Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Debt
Mains level: Read the attached story
Central Idea
- Record High: The Institute of International Finance (IIF) reported that global debt reached an all-time high of $307 trillion by the end of June 2023, marking an increase of about $100 trillion over the last decade.
- Debt-GDP Ratio: After seven consecutive quarters of decline, global debt as a share of gross domestic product (GDP) has started rising again, reaching 336%.
Understanding Global Debt
- Global debt encompasses borrowings by governments (sovereign), private businesses, and individuals.
- Governments borrow to cover various expenses and pay interest on past debts, while the private sector borrows primarily for investments.
Drivers of Rising Global Debt
- Historical Trend: Both nominal global debt and the debt-to-GDP ratio have been steadily increasing over the years. The pandemic briefly halted this trend as economic activity slowed, but debt levels have been on the rise again.
- Advanced Economies: Over 80% of the first-half increase in global debt came from advanced economies like the U.S., the U.K., Japan, and France. Among emerging markets, China, India, and Brazil saw substantial debt growth.
- Surge Amid Rising Interest Rates: Despite expectations of declining demand for loans due to rising interest rates, global debt increased by $10 trillion in the first half of 2023. This trend is not unusual as increased savings often lead to higher debt levels when channelled into investments.
Inflation’s Impact on Debt
- Unique Trend: More intriguing than rising debt levels is the preceding seven consecutive quarters of declining global debt as a share of GDP before 2023.
- Inflation’s Role: The IIF attributes this decline to price inflation, which allowed governments to erode their debts denominated in local currencies through inflation. This process, known as inflating away debt, involves central banks creating new currency to pay off government debt, indirectly taxing the economy through rising prices.
Causes for Concern
- Debt Sustainability: Rising global debt levels often raise concerns about debt sustainability, especially in the case of government debt driven by reckless borrowing for populist programs.
- Impact of Rising Interest Rates: As central banks raise interest rates to combat inflation, governments with heavy debt burdens may struggle to service their debt. Rising rates could lead to defaults or attempts to inflate away the debt.
- IIF Warning: The IIF warns that the global financial infrastructure is ill-prepared to handle unsustainable domestic debt levels.
- Private Debt Concerns: Rapidly increasing private debt levels also raise alarms as they are often linked to unsustainable booms that can culminate in economic crises, particularly when such lending lacks genuine savings.
- Looming Financial Crisis: The 2008 global financial crisis serves as a recent example of an economic boom fueled by easy credit policies, such as those by the U.S. Federal Reserve, preceding an economic downturn.
Conclusion
- The surge in global debt warrants attention, given its potential implications for economic stability, sustainability, and the capacity of financial systems to address mounting debt challenges.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Nepal at UN
Central Idea
- Nepal’s Prime Minister Pushpa Kamal Dahal, commonly known as ‘Prachanda’, addressed the UN General Assembly, highlighting that his nation is nearing the conclusion of its unique peace process.
- He emphasized the importance of completing the remaining transitional justice tasks and sought international goodwill and support.
Why discuss this?
- Challenges in Nepal: Nepal’s peace process is not without hurdles. Many Maoist leaders, including Prachanda, are accused of serious human rights violations during the 1996-2006 civil war, complicating the path to justice. Additionally, Nepal faces diplomatic challenges in balancing relationships with neighboring countries.
- Diplomatic Balancing Act: Prachanda’s upcoming visit to China is seen as an effort to maintain a balance between Nepal’s relationships with China and India. His recent visit to India strengthened ties with the southern neighbor.
- Public Scrutiny and Corruption: Amidst diplomatic endeavors, Nepal’s leaders, both in government and opposition, face public scrutiny for alleged corruption. The government’s credibility has diminished, both domestically and internationally.
Nepal and the United States
- Prachanda’s History: Prachanda’s leadership during the Maoist insurgency led to his inclusion on US global watch lists. However, he has evolved into an important figure facilitating American interests in Nepal due to the country’s strategic location.
- The MCC Nepal Compact: Prachanda played a significant role in Parliament’s endorsement of the $500 million Millennium Challenge Corporation (MCC) Nepal compact grant in February 2022, despite China’s objections. This move led to improved Nepal-US relations.
- Geostrategic Importance: The US has been involved in Nepal’s development sectors for 75 years, particularly through USAID. However, the MCC raised concerns about Nepal’s non-aligned foreign policy and potential implications for relations with China.
Navigating Relations with China
- China’s Influence in Nepal: The economic blockade of Nepal by India in 2015 provided China with an opportunity to deepen its influence in the country. It intervened in Nepal’s politics and played a role in uniting communist parties.
- Changing Dynamics: Nepal’s relationship with India, China, and the US shifted during K.P. Sharma Oli’s tenure as Prime Minister. Trade and transit agreements with China were signed, and Nepal gained access to northern sea routes.
- COVID-19 Impact: The pandemic temporarily halted China’s development projects in Nepal. However, the acceptance of the MCC compact altered Nepal’s perspective on development partnerships with China.
- Prachanda’s Approach: Prachanda and his coalition partners appear cautious about Chinese loans and prefer grants over soft loans mentioned in the Belt and Road Initiative (BRI) agreements.
Challenges and Considerations
- Concerns in Nepal: The challenge lies in convincing China that the MCC is purely a developmental project without strategic or security implications. Nepal is cautious about falling into a Chinese debt trap.
- Infrastructure Projects: Prachanda may request China to provide grants and possibly waive a loan taken for the Pokhara International Airport, which currently lacks a profitable operational plan.
- China’s Strategy: China aims to expand its presence, investments, and interests in Nepal to counter the influence of the US and India. It may extend its political outreach beyond the communist parties.
View from New Delhi
- India’s Perspective: India has witnessed shifts in its relationship with Nepal, and certain aspects of the bilateral ties have weakened over time.
- Border Concerns: India has concerns about the open border with Nepal, citing potential threats to peace and law and order.
- US-India Cooperation: India and the US share concerns about the influence of major communist parties aligning in Nepal. India sees an opportunity to work with the US to manage China’s influence in the region.
- Watching Prachanda’s China Visit: India closely observes Prachanda’s visit to China to gauge the reception and how effectively he conveys Nepal’s viewpoint during discussions with Chinese leadership.
Conclusion
- Nepal faces challenges in concluding its peace process and navigating its diplomatic relationships.
- The delicate balancing act between China and India, as well as Prachanda’s diplomatic endeavors, play a pivotal role in shaping Nepal’s future on the global stage.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Climate Ambition Summit (CAS)
Mains level: NA
Central Idea
- The Climate Ambition Summit (CAS) held in New York during the United Nations General Assembly concluded.
- China, the United States, and India, together responsible for about 42% of the world’s greenhouse gas emissions and ranking as the top three emitters, were missing.
Climate Ambition Summit (CAS)
| Purpose |
Strengthen global climate action and increase climate ambition. |
| Anniversary of Paris Agreement |
Typically held on December 12th, coinciding with the Paris Agreement’s anniversary. |
| Linked to Paris Agreement |
Connected to the international treaty aiming to limit global warming to well below 2°C or 1.5°C. |
| Hosts and Participants |
Hosted by countries/regions; attended by heads of state, officials, organizations, and stakeholders. |
| Commitments and Pledges |
Platform for announcing climate commitments, NDCs, funding, and policy measures. |
|
|
| Climate Finance |
Discussions on financing mitigation and adaptation in developing countries. |
| Global Cooperation |
Emphasizes collective efforts and solidarity in addressing climate change. |
| Outcome |
Results in declarations and announcements reflecting increased ambition. |
| Subsequent COPs |
Contributions influence discussions at future UN Climate Change Conferences. |
| Climate Emergency |
Acknowledges climate emergency and the need for urgent, transformative action. |
| Non-State Actors |
Provides a platform for businesses, cities, and civil society to showcase actions. |
| Long-Term Goals |
May include goals like achieving net-zero emissions by mid-century. |
India’s Involvement
- India last updated its climate commitments in 2022, aiming to reduce emissions intensity (the volume of emissions per unit of GDP) by 45% from 2005 levels by 2030, a 10% increase from its 2015 commitment.
