Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pandemic Treaty
Mains level: Pandemic management at global level
Members of the World Health Organisation (WHO) held the first round of negotiations towards the pandemic treaty on February 24, 2022.
What is the Pandemic Treaty?
- In December 2021, the World Health Assembly agreed to start a global process to draft the pandemic treaty.
- The need for an updated set of rules was felt after the COVID-19 pandemic exposed the shortcomings of global health systems.
- The Health Assembly adopted a decision titled “The World Together” at its second special session since it was founded in 1948.
- Under the decision, the health organization established an intergovernmental negotiating body (INB) to draft and negotiate the contents of the pandemic treaty in compliance with Article 19 of the WHO Constitution.
What is it likely to entail?
- The pandemic treaty is expected to cover aspects like data sharing and genome sequencing of emerging viruses and equitable distribution of vaccines and drugs and related research.
- Solutions to the COVID-19 pandemic have seen an inequitable distribution of vaccines so far, with poorer countries at the mercy of others to receive preventive medication.
Why need such treaty?
- Most countries have followed the “me-first” approach which is not an effective way to deal with a global pandemic.
- A widely-accepted theory points that the novel coronavirus may have jumped from animals to humans in a wildlife market of China.
- Many nations want a ban on wildlife markets.
Issues in negotiations
- While the EU wants the treaty to be legally binding, the U.S., Brazil and India have expressed reservations about the same.
- The legal nature of the treaty is yet to be defined.
What is Article 19 of the WHO Constitution?
- Article 19 of the WHO Constitution gives the World Health Assembly the authority to adopt conventions or agreements on matters of health.
- A two-third majority is needed to adopt such conventions or agreements.
- The WHO Framework Convention on Tobacco Control was set up under Article 19 and it came into force in 2005.
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From UPSC perspective, the following things are important :
Prelims level: Munich Security Conference
Mains level: NA
The latest edition of MSC a week ago assumed significance as it was here that the Ukrainian President appealed for help ahead of the Russian invasion.
Munich Security Conference
- The Munich Security Conference is an annual conference on international security policy that has been held in Munich, Bavaria, Germany since 1963.
- It brings together heads of state, diplomats and business leaders from the world’s leading democracies for three days of meetings and presentations.
- It is the world’s largest gathering of its kind.
- Over the past four decades the MSC has become the most important independent forum for the exchange of views by international security policy decision-makers.
How did it begin?
- When the MSC was founded in 1963, it was envisioned as a way for leaders, mostly from the West, to discuss threats and dangers in an informal setting.
- Most of the concerns at the time stemmed from the Cold War, which had dominated world politics for nearly a half-century.
- Over time, the conference evolved into a platform for airing grievances and workshopping political agreements, some of them outside the realm of East-West relations.
- In recent years, the conference has often invited leaders from authoritarian countries, and even adversaries, to speak.
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From UPSC perspective, the following things are important :
Prelims level: UN Refugee Convention, 1951
Mains level: Not Much
Model laws on asylum and refugees that were drafted by the National Human Rights Commission (NHRC) decades ago but not implemented by the government could be revised by an expert committee.
Why in news?
- India is not having a specific law for refugees and asylum-seekers.
- Though India has not signed the United Nations Refugee Convention, 1951, the refugees and asylum seekers were entitled to the rights in Articles 14, 20 and 21 of the Constitution.
UN Refugee Convention, 1951
- The 1951 Convention Relating to the Status of Refugees was the first comprehensive attempt to define refugees and charted a detailed guideline for host countries to ensure the adequate protection and preservation of the rights of all refugees.
- It puts out clearly who a refugee is and what kind of assistance, rights and legal protection a refugee is entitled to receive.
- It also lays down the obligations of refugees towards the host countries.
- The Convention also specifies certain categories of people, such as war criminals, who do not qualify for refugee status.
Definition of Refugee:
The 1951 convention defines a refugee as:
- A person who is outside his or her country of nationality or habitual residence
- Has a well-founded fear of being persecuted because of his or her race, religion, nationality, membership of a particular social group or political opinion
- Unable or unwilling to avail him— or herself of the protection of that country, or
- Unable to return there, for fear of persecution
Various Rights conferred to Refugees
- The right not to be expelled, except under certain, strictly defined conditions.
- The right not to be punished for illegal entry into the territory of a contracting State.
- The rights to work, housing, education, public relief and assistance, freedom of religion, access courts, and freedom of movement within the territory.
- The right to be issued identity and travel documents.
- The right to be protected from refoulement apply to all refugees.
Why hasn’t India signed this convention?
- Dispute over definition: Another reason why India has not signed the Convention is the narrow definition of refugee under it. For instance, it does not include deprivation of economic rights as an eligibility criterion.
- National security: It is believed that the chief reason is related to security issues.
- Porous and open borders: South Asian borders are porous and any conflict can cause a huge displacement of people.
- Cultural strain: Finally, sometimes refugees also pose a threat to law and order due to cultural differences. Ex. North East states.
- Strain on economy: An influx of people during such times can put a lot of strain on the resources of the local economy and also, it can cause an imbalance in the delicate demography of the region.
- Many inhabited refugees: India has already houses many refugees and in many cases, without the support of the UN.
- Loss of sovereignty: Signing the convention would have meant allowing international scrutiny of ‘India’s internal security, political stability and international relations’.
- Ad-hocism of the convention: The convention lacks a strong implementation policy which has given rise to ad-hocism and warehousing of refugees.
Way forward
- The inability of international refugee law to reconcile itself with the practical realities that constrain states has culminated in its failure to provide asylum to persecuted persons.
- In these circumstances, India needs a specific legislation governing refugees and asylum seekers.
- Such a law would give legal sanctity and uniformity, ensuring the protection of human rights.
