Mains Ready By December. Smash Mains & Smash PYQ Admissions Open
Talk to Mentor

Civilsdaily

GS Paper: GS2-18.Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

  • Carbon Border Adjustment Mechanism (CBAM): Balancing Trade and Environment

    Carbon

    Central Idea

    • The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) has raised concerns in India due to its potential impact on the country’s carbon-intensive exports to the EU. While India has criticized CBAM as protectionist and discriminatory, the debate highlights the delicate relationship between trade and environmental considerations.

    Carbon

    Understanding The Carbon Border Adjustment Mechanism (CBAM)

    • CBAM is a key climate law introduced by the European Union (EU). It is designed to address the issue of carbon leakage and create a level playing field for EU industries by imposing carbon-related costs on certain imported products.
    • In 2005, the EU implemented the Emissions Trading System (ETS), a market-based mechanism aimed at reducing greenhouse gas (GHG) emissions.
    • Under the ETS, industries within the EU are allocated allowances for their GHG emissions, which can be traded among themselves.
    • However, the EU is concerned that imported products may not account for embedded emissions due to less stringent environmental policies in exporting countries.
    • This disparity could put EU industries at a competitive disadvantage and potentially lead to carbon leakage, where European firms relocate to countries with less strict emission norms.
    • To address these concerns, the CBAM imposes carbon-related costs on imports of specific carbon-intensive products. The products currently included are cement, iron and steel, electricity, fertilizers, aluminium, and hydrogen.
    • The CBAM requires importers to pay a price linked to the average emissions cost under the EU’s ETS. If the imported products have already paid an explicit carbon price in their country of origin, a reduction can be claimed.

    Advantages of CBAM in addressing climate-related challenges

    • Addressing Carbon Leakage: CBAM helps address the issue of carbon leakage, which occurs when domestic industries relocate to countries with less stringent climate policies, leading to increased global emissions. By imposing carbon-related costs on imported products, CBAM aims to discourage carbon-intensive industries from shifting production to countries with lower environmental standards, thereby reducing carbon leakage.
    • Encouraging Global Climate Action: CBAM incentivizes countries with carbon-intensive industries to adopt more stringent climate policies. The mechanism sends a signal that products exported to the EU market should meet similar environmental standards as EU-produced goods. This encourages exporting countries to reduce their greenhouse gas emissions and transition to cleaner production processes, contributing to global climate action.
    • Levelling the Playing Field: CBAM aims to create a level playing field for EU industries by ensuring that imported goods face similar carbon costs as domestic products. This helps prevent unfair competition, as it aligns the cost of carbon across different markets. It incentivizes domestic industries to invest in cleaner technologies and processes, knowing that imported goods will also be subject to equivalent carbon-related costs.
    • Revenue Generation for Climate Initiatives: CBAM has the potential to generate revenue for the EU, which can be used to fund climate initiatives and support the transition to a low-carbon economy. The funds collected through CBAM can be reinvested in research and development, renewable energy projects, or supporting industries in their decarbonization efforts.
    • Aligning Trade and Climate Objectives: CBAM highlights the interlinkage between trade and environmental concerns. It creates an opportunity to align trade policies with climate objectives, fostering greater coherence between economic growth and sustainability. CBAM encourages countries to consider the carbon intensity of their exports and provides an impetus for the adoption of climate-friendly practices in international trade.

    Key issues associated with CBAM

    • Trade Protectionism: CBAM has been accused of being protectionist in nature. Critics argue that it could create barriers to trade and hinder the export capabilities of countries, particularly those with carbon-intensive industries. By imposing carbon-related costs on imports, CBAM may give an advantage to domestic industries and discriminate against foreign competitors.
    • Discrimination and Non-Discrimination Principles: CBAM may face challenges in adhering to the principles of non-discrimination within the WTO. While it is designed to be origin-neutral, in practice, it could potentially discriminate between goods from different countries based on varying carbon pricing policies or reporting requirements. This could lead to disputes and challenges under WTO rules.
    • Complexity and Implementation Challenges: CBAM implementation involves complex calculations and mechanisms to determine the carbon-related costs of imported products. Setting up effective monitoring, reporting, and verification systems to ensure compliance could be challenging, both for the EU and exporting countries. The administrative burden and costs associated with implementing CBAM may also pose practical difficulties.
    • Potential for Double Regulation: Some argue that CBAM may lead to overlapping regulations and duplicate efforts. Exporting countries may already have their own carbon pricing mechanisms or environmental regulations in place. CBAM’s imposition of additional costs on top of these existing measures could be seen as redundant and burdensome.
    • Impact on Developing Countries: Developing countries, which often have carbon-intensive industries, may face disproportionate negative effects from CBAM. These countries might struggle to comply with the stringent requirements and costs associated with CBAM, hindering their economic development and ability to compete in global markets.
    • Incomplete Accounting of Emissions: CBAM focuses on explicit carbon prices, which may not fully account for the implicit costs associated with products from different countries. This incomplete accounting could result in arbitrary or unjustifiable discrimination and may not effectively incentivize countries to adopt more stringent environmental policies.

    WTO Consistency and CBAM potential discrimination

    • WTO’s non-discrimination principle: The World Trade Organization (WTO) operates on the principle of non-discrimination, treating ‘like’ products from different countries equally.
    • Origin-neutral CBAM: While CBAM appears origin-neutral in design, its application could potentially discriminate between goods based on inadequate carbon pricing policies or burdensome reporting requirements for importers. Whether the products affected by CBAM are truly ‘like’ is a key consideration.
    • For instance: While steel products may seem similar, different production methods lead to varying carbon intensity. This raises the question of whether processes and production methods should be relevant for comparing products. Critics argue that CBAM violates WTO law by discriminating based on embedded emissions

    General Exceptions under WTO and potential application for CBAM

    • Exceptions allow countries to deviate from trade rules: The General Exceptions, outlined in Article XX of the General Agreement on Tariffs and Trade (GATT), provide a set of policy grounds under which WTO members can justify trade measures that would otherwise violate their WTO obligations. These exceptions allow countries to deviate from certain trade rules for specified policy reasons.
    • Justification for exception: Article XX of the GATT lists various policy justifications, including public health, conservation of natural resources, and protection of the environment. The use of these exceptions is subject to meeting specific requirements, known as the chapeau. The chapeau sets out conditions that must be satisfied to justify a trade measure.
    • In the context of the CBAM: A WTO member implementing CBAM measures might seek to invoke the General Exceptions in Article XX of the GATT to justify any potential inconsistency with non-discrimination obligations.
    • For example: A country might argue that CBAM measures are necessary for the conservation of exhaustible natural resources or the protection of the environment, thereby justifying any deviation from non-discrimination principles.