- India also pledged to fulfill 50% of its electricity needs with renewable, non-fossil fuel energy sources and create an additional carbon sink of 2.5 to 3 billion tonnes of CO2-equivalent by 2030.
- In 2021, PM Modi pledged that India would achieve net-zero emissions by 2070.
- However, experts suggest these commitments may not be enough to meet the goals of the Paris Agreement.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Five Eyes Alliance
Mains level: NA
Central Idea
- Canada’s charge about India’s involvement in the killing of a Khalistani fugitive was backed by the Five Eyes intelligence alliance.
About Five Eyes Alliance
| Formation Year |
UK-USA Agreement established during World War II, later expanded |
| Member Countries |
United States (1946), United Kingdom (1946), Canada (1948), Australia (1956), New Zealand (1956) |
| Purpose |
Intelligence-sharing alliance for signals intelligence (SIGINT) and surveillance |
| Origins |
Created during World War II to share intelligence between the UK and the U.S. |
| Scope |
Focuses on collecting and analyzing global electronic communications |
| Principles |
Cooperative intelligence-sharing, mutual trust, and common security goals |
| Controversies |
Privacy concerns and allegations of mass surveillance |
| Activities |
Monitoring and analyzing global communications for national security |
| Significance |
One of the most prominent and enduring intelligence-sharing alliances |
| Current Status |
Ongoing collaboration in signals intelligence and cyber security |
Five Eyes’ Response to Trudeau’s Remarks
- US Engagement: The US State Department confirmed close contact with Canadian counterparts regarding allegations of Indian government involvement in Nijjar’s murder.
- Critique: A US expert criticized Trudeau’s claim of a “potential link” between Indian government agents and the Khalistani leader’s killing as “shameless and cynical.”
- UK’s Stance: The UK government acknowledged the “serious allegations” but asserted that they wouldn’t impact ongoing trade negotiations with India.
- Australia’s Monitoring: The Australian Foreign Minister expressed concern about the killing and affirmed they were monitoring developments in partnership with their allies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: USCIRF Report
Mains level: Religious freedoms allegations on India
Central Idea
- The US Commission for International Religious Freedom (USCIRF) has announced that it will hold a hearing on religious freedom in India on September 20.
- India has previously rejected USCIRF reports that alleged violations of religious freedom in the country.
What is the USCIRF Report?
- The USCIRF report assesses the status of religious freedom around the world.
- It provides a comprehensive analysis of the state of religious freedom in countries across the globe, highlighting issues of concern and making recommendations for action by the US government.
- The report is an important tool for raising awareness of violations of religious freedom and advocating for greater protection of this fundamental human right.
Allegations against India
(1) Policies
- It is alleged that the Indian government at the national, state, and local levels promoted and enforced religiously discriminatory policies, including:
- Laws targeting religious conversion
- Interfaith relationships
- Ban over wearing of hijabs and cow slaughter
- This has negatively impacted Muslims, Christians, Sikhs, Dalits, and Adivasis.
(2) Laws of Suppression
- The report also alleges that the national government continued to suppress critical voices, particularly of religious minorities and those advocating on their behalf through-
- Surveillance / Harassment / Cow Vigilantism
- Accusation of Sedition
- Demolition of Property
- Detention under the Unlawful Activities Prevention Act (UAPA)
- Targeted banning of NGOs ex. Missionaries of Charity under the Foreign Contribution Regulation Act (FCRA)
- Constitution
India’s response
- India has slammed USCIRF for “misrepresenting” facts and described it as an “organisation of particular concern”.
- The Indian government rejected the biased and inaccurate comments.
- The Foundation of Indian and Indian Diaspora Studies (FIIDS) slammed USCIRF for its biased report and failure to acknowledge the cultural and economic significance of cows to Indians.
Why such reports often falsely target India?
- Lack of objectivity: There have been instances in the past where these reports have been criticized for being one-sided and lacking objectivity.
- US lobby against everyone: It is important to note that reports like USCIRF’s are based on the organization’s own assessments.
- Inherent bias against India: Such allegations are prevalent ever since India attained its Freedom.
- Self-proclaimed father of democracy: US has infamous for selectively promoting democracy and human rights, and for supporting authoritarian regimes that align with its strategic interests.
- Anti-regime: Such reports often overlook the efforts made by the present regime in India towards promoting religious tolerance and communal harmony.
Way forward
- Urgent action: India needs to take prompt and necessary steps to address religious freedom issues and take everyone’s faith in the government and democratic process.
- Nuanced understanding: International organizations and foreign governments must make a conscious effort to understand the complexities of India’s social, political, and economic landscape before making any recommendations or issuing reports.
- Avoid sweeping generalizations: It is important to avoid sweeping generalizations and presenting a one-sided view of the situation, which can be detrimental to India’s reputation and lead to misunderstandings.
- Self-reflection by the US: The US must address its own issues related to religious freedom and human rights violations, and not just sermon other countries.
Conclusion
- India’s historical diversity and pluralism: India has a long history of diversity, pluralism, and peaceful coexistence among different communities.
- Constitutional guarantees: The Constitution guarantees fundamental rights to all citizens, regardless of their religion, caste, or creed.
- Media as a strong pillar: The country has a vibrant democracy and a free and independent media that regularly scrutinizes the government and its policies. This eliminates the scope for anyone’s oppression.
- Nation-building: All communities have contributed significantly to the country’s cultural and social fabric. Success of India is often unwelcomed by the US. People should not fall prey to foreign propaganda.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Stocktake Report
Mains level: Not Much
Central Idea
- Amid the gathering of world leaders in New Delhi for the G-20 summit, the UN climate secretariat unveiled a ‘synthesis report’ summarizing progress made by nations towards the goals of the 2015 Paris Agreement.
- Known as the ‘global stocktake,’ this report is a vital component of global climate action, assessing efforts to combat climate change every five years.
Understanding the ‘Global Stocktake’
(1) Origins and Purpose:
- The ‘global stocktake’ is integral to the Paris Agreement, which commits countries to limit global warming to below 2 degrees Celsius and strive for a 1.5-degree target.
- Its primary aim is to periodically review and evaluate individual nations’ efforts in reducing greenhouse gas emissions and transitioning to renewable energy sources.
(2) Influence on Climate Talks:
- The inaugural report, released this year, carries significant weight, shaping discussions at the upcoming 28th UN Climate Conference of Parties (COP) in Dubai in November.
- While countries have submitted their Nationally Determined Contributions (NDCs) for climate action, the stocktake encourages them to enhance their ambitions before the next NDCs in 2025.
Key Insights from the Report
(1) Overall Assessment:
- The 45-page synthesis report delivers 17 key findings that collectively convey that the world is falling short of its Paris Agreement targets. However, it highlights a narrowing window of opportunity for countries to align their efforts.
(2) Echoing Previous Concerns:
- The report echoes concerns raised in the 2022 UN synthesis report, which analyzed the NDCs of 166 countries and found them inadequate to meet Paris Agreement goals.
- It reiterates the findings of the United Nations Emissions Gap Report, emphasizing the vast shortfall in reducing CO2 emissions compared to the Paris targets.
Crucial ‘Key Findings’
(1) Galvanized Global Response:
- The Paris Agreement has spurred countries to set climate goals and acknowledge the urgency of addressing the climate crisis.
- Governments must support the transition away from fossil fuels, ensuring it is equitable and inclusive.
(2) Ambitious Goals:
- Much greater ambition is needed to achieve global greenhouse gas emission reductions of 43% by 2030 and 60% by 2035, leading to net-zero CO2 emissions by 2050.
(3) Renewable Energy Transition:
- Scaling up renewable energy is imperative, while unabated fossil fuels must be phased out rapidly.
(4) Environmental Conservation:
- Efforts to halt deforestation, reverse land degradation, and promote emission-reducing agricultural practices must be encouraged.