- Along with this, each state must take responsibility for hosting refugees during their darkest hours by devising a burden-sharing system.
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From UPSC perspective, the following things are important :
Prelims level: OIC
Mains level: India's relations with OIC members
India has hit out at the Organisation of Islamic Cooperation (OIC), saying it was “hijacked by vested interests” over its remark on Karnataka Hijab Row.
What is OIC?
- The OIC — formerly Organisation of the Islamic Conference — is the world’s second-largest inter-governmental organization after the UN, with a membership of 57 states.
- The OIC’s stated objective is “to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world”.
- OIC has reserved membership for Muslim-majority countries. Russia, Thailand, and a couple of other small countries have Observer status.
India and OIC
- At the 45th session of the Foreign Ministers’ Summit in 2018, Bangladesh suggested that India, where more than 10% of the world’s Muslims live, should be given Observer status.
- In 1969, India was dis-invited from the Conference of Islamic Countries in Rabat, Morocco at Pakistan’s behest.
- Then Agriculture Minister Fakhruddin Ali Ahmed was dis-invited upon arrival in Morocco after Pakistan President Yahya Khan lobbied against Indian participation.
Recent developments
- In 2019, India made its maiden appearance at the OIC Foreign Ministers’ meeting in Abu Dhabi, as a “guest of honor”.
- This first-time invitation was seen as a diplomatic victory for New Delhi, especially at a time of heightened tensions with Pakistan following the Pulwama attack.
- Pakistan had opposed the invitation to Swaraj and it boycotted the plenary after the UAE turned down its demand to rescind the invitation.
What is the OIC’s stand on Kashmir?
- It has been generally supportive of Pakistan’s stand on Kashmir and has issued statements criticizing India.
- Last year, after India revoked Article 370 in Kashmir, Pakistan lobbied with the OIC for their condemnation of the move.
- To Pakistan’s surprise, Saudi Arabia and the UAE — both top leaders among the Muslim countries — issued nuanced statements, and were not as harshly critical of New Delhi as Islamabad had hoped.
- Since then, Islamabad has tried to rouse sentiments among the Islamic countries, but only a handful of them — Turkey and Malaysia — publicly criticized India.
How has India been responding?
- India has consistently underlined that J&K is an integral part of India and is a matter strictly internal to India.
- The strength with which India has made this assertion has varied slightly at times, but never the core message.
- It has maintained its “consistent and well known” stand that the OIC had no locus standi.
- This time, India went a step ahead and said the grouping continues to allow itself to be used by a certain country “which has a record on religious tolerance, radicalism, and persecution of minorities”.
OIC members and India
- Individually, India has good relations with almost all member nations. Ties with the UAE and Saudi Arabia, especially, have looked up significantly in recent years.
- The OIC includes two of India’s close neighbors, Bangladesh and Maldives.
- Indian diplomats say both countries privately admit they do not want to complicate their bilateral ties with India on Kashmir but play along with OIC.
Way ahead
- India now sees the duality of the OIC as untenable, since many of these countries have good bilateral ties and convey to India to ignore OIC statements.
- But these countries sign off on the joint statements which are largely drafted by Pakistan.
- India feels it important to challenge the double-speak since Pakistan’s campaign and currency on the Kashmir issue has hardly any takers in the international community.
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From UPSC perspective, the following things are important :
Prelims level: World Food Programme (WFP)
Mains level: NA
India signed an agreement with the United Nation’s World Food Programme (WFP) for the distribution of 50,000 tonnes of wheat that it has committed to sending Afghanistan as part of humanitarian assistance.
What is WFP?
- The WFP is the food-assistance branch of the United Nations (UN).
- It is the world’s largest humanitarian organization focused on hunger and food security, and the largest provider of school meals.
- Founded in 1961, it is headquartered in Rome and has offices in 80 countries.
- In addition to emergency food relief, WFP offers technical assistance and development aid, such as building capacity for emergency preparedness and response, managing supply chains and logistics, etc.
- The agency is also a major provider of direct cash assistance and medical supplies and provides passenger services for humanitarian workers.
Feats achieved
- As of 2020, it served 115.5 million people in 80-plus countries, the largest since 2012.
- The WFP was awarded the Nobel Peace Prize in 2020 for its efforts to provide food assistance in areas of conflict and to prevent the use of food as a weapon of war and conflict.
WFP in Afghanistan
- The wheat will be taken through Pakistan to the Afghan border crossing and handed over to WFP officials in Kandahar.
- The WFP runs its own logistics network inside Afghanistan, partnering with civil society groups.
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From UPSC perspective, the following things are important :
Prelims level: Geographical Indication, WTO, TRIPS
Mains level: India and WTO
India runs the risk of being excluded from a proposal it co-authored at the World Trade Organization (WTO) negotiations, in 2020, to “temporarily waive” intellectual property rights (IPR) held, by primarily Western countries, on vaccines, therapeutics, and diagnostics for COVID-19.
What is the case?
- India and China are two major global suppliers of medicine.
- A small group of WTO members was discussing suggestions to exclude drug manufacturers in India and China from prospective waivers to IPR obligations.
- IPR obligations are a result of the Trade-Related Intellectual Property Rights (TRIPS) which WTO members are committed to upholding.
What is the Agreement on TRIPS?
- The Agreement on TRIPS is an international legal agreement between all the member nations of the World Trade Organization (WTO).
- It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
- TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) between 1989 and 1990 and is administered by the WTO.
- It introduced intellectual property law into the multilateral trading system for the first time and remains the most comprehensive multilateral agreement on intellectual property to date.
Key provisions
- TRIPS requires member states to provide strong protection for intellectual property rights.
- It seeks to provide copyright rights, covering authors and other copyright holders, as well as holders of related rights, namely performers, sound recording producers, and broadcasting organizations.