    Carbon

    What are the concerns raised in India?

    • Impact on Export of Carbon-Intensive Products: India fears that CBAM implementation could severely affect its export of carbon-intensive products, particularly in sectors like aluminium, iron, and steel. These sectors may face significant challenges in accessing the EU market if they are subjected to additional economic costs due to CBAM.
    • Protectionism and Discrimination: India has criticized CBAM as being protectionist and discriminatory. It argues that the mechanism may create trade barriers and hinder the export competitiveness of Indian industries. India fears that CBAM could give an unfair advantage to EU domestic industries at the expense of Indian exporters.
    • Potential Economic Disruption: The implementation of CBAM may disrupt India’s trade flows and economic stability. The imposition of additional costs on carbon-intensive products exported to the EU market could lead to reduced demand, loss of market share, and potential negative impacts on employment and economic growth in India.
    • World Trade Organization (WTO) Challenge: India has contemplated the possibility of challenging CBAM at the WTO’s dispute settlement body. It raises concerns about the compatibility of CBAM with WTO rules, particularly regarding non-discrimination and trade-related principles
    • Interplay between Trade and the Environment: The concerns raised by India highlight the broader issue of the interplay between trade and environmental considerations. While acknowledging the need for environmental protection, India emphasizes the importance of ensuring that environmental measures do not become a smokescreen for trade protectionism.

    Facts for prelims

    What is Regional Trade Agreement (RTA)?

    • RTA is a treaty between two or more countries in a particular region that aims to reduce or eliminate trade barriers, such as tariffs and quotas, to facilitate increased trade between the member countries.
    • RTAs can take various forms, such as Free Trade Agreements, Customs Unions, Common Markets, and Economic Unions.

    What is Free Trade Agreement (FTA)?

    • FTA is a specific type of RTA that eliminates tariffs and other trade barriers on goods traded between the member countries.
    • FTAs may also include provisions on trade in services and investment, but they are primarily focused on reducing tariffs on goods

    Conclusion

    • The implementation of the EU’s CBAM has sparked concerns in India, primarily due to its potential impact on carbon-intensive exports. Analyzing its WTO consistency and potential justifications under the General Exceptions clause is crucial. In the ongoing India-EU free trade agreement negotiations, India should actively engage with the EU to safeguard its interests regarding CBAM while remaining open to the possibility of a WTO challenge.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    India-EU Free Trade Agreement

     

  • In news: Helmand Water Conflict

    helmand

    Central Idea

    • Iran and Afghanistan have been engaged in a prolonged disagreement over the sharing of water from the Helmand River.
    • Violent confrontations have occurred in the border region between the two countries in the recent past.

    About Helmand River

    • The Helmand River is the longest river in Afghanistan, spanning approximately 1,150 kilometers (715 miles) in length.
    • It originates near Kabul in the western Hindu Kush mountain range.
    • The river flows in a south-westerly direction through desert areas before emptying into Lake Hamun, which straddles the Afghanistan-Iran border.
    • Lake Hamun, fed by the Helmand River, is the largest freshwater lake in Iran.
    • The Helmand River is a vital water source for both Afghanistan and Iran, supporting agriculture, livelihoods, and ecosystems in the region.

    Row over Helmand River and Lake Hamun

    • Afghanistan’s longest river: The Helmand River holds great importance for Afghanistan as it is the country’s longest river, originating near Kabul and flowing through desert areas.
    • Iran’s largest freshwater lake: Lake Hamun, located on the Afghanistan-Iran border, is Iran’s largest freshwater lake and has been historically sustained by the Helmand River.
    • Drying up due to drought: The Lake has experienced a drastic decline in water levels and has largely dried up, attributed to factors such as drought and the construction of dams and water control infrastructure.
    • Economic Importance: Lake Hamun plays a vital role in the regional ecosystem and supports agricultural activities, livelihoods, and economic sectors in the surrounding areas.

    Disagreements between Iran and Afghanistan (Taliban)

    • Fouling of the 1973 Helmand River Treaty: The agreement signed in 1973 between Iran and Afghanistan to regulate the allocation of river water has not been fully ratified or effectively put into practice.
    • Iran accuses Afghanistan of violating water rights: Iran has consistently accused Afghanistan of infringing upon its water rights, claiming that it receives significantly less water than agreed upon in the 1973 treaty.
    • Afghanistan blames climatic factors for reduced water flow: Afghanistan has refuted Iran’s allegations, citing climatic factors such as reduced rainfall and diminished river water volumes as the primary causes of the current situation.
    • Concerns over Afghanistan’s dam and irrigation projects: Tehran expresses concerns over Afghanistan’s construction of dams, reservoirs, and irrigation systems along the Helmand River, fearing that these initiatives negatively impact water flow into Iran.

    Tehran-Taliban Relations: A recent recap

    • Previous ties between Iran and the Taliban: Prior to the Taliban’s capture of Kabul, Iran maintained diplomatic relations with the group, driven by shared opposition to the presence of US forces in the region.
    • Lack of formal recognition of the Taliban government: Despite refraining from formally recognizing the Taliban government, Iran has pragmatically engaged with the ruling group in Afghanistan to protect its interests, including the preservation of Lake Hamun.
    • Border clashes since the Taliban’s takeover: Following the Taliban’s rise to power, there have been repeated incidents and clashes along the Iran-Afghanistan border.

    Why is Taliban furious this time?

    • Taliban’s interest in promoting agriculture: The Taliban seeks to prioritize agricultural development, which influences their approach to water management and distribution.
    • Tehran’s sudden attention to Sistan-Baluchistan after protests: Following nationwide protests, including Sistan-Baluchistan, Iran’s government has shown increased attention to the region due to its disadvantaged status and reliance on water resources from Lake Hamun.