(5) Adaptation and Loss Management:
- Comprehensive risk management and support for impacted communities are essential for averting, minimizing, and addressing loss and damage due to climate change.
(6) Financial Commitment:
- Transparent adaptation reporting and the rapid scaling up of financial support are needed to align global financial flows with climate-resilient development.
Influence on Global Climate Discussion
- The global stocktake report serves as a foundational document for the upcoming UN Climate Conference of Parties (COP).
- It notably influenced the G20 Leaders Declaration, which officially acknowledged the substantial financial requirements for transitioning to a renewable energy economy.
- This acknowledgement sets the stage for intensified efforts, emphasizing the need for trillions of dollars to support climate action, renewable technologies, and the path to net-zero emissions by 2050.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Planetary Boundaries
Mains level: NA
Central Idea
- A recent study has delivered a stark message: humanity has breached six of the nine planetary boundaries that are crucial for maintaining Earth’s stability and resilience.
What are the 9 Planetary Boundaries?
- These boundaries encompass climate change, biosphere integrity, land system change, freshwater change, biogeochemical flows, and novel entities.
- These findings underscore the urgent need for a thorough reassessment of our environmental impact and the imperative of global collaboration to address these critical challenges.
Understanding Planetary Boundaries
(1) Setting Safe Limits:
- Planetary boundaries can be likened to the vital parameters in human health, such as blood pressure.
- Just as high blood pressure elevates the risk of heart disease, exceeding planetary boundaries heightens the risk of triggering irreversible environmental changes.
(2) An Evolving Framework:
- The planetary boundaries framework was introduced in 2009 to define the safe environmental limits within which humanity should operate.
- To remain relevant, the framework must adapt as our understanding of Earth’s complex systems and human impacts evolves.
The Third Iteration: Assessing Environmental Risks
(1) Identifying Critical Processes:
- Researchers examined processes within Earth’s ecosystem that have been vital for sustaining favourable conditions for humans over the past 12,000 years.
- This era is noted for its stable and temperate planetary conditions.
(2) Evaluating Human Impact:
- The study assessed the extent to which human activities are modifying these crucial processes.
- Computer simulations were employed to determine the point at which human activities could trigger irreversible changes in Earth’s systems.
(3) Alarming Revelations:
- The study found that human activities had breached safe boundaries for climate change and land system change as early as 1988.
- The current trajectory poses a substantial risk of systemic disruption.
Boundaries Crossed and Their Consequences
(1) Atmospheric Carbon Dioxide Concentration:
- The safe limit was set at 350 ppm; it currently stands at 417 ppm.
- This has led to significant climate change.
(2) Land System Change:
- The safe limit aimed to maintain 75% of the original forest cover; the current estimate is at 60%.
- Such alterations have profound consequences for land systems.
(3) Biosphere Integrity:
- The safe limit was fewer than 10 extinctions per million species-years; the actual rate has exceeded 100.
- This poses a severe threat to millions of plant and animal species.
(4) Freshwater Change:
- Boundaries have been exceeded for both blue (surface and groundwater) and green (water available for plants) water resources.
- This has negative consequences for ecosystems.
(5) Biogeochemical Flows:
- Safe boundaries have been surpassed for phosphorus and nitrogen flows.
- This has alarming implications for biodiversity and water quality.
(6) Novel Entities:
- The planetary boundary for novel entities was set at zero, and this boundary has been transgressed.
- Risks include stratospheric ozone depletion, aerosol loading, and ocean acidification.
Way Forward: Urgent Global Collaboration
(1) Lessons from the Ozone Layer:
- Successful global negotiations, like the Montreal Protocol, managed to restore the ozone layer to safe levels after transgression.
- Emphasizes the importance of adhering to limits on environmental waste.
(2) Embracing a Circular Economy:
- A circular economy, mirroring nature’s own system, is essential.
- Transitioning towards a circular economy represents a crucial step in tackling these planetary challenges.
Conclusion
- The study’s findings serve as a stark reminder of humanity’s responsibility to safeguard Earth’s delicate equilibrium.
- Breaching planetary boundaries not only poses immediate risks but also imperils the long-term sustainability of our planet.
- Urgent global cooperation and a commitment to respecting environmental limits are essential to avert a potentially catastrophic future.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UN Cybercrime Convention , Budapest Convention
Mains level: Not Much
Central Idea
- The Union Home Ministry recently reviewed the draft of the UN Cyber Crime Convention.
- The purpose of this review was to assess the necessary changes in India’s existing systems if the convention is signed and ratified by the country.
UN Cybercrime Convention (Draft)
|
| Background |
- Under negotiation, aiming to reshape global criminal laws regarding cross-border access to personal data, surveillance, and international cooperation in cybercrime cases.
|
| Timeline |
- The convention is scheduled for adoption in January 2024, with member states working towards consensus.
- A vote may occur if consensus is not reached.
|
| Content of Zero Draft |
- Zero draft outlines the convention’s scope, provisions, and areas of discussion.
|
| Focus Areas of Concern |
1. Scope of Cybercrimes: The draft narrows the list of cybercrimes but leaves room for expanding the scope through references to other international conventions.
2. Speech-Related Offenses: While removing certain content-related offenses, it reintroduces them by applying the convention to crimes established under other international conventions.
3. Surveillance Powers: The draft retains surveillance powers, raising concerns about the lack of consensus on legal safeguards.
4. Use of Budapest Convention Language: Some provisions in Chapter IV are based on the 2001 Budapest Convention but with weakened safeguards. |
| Recommendations |
- Groups advocate for strong safeguards, including the justification for surveillance powers, independent authorization, transparency, and enforcement mechanisms.
- They propose authorizing international human rights bodies to oversee convention implementation.
- Ongoing negotiations may lead to changes in the draft text, emphasizing the need to monitor developments regarding human rights and cybersecurity.
|
Why discuss this?
- India enacted the Digital Personal Data Protection Act in August, ushering in a framework for personal data protection within the country.
- This legislation allows personal data to be processed in the interest of India’s sovereignty, integrity, and state security while fulfilling legal obligations.
- Notably, it also mandates that firms disclose to users the identity of other firms entrusted with their data for processing.
- However, the Act explicitly exempts firms from disclosing or sharing data in the case of lawful interception of data.
India’s position on the Convention
India put forth several key positions:
- Deleting Data Transfer Clause: India advocated for the deletion of a clause that encourages state parties to “establish bilateral or multilateral arrangements” to facilitate the transfer of personal data. This underscores India’s emphasis on the sovereignty of its data and its desire to maintain control over cross-border data transfers.
- Authorization for Data Transfer: India expressed its agreement with the clause stating that state parties may transfer personal data to a third country or an international organization only with the prior written authorization of the original transferring state party, subject to effective and appropriate safeguards. This reflects India’s commitment to ensuring data security and responsible handling.
- Designation of Points of Contact: The draft convention outlines that each state party should designate a point of contact available 24/7 to provide immediate assistance for investigations, prosecutions, or judicial proceedings related to cyber criminal offenses. This demonstrates India’s commitment to effective cooperation in addressing cybercrimes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ITPGRFA
Mains level: NA
Central Idea
- In a global seminar organized by the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) and the Food and Agriculture Organisation (FAO), President of India underscored the importance of safeguarding farmers’ rights.
About ITPGRFA
|
Description |
| Objective |
Conservation and sustainable use of plant genetic resources for food and agriculture. |
| Enactment Year |
2001 |
| Key Principles |
Conservation, Access and Benefit-Sharing, Farmers’ Rights. |
| Coverage |
Multilateral system covering 64 vital crop species. |
| Implementation |
Encourages signatory countries to integrate treaty provisions into national legislation. |
| Monitoring |
Establishes a system for monitoring treaty implementation and reporting. |
| Global Impact |
Contributes to preserving agricultural biodiversity, sustainable agriculture, and equitable access to genetic resources. |
| India’s Role |
India actively participates and supports the treaty, providing rights to farmers for unbranded seeds and registering their varieties, serving as a model for the world. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India-Middle East-Europe Economic Corridor
Mains level: Not Much
Central Idea
- PM’s recent announcement at the G20 Leaders’ Summit regarding the India-Middle East-Europe Economic Corridor signifies an ambitious project aimed at enhancing physical and digital connectivity across a vast expanse of the Eurasian subcontinent.