- It provides for geographical indications (GI); industrial designs; integrated circuit layout designs; patents; new plant varieties; trademarks; trade names and undisclosed or confidential information.
- It also specifies enforcement procedures, remedies, and dispute resolution procedures.
- TRIPS also has a most favored nation (MFN) clause.
Why TRIPS?
- The obligations of the main international agreements of the World Intellectual Property Organization (WIPO) that already existed before the WTO was created:
- Paris Convention for the Protection of Industrial Property (patents, industrial designs, etc)
- Berne Convention for the Protection of Literary and Artistic Works (copyright).
- Some areas are not covered by these agreements. In some cases, the standards of protection prescribed were thought inadequate.
- So the TRIPS Agreement adds significantly to existing international standards.
What else is covered under TRIPS Agreement?
- Copyright terms must extend at least 50 years unless based on the life of the author.
- Computer programs must be regarded as “literary works” under copyright law and receive the same terms of protection.
- Patents must be granted for “inventions” in all fields of technology and must be enforceable for at least 20 years.
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From UPSC perspective, the following things are important :
Prelims level: Corruption Perceptions Index (CPI), 2021
Mains level: Corruption and money laundering
The 2021 Corruption Perception Index by Transparency International places India 85th on a list of 180 countries, one position above last year.
Corruption Perceptions Index (CPI)
- The CPI is an index which ranks countries “by their perceived levels of public sector corruption, as determined by expert assessments and opinion surveys.”
- The CPI generally defines corruption as an “abuse of entrusted power for private gain”.
- The index is published annually by the non-governmental organisation Transparency International since 1995.
- The index ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and business people.
- It uses a scale of 0 to 100 to rank CPI, where 0 is highly corrupt and 100 is very clean.
What kind of corruption does the CPI measure?
The data sources used to compile the CPI specifically cover the following manifestations of public sector corruption:
- Bribery
- Diversion of public funds
- Officials using their public office for private gain without facing consequences
- Ability of governments to contain corruption in the public sector
- Excessive red tape in the public sector which may increase opportunities for corruption
- Nepotistic appointments in the civil service
- Laws ensuring that public officials must disclose their finances and potential conflicts of interest
- Legal protection for people who report cases of bribery and corruption
- State capture by narrow vested interests
- Access to information on public affairs/government activities
The CPI does NOT cover:
- Citizens’ direct perceptions or experience of corruption
- Tax fraud
- Illicit financial flows
- Enablers of corruption (lawyers, accountants, financial advisors etc)
- Money-laundering
- Private sector corruption
- Informal economies and markets
Highlights of the 2021 Report
- The top-performing countries were Denmark, Finland and New Zealand — all having a corruption perceptions score of 88 — followed by Norway, Singapore and Sweden, all of them scoring 85.
- In contrast, the worst-performing countries were South Sudan with a corruption perceptions score of 11, followed by Syria (13), Somalia (13, Venezuela (14) and Afghanistan (16).
India’s performance
- In 2021, India ranked 86th with the same CPI score of 40.
- The report highlighted concerns over the risk to journalists and activists who have been victims of attacks by the police, political militants, criminal gangs and corrupt local officials.
- Civil society organizations that speak up against the government have been targeted with security, defamation, sedition, hate speech and contempt-of-court charges, and with regulations on foreign funding.
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From UPSC perspective, the following things are important :
Prelims level: WEF and its various reports
Mains level: Read the attached story
PM Modi has made a special address ahead of the theme-setting World Economic Forum (WEF) Agenda on the ‘State of the World’ at Davos.
About World Economic Forum (WEF)
- WEF is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland.
- It was founded on 24 January 1971 by German engineer and economist Klaus Schwab.
- The foundation, which is mostly funded by its 1,000 member companies – typically global enterprises with more than five billion US dollars in turnover – as well as public subsidies.
- It aims at improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
Major reports released:
- Engaging Tomorrow Consumer Report
- Inclusive growth & Development Report
- Environmental Performance Index
- Global Competitive Index
- Global Energy Architecture Performance Index Report
- Global Gender Gap Report
- Global Information Technology Report
- Human Capital Report
- Inclusive growth & Development Report
- Global Risk Report
- Travel and Tourism Competitiveness Report by WEF
Important agenda: Davos meeting
- The WEF is mostly known for its annual meeting at the end of January in Davos, a mountain resort in the eastern Alps region of Switzerland.
- The meeting brings together some 3,000 paying members and selected participants – among which are investors, business leaders, political leaders, economists, celebrities and journalists.
Why is WEF important?
- Common platform: The WEF summit brings together the who’s-who of the political and corporate world, including heads of state, policymakers, top executives, industrialists, media personalities, and technocrats.
- Influence global decision-making: Deliberations at the WEF influence public sector and corporate decision-making.
- Discusses global challenges: It especially emphasizes on the issues of global importance such as poverty, social challenges, climate change, and global economic recovery.
- Brings in all stakeholders: The heady mix of economic, corporate, and political leadership provides an ideal opportunity for finding solutions to global challenges that may emerge from time to time.
What are the main initiatives?
- Agenda 2022 will see the launch of other WEF initiatives meant for:
- Accelerating the mission to net-zero emissions
- Economic opportunity of nature-positive solutions
- Cyber resilience
Criticisms of WEF
- WEF has been criticized for being more of a networking hub than a nebula of intellect or a forum to find effective solutions to global issues.
- It is also criticized for the lack of representation from varied sections of the civil society and for falling short of delivering effective solutions.
Way forward
- WEF sees large-scale participation of top industry, business leaders, civil society, and international organizations every year.
- This collaboration is necessary for addressing global concerns such as climate change and pandemic management.