    Major hurdles in the resolution

    • Lack of interest: Both Iran and the Taliban show little interest in addressing the mismanagement of water resources and environmental challenges in the region.
    • Short-term focus on internal problems: Both Iran and the Taliban prioritize short-term solutions and focus on internal issues rather than actively resolving the water dispute.

    Current situation in Sistan-Baluchistan

    • Mounting public anger: The region of Sistan-Baluchistan in eastern Iran experiences growing public anger and frustration, largely driven by water shortages and other economic and social challenges.
    • Water shortages and other problems: Sistan-Baluchistan faces severe water shortages, contributing to economic and social difficulties in one of Iran’s poorest areas.
    • Setting up an inquiry commission: In an effort to address the recent border clash, Iran and Afghanistan have agreed to establish a commission of inquiry to investigate the incident.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

  • BRICS FM meeting in South Africa

    brics

    Central Idea

    • External Affairs Minister S Jaishankar is in Cape Town, South Africa, to participate in a meeting of foreign ministers from the BRICS countries.
    • The foreign ministers’ meeting aims to finalize the agenda for the upcoming BRICS summit, scheduled to be held in South Africa in August.

    What is BRICS?

    Explanation
    About BRICS is a grouping of the world’s leading emerging economies: Brazil, Russia, India, China, and South Africa.
    History The term BRIC was coined in 2001 by British Economist Jim O’Neill to describe the four emerging economies of Brazil, Russia, India, and China. The grouping was formalized in 2006, and South Africa joined in 2010.
    Composition BRICS comprises the four emerging economies of Brazil, Russia, India, and China, with South Africa joining later.
    Footprints BRICS represents 41% of the global population, 24% of global GDP, and 16% of global trade.
    Chairmanship Rotates annually among the members, with India holding the chair in 2021.
    Initiatives
    1. New Development Bank: NDB funds infrastructure and sustainable development projects.
    2. Contingent Reserve Arrangement: CRA provides mutual support and strengthens financial stability among BRICS nations.
    3. BRICS Payment System: Aims to create an alternative payment system to SWIFT.
    4. Customs agreements: BRICS signed agreements to coordinate and ease trade transport.
    5. Satellite: A constellation of remote sensing satellites has been launched in collaboration with BRICS nations.

     

    Key agenda of this meet

    • Geopolitical consolidation and potential expansion: Two key items on the agenda attracting attention are the plan to expand the membership of BRICS and the discussion of a common currency.
    • Friends of BRICS meet: South Africa, as the chair this year, is hosting a Friends of BRICS meeting with foreign ministers from Africa and the Global South.

    Potential Expansion of BRICS

    • Countries in queue for BRICS membership: Around 19 countries are reportedly seeking to join BRICS, including Argentina, Nicaragua, Mexico, Uruguay, Venezuela, Nigeria, Algeria, Egypt, Senegal, Morocco, Saudi Arabia, the UAE, Turkey, Syria, Iran, Kazakhstan, Bangladesh, Afghanistan, Indonesia, and Thailand.
    • Inclusion of big oil producers: The list of potential new members includes major oil-producing countries like Saudi Arabia, Iran, the UAE, Nigeria, and Venezuela.

    China’s Role in BRICS

    • China driving expansion: China is leading the effort to expand its membership of BRICS and is promoting the idea of creating a bigger space for the Global South.
    • Focus on multilateralism: China emphasizes multilateralism as it criticizes US hegemony, using the theme of “multilateralism” rather than “multipolarity” in discussions about BRICS.
    • Challenging the Western geopolitical view: The conflict in Ukraine has strengthened the China-Russia partnership and transformed BRICS into an aspiring bloc that challenges the western geopolitical narrative.

    India’s Position in BRICS

    • India’s participation in BRICS and the G7: India’s involvement in both BRICS and the G7 demonstrates its engagement with multiple groupings and does not indicate alignment with an anti-Western coalition.
    • Non-Western group: India views BRICS as a non-western group and believes it should remain so, focusing on its role as a platform for Global South countries to express solidarity.
    • New challenges for India: Some analysts argue that as BRICS expands and more members join, it could sidelines India’s influence within the group.

    What about BRICS Common Currency?

    • Proposal for a common currency: Russia proposed the idea of a common currency at the BRICS summit in Beijing last year. Leaders established a committee to study its feasibility.
    • Cautious reception and challenges: The proposal for a common currency received cautious feedback, with concerns about its viability and complexities such as different economic and political systems among member countries.
    • Insulation from the dollar: The idea of a common currency presents an opportunity to reduce reliance on the US dollar, but not all members are convinced it is the right time.
    • Difficulties in currency trade: Negotiations between India and Russia for trading in their respective currencies have encountered difficulties, with Moscow preferring dollar payments due to limited imports from India.

    China’s stance on the US dollar

    • Retreating US dollar hegemony: China has expressed discontent with the “hegemony of the US dollar” and aims to promote the use of the Yuan as a trading currency in Central Asia.
    • No open voices abandoning the dollar: Despite its criticisms, there is no evidence to suggest that China is ready to completely abandon the US dollar at present.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

  • Switzerland’s Foreign Policy: Promoting Peace and Collaboration

    Switzerland

    Central Idea

    • Switzerland, known for its long-standing commitment to neutrality and diplomacy, has concluded its month-long presidency of the United Nations Security Council. Switzerland’s historical experiences and its alignment with the principles of ahimsa (non-violence) make it a natural partner for India, a country rooted in similar values.

    Switzerland’s Historical Journey

    • Civil Wars (16th to 19th century): Switzerland experienced a series of civil wars between Catholics and Protestants, lasting for up to 300 years. These conflicts ravaged the country and led to a moment of deep reflection.
    • The Swiss Confederation (1848): The civil war of 1847 prompted the Swiss people to envision a more peaceful future. In 1848, the Swiss Confederation was established, creating inclusive federal institutions that aimed to build domestic peace.
    • League of Nations (1920): Switzerland played a significant role in the establishment of the League of Nations, an international organization founded in Geneva after World War I. The League aimed to maintain peace and prevent future conflicts through collective security and diplomacy.
    • United Nations (1945): Switzerland actively supported the founding of the United Nations, a global organization formed after World War II to promote international cooperation, peace, and security. The UN has since played a vital role in addressing global challenges and conflicts.