India-Middle East-Europe Economic Corridor
- The India-Middle East-Europe Economic Corridor aims to establish connectivity across India, West Asia, and Europe, leveraging railway networks and shipping routes.
- The project was jointly unveiled by PM Modi, US President Biden, Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud, and European Commission President Ursula von der Leyen during the G20 Summit in New Delhi.
Key Highlights of the project
- Scope and Ideology: This initiative, championed by the US and India, encompasses connectivity and infrastructure spanning India, Saudi Arabia, the UAE, Jordan, Israel, and the European Union. It is hailed as a sustainable alternative to existing global connectivity initiatives.
- Extension to PGII: Additionally, it is part of the broader Partnership for Global Infrastructure Investment (PGII), introduced by G7 countries to provide a sustainable alternative to BRI and address global infrastructure needs.
- Congestion Mitigation: The corridor may potentially bypass the congested Suez Canal, offering a more efficient route for cargo ships.
- Trade and Economic Integration: The Memorandum of Understanding (MoU) signed by India, the US, UAE, Saudi Arabia, France, Germany, Italy, and the European Union Commission underscores the project’s commitment to enhancing connectivity, logistics, clean energy production, and economic cooperation.
- Historical Significance: European Commission chief Ursula von der Leyen described the corridor as “historic” and expressed enthusiasm about its potential.
Need for such project
- Transformative Infrastructure: The project envisions a railway line across the Arabian Peninsula, with rail and shipping connectivity between India and Europe. Future expansions could include energy pipelines and optical fiber links.
- Geopolitical Shifts: This initiative reflects emerging geopolitical trends, including India-US collaboration in the Middle East, breaking Pakistan’s veto, and evolving relations with Iran.
- Deepening Arabian Engagement: The corridor provides an opportunity to strengthen India’s strategic ties with the Arabian Peninsula, notably with the United Arab Emirates and Saudi Arabia.
- Historical Perspective: India’s historical role as a connector between Arabia and Europe is revitalized through this project.
- Promoting Intra-regional Connectivity: The corridor aims to reduce tensions in the Arabian peninsula by fostering intra-regional connectivity, contributing to the concept of “Infrastructure for peace.”
- Alternative to BRI: Positioned as an alternative to China’s BRI, the corridor’s success will depend on implementation speed and sustainability, both financial and ecological.
- European Engagement: European Union’s involvement in the project makes it a major stakeholder, enhancing India’s integration with Arabia and Europe.
- Trans-African Corridor: India’s growing engagement with Africa aligns with US and EU plans to create a Trans-African corridor, opening avenues for future collaboration.
Challenges and Uncertainties
- Official timelines for project completion and details regarding funding remain undisclosed.
- Clarity on the project’s alignment and the use of existing railway and port infrastructure in West Asia is awaited.
Global Implications
- The initiative aligns with US-led efforts to scale the Partnership for Global Infrastructure Investment (PGII) and address infrastructure financing needs in low- and middle-income countries.
- The project presents an alternative to China’s Belt and Road Initiative and could significantly strengthen connectivity between India and the Middle East.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: New Delhi Declaration
Mains level: Not Much
Central Idea
- At the G20 Summit in New Delhi, leaders from member countries reached a consensus and adopted the New Delhi Declaration.
- This declaration outlines significant commitments and agreements on various global issues.
Here are the key points from the G20 New Delhi Leaders’ Declaration:
[1] War in Ukraine
- Peaceful Resolution: The G20 countries emphasize the importance of peace and call on all states to uphold the principles of international law, including territorial integrity and sovereignty.
- Humanitarian Concerns: The declaration expresses deep concern about the human suffering and adverse impacts of wars and conflicts worldwide, specifically addressing the war in Ukraine.
- UN Charter Principles: It emphasizes that all states must act in accordance with the Purposes and Principles of the UN Charter, refraining from the threat or use of force to seek territorial acquisition.
- Nuclear Disarmament: The use or threat of use of nuclear weapons is deemed inadmissible.
[2] Countering Terrorism and Money Laundering
- Condemnation of Terrorism: The G20 condemns terrorism in all its forms, including those rooted in xenophobia, racism, and intolerance or carried out in the name of religion.
- Holistic Approach: A holistic approach based on international law is advocated to effectively counter terrorism, with an emphasis on strengthening international cooperation to deny terrorist groups safe haven, freedom of operations, and financial support.
- Illicit Trafficking: Concerns about illicit trafficking and diversion of small arms and light weapons are addressed, with an emphasis on international cooperation among states to combat these phenomena.
- Financial Action Task Force (FATF): The G20 leaders commit to supporting the resource needs of the FATF and FATF Style Regional Bodies to combat money laundering and terrorist financing.
[3] Economy & Climate
- Sustainable Growth: G20 leaders call for strong, sustainable, and inclusive growth in response to the uneven recovery from the pandemic.
- Climate Action: Trillions of dollars will be required for countries to meet their climate goals and invest in clean energy technologies.
- Reforming Financial Institutions: Reforms of international financial institutions are urged, along with efforts to manage debt vulnerabilities in low and middle-income countries.
- Crypto Asset Taxation: The exchange of tax-relevant information on crypto assets is set to begin by 2027.
- Energy Transition: The declaration calls for accelerated efforts to phase down unabated coal power and eliminate inefficient fossil fuel subsidies.
- Financial Stability: Emphasis is placed on the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.
[4] Global Growth
- Policy Coordination: The G20 leaders reiterate the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.
- Central Banks Commitment: They also stress that central banks remain committed to achieving price stability in line with their respective mandates.
- Financial Stability Board (FSB): Initiatives by the FSB, Standard Setting Bodies (SSBs), and jurisdictions to examine lessons from recent banking turbulence are welcomed.
[5] Multilateral Development Banks
- Enhancing MDBs: G20 leaders emphasize the importance of delivering better, bigger, and more effective multilateral development banks (MDBs).
- Leveraging Private Capital: Financial institutions are encouraged to leverage private capital through innovative financing models and partnerships for maximum development impact.
- Capital Adequacy Frameworks (CAFs): The roadmap for implementing the recommendations of the G20 Independent Review of MDBs CAFs is endorsed.
[6] Cross-border Payments
- Payment Improvements: The G20 reaffirms its commitment to achieving global targets for faster, cheaper, and more transparent cross-border payments by 2027.
- CBDC Discussion: Discussions on the potential macro-financial implications of Central Bank Digital Currencies (CBDCs) are welcomed, especially concerning cross-border payments and the international monetary and financial system.
[7] Education
- Digital Education: The G20 recognizes the importance of investing in human capital development and supporting digital technologies to bridge educational divides.
- Scientific Collaboration: The promotion of open, equitable, and secure scientific collaboration and mobility of students, scholars, researchers, and scientists is encouraged.
- Inclusive Education: Emphasis is placed on inclusive, equitable, high-quality education and skills training, with foundational learning as a primary building block.
[8] Agriculture
- Trade Facilitation: Rising commodity prices contributing to cost of living pressures are addressed.
- Rules-Based Trade: The G20 leaders commit to facilitating open, fair, predictable, and rules-based trade in agriculture, food, and fertilizers, in line with relevant WTO rules.
- Food Security: Support for developing countries’ efforts to address food security challenges is emphasized, aligning with the G20 Deccan High-Level Principles on Food Security and Nutrition 2023.
[9] Religion
- Religious Tolerance: The G20 strongly condemns acts of religious hatred against individuals, religious symbols, and holy books.
- Cultural Diversity: Emphasis is placed on promoting respect for religious and cultural diversity, dialogue, and tolerance.
- Rights Interdependence: The interdependence of freedom of religion or belief, freedom of opinion or expression, peaceful assembly, and freedom of association is recognized as a means to combat intolerance and discrimination based on religion or belief.