- It is one of such few platform, that provides an opportunity for collaboration through comprehensive dialogue.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Unemployment since the pandemic
Global unemployment is projected to stand at 207 million in 2022 (21 million more than in 2019 before the COVID-19 pandemic began) says ILO World Employment and Social Outlook – Trends 2022.
World Employment and Social Outlook – Trends 2022
- The report examines the impacts of the crisis on global and regional trends in employment, unemployment and labour force participation, as well as on job quality, informal employment and working poverty.
- It also offers an extensive analysis of trends in temporary employment both before and during the COVID-19 crisis.
Key highlights
(1) Job Losses in 2022
- It is estimated that in 2022 around 40 million people will no longer be participating in the global labour force.
- The downgrade in the 2022 forecast reflects the impact of ever new variants of COVID-19 on the world of work.
- Global working hours in 2022 will be almost two per cent below their pre-pandemic level.
- This is equivalent to the loss of 52 million full-time jobs.
(2) Pauperization
- The pandemic has pushed millions of children into poverty.
- It is estimated that in 2020, an additional 30 million adults fell into extreme poverty (living on less than $1.90 per day in purchasing power parity) while being out of paid work.
- The number of extreme working poor — workers who do not earn enough through their work to keep themselves and their families above the poverty line — rose by eight million.
(3) Impact on women
- Women have been worse hit by the labour market crisis than men and this is likely to continue.
- The closing of education and training institutions will have long-term implications for young people, particularly those without internet access.
Key suggestions
- There is the need for a broad-based labour market recovery — the recovery must be human-centred, inclusive, sustainable and resilient.
- The recovery must be based on the principles of decent work — including health and safety, equity, social protection and social dialogue.
Back2Basics: International Labour Organization (ILO)
- The ILO is a UN agency whose mandate is to advance social and economic justice through setting international labour standards.
- Founded in 1919 under the League of Nations, it is the first and oldest specialised agency of the UN.
- The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands.
- The ILO’s international labour standards are broadly aimed at ensuring accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security and dignity.
Its Governing Body
- The Governing body is the apex executive body of the ILO which decides policies, programmes, agenda, budget and elects the Director-General.
- It meets three times a year, in March, June and November.
Major reports released:
- World Employment and Social Outlook
- World Social Protection Report
- Global Wage Report
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Pandemic and inequality
The COVID-19 pandemic has heightened economic inequalities across the world says the Inequality Kills Report.
Try substantiating this:
Q. Extreme inequality is a form of ‘economic violence’—where structural and systemic policy and political choices are skewed in favor of the richest and the most powerful people. Critically examine.
What is the “Inequality Kills” Report?
- “Inequality Kills: The unparalleled action needed to combat unprecedented inequality in the wake of COVID-19” is a report released in January 2022 by Oxfam, a U.K.-based consortium.
- The report argues for sustained and immediate action to end the pandemic, address global inequality and initiate concerted measures to tackle the climate emergency.
- The central argument of the report is that inequality is a death sentence for people that are marginalized by social and economic structures and removed from political decision-making.
Key highlights
- Billionaire variants: Identifying this process as “the billionaire variant”, the report says that this vertical aggregation of global wealth into the hands of a few is “profoundly dangerous for our world”.
- Pauperization: 160 million people were rendered poor during the pandemic, while the ten richest people doubled their fortunes since the start of the pandemic.
- Vaccine apartheid: Holding governments to account the report identifies “vaccine apartheid” (unequal access to vaccines between countries) and the lack of universal vaccination programs in many countries.
- Inflation: It also demonstrates how emergency government expenditure (estimated at $16 trillion) that was meant to keep economies afloat during this crisis, inflated stock prices.
- Collective: This resulted in billionaires’ collective wealth increasing by $5 trillion during the pandemic.
Why does the report say that inequality kills?
- For the writers of the report inequality is not an abstract theory.
- Instead, they see it as institutionalized violence against poorer people.
- Extreme inequality is a form of ‘economic violence’—where structural and systemic policy and political choices that are skewed in favor of the richest and the most powerful people.
- This results in direct harm to the vast majority of ordinary people worldwide.
Implications of inequality
- Crime and violence: The report identifies higher inequality with more crime and violence and less social trust.
- Impact on marginalized: The brunt of inequality and the violence is borne, for instance, by women across the world, Dalits in India, Black, Native American and Latin persons in the US and indigenous groups in many countries.
- Victimization of women: Pointing to the example of women, the problem runs a lot deeper as 13 million women have not returned to the workforce and 20 million girls are at risk of losing access to education.
Way ahead
The “Inequality Kills” report proposes far-reaching changes to structures of government, economy and policy-making to fight inequality.
- Vaccine sharing: It urgently asks for “vaccine recipes” to be made open-source so that every qualified vaccine manufacturer can manufacture them.
- Taxing the opportunists: The report then asks for governments to claw back the wealth from billionaires by administering solidarity taxes higher than 90% especially on the billionaires that have profited during pandemic.
- Taxation reforms: The report asks for permanent cancellation of tax havens, progressive taxation on corporations and an end to tax dodging by corporations.
- Welfare: The report then suggests that this regained wealth be redirected towards building income safety nets, universalizing healthcare for everyone, investing in green technologies and democratizing them, and, investing in protecting women from violence.
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From UPSC perspective, the following things are important :
Prelims level: BrahMos Missile
Mains level: India's missile arsenal and its global competitiveness
In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.
About BrahMos Missile
- BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
- They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
- It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
- The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
- Such weapons are in the arsenal of most major militaries in the world.
Its capability
- BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
- It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
- An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.
Various versions
- The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
- Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
- The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.
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Back2Basics:
Explained: India’s Missile Capability
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From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: India at crossroads with WTO
India has appealed against a ruling of the World Trade Organisation’s (WTO) trade dispute settlement panel on domestic sugar subsidies, stating that the panel had committed “certain errors of law” in its report.