    Switzerland

    Priorities set by Switzerland during its UNSC presidency

    • Building Sustainable Peace: Switzerland emphasized the importance of building sustainable peace in conflict-affected regions. Switzerland advocated for dialogue, trust-building, and diplomacy as essential tools to address the root causes of conflicts and promote lasting peace.
    • Protection of Civilians: Recognizing the plight of civilians caught in armed conflicts, Switzerland focused on the protection of civilians as a critical aspect of its foreign policy agenda. This involved raising awareness about the challenges faced by civilians in conflict zones and urging the international community to take concrete measures to safeguard their rights and well-being.
    • Humanitarian Action: Switzerland placed significant importance on humanitarian action during its UNSC presidency. It sought to mobilize support and resources for humanitarian assistance in areas affected by armed conflict, ensuring the provision of critical aid to vulnerable populations, including access to food, shelter, healthcare, and education.
    • Promotion of Multilateralism: As a strong advocate for multilateralism, Switzerland prioritized the promotion of international cooperation and collaboration. Switzerland aimed to foster dialogue and consensus-building among Security Council members to effectively address pressing global issues and work towards shared solutions.

    Switzerland

    Switzerland’s Foreign Policy alignment with India’s Principles

    • Non-Violence (Ahimsa): Switzerland and India both emphasize the principle of non-violence (ahimsa) in their foreign policy outlook. Switzerland’s commitment to peace promotion and the protection of civilians in zones of armed conflict resonates with India’s longstanding belief in non-violence as a means to resolve conflicts and maintain harmonious relations.
    • Shared Historical Legacies: Switzerland’s historical struggles with civil wars and subsequent efforts to establish inclusive federal institutions for domestic peace parallel India’s own historical journey toward independence and the construction of an inclusive democratic system.
    • Value of Diplomacy: Switzerland’s role as a neutral and diplomatic hub and India’s long-standing commitment to diplomatic engagements underline the significance of dialogue, negotiation, and consensus-building in addressing global challenges and conflicts.
    • International Cooperation: Switzerland actively engages in international organizations and initiatives, such as the United Nations, while India’s active participation in multilateral platforms like the United Nations and the G20 underscores its commitment to international cooperation. Both countries value multilateralism and collaborative efforts to address shared challenges.
    • Promotion of Peace: Switzerland’s focus on building sustainable peace and protecting civilians in conflict zones aligns with India’s commitment to peace promotion and conflict resolution. Both countries prioritize peaceful means of resolving disputes and work towards creating a peaceful and secure world.

    Facts for Prelims: The UNITE Aware technology platform

    • The UNITE Aware technology platform is a system developed by India in collaboration with the United Nations to enhance the safety and security of peacekeepers deployed in conflict zones.
    • It is a real-time situational awareness system that uses advanced technologies such as satellites, drones, and geospatial tools to provide up-to-date information on the ground situation to peacekeeping forces.
    • The system also includes a mobile app that allows peacekeepers to report incidents and receive alerts in real-time.
    • The platform is designed to help peacekeepers make informed decisions and respond effectively to emerging threats, thereby reducing the risks to their safety and security.

    Switzerland

    Conclusion

    • Switzerland’s foreign policy, anchored in peace promotion and protection of civilians in armed conflict zones, aligns with India’s principles of non-violence. Switzerland’s active initiatives and participation in the United Nations Security Council’s open debates reflect its commitment to fostering a peaceful future. Together, Switzerland’s position in New York and India’s G20 presidency offer a promising path towards a more harmonious and peaceful world.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Must read:

    India- Nordic can be the powerhouse of the green transition globally

     

  • Cambodian King’s state visit to India

    cambodia

    Central Idea

    • Cambodian King Norodom Sihamoni is on his maiden state visit to India to mark the culmination of 70th anniversary of diplomatic relations with India.

    Marking 70th Anniversary of Diplomatic Ties

    • This visit holds special significance as it is the first state visit by a Cambodian King in nearly six decades, with the last visit being made by King Norodom Sihamoni’s father in 1963.
    • India and Cambodia share warm and friendly relations, characterized by deep-rooted people-to-people ties, cultural connections, and a commitment to mutual economic growth.

    India-Cambodia Diplomatic Ties: A Backgrounder

    cambodia

    [A] Historical Background

    Additional Information
    Indianization of Southeast Asia Spread of Indian religions, cultural practices, art, architecture, and literature across Southeast Asia
    Funan Kingdom (1st to 6th century CE) Indian traders establishing commercial links with Funan, leading to the exchange of goods, ideas, and cultural practices
    Chenla Kingdom (6th to 9th century CE) Emergence of Chenla as an Indianized kingdom with continued Indian cultural and religious influence
    Khmer Empire (9th to 15th century CE) Peak of Indian influence, adoption of Hinduism and later Buddhism, construction of monumental temples and structures like Angkor Wat
    Sanskrit Inscriptions and Literature Adoption of Sanskrit as court language, creation of inscriptions and literary works in Sanskrit
    Cultural Exchange and Artistic Influence Indian art, architecture, and performing arts influencing Cambodian temples, sculptures, and dance forms
    Royal Ties and Religious Connections Close connections between ruling elites of the Khmer Empire and Indian kingdoms, the transmission of Buddhist teachings and scriptures from India

     

    [B] Diplomatic Relations

    • Establishment of Diplomatic Ties: India and Cambodia established diplomatic relations in 1952 after Cambodia’s independence from French colonial rule.
    • High-Level Visits: Frequent visits by Indian Prime Ministers and Presidents to Cambodia and vice versa to strengthen bilateral relations and political dialogue.
    • Bilateral Agreements: Signing of agreements covering areas such as economic cooperation, cultural exchanges, defense, and tourism.
    • Resident Diplomatic Missions: Indian Embassy in Phnom Penh and Cambodian Embassy in New Delhi facilitating regular communication and coordination.
    • Regional and Multilateral Engagement: Collaboration within organizations like ASEAN and East Asia Summit, providing platforms for regional cooperation and addressing challenges.

    Various facets of India-Cambodia Relations

    (1) Economic Cooperation

    • Growing Bilateral Trade: Focus on sectors like textiles, pharmaceuticals, automobiles, agriculture, and information technology.
    • Development Assistance: India’s support in sectors like agriculture, irrigation, human resource development, and capacity building.
    • Investment and Joint Ventures: Exploring opportunities for investment and collaborative projects.