[10] Corruption
- Zero Tolerance: The G20 reaffirms its commitment to zero tolerance for corruption.
- International Cooperation: Strengthening international cooperation and information sharing for combating corruption is urged.
- Asset Recovery: The joint Declaration also called for strengthening asset recovery mechanisms for combating corruption.
Conclusion
- In essence, the New Delhi Declaration serves as a testament to the collaborative efforts of G20 member countries in addressing global challenges and striving for a more prosperous, peaceful, and sustainable world.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: African Union, G20
Mains level: Read the attached story
Central Idea
- Negotiators confirm the African Union (AU) will join the G-20, mirroring the European Union (EU) as a regional body within the group.
- India views this development as a significant achievement for the Indian Presidency in advancing the Global South’s interests in the G-20.
Landmark Diplomatic Shift in G20
- The AU’s potential entry into the G-20 signals a significant diplomatic shift, expanding the group’s representation and influence.
- China and Russia, despite differences on other issues, back the AU’s membership, highlighting the broader global dynamics at play.
What is the African Union?
- The African Union (AU) is an intergovernmental organization in Africa.
- It was established in 2002 as a successor to the Organization of African Unity (OAU).
- It consists of 55 member states in Africa.
- Its primary objectives include promoting unity, cooperation, and development across the continent.
- It aims to address social, political, and economic challenges faced by African nations.
- It promotes peace, security, and stability in Africa.
History of India-Africa Relations
(1) Ancient Period:
- Ancient trade links: Indian merchants traded with the African coast for valuable goods like palm oil, gold, spices, and ivory.
- Maritime trade network: Trade routes expanded from Egypt to northern Somalia, Punt, Sudan, and Axum, enhancing economic and cultural ties.
(2) Medieval Era:
- Indian presence in East Africa: Gujarati and Saurashtrian merchants played a significant role in Africa’s east coast trade, using Indian systems of weights, measures, and currency.
- Development of internal links: Indian trade contributed to the development of internal connections within Africa, even before European involvement.
(3) Colonial Period:
- Impact of European colonialism: Indian presence in Africa changed under European colonial powers.
- Anti-apartheid struggle: Mahatma Gandhi’s involvement in the anti-apartheid movement in South Africa laid the foundation for India’s solidarity with Africa.
- Advocacy against apartheid: India actively raised the issue of apartheid in international forums like the UN, NAM, and Commonwealth.
(4) Post-Colonial Period:
- Continuation of Afro-Asian solidarity: India’s approach to Africa has been guided by the vision of commerce in ideas and services rather than raw materials.
- Phases of engagement: From Nehru’s focus on Afro-Asian solidarity to phases of neglect and re-engagement, India’s Africa policy evolved.
Present Status of Ties
- Institutionalization of relations: The India-Africa Forum Summit serves as the framework for India-Africa relations under South-South Cooperation.
- Expanded diplomatic presence: India announced the opening of embassies in 18 African countries, strengthening diplomatic ties.
- Economic engagement: Bilateral trade between India and Africa has grown significantly, with India becoming Africa’s third-largest trade partner.
- Investment and development cooperation: Indian investments in Africa have increased, with the country being the seventh-largest investor in the region.
- Lines of Credit (LoC): India’s concessional LoCs support development projects in Africa, with 182 projects sanctioned, amounting to US$10.5 billion.
- Bilateral cooperation: Collaboration includes areas such as solar energy, climate change, information technology, maritime security, counter-terrorism, and military training.
- Soft power projection: India’s ITEC program offers scholarships to African students, and the Indian diaspora contributes to cultural exchange.
Significance of Africa
(1) Geostrategic Importance:
- Proximity to India: Africa’s Horn region is critical for India’s security due to emerging threats like radicalism, piracy, and organized crime.
(2) Economic Significance:
- Diversifying energy sources: Africa can help India diversify its energy sources, aligning with the Integrated Energy Policy.
- Rich resources: Africa possesses valuable minerals, metals, and abundant agricultural land, addressing India’s need for food security and resources.
- Market and investment opportunities: Africa provides a space for Indian investments and trade expansion, fostering economic cooperation.
(3) Geopolitical Considerations:
- Support for UNSC seat: Africa’s support is crucial for India’s aspiration to gain a permanent seat on the UN Security Council.
- Projection of soft and hard power: India showcases its soft and hard power in Africa, contributing to its global influence.
- Peacekeeping and capacity building: India actively participates in UN peacekeeping operations and supports capacity building in African countries, strengthening bilateral ties.
Various Challenges
- Declining trade and investment: Bilateral trade and Indian investments in Africa have witnessed fluctuations, demanding efforts to enhance economic ties.
- Short-term focus: LoCs have primarily funded small-scale projects, lacking a broader development perspective.
- Competition from other powers: India faces competition from other countries like China, Brazil, and Russia, engaging Africa in various sectors.
- Lack of synchronization: Development instruments like LoCs, grants, and capacity-building initiatives operate independently, lacking coordination.
- Instances of racial attacks: Incidents of violence against African students in India pose challenges to people-to-people connections.
Chinese Challenge in Africa
- China’s extensive investments in Africa have significantly impacted the region across infrastructure, finance, natural resources, and maritime interests.
- Access to resources, untapped markets, and support for the “One China Policy” drive China’s engagement.
Strategies for India
- Develop a focused Africa strategy: India should formulate a comprehensive strategy for the next decade, identifying key areas of cooperation.
- Focus on capacity building: Investing in human capital is crucial for sustainable development in Africa.
- Collaborate with civil society organizations and diaspora: Indian organizations and the diaspora can play a vital role in implementing development projects at lower costs.
- Ensure timely project completion: Efforts should be made to expedite LoC projects, learning from countries with better implementation records.
Steps taken so far
- Indian Technical and Economic Cooperation (ITEC) program: India’s ITEC program provides technical assistance to African countries, with around 50% of ITEC slots reserved for Africa.
- Asia-Africa Growth Corridor: The AAGC, a cooperation agreement between India, Japan, and African countries, aims for inclusive development.
- Pan African e-Network: The PAeN facilitates tele-education and telemedicine in Africa, contributing to technological advancement.
- Maritime cooperation: India’s collaboration with African nations in the maritime domain, exemplified by joint exercises, promotes regional security.
- Peacekeeping operations: India actively participates in UN peacekeeping operations in Africa, supporting African counter-terrorism efforts and capacity building.
- Duty-free tariff preferential scheme: India’s scheme benefits African nations, and the India-Africa Forum Summit plays a vital role in strengthening ties.
- India Africa Defence Ministers conclave: Initiatives like this enhance defence cooperation and bilateral relations.
Way Forward
- Enhance mutual engagement: Organize the pending fourth India-Africa Forum Summit to further strengthen the relationship.
- Allocate fresh financial resources: Allocate new resources for grants and concessional loans, prioritizing economic relations.
- Focus on emerging sectors: Develop collaborations in health, space, and digital technologies to give a 21st-century dimension to the partnership.
- Continued support in peacekeeping: Sustain India’s contributions to peacekeeping, counter-terrorism, and capacity building in Africa.
- Improve experiences of Africans in India: Ensure the safety and well-being of Africans studying or working in India, promoting people-to-people connections.
- Promote development-friendly private investments: Align development cooperation with commercial interests to support mutually beneficial projects.
- Strengthen international cooperation: Collaborate with international allies to address the China challenge in Africa, emphasizing partnership-based approaches.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ASEAN
Mains level: India-ASEAN Relations
Central Idea
- Prime Minister departed for Indonesia to participate in the 20th ASEAN-India summit and the 18th East Asia Summit (EAS) in Jakarta.
- During the visit, he will meet with leaders from the ten ASEAN countries and attend the EAS, including leaders from ASEAN nations, Australia, China, India, Japan, New Zealand, South Korea, Russia, and the U.S.
Why discuss this?
- India-ASEAN relations have evolved significantly over the years, moving from a distant past to a robust partnership.
