – a joint forum of the Centre and the states — was set up by the President as per Article 279A (1) of the amended Constitution.
- The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
- Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.
Why was the Council set up?
- The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
- It also decides on various rate slabs of GST.
- For instance, an interim report by a panel of ministers has suggested imposing 28 per cent GST on casinos, online gaming and horse racing.
- A decision on this will be taken at the Council meeting.
What has changed this time?
- The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
- The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST .
- Recommendations of the Council are the product of a collaborative dialogue involving the Union and States.
- This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.
Agenda in this meet
- The council’s meeting is also likely to focus on the issue of extension of the GST compensation regime beyond June 2022.
- This was a special mechanism by which states were assured that their revenues would not be affected by the new GST system.
- Some states are already demanding that the compensation be continued.
- Earlier, the Council had agreed to extend the levy of compensation cess till 2026, but only for repayment of the borrowings made in the aftermath of the pandemic to provide compensation to states.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Living Lands Charter
Mains level: Land degradation
All 54 Commonwealth members have agreed to voluntarily dedicate a ‘living land’ in their respective countries to future generations, in line with the strategy set for the UN Decade on Ecosystem Restoration.
Living Lands Charter
- The non-binding mandates that member countries will safeguard global land resources and arrest land degradation while acting against climate change, biodiversity loss and sustainable management.
- It helps to encapsulate the combined effort to hold the global average temperature increase to 1.5 degrees Celsius, said Commonwealth Secretary-General Patricia Scotland.
- The document came after nearly two years of intense consultation, engagement and negotiation with member countries at UN Rio Convention.
Key objectives
- Leaders and their representatives noted with concern in the charter the alarming decline in the health and productivity of global land resources.
- It aimed to support member countries to effectively deliver their commitments under the three Rio conventions:
- UN Convention on Biological Diversity
- UN Convention to Combat Desertification (UNCCD)
- UN Framework Convention on Climate Change
Major outcomes
- The attendees also underlined the principle of “critical guardianship” provided by indigenous peoples and local communities in protecting land and vital ecosystem services.
- The agreement was released along with a final wide-ranging communiqué by leaders, including on specific items on climate change.
- Country heads underscored in it that the “urgent threat of climate change” exacerbates existing vulnerabilities and presents a significant threat to COVID-19 recovery efforts.
Try this PYQ from CSP 2012:
Q.Consider the following statements:
- The Commonwealth has no charter, treaty or constitution
- All the territories/countries once under the British Empire (jurisdiction/rule/mandate) automatically joined the Commonwealth as its members
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Post your answers here.
Back2Basics: Commonwealth of Nations
- The Commonwealth of Nations is an intergovernmental organisation of 53 member states that are mostly former territories of the British Empire.
- It dates back to the first half of the 20th century with the decolonization of the British Empire through increased self-governance of its territories.
- It was originally created as the British Commonwealth of Nation through the Balfour Declaration at the 1926 Imperial Conference, and formalized by the UK through the Statute of Westminster in 1931.
- The current body was formally constituted by the London Declaration in 1949, which modernized the community, and established the member states as “free and equal”.
- The symbol of this free association is Queen Elizabeth II, who is the Head of the Commonwealth.
- The Queen is head of state of 16 member states, known as the Commonwealth realms, while 32 other members are republics and five others have different monarchs.
- Member has no legal obligations to one another. Instead, they are united by language, history, culture and their shared values of democracy, human rights and the rule of law.
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