    (2) Defense and Security Cooperation

    • Training and Capacity Building: Defense cooperation through training programs for Cambodian armed forces personnel.
    • Defense Dialogues and Exchanges: Regular engagement in discussions on maritime security, counter-terrorism, and defense industry collaboration.

    (3) Cultural and Educational Exchanges

    • Art, Music, Dance, and Literature: Fostering cultural ties through exchanges and appreciation of each other’s cultural heritage.
    • Scholarships and Education: ICCR scholarships facilitate Cambodian students’ higher education in India.
    • People-to-People Connections: Cultural festivals, events, and tourism enhance mutual understanding and interactions.

    Strategic significance of Cambodia for India

    • Geostrategic Location: Cambodia’s position in Southeast Asia provides India with access to crucial sea routes and enhances its engagement in the Indo-Pacific region.
    • Regional Connectivity: Cambodia’s connectivity with other ASEAN countries allows India to strengthen regional partnerships and facilitate trade, investment, and people-to-people exchanges as part of its Act East Policy.
    • Balancing China’s Influence: Strengthening relations with Cambodia enables India to maintain a balanced approach and counterbalance China’s growing influence in the region.
    • Maritime Security: Cambodia’s coastal geography and access to the Gulf of Thailand are strategically important for India’s maritime security concerns. Cooperation with Cambodia supports regional stability and ensures the safety of vital sea routes.
    • Economic Engagement: Cambodia’s growing economy and investment potential offer opportunities for India to enhance economic cooperation, boosting trade, investments, and joint ventures for mutual benefit.
    • Cultural Diplomacy: Cambodia’s historical and cultural linkages with India provide a foundation for strong cultural and people-to-people ties, enhancing India’s soft power in the region.
    • Defense and Security Cooperation: Collaborating with Cambodia in defence and security areas contributes to regional security, including capacity building, joint exercises, and information sharing.

    Way Forward

    • Strengthen Economic Ties: Expand bilateral trade and investment, explore new sectors, and foster business partnerships.
    • Enhance Defense Cooperation: Continue training and capacity-building programs, and deepen discussions on shared security challenges.
    • Cultural Exchanges and Tourism: Promote greater cultural understanding, organize more cultural events, and facilitate tourism exchanges.
    • People-to-People Contacts: Encourage more interactions between citizens, foster academic collaborations, and promote tourism.
    • Regional Cooperation: Engage actively within ASEAN and other regional forums to address common challenges and pursue shared interests.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024

  • India’s Initiative for ASEAN Women in UN Peacekeeping

    asean un peacekeeping

    Central Idea

    India-ASEAN Initiative for Women in UNPK Operations

    • Defence Minister proposed this initiative last year to strengthen India-ASEAN defence cooperation.
    • Tailor-made courses for women peacekeepers from ASEAN member-states will be conducted at the Centre for United Nations Peacekeeping (CUNPK) in India.
    • Twenty peacekeepers, two from each country, will receive training in various aspects of peacekeeping.
    • A “Table Top Exercise” focusing on UNPK challenges will be held in December, specifically designed for women officers from ASEAN.

    India’s Training and Capacity Building

    • The Indian Army has established the Centre for United Nations Peacekeeping (CUNPK) in New Delhi, which trains over 12,000 troops annually in peacekeeping operations.
    • The CUNPK hosts foreign delegations, shares best practices, and dispatches mobile training teams to Friendly Foreign Countries for capacity building in UNPK.
    • India has deployed Female Engagement Teams, Women Military Police, and women staff officers and military observers in various UN missions.
    • India has the second-largest women contingent in the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo and UN Interim Security Force for Abyei.

    What is United Nations Peacekeeping?

    • UN Peacekeeping helps countries navigate the difficult path from conflict to peace.
    • UN peacekeepers are often referred to as Blue Berets or Blue Helmets because of their light blue berets or helmets) can include soldiers, police officers, and civilian personnel.

    UN Peacekeeping is guided by three basic principles:

    1. Consent of the parties
    2. Impartiality
    3. Non-use of force except in self-defence and defence of the mandate

    UNPKF in operation

    • Since 1948, UN Peacekeepers have undertaken 71 Field Missions.
    • There are approximately 81,820 personnel serving on 13 peace operations led by UNDPO, in four continents currently.
    • This represents a nine-fold increase since 1999.
    • A total of 119 countries have contributed military and police personnel to UN peacekeeping.
    • Currently, 72,930 of those serving are troops and military observers, and about 8,890 are police personnel.

    Why UN Peacekeeping is needed?

    • Conflict resolution: UN peacekeeping missions play a crucial role in assisting host countries in transitioning from conflict to peace.
    • Burden sharing: UN peacekeeping utilizes a global coalition of troops and police to share the responsibility of maintaining peace and stability worldwide.
    • Democratization: Peacekeepers provide security and political support to facilitate the early transition to peace and support democratic processes in post-conflict countries.

    India’s Contribution to UN Peacekeeping

    • Largest troop contributor: India has a long-standing history of contributing personnel to UN peacekeeping missions, with over 253,000 Indians serving in 49 out of 71 missions.
    • Current deployments: Approximately 5,500 Indian troops and police are deployed in UN peacekeeping missions, ranking India as the fifth-highest troop-contributing country.
    • Women in Indian Peacekeeping: India has played a pioneering role in deploying women peacekeepers, starting with an all-women contingent to Liberia in 2007.
    • Humanitarian services: Indian peacekeepers also provide medical care, veterinary support, and engineering services to communities in need.

    Issues with UN Peacekeeping

    [A] Issues for India

    • Kashmir interference: India has expressed discontent with the UN Military Observer Group in India and Pakistan (UNMOGIP) operating in Kashmir, considering it irrelevant after the Shimla Agreement.
    • Disregard for India-Pak ceasefire: UNMOGIP continues to observe hostilities and ceasefire violations along the Line of Control, which India believes is unnecessary.

    [B] Global Challenges

    • Diverse security challenges: UN peacekeeping operations need to adapt to rapidly evolving security dynamics.
    • Resource allocation: Mandates of peacekeeping missions should align with available resources.
    • Greater involvement of troop-contributing countries: Countries providing troops and police should have a meaningful role in mission planning.
    • Investment in peacebuilding: Adequate financial and human resources are required for post-conflict peacebuilding.