Association of Southeast Asian Nations (ASEAN)
|
| Established |
August 8, 1967 |
| Member Countries |
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam |
| Objective |
To promote political and economic cooperation and regional stability among member countries. |
| Key Areas of Cooperation |
– Economic Integration
– Political and Security Cooperation
– Social and Cultural Cooperation |
| Significance |
Promotes economic growth, stability, and peace in the Southeast Asian region. It is also a forum for diplomatic dialogue and conflict resolution. |
| ASEAN Secretariat |
Jakarta, Indonesia (The ASEAN Secretariat is the organization responsible for coordinating ASEAN activities.) |
Evolution of India-ASEAN Relations
- 1950s and Early 1960s: During this period, India played a significant role in supporting the decolonization efforts of Southeast Asian countries.
- 1960s to 1980s: India maintained some distance from the region due to internal issues and viewed ASEAN as a product of the Cold War.
- 1990s to 2010s: India adopted the ‘Look East Policy,’ leading to a full dialogue partnership with ASEAN in 1995 and becoming a full member of the ASEAN Regional Forum (ARF) in 1996.
- 2010s to Present: India-ASEAN cooperation intensified with the ‘Act East Policy,’ resulting in the elevation to a Strategic Partnership in 2012 and a Comprehensive Strategic Partnership in 2022.
Key Areas of Cooperation
- Trade Relations: The India-ASEAN Free Trade Agreement (AIFTA) and substantial trade volumes have strengthened economic ties, with commodity trade reaching $98.39 billion in the period April 2021-February 2022.
- Business & Investment: ASEAN is a major source of Foreign Direct Investment (FDI) for India, with cumulative FDIs from ASEAN to India totaling $117.88 billion between 2000-2021. The ASEAN India-Business Council (AIBC) promotes collaboration between private sector players from India and ASEAN.
- Socio-Cultural Cooperation: Cultural affinities between ASEAN and India foster people-to-people interactions through initiatives like student exchange programs.
- ASEAN-India Projects: Collaboration in agriculture, science & technology, environment, renewable energy, and defense promotes mutual growth. The ASEAN-India S&T Development Fund (AISTDF) contributes $1 million to support joint collaborative R&D research projects.
- Strategic Cooperation: Platforms like the ASEAN Post Ministerial Conference (ASEAN PMC) and ADMM-Plus facilitate dialogue on security issues.
- Defense Cooperation: India is enhancing arms sales and defense ties with ASEAN countries to promote regional security, such as the recent approval by the Philippines for a USD 374 million purchase of the BrahMos shore-based anti-ship missile system in January 2022.
- Technological Cooperation: ISRO’s collaboration supports ASEAN countries in space science and technology.
- Connectivity: Projects like the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Project enhance regional connectivity.
Why India Needs ASEAN?
- Significant Trade & Commercial Relations: ASEAN is a major destination for India’s service sectors and a vital source of foreign investments.
- Development of North East India: ASEAN provides an alternate route for India’s access to North Eastern India, facilitating development and strategic interests.
- Countering Chinese Expansion: Strengthening ties with ASEAN countries helps India counter Chinese influence in the Indo-Pacific region.
- Maritime Freedom: Collaboration with ASEAN ensures a free and peaceful Indo-Pacific region based on a rules-based order.
- Facing Politico-security Challenges: Cooperation in addressing security threats like climate change, terrorism, and refugee crises benefits both sides.
- Support for Indian Initiatives: ASEAN’s support is crucial for India’s success in regional policies and initiatives.
- Emerging Market: India benefits from ASEAN’s agricultural and industrial products, while ASEAN relies on India’s demographic dividend.
- Global Reforms: ASEAN’s global influence aligns with India’s vision for reforms in international forums.
- Diaspora: Southeast Asia’s significant Indian diaspora fosters cultural ties and people-to-people relations.
- Elevating India’s Global Status: Partnership with ASEAN enhances India’s geopolitical standing.
Challenges to Stronger Cooperation
- Large Trade Deficit: Trade imbalance and issues with the Free Trade Agreement (FTA) have impacted India’s economic relations with ASEAN, with the trade deficit rising from around $5 billion in FY11 to USD 21.8 billion in FY19.
- Balancing China: ASEAN countries’ engagement with China and concerns over military capabilities impact the depth of cooperation with India.
- Delays in Connectivity Projects: Long gestation periods for connectivity projects hinder progress.
- Issues within ASEAN: Different political systems and human rights issues pose challenges to stronger cooperation.
Way Forward
- Enhance Trade Relations: Focus on the blue economy and sustainable development to boost economic ties.
- Accelerate Connectivity Projects: Expedite the completion of infrastructure projects and build new trade and transport linkages.
- Strengthen Regional Role: India must play a more prominent role in the region to address geopolitical challenges.
- Establish Dedicated Departments: Dedicated departments under central ministries can facilitate better cooperation with ASEAN.
Conclusion
- India’s commitment to ASEAN signifies its strategic engagement with the Indo-Pacific region.
- Despite challenges, enhancing cooperation in trade, connectivity, defence, and socio-cultural aspects can pave the way for mutual growth and regional peace.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Black Sea Grain Initiatives
Mains level: Not Much
Central Idea
- The Black Sea grain deal lapsed on July 17. Turkey now seeks to resume the treaty.
- Russia though had not agreed to renew the deal, citing unmet promises and difficulties in its own agricultural exports due to Western sanctions.
Black Sea Grain Initiative
- The Initiative eased Russia’s naval blockade and saw the reopening of three key Ukrainian ports.
- The UN and Turkey brokered the deal in July 2022, allowing cargo ships to travel between Ukrainian ports and undergo inspections to ensure they were not carrying arms.
- The deal has been extended twice but is set to expire on July 17, 2023.
- The agreement created procedures to safely export grain from certain ports to attempt to address the 2022 food crisis.
- It provides a safe maritime humanitarian corridor for Ukrainian exports (particularly for food grains) from three of its key ports: Chornomorsk, Odesa and Yuzhny/Pivdennyi in the Black Sea.
Outcomes of this deal
- Approximately 9.8 million tonnes of grains have been shipped so far since the deal was brokered as per International Grains Council (IGC) Projections.
- The IGC is an intergovernmental organization established in 1949. Its primary purpose is to promote cooperation and consultation on grains trade and related aspects globally.
- India is an exporting member of the IGC.
- The initiative has also been credited for having made a huge difference in the global cost of living crisis.
Why was this deal launched?
- Ukraine’s Role: Ukraine is a significant exporter of food grains, including wheat and corn, and contributes to the UN’s food aid programs.
- Impact of Russian Invasion: Russia’s invasion and blockade of Ukrainian ports raised concerns about food security and soaring prices globally.
Russia’s Opposition and Reasons
- Claims of Unmet Promises: Russia argues that promises made under the deal have not been fulfilled, affecting its own agricultural exports and fertilizers due to Western sanctions.
- Obstacles to Agricultural Exports: Russia faces challenges with payment platforms, insurance, shipping, and logistics, even though there are no direct restrictions on its agricultural products.
- Frustration and Goodwill: Russian President expressed frustration and stated that Russia has shown goodwill in extending the deal but feels enough is enough.
- Shift in Grain Destinations: Russia claims the deal was meant to ensure global food security, but Ukraine has mainly exported to high- and middle-income countries, while the UN notes that food prices have cooled down, benefiting poorer nations.
Impact on Grain Exports and Production
- Russian Wheat Export Dominance: Russia remains the world’s top wheat exporter, primarily targeting the Middle East, North Africa, and Central Asia.
- Ukraine’s Declining Shipments: Ukraine’s grain shipments are projected to more than halve, with production at an 11-year low.
- Shifting Markets: Ukraine’s grain markets have shifted from Asia and North Africa to Europe, driven by ease of shipment, causing a glut of Ukrainian grain and protests from farmers in Eastern European countries.
International Grains Council
- The International Grains Council (IGC) is an intergovernmental organization that oversees the Grains Trade Convention and aims to promote cooperation in the global grain trade. Established in 1949 as the International Wheat Council, it was renamed in 1995 to reflect its expanded scope.