What is the case?
- India’s Minimum Selling Price system for Sugarcane was brought to notice to the WTO by Brazil, Australia and Guatemala.
What was the complaint against India?
Australia, Brazil, and Guatemala said India’s domestic support and export subsidy measures appeared to be inconsistent with various articles against WTO’s:
- Agreement on Agriculture
- Agreement on Subsidies and Countervailing Measures (SCM)
- Article XVI (which concerns subsidies) of the General Agreement on Trade and Tariffs (GATT)
- Domestic Support: All three countries complained that India provides domestic support to sugarcane producers that exceed the de minimis level of 10% of the total value of sugarcane production.
- Various subsidies: They also raised the issue of India’s alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.
- Notifying support: Australia accused India of “failing” to notify its annual domestic support for sugarcane and sugar subsequent to 1995-96, and its export subsidies since 2009-10.
India’s reply to WTO panel
- India rejected the panel’s findings as “erroneous”, “unreasoned”, and “not supported by the WTO rules”.
- It argued that the requirements of Article 3 of the SCM Agreement are not yet applicable to India.
- It has a phase-out period of 8 years to eliminate export subsidies under the agreement.
- India also argued that its mandatory minimum prices are not paid by the governments but by sugar mills, and hence do not constitute market price support.
Backgrounder: Sugarcane Pricing in India
Who determines Sugarcane prices?
Sugarcane prices are determined by the Centre as well as States.
- The Centre announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
- The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.
Minimum Selling Price (MSP) for Sugar
- The price of sugar is market-driven & depends on the demand & supply of sugar.
- However, with a view to protecting the interests of farmers, the concept of MSP of sugar has been introduced since 2018.
- MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.
Basis of price determination
- With the amendment of the Sugarcane (Control) Order, 1966, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the Fair and Remunerative Price (FRP)’ of sugarcane in 2009-10.
- The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- This is done in consultation with the State Governments and after taking feedback from associations of the sugar industry.
What is FRP?
- FRP is fixed under a sugarcane control order, 1966.
- It is the minimum price that sugar mills are supposed to pay to the farmers.
- However, states determine their own State Agreed Price (SAP) which is generally higher than the FRP.
Factors considered for FRP:
- The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:
a) cost of production of sugarcane;
b) return to the growers from alternative crops and the general trend of prices of agricultural commodities;
c) availability of sugar to consumers at a fair price;
d) price at which sugar produced from sugarcane is sold by sugar producers;
e) recovery of sugar from sugarcane;
f) the realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value;
g) reasonable margins for the growers of sugarcane on account of risk and profits.
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From UPSC perspective, the following things are important :
Prelims level: Henley Passport Index
Mains level: Ease of foreign travel for Indians
India now ranks at 83rd position in the Henley Passport Index, climbing seven places from 90th rank last year.
Henley Passport Index
- The Henley & Partners publishes the ranking and the Index of the world’s passports according to the number of destinations their holders can access without a prior visa.
- It was launched in 2005.
- The ranking is based on data from the IATA (International Air Transport Association), a trade association of some 290 airlines, including all major carriers.
- The index includes 199 different passports and 227 different travel destinations.
- The data are updated in real time as and when visa policy changes come into effect.
India’s performance this year
- India is ranked at 83rd position and shares the rank with Sao Tome and Principe in Central Africa, behind Rwanda and Uganda.
- It now has visa-free access to 60 destinations worldwide with Oman and Armenia being the latest additions.
- It has added 35 more destinations since 2006.
Global performance
- Japan and Singapore has topped the list.
- The US and the UK passports regained some of their previous strength after falling all the way to eighth place in 2020.
- The passport of the Maldives is the most powerful in South Asia (58th) enabling visa-free entry to 88 countries.
- In South Asia, Bangladesh (103rd) is ahead of Pakistan (108th) and Nepal (105th).
- Afghanistan undoubtedly stands at the last rank.
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From UPSC perspective, the following things are important :
Prelims level: CSTO
Mains level: Russia military moves in erstwhile USSR countries
A Moscow-led military alliance called Collective Security Treaty Organization (CSTO) dispatched troops to help quell mounting unrest in Kazakhstan.
Ongoing situation in Kazakhstan
- Long seen as one the most stable of the ex-Soviet republics of Central Asia, energy-rich Kazakhstan is facing its biggest crisis.
- There are ongoing protests over rising fuel prices escalated into widespread unrest.
- The nationwide protests are also signifying a wider, region-wide longing for political change.
- Under increasing pressure, Kazakh President appealed to the Russia for CSTO army to be deployed in Kazakhstan.
Concerns over CTSO troop’s deployment
- It is argued that domestic turmoil could be utilized by Russian nationalists for asserting their claims in Northern Kazakhstan.
What is CSTO?
- The CSTO is a Russia-led military alliance of seven former Soviet states that was created in 2002.
- Current CSTO members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan.
- Afghanistan and Serbia hold observer status in the CSTO.
- Its purpose is to ensure the collective defence of any member that faces external aggression.
Outlined functions of CSTO
- Version of NATO: It has been described by political scientists as the Eurasian counterpart of NATO, which has 29 member states, while the CSTO has just six.
- Arms trade and mutual defense: CSTO supports arms sales and manufacturing as well as military training and exercises, making the CSTO the most important multilateral defence organization in the former Soviet Union.
- Non- proliferation of weapons: CSTO also coordinates efforts in fighting the illegal circulation of weapons among member states and has developed law enforcement training for its members in pursuit of these aims.
What does CSTO membership provide?
- Barring relations with NATO: While CSTO membership means that member states are barred from joining other military alliances, limiting, for example, their relationship with NATO.
- Benefits in arms import from Russia: Its members receive discounts, subsidies, and other incentives to buy Russian arms, facilitating military cooperation.