    Way Forward

    • UNSC reform: Reform the UN Security Council to reflect the changing global landscape.
    • Multi-partner collaboration: Enhance effectiveness by involving actors beyond the UNSC in counterterrorism efforts.
    • Modernization of peacekeeping: Strengthen UN Peacekeeping Forces through modernization and inclusivity.
    • Human-centric decision-making: Promote accountability and transparency in the UNSC’s decision-making processes.

    Conclusion

    • India’s commitment to promoting women’s participation in UNPK operations underscores its dedication to global peace and security.
    • These initiatives aim to enhance the capabilities and representation of women in peacekeeping, recognizing their valuable contributions to maintaining peace and stability worldwide.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024

  • G-7 Japan Summit: Consolidating Approaches for Global Challenges in the Indo-Pacific

    Japan

    Central idea

    • The G-7 Hiroshima Summit, hosted by Japan, marks a significant event as Japan takes the lead since the 2008 summit. For Japan, the imperative lay in navigating the complex geopolitical landscape of the Indo-Pacific, reinforcing partnerships, and addressing security risks in a region crucial for global fortunes.

    G7 Summit Hiroshima

    • The 49th annual G7 Summit took place in Hiroshima. Japan hosted the summit in its capacity as the President of the G7.
    • Prime Minister Kishida’s commitment to nuclear disarmament and non-proliferation was evident through the choice of Hiroshima as the host city.
    • Prime Minister Modi attended the summit at the invitation of the Japanese Prime Minister.
    • The participating leaders issued a leaders’ communiqué on the second day of the summit. The communiqué will be adopted officially at the end of the summit on the 21st.
    • Current Members: US, UK, Canada, France, Germany, Italy and Japan

    Challenges Facing Japan

    • Russia’s Aggression in Ukraine: Japan is deeply concerned about Russia’s ongoing aggression in Ukraine, which poses a threat to regional stability. The conflict, now more than a year old, shows little signs of abating, and Japan is actively monitoring the situation due to its potential impact on its national security strategy.
    • China’s Assertive Behavior: Japan is closely watching China’s increasing assertiveness in the region, both militarily and geopolitically. China’s military modernization plans, territorial disputes in the East China Sea and South China Sea, and growing influence pose significant challenges for Japan’s security and regional stability.
    • Military Pressures on Taiwan: Japan is alarmed by China’s growing military pressures on Taiwan, which has the potential to escalate tensions and trigger a regional conflict. Ensuring the peace and stability of Taiwan is vital for Japan’s national security interests, given its geographical proximity to the region.
    • North Korea’s Nuclear Posturing: The volatile nuclear posturing and nuclear weapons program of North Korea are major concerns for Japan’s security. North Korea’s missile tests and threats of nuclear attacks not only pose a direct threat to Japan but also contribute to regional instability.
    • Economic and Technological Resilience: Japan faces challenges in ensuring economic security, particularly in the face of global supply chain instability and the impact of sensitive technologies. Reviving and strengthening its chip industry and advancing collaborations in science and technology are crucial for Japan’s economic and technological resilience.
    • Climate Change Impacts: As an island nation, it is particularly vulnerable to the consequences of climate change, such as coastal erosion, increased flooding, and threats to food security.
    • Regulation of Sensitive Technologies: Japan faces the complex task of regulating sensitive technologies to ensure national security without stifling innovation and economic growth. Striking a balance between fostering technological advancements and safeguarding against potential risks and misuse is a challenge that Japan must navigate.

    Significance of the India-Tokyo Partnership

    • Strategic Cooperation: The partnership between New Delhi and Tokyo holds significant strategic importance. As two major democracies in the Indo-Pacific region, their collaboration helps in addressing shared challenges and advancing common interests.
    • Bilateral Defense Ties: The defense cooperation between India and Japan has been growing steadily in recent years. Regular joint military exercises, information sharing, and defense technology collaboration strengthen their respective defense capabilities.
    • Economic Collaboration: India and Japan have been actively engaged in economic cooperation. Their partnership encompasses various sectors such as infrastructure development, technology, trade, and investment. Joint projects in the Indo-Pacific region promote connectivity, economic growth, and sustainable development.
    • Regional Connectivity: The collaboration between India and Japan plays a crucial role in enhancing regional connectivity. Initiatives like the Asia-Africa Growth Corridor (AAGC) and the Indo-Pacific Economic Corridor (IPEC) aim to create infrastructure linkages and promote trade and investment in the region.
    • Shared Values and Interests: India and Japan share common values of democracy, rule of law, and respect for international norms. Their partnership is built on a foundation of shared interests, including a free and open Indo-Pacific, multilateralism, and a rules-based international order.
    • Counterbalancing China’s Influence: The New Delhi-Tokyo partnership serves as a counterbalance to China’s growing influence in the Indo-Pacific. Both countries share concerns about China’s assertiveness and seek to uphold a rules-based order and promote a free and open Indo-Pacific.
    • Middle Power Diplomacy: The partnership between India and Japan is an exemplar of middle power diplomacy. By joining forces, they can amplify their respective influence and promote stability and cooperation in the region. Their partnership serves as a model for other middle powers seeking to address global challenges collectively.

    Way ahead: Advancing Shinzo Abe’s Legacy

    • Strengthening Alliances and Partnerships: Like Shinzo Abe, current Japanese Prime Minister Fumio Kishida can continue to prioritize the strengthening of alliances and partnerships. This includes nurturing relationships with key allies such as the United States, Australia, and India, and expanding cooperation in various areas such as security, trade, and technology.
    • Network Building and Diplomatic Partnerships: Prime Minister Kishida can follow Shinzo Abe’s footsteps by actively engaging in network building and developing diplomatic partnerships across the world. This includes reaching out to countries in the Indo-Pacific region and beyond to foster collaboration, enhance understanding, and create a network of like-minded nations.
    • Regional Leadership in the Indo-Pacific: Japan has a crucial role to play in shaping the strategic contours of the Indo-Pacific region. Prime Minister Kishida can continue Shinzo Abe’s efforts in reinforcing Japan’s leadership position by actively engaging with regional forums and initiatives such as the Quad (Australia, India, Japan, and the U.S.), ASEAN, and the Indo-Pacific initiatives.
    • Economic Engagement and Trade Initiatives: Shinzo Abe was instrumental in advancing Japan’s economic engagement with the world through initiatives like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Prime Minister Kishida can build upon this legacy by further promoting free trade, pursuing economic cooperation agreements, and supporting initiatives that foster economic growth and innovation.
    • Active Engagement in Global Governance: Shinzo Abe played an active role in global governance by advocating for reform in international institutions and promoting Japan’s candidacy for key positions. Prime Minister Kishida can continue this legacy by actively engaging in global forums, working towards international reforms, and contributing to the development of global norms and rules.