- India is a member of the International Grains Council (IGC), which is the intergovernmental organization that oversees the global grains trade.
Back2Basics: Black Sea
- Black Sea is bound by Ukraine to the north and northwest, Russia and Georgia to the east, Turkey to the south, and Bulgaria and Romania to the west.
- It links to the Sea of Marmara through the Bosphorus and then to the Aegean through the Dardanelles.
Significance of Black Sea for Russia
- Black Sea has traditionally been Russia’s warm water gateway to Europe.
- For Russia, the Black Sea is both a stepping stone to the Mediterranean.
- It acts as a strategic buffer between NATO and itself.
- It showcases the Russian power in the Mediterranean and to secure the economic gateway to key markets in southern Europe.
- Russia has been making efforts to gain complete control over the Black Sea since the Crimean crisis of 2014.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: G20
Mains level: Read the attached story
Central Idea
- The upcoming G20 summit in Delhi marks the culmination of a year-long series of meetings involving heads of state/government from G20 members.
- As a crucial platform for international economic cooperation, the G20 has transformed into a pivotal force in shaping global economic governance.
Origins and Composition of G20
| Origin |
Formed in 1999 in response to the financial crises of the late 1990s, with the aim to bring together major economies for international financial stability. |
| Composition |
Comprises 19 individual countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, US, and the European Union. |
| Purpose |
Serves as a platform for major economies to discuss and coordinate on international financial, economic, and social issues. |
| Significance |
Represents around 85% of global GDP, 75% of global trade, and covers two-thirds of the world population. |
| Leadership |
Operates without a permanent secretariat or staff.
Presidency rotates among its members on an annual basis. |
| Current Presidency |
India holds the G20 Presidency for the period December 2022 to November 2023. |
Emergence of G20
- Unplanned Emergence: The G20’s formation was not meticulously orchestrated but emerged due to a combination of circumstance and necessity.
- Adapting to Global Dynamics: The decline of the North-South divide and the rise of economically potent nations in the Global South underscored the requirement for a more inclusive and representative global economic forum.
From G22 to G20
- Response to Crisis: The Asian financial crisis in the late 1990s exposed vulnerabilities in the existing global economic governance framework.
- Genesis of G22: The G20’s precursor, the G22, was established in 1998 as a crisis-response mechanism.
- Evolving to G20: Dissatisfaction with the ad hoc nature of the G22 and G33 meetings led to the establishment of the G20 in 1999, aiming for a more structured platform.
Global Economic Crisis of 2008: Catalyst for Change
- The idea of a G20 leaders’ forum was proposed by Canadian Prime Minister Paul Martin in 2005, yet it faced resistance, particularly from the US.
- The global economic crisis of 2008, comparable to the Great Depression, accelerated the establishment of the G20 leaders’ summit.
- Recognizing the complexity and magnitude of the crisis, the G20 emerged as a suitable platform to address and mitigate the crisis’s repercussions.
First G20 Leaders’ Summit
- Washington DC Summit (2008): The inaugural G20 leaders’ summit, titled ‘Summit on Financial Markets and the World Economy,’ took place in November 2008.
- Extended Participation: Alongside G20 member nations, heads of institutions including the IMF, World Bank, and UN were invited. Spain and the Netherlands also attended.
Conclusion
- The evolution of the G20, from its spontaneous beginnings to the imminent Delhi summit, epitomizes its role as a responsive mechanism for fostering global economic cooperation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kashi Culture Pathway
Mains level: Not Much
Central Idea
- The G-20 Culture Ministers’ meeting held in Varanasi resulted in the unanimous endorsement of the ‘Kashi Culture Pathway’ document.
Kashi Culture Pathway
- Under this, G20 nations aims to address the preservation of cultural heritage, curbing illicit artifact trafficking, restitution of cultural property, and protection of living heritage, particularly that of indigenous communities.
- The document’s key aspects and implications highlight the united stance of G-20 countries towards cultural preservation.
Key Features
- Protection amid Conflict: The ‘Kashi Culture Pathway’ document accentuates the collective commitment of G-20 nations to protect cultural heritage from intentional and unintentional destruction, particularly in times of conflict.
- Combating Illicit Trade: G-20 member nations underscored the necessity to establish a robust global coalition to counter the illicit trafficking of cultural artifacts, with special attention to bolstering law enforcement collaboration.
- Enhanced Cooperation and Tools: Collaboration among nations and strengthening of enforcement tools were identified as essential to heighten the effectiveness of combatting cultural property trafficking. This includes voluntary data exchange to support investigations and law enforcement.
- Empowerment of Cultural Professionals: The document emphasizes enhancing research, documentation, and capacity-building for cultural professionals, legal authorities, and law enforcement personnel to better counter the trafficking of cultural property.
- Prevention and Regulation: Preventive measures were stressed, including regulatory actions against the unlawful export of cultural artefacts, particularly within the realm of online trade.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Biodiversity Framework Fund (GBFF)
Mains level: Not Much
Central Idea
- The Global Biodiversity Framework Fund (GBFF) has been officially ratified and inaugurated during the Seventh Assembly of the Global Environment Facility (GEF) held in Vancouver, Canada.
Global Biodiversity Framework Fund (GBFF)
|
Key Points |
| Establishment |
Ratified and inaugurated during the Seventh Assembly of the Global Environment Facility (GEF). |
| Purpose |
Channels financial resources to achieve goals of the Kunming-Montreal Global Biodiversity Framework established by the Convention on Biological Diversity (CBD), by the year 2030. |
| Financial Contributions |
Canada: 200 million Canadian dollars, United Kingdom: 10 million pounds. |
| Alignment with Framework |
Accelerates progress towards halting biodiversity decline by 2030. |
| Inclusivity and Indigenous Initiatives |
Allocates up to 20% for projects led by Indigenous communities. |
| Focus on Vulnerable Nations |
Over a third of resources dedicated to support Small Island Developing States. |
| Fulfilling Targets |
Contributes to commitment of $200 billion annually by 2030. |
| Funding Requirements |
Approximately $40 million needed for operationalization by end of 2023. |
| Future Contributions |
Dependent on domestic fiscal processes of key donors. |
| Council Meetings |
First meeting in January 2024, aims to approve inaugural work program in June. |
| Impact and Action |
Timely disbursement crucial for launching projects under the fund. |
About Global Environment Facility (GEF)
- Establishment: The GEF was established on the eve of the 1992 Rio Earth Summit, also known as the United Nations Conference on Environment and Development (UNCED).
- Purpose: The GEF serves as an international financial institution that funds projects to address global environmental challenges, including biodiversity loss, climate change, land degradation, and pollution.
- Funding Mechanism: It operates as a financial mechanism for several international environmental conventions, including:
- Convention on Biological Diversity (CBD),
- United Nations Framework Convention on Climate Change (UNFCCC), and
- United Nations Convention to Combat Desertification (UNCCD)
- Structure: It has a governing body known as the GEF Council. The GEF is structured as a partnership between three main institutions:
- the United Nations Environment Programme (UNEP),
- United Nations Development Programme (UNDP), and
- World Bank.
- Funding Sources: The GEF is funded by contributions from its member countries, known as “donors.” Donors include both developed and developing nations, as well as international organizations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS Plus
Mains level: Expansion of BRICS
Central Idea
- The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has extended invitations to six additional countries, namely Iran, the United Arab Emirates, Saudi Arabia, Argentina, Egypt, and Ethiopia.
- This move aims to bolster the collective voice of the Global South and foster multipolarity in the international arena.
Why discuss this?
- As BRICS broadens its membership, it strengthens its claim to represent nearly half the world’s population and includes key oil-producing nations.
- However, concerns also arise regarding China’s increasing influence within the alliance.
BRICS Plus: Emerging Role
- Heft and Influence: The inclusion of new members enhances BRICS’s position as a spokesperson for the developing world. The alliance currently represents 40% of the global population and over a quarter of the world’s GDP. With the addition of new members, it will encompass almost half the world’s population and include major oil-producing nations.