- Assurance against military conquest: In the CSTO, aggression against one signatory is perceived as aggression against all. It however remains unclear whether this feature works in practice.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: LAC disputes
China’s new law on land borders has come into effect on January 1.
Key takeaways of the Border Law
China passed the law for the “protection and exploitation of the country’s land border areas”.
- Sacrosanct nature of Borders: Under the law, “the sovereignty and territorial integrity of China are sacred and inviolable”.
- Border defense: It mandates the state to take measures “to strengthen border defense, support economic and social development as well as opening-up in border areas.
- Habitation near borders: It seeks to improve public services and infrastructure in such areas, encourage and support people’s life and work there.
- Consultations with neighbors: The law asks the state to follow the principles of equality, mutual trust, and friendly consultation, handle land border related-affairs with neighboring countries.
Why did China bring it?
Several factors may have led to China’s move.
- Aggressive actions: The new law is a tool the Chinese government will use if it wants, as its actions have been aggressive even before this law.
- Maritime assertion: This law reflects Beijing’s renewed concerns over the security of its land border while it confronts a slew of unsettled disputes on its maritime front (in the South China Sea).
- Land boundary issues: The confrontations on the Sino-Indian borders in recent years may have reminded Beijing about this law.
- Fear of radicalization: Afghanistan under the Taliban may become a hotbed for terrorism and extremism that could spread to Xinjiang amongst Uyghurs.
- One-China Policy: China officially (constitutionally) claims mainland China and Taiwan as part of their respective territories. It has similar assertions for Hong Kong.
Does it concern India?
- No specific mention: Although the law is not meant specifically for India, it is bound to have some impact.
- May hamper disengagement: The date for the round meeting is still awaited, amid concerns that the Chinese delegation can use the new law to try to bolster their existing positions.
- Possible misadventures: The new law provides for the construction of permanent infrastructure close to the border. This has been observed in Arunachal Pradesh.
What impact can it have on India-China relations?
- Onus on China: The view is still divided. Much depends on China’s actions, regardless of the new law.
- Unilateral action: The new law might be the latest attempt by China to unilaterally delineate and demarcate territorial boundaries with India and Bhutan.
- Maintain status-quo: The new law will make China dig its heels in, on the ongoing standoff as well as for the resolution of the larger boundary issue.
- Permanent demarcation of borders: There is also a possibility that Beijing appears to be signaling a determination to resolve the border disputes on its preferred terms.
Recent mis-adventures
- China has been building “well-off” border defense villages across the LAC in all sectors, which the new law encourages.
- President Xi visited a village in Tibet near the border with Arunachal Pradesh followed by renamings.
- China has constructed a bridge in Eastern Ladakh connecting the North and South Banks of Pangong Tso.
Conclusion
- The law only “states the obvious” as “every country is in the business of protecting its territorial integrity.
- The big question is what your territory is, and there we don’t agree with each other.
[RSTV Archive] India-China Ties Post-Galwan
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From UPSC perspective, the following things are important :
Prelims level: SAARC
Mains level: Revival of SAARC
Pakistan Foreign Minister Shah has said that his country was ready to host the 19th SAARC Summit and invited India to join it virtually if it is not willing to visit Islamabad.
About SAARC
- The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia.
- Members: Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.
- It was established in Dhaka on 8 December 1985. Its secretariat is based in Kathmandu, Nepal.
- The organization promotes the development of economic and regional integration.
- It maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union.
Formation of SAARC
- After the USSR invaded Afghanistan in 1979, the security situation in South Asia rapidly deteriorated.
- In response, the foreign ministers of the initial seven members met in Colombo in 1981.
- At the meeting, Bangladesh proposed forming a regional association that would meet to discuss matters such as security and trade.
- While most of the countries present were in favour of the proposal, India and Pakistan were skeptical.
- Eventually, both countries relented and in 1983 in Dhaka, joined the other five nations in signing the Declaration.
Economic significance of SAARC
- The SAARC comprises 3% of the world’s area, 21% of the world’s population and 4.21% (US$3.67 trillion) of the global economy, as of 2019.
- It launched the South Asian Free Trade Area in 2006.
Major accomplishments
- Forum for discussions: It has provided a platform for representatives from member countries to meet and discuss important issues, something that may have been challenging through bilateral discussions.
- Diplomatic tool: India and Pakistan for example would struggle to publicly justify a meeting when tensions between the two are particularly high, but both countries often come together under the banner of SAARC.
- Crisis management: The bloc has also made some headway in signing agreements related to climate change, food security and combating the Covid-19 crisis.
- Technology: It has been another avenue of cooperation marked by the launch of South Asia Satellite by India.
Limitations to SAARC
- Small scale: Despite its lofty ambitions, SAARC has not become a regional association in the mould of the European Union or the African Union.
- Internal divisions: Its member states are plagued by internal divisions, most notably the conflict between India and Pakistan.
- Trade disputes: This in turn has hampered its ability to form comprehensive trade agreements or to meaningfully collaborate on areas such as security, energy and infrastructure.
- Terrorism: The last SAARC summit to be held in Pakistan has been cancelled several times due to many nations pulling out of the summit citing fears of regional insecurity.
Why must India rethink on SAARC?
- Extended diplomacy: India continued to attend Shanghai Cooperation Organisation (SCO) meetings along with their Pakistani counterparts.
- Pandemic mitigation: Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
- Economic cooperation: Apart from the overall GDP slowdown, global job cuts has led to fall in revenue for migrant labour and expatriates from South Asian countries.
- Countering China: While dealing with China, a unified South Asian platform is a crucial countermeasure for India.
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From UPSC perspective, the following things are important :
Prelims level: McMahol Line, Shimla Convention
Mains level: India-China Border Issue
China’s Ministry of Civil Affairs has issued standardized names for 15 places in the Indian State of Arunachal Pradesh, to be used henceforth on official Chinese maps.