    Conclusion

    • The G-7 Hiroshima Summit provided a platform for Japan to consolidate approaches in addressing pressing global challenges. Additionally, the deepening partnership between India and Japan contributes to middle-power diplomacy, upholding a rules-based order and countering unilateral attempts to alter regional dynamics. The summit reinforced Japan’s position as a crucial security actor and its willingness to actively engage in shaping the global order.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    India-Japan ties under Shinzo Abe

     

  • WTO reforms a top priority: India

    wto

    Central Idea

    • India has stressed the urgent need for prioritizing reforms within the World Trade Organisation (WTO).
    • India has been advocating for WTO reforms and improved dispute settlement mechanisms during G20 discussions.

    About WTO

    Functions and Principles
    Establishment 1 January 1995
    Functions
    • Negotiating trade agreements
    • Enforcing trade rules
    • Providing technical assistance and capacity building
    • Sharing trade-related information and conducting research
    Fundamental principles
    • Non-discrimination
    • Reciprocity
    • Transparency
    • Predictability and stability
    Membership 164 member countries representing over 98% of global trade
    Decision-making
    • Decisions made by consensus among member countries
    • General Council is the highest decision-making body

     

    Prioritizing WTO Reforms

    • India’s Push for Reforms: India has been actively advocating for reforms within the World Trade Organisation.
    • Better Dispute Settlement Mechanisms: Alongside reforms, India is pushing for improved dispute settlement mechanisms within the WTO.
    • Reaffirming Foundational Principles: The discussions aim to reaffirm the principles enshrined in the Marrakesh Agreement and the multilateral trade agreements, emphasizing the importance of an open, fair, inclusive, and transparent WTO.

    Reforms that India is seeking

    • Structural Reforms: There is an urgent need for reforms within the WTO to address issues such as transparency, shorter time frames, the establishment of a permanent panel body, and special and differential treatment for developing countries.
    • Benefit for Developing Countries: Developing countries, including India, can benefit from these reforms if proposals specific to their needs are accepted.
    • Trade Facilitation for Services: While the WTO has made progress with the Trade Facilitation Agreement (TFA) concerning goods, there is a need for reforms in trade facilitation for services. India, as a major service provider, stands to benefit from improved cross-border movement of people.
    • Inclusivity: It is crucial to establish procedures and practices that are more inclusive, particularly for developing countries.
    • Peace Clauses: Adoption of “peace clauses” for developing countries’ implementation of current agreements can formalize commitments by major trading powers to allow grace periods and exercise due restraint.
    • Evolving Negotiation Modes: The single package approach used in the Uruguay Round is not effective in the Doha Round, necessitating the exploration of new negotiation modes.
    • Strengthened Dispute Settlement Mechanism: The dispute settlement mechanism within the WTO requires strengthening and expediting to enhance its effectiveness.
    • Separation of Political and Human Rights Issues: There is a need to separate political and human rights issues from trade disputes under Sanitary and Phytosanitary (SPS) norms.

    Crossroads for WTO

    • Stalled Multilateral Trade Negotiations: The multilateral trade negotiations, including the Doha Round, have reached an impasse, with limited progress in overall rule-making.
    • Challenges from Alternative Trade Pacts: Alternative trade pacts, such as mega-regional arrangements, have emerged and posed challenges to the position of trade multilateralism.
    • Disagreements on Market Access and Protection: The impasse in the Doha Round primarily stems from differences between highly industrialized countries and large developing countries regarding market access and protection of vulnerable economic sectors.

    Importance of Addressing WTO Reforms

    • Vital Role of WTO: The Minister emphasized that addressing WTO reforms is of utmost importance as the organization plays a crucial role in ensuring fairness and transparency in global trade.
    • Backbone of Multilateral Trading System: The WTO forms the backbone of the multilateral trading system and its reforms are necessary to strengthen its functioning.

    India’s Aspirations in International Trade

    • Global Leadership Ambition: India has expressed India’s aspiration to emerge as a global leader in the international trade landscape.
    • E-commerce Market Potential: India is poised to become the world’s second-largest e-commerce market, reflecting its transformation driven by open markets, global integration, and a strong entrepreneurial spirit.

    Way Forward

    • The urgent need for WTO reforms necessitates concerted efforts and global attention to ensure the fairness, transparency, and effectiveness of the multilateral trading system.
    • India’s active participation in advocating for reforms, along with its ambition to become a global leader in international trade, reflects its commitment to fostering a thriving and inclusive global trade environment.
    • It is essential for countries to collaborate and engage in constructive dialogue to address the challenges and opportunities in the evolving global trade landscape.