- Global Solidarity: BRICS’s growth is driven by anti-US sentiment and a desire for multipolarity among countries in the Global South. It serves as a platform where nations can express solidarity and challenge Western-dominated narratives.
BRICS: Evolution and Geopolitical Context
- Emergence of BRICS: Established in 2009, BRICS initially comprised Brazil, Russia, India, and China, with South Africa joining in 2011. The alliance aimed to showcase the economic potential of these emerging markets.
- Challenges and Opportunities: While BRICS’s economic performance has varied, geopolitical shifts like the Ukraine conflict have propelled it into a bloc with the potential to challenge Western influence and provide an alternative viewpoint.
Dynamics of New BRICS Members
- Unanimous Decisions: BRICS decisions require unanimous agreement from all members. While Russia and China face geopolitical challenges with the West, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
- China’s Role: China is driving BRICS’s expansion, making membership expansion a core agenda item.
- Inclusion of Iran: China and Russia’s influence is evident in the inclusion of Iran, highlighting their collaboration. This move brings together regional rivals Saudi Arabia and Iran within the same alliance, reflecting China’s mediation efforts.
- Saudi Arabia’s Shift: Saudi Arabia’s inclusion marks its pursuit of a more independent foreign policy, diverging from its traditional US alliance.
- Global Significance for Iran and Russia: For Iran and Russia, BRICS membership signifies their global partnerships and challenges to Western dominance.
Implications for India
- Balancing Act: India’s participation in the G7 summit and Quad summit reflects its multifaceted foreign policy approach. While engaging with Western alliances, India also places importance on its “anti-Western” stance within BRICS.
- BRICS as a Non-Western Bloc: India views BRICS as a “non-Western” group and strives to maintain its independent voice within the alliance.
- Concerns for India: Amid expansion, there are concerns that BRICS could tilt more toward China, potentially side-lining India’s interests.
Conclusion
- BRICS’s expansion signifies a step toward global multipolarity, providing a platform for diverse countries to unite against Western-centric narratives.
- As the alliance grows, it gains greater representation and influence, strengthening the collective voice of the Global South.
- However, with China’s increased influence, there are also legitimate concerns about the balance of power within BRICS and its impact on individual member states.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS group
Mains level: Read the attached story
Central Idea
- India, a key member of the BRICS group (Brazil-Russia-India-China-South Africa), has affirmed its endorsement for the bloc’s expansion based on consensus.
BRICS Group
|
| Full Form |
Brazil, Russia, India, China, and South Africa |
| Formation |
Originally “BRIC” in 2001, South Africa joined in 2010 to become BRICS |
| Economic Significance |
Represents significant portion of global population, land area, and economic output |
| Objectives |
Enhance cooperation, dialogue on political, economic, social issues |
| Principles |
Mutual respect, equality, non-interference in internal affairs |
| Summits |
Holds annual summits for leaders to discuss economic, trade, development issues |
| Cooperation Areas |
Finance, trade, investment, technology, energy, agriculture, health, education |
| New Development Bank (NDB) |
Established in 2014, finances infrastructure and sustainable projects |
| Contingent Reserve Arrangement (CRA) |
Established in 2015, provides financial assistance during currency crises |
| Political Dialogue |
Advocates for peace, security, stability, coordinates positions on global issues |
Embracing BRICS Expansion
- Indian Support: PM Modi reiterated India’s full support for the expansion of BRICS membership, emphasizing the need for consensus.
- Collaborative Approach: Modi highlighted the potential for increased collaboration between BRICS countries in fields like space, education, and technology, using India’s expertise as a basis.
- Shared Platforms: Modi offered to share India’s technological platforms with other BRICS members, fostering a cohesive and future-ready organization.
BRICS’ Evolution and Vision
- BRICS Progress: Modi recalled BRICS’ journey, from being defined as “Building Responsive, Inclusive and Collective Solutions” during India’s chairmanship in 2016 to its current vision of “Breaking barriers, Revitalising economies, Inspiring innovation, Creating opportunities, and Shaping the future.”
- Chinese Perspective: Chinese President expressed support for speedy expansion to enhance global governance’s fairness and equity. He emphasized the enthusiasm of developing nations in joining BRICS cooperation.
Ongoing Deliberations on Expansion
- South African Insight: South African President Cyril Ramaphosa noted that discussions on BRICS expansion are ongoing, suggesting that a clear solution will be reached collectively among BRICS leaders.
- Indian Initiative: India’s approach to BRICS expansion was guided by the inclusion of strategic partners as new members, emphasizing consensus and unstructured discussions during leaders’ retreats.
Ensuring Equitable Growth
- Diverse Candidates: Approximately 20 to 30 nations expressed interest in joining BRICS, with leading candidates like Argentina, Egypt, Indonesia, Nigeria, Saudi Arabia, and the UAE. India aims to prevent a China-centric grouping.
- Counterpoint to the West: China aims to expand BRICS as a counterpoint to Western dominance, gaining support from Russia due to diplomatic isolation linked to the Ukraine conflict.
Enhancing BRICS Cooperation
- Modi’s Proposals: Modi emphasized collaboration in space, technology, digital infrastructure, and education among BRICS members.
- BRICS Space Exploration Consortium: Modi proposed creating a Brics space exploration consortium for research and weather monitoring.
- Education and Technology: Modi cited India’s innovative solutions like Diksha and Bhashini for education and the CoWIN platform for vaccination, offering to share these platforms with BRICS partners.
- Skill Mapping and Conservation: Modi proposed skill mapping and cooperation for the preservation of various species of big cats found in BRICS countries.
- Support for African Union: Modi sought BRICS states’ endorsement for India’s proposal to grant the African Union full membership in the G20, reflecting shared commitment and unity within the group.
Conclusion
- As India reaffirms its backing for BRICS expansion, the group’s shared vision of inclusive growth and equitable global governance is reinforced.
- PM Modi proposals highlight the potential for collaboration in diverse domains, harnessing India’s technological prowess to foster a forward-looking and cohesive BRICS organization.
- Amid evolving global dynamics, BRICS’ united stance and collaborative efforts stand to reshape the landscape of international cooperation and equitable development.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GIDH
Mains level: Not Much
Central Idea
- In a significant stride towards global healthcare innovation, the World Health Organization (WHO) and India’s G20 presidency have jointly unveiled the ‘Global Initiative on Digital Health’ (GIDH).
- The announcement was made at the Health Minister’s Meeting during the G20 Summit, hosted by the Indian Government.
What is GIDH?
- WHO and G20 Partnership: The WHO and India’s G20 presidency collaboratively introduced the ‘Global Initiative on Digital Health’ (GIDH).
- Strategy Implementation: GIDH functions as a WHO-managed platform, supporting the implementation of the ‘Global Strategy on Digital Health 2020–2025.’
- Transformation Acceleration: The WHO, as the strategy’s Secretariat, facilitates the global convergence of standards, best practices, and resources for expediting digital health system transformation.
Objectives of the GIDH Initiative
- Measurable Outcomes: GIDH aspires to unite nations and partners, aiming to achieve tangible results through concerted efforts.
- Prioritizing Investment Plans: The initiative seeks to establish focused investment plans for the transformation of digital health, driven by clear priorities.
- Enhancing Resource Transparency: GIDH works towards greater transparency in reporting digital health resources, ensuring effective resource allocation.
- Facilitating Global Collaboration: The initiative fosters the exchange of knowledge and collaboration among regions and countries to expedite progress.
- Comprehensive Governance: GIDH supports holistic government approaches to digital health governance within countries.
- Boosting Support: The initiative aims to enhance both technical and financial support for the implementation of the ‘Global Strategy on Digital Health 2020–2025’ and its forthcoming phase.
India’s Role and Vision
- Digital Health Innovation: India’s G-20 Health Minister emphasized India’s role in digital health innovation at the G-20 Health Ministers’ Meeting.
- National Digital Health Architecture: India’s efforts for a comprehensive digital health ecosystem, exemplified by the Ayushman Bharat Digital Mission (ABDM), were highlighted.
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