MEA clarification
- The Ministry of External Affairs has dismissed the Chinese “invention”.
- Arunachal Pradesh has always been, and will always be, an integral part of India, said MEA.
Why is China giving names to places that are in India?
- China claims some 90,000 sq km of Arunachal Pradesh as its territory.
- It calls the area “Zangnan” in the Chinese language and makes repeated references to “South Tibet”.
- Chinese maps show Arunachal Pradesh as part of China, and sometimes parenthetically refer to it as “so-called Arunachal Pradesh”.
- China makes periodic efforts to underline this unilateral claim to Indian territory.
- Giving Chinese names to places in Arunachal Pradesh is part of that effort.
Earlier unilateral renamings
- This is the second lot of “standardized” names of places in Arunachal Pradesh that China has announced.
- Earlier in 2017, it had issued “official” Chinese names for six places spanning the breadth of Arunachal Pradesh
What is China’s argument for claiming these areas?
- The PRC disputes the legal status of the McMahon Line, the official boundary under the ‘Convention Between Great Britain, China, and Tibet’ — of 1914 (Simla Convention).
- China was represented at the Simla Convention by a plenipotentiary of the Republic of China, which had been declared in 1912 after the Qing dynasty was overthrown.
- The present communist government came to power only in 1949, when the People’s Republic was proclaimed.
- The Chinese representative did not consent to the Simla Convention, saying Tibet had no independent authority to enter into international agreements.
What is the McMohan Line?
- The McMohan Line, named after Henry McMahon, the chief British negotiator at Shimla, was drawn from the eastern border of Bhutan to the Isu Razi pass on the China-Myanmar border.
- China claims territory to the south of the McMahon Line, lying in Arunachal Pradesh.
- China also bases its claims on the historical ties that have existed between the monasteries in Tawang and Lhasa.
Intention behind these renamings
- This renaming is a part of the Chinese strategy to assert its territorial claims over Indian territory.
- As part of this strategy, China routinely issues statements of outrage whenever an Indian dignitary visits Arunachal Pradesh.
- Beijing keeps harping on its “consistent” and “clear” position that the Indian possession of Arunachal Pradesh.
- These claims have been firmly established and recognized by the world, as “illegal”.
Arunachal not all-alone
- Laying aggressive claims to territories on the basis of alleged historical injustices done to China is a part of Beijing’s foreign policy playbook.
- The claim on Taiwan is one such example, as are the consistent efforts to change the “facts on the ground” in several disputed islands in the South China Sea.
- The aggression is at all times backed in overt and covert ways by the use of China’s economic and military muscle.
Also read:
[RSTV Archive] India-China Ties Post-Galwan
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From UPSC perspective, the following things are important :
Prelims level: World Press Freedom Index
Mains level: Freedom of press in India
The Centre has shown its disagreement with the conclusions drawn by Reporters Without Borders about press freedom in India for various reasons.
World Press Freedom Index
- The PFI is an annual ranking of countries compiled and published by Reporters Without Borders since 2002.
- It is based upon the organization’s own assessment of the countries’ press freedom records in the previous year.
- It intends to reflect the degree of freedom that journalists, news organizations, and netizens have in each country, and the efforts made by authorities to respect this freedom.
- It is careful to note that the index only deals with press freedom and does not measure the quality of journalism in the countries it assesses, nor does it look at human rights violations in general.
India’s ranking
- India is ranked at 142 out of 180 countries on the World Press Freedom Index 2021.
- In the South Asian neighborhood, Nepal is at 106, Sri Lanka at 127, Myanmar (before the coup) at 140, Pakistan at 145 and Bangladesh at 152.
- China is ranked 177, and is only above North Korea at 179 and Turkmenistan at 178.
What the report said about India
- Targeting women: It has been highlighted that the “campaigns are particularly violent when the targets are women”.
- Criminal prosecutions: Often used to gag journalists critical of the authorities.
- Draconian laws: It termed various Indian laws such as – laws on ‘sedition,’ ‘state secrets’ and ‘national security’, draconian.
- Curb on freedom of expression: The report has also highlighted the throttling of freedom of expression on social media.
- Censorship on social media: It specifically mentioned that in India the “arbitrary nature of Twitter’s algorithms also resulted in brutal censorship”
Reservations held by India
- India along with many nations has reportedly disgusted the outcomes of this report. It stated that media in India enjoy absolute freedom.
- The government does not subscribe to its views and country rankings and does not agree to the conclusions drawn by this organization for various reasons:
- Non-transparent methodology
- Very low sample size
- Little or no weightage to fundamentals of democracy
- Adoption of a methodology that is questionable and non-transparent
- Lack of clear definition of press freedom, among others
Why is the report biased?
- The report is a subjective measure computed through the prism of western liberals.
- It tends to default to a homogenous view of mass media which then facilitates comparison between countries.
- There are no questions about media ownership or about their economic concentration in private hands.
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From UPSC perspective, the following things are important :
Prelims level: Sugarcane pricing mechanism
Mains level: Issues with Sugarcane Pricing
A World Trade Organization panel ruled that India violated international trade rules when it offered excessive subsidies for the production and export of sugar and sugarcane.
What did WTO say?
- Under WTO rules, India’s sugar subsidies are capped at a de minimis limit of 10% of the value of production.
- India’s policies were inconsistent with WTO rules that govern the levels at which nations can subsidize domestic agricultural production.
- WTO has asked it to withdraw its prohibited subsidies under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes within 120 days.
What was the complaint against India?