    Back2Basics: WTO Agreements and Accords

    • General Agreement on Tariffs and Trade (GATT): The GATT is the predecessor to the WTO and was in effect from 1948 to 1994. It aimed to reduce trade barriers and promote international trade through negotiations and tariff concessions.
    • Agreement on Agriculture (AoA): This agreement aims to establish fair and market-oriented agricultural trading systems. It addresses issues such as market access, domestic support, and export subsidies related to agricultural products.
    • Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): The TRIPS agreement sets minimum standards for protecting intellectual property rights, including patents, copyrights, trademarks, and trade secrets.
    • Agreement on Trade-Related Investment Measures (TRIMs): This agreement prohibits certain investment measures that restrict trade or are inconsistent with the GATT’s principles.
    • Agreement on Sanitary and Phytosanitary Measures (SPS): The SPS agreement sets out rules for food safety and animal and plant health standards to ensure that countries do not use sanitary and phytosanitary measures as unjustified trade barriers.
    • Agreement on Technical Barriers to Trade (TBT): The TBT agreement aims to ensure that technical regulations, standards, and conformity assessment procedures do not create unnecessary obstacles to trade.
    • Agreement on Subsidies and Countervailing Measures (SCM): The SCM agreement regulates the use of subsidies and provides a framework for countervailing measures to address unfair trade practices arising from the use of subsidies.
    • Trade Facilitation Agreement (TFA): The TFA aims to simplify and streamline customs procedures, enhance transparency, and improve efficiency in international trade, with a focus on reducing trade costs and facilitating cross-border trade.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024

  • The Paradox of BRICS: Prospects for Expansion and Internal Imbalance

    Central Idea

    • Mysterious are the ways in which multilateral groupings prosper and wither away. The case of BRICS grouping is truly remarkable. Despite initial achievements, BRICS has started losing its sparkle due to various global and regional challenges. However, the paradox lies in the fact that numerous nations are eager to join the group, showcasing the continuing appeal of BRICS.

    BRICS’s Origins and Evolution

    • Conception of BRIC: The term BRIC was coined by economist Jim O’Neill in a 2001 research paper, identifying Brazil, Russia, India, and China as emerging economies with significant growth potential.
    • Formalization of BRIC: The first formal meeting of BRIC leaders took place in 2009 on the sidelines of the G20 Summit in Russia, marking the group’s establishment as a platform for cooperation and dialogue.
    • Addition of South Africa: In 2011, South Africa was invited to join BRIC, expanding the group to BRICS. China advocated for South Africa’s inclusion, seeking broader representation in Africa and increasing the group’s diversity.
    • Economic Focus: Initially, BRIC was primarily an economic grouping, emphasizing the rising influence of these countries in the global economy due to their large populations, expansive territories, and rapid economic growth rates.
    • Geopolitical Cooperation: Over time, BRICS evolved to include geopolitical cooperation and joint positions on global issues. Leaders began discussing political matters and advocating for a more equitable international order.
    • Annual Summits: BRICS started holding annual summits where leaders from member countries gather to discuss and coordinate their positions on various global challenges and explore avenues for cooperation

    Key achievements of the BRICS

    • Economic Cooperation: BRICS has fostered economic cooperation among member countries, leading to increased trade, investment, and business opportunities. The group has launched initiatives to expand trade and investment cooperation, promoting economic growth and development.
    • New Development Bank (NDB): BRICS established the New Development Bank, also known as the BRICS Bank, which provides financial assistance for infrastructure projects and sustainable development initiatives in member countries and other emerging economies. The NDB has committed significant funds to various projects, contributing to infrastructure development and regional connectivity.
    • Contingent Reserve Arrangement (CRA): The CRA, established by BRICS, acts as a financial mechanism to provide liquidity support during times of financial stress and protect against global liquidity pressures. This arrangement has helped member countries mitigate potential financial crises and enhance financial stability.
    • Geopolitical Influence: BRICS has projected a non-western perspective on global and regional issues, strengthening the world’s march towards multipolarity and curbing the dominating influence of the West. The group has articulated common positions on various global challenges, such as climate change, terrorism, and global governance reform.

    Facts for prelims

    New Development Bank (NDB)

    • Establishment: The NDB was established by the BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014.
    • Headquarters: The NDB’s headquarters are located in Shanghai, China.
    • Objectives: The bank aims to mobilize resources for infrastructure and sustainable development projects in emerging economies and developing countries.
    • Authorized Capital: The initial authorized capital of the NDB is set at $100 billion.
    • Governance Structure: The NDB operates on the principle of equal representation, with each member country having an equal say in decision-making. It is governed by a Board of Governors, a Board of Directors, and a President.
    • Funding: The NDB’s funding comes from the contributions of its member countries. Each BRICS member contributes an equal share to the bank’s capital.
    • Sustainability Focus: The NDB places a strong emphasis on sustainability and green finance. It aims to allocate a significant portion of its lending portfolio to projects that promote renewable energy, energy efficiency, and climate change mitigation and adaptation.

    Internal Imbalance and Challenges withing BRICS

    • Diverse Economic Systems: BRICS member countries have diverse economic systems, ranging from state-controlled economies to market-based economies. These differences in economic models can lead to variations in policy priorities, approaches to trade and investment, and economic challenges, creating potential frictions within the group.
    • Varying Levels of Development: BRICS member countries represent a wide spectrum of development stages. While China has emerged as a global economic powerhouse, other members like Brazil, India, Russia, and South Africa face developmental challenges and socioeconomic disparities. These differing levels of development can result in differing priorities and resource allocation, potentially straining cooperation within BRICS.
    • Geopolitical Ambitions and Rivalries: BRICS member countries have their individual geopolitical ambitions and interests. As emerging powers, they may compete for influence and resources in certain regions, leading to potential rivalries or divergent approaches to geopolitical issues. These geopolitical dynamics can complicate decision-making and alignment within BRICS.
    • Political and Governance Differences: BRICS comprises countries with varying political systems and governance structures. While some members uphold democratic values, others have different approaches to governance and human rights. These differences can result in divergent perspectives on political and human rights issues, potentially creating challenges in reaching consensus on certain matters.
    • Economic Vulnerabilities: BRICS member countries are susceptible to economic vulnerabilities, including structural issues, external shocks, and fluctuations in commodity prices. Economic challenges, such as high inflation, fiscal imbalances, and currency volatility, can strain the economic cooperation and stability within BRICS.
    • Coordination and Decision-Making Processes: BRICS operates as a consensus-based grouping, requiring agreement among member countries on various issues. Coordination and decision-making can be complex due to the diverse interests, priorities, and institutional frameworks of member countries. Reaching consensus on critical matters can be time-consuming and challenging.
    • Institutional Development: The institutional development within BRICS, such as the New Development Bank and the Contingent Reserve Arrangement, requires effective governance structures, operational frameworks, and decision-making processes. Establishing and managing these institutions while addressing the diverse needs and interests of member countries can pose institutional challenges.

    The demand for expansion in BRICS

    • Global Influence: Many countries see BRICS as a prominent grouping that holds influence on the global stage. Joining BRICS would provide an opportunity for countries to enhance their global influence and have a voice in shaping global