Australia, Brazil, and Guatemala said India’s domestic support and export subsidy measures appeared to be inconsistent with various articles against WTO’s:
- Agreement on Agriculture
- Agreement on Subsidies and Countervailing Measures (SCM)
- Article XVI (which concerns subsidies) of the General Agreement on Trade and Tariffs (GATT)
- Domestic Support: All three countries complained that India provides domestic support to sugarcane producers that exceed the de minimis level of 10% of the total value of sugarcane production.
- Various subsidies: They also raised the issue of India’s alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.
- Notifying support: Australia accused India of “failing” to notify its annual domestic support for sugarcane and sugar subsequent to 1995-96, and its export subsidies since 2009-10.
India’s reply to WTO panel
- India rejected the panel’s findings as “erroneous”, “unreasoned”, and “not supported by the WTO rules”.
- It argued that the requirements of Article 3 of the SCM Agreement are not yet applicable to India.
- It has a phase-out period of 8 years to eliminate export subsidies under the agreement.
- India also argued that its mandatory minimum prices are not paid by the governments but by sugar mills, and hence do not constitute market price support.
Must read:
Sugarcane Pricing in India
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From UPSC perspective, the following things are important :
Prelims level: IMBL, EEZ, UNCLOS
Mains level: UNCLOS and the chinese deterrence
India remains committed to promoting a free, open and rules-based order rooted in international law and undaunted by coercion, the Centre informed Parliament while reiterating support for the United Nations Convention on the Law of the Sea (UNCLOS).
Background of UNCLOS
- UNCLOS replaces the older ‘freedom of the seas’ concept, dating from the 17th century.
- According to this concept, national rights were limited to a specified belt of water extending from a nation’s coastlines, usually 3 nautical miles (5.6 km; 3.5 mi).
- This was considered according to the ‘cannon shot’ rule developed by the Dutch rulers.
About UNCLOS
- UNCLOS is sometimes referred to as the Law of the Sea Convention or the Law of the Sea treaty.
- It came into operation and became effective from 16th November 1982.
- It defines the rights and responsibilities of nations with respect to their use of the world’s oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources.
- It has created three new institutions on the international scene :
- International Tribunal for the Law of the Sea,
- International Seabed Authority
- Commission on the Limits of the Continental Shelf
Note: UNCLOS does not deal with matters of territorial disputes or to resolve issues of sovereignty, as that field is governed by rules of customary international law on the acquisition and loss of territory.
Major conventions:
There had been three major conferences of UNCLOS:
- UNCLOS I: It resulted in the successful implementation of various conventions regarding Territorial Sea and Contiguous Zones, Continental Shelf, High Seas, Fishing Rights.
- UNCLOS II: No agreement was reached over breadth of territorial waters.
- UNCLOS III: It introduced a number of provisions. The most significant issues covered were setting limits, navigation, archipelagic status and transit regimes, exclusive economic zones (EEZs), continental shelf jurisdiction, deep seabed mining, the exploitation regime, protection of the marine environment, scientific research, and settlement of disputes.
The convention set the limit of various areas, measured from a carefully defined baseline.
These terminologies are as follows:
(1) Baseline
- The convention set the limit of various areas, measured from a carefully defined baseline.
- Normally, a sea baseline follows the low-water line, but when the coastline is deeply indented, has fringing islands or is highly unstable, straight baselines may be used.
(2) Internal waters
- It covers all water and waterways on the landward side of the baseline.
- The coastal state is free to set laws, regulate use, and use any resource. Foreign vessels have no right of passage within internal waters.
- A vessel in the high seas assumes jurisdiction under the internal laws of its flag State.
(3) Territorial waters
- Out to 12 nautical miles (22 km, 14 miles) from the baseline, the coastal state is free to set laws, regulate use, and use any resource.
- Vessels were given the Right of Innocent Passage through any territorial waters.
- “Innocent passage” is defined by the convention as passing through waters in an expeditious and continuous manner, which is not “prejudicial to the peace, good order or the security” of the coastal state.
- Fishing, polluting, weapons practice, and spying are not “innocent”, and submarines and other underwater vehicles are required to navigate on the surface and to show their flag.
- Nations can also temporarily suspend innocent passage in specific areas of their territorial seas, if doing so is essential for the protection of their security.
(4) Archipelagic waters
- The convention set the definition of “Archipelagic States”, which also defines how the state can draw its territorial borders.
- All waters inside this baseline are designated “Archipelagic Waters”.
- The state has sovereignty over these waters mostly to the extent it has over internal waters, but subject to existing rights including traditional fishing rights of immediately adjacent states.
- Foreign vessels have right of innocent passage through archipelagic waters, but archipelagic states may limit innocent passage to designated sea lanes.
(5) Contiguous zone
- Beyond the 12-nautical-mile (22 km) limit, there is a further 12 nautical miles (22 km) from the territorial sea baseline limit, the contiguous zone.
- Here a state can continue to enforce laws in four specific areas (customs, taxation, immigration, and pollution) if the infringement started or is about to occur within the state’s territory or territorial waters.
- This makes the contiguous zone a hot pursuit area.
(6) Exclusive economic zones (EEZs)
- These extend 200 nm from the baseline.
- Within this area, the coastal nation has sole exploitation rights over all natural resources.
- In casual use, the term may include the territorial sea and even the continental shelf.
(7) Continental shelf
- The continental shelf is defined as the natural prolongation of the land territory to the continental margin’s outer edge, or 200 nautical miles (370 km) from the coastal state’s baseline, whichever is greater.
India and UNCLOS
- As a State party to the UNCLOS, India promoted utmost respect for the UNCLOS, which established the international legal order of the seas and oceans.
- India also supported freedom of navigation and overflight, and unimpeded commerce based on the principles of international law, reflected notably in the UNCLOS 1982.
- India is committed to safeguarding maritime interests and strengthening security in the Indian Ocean Region (IOR) to ensure a favorable and positive maritime environment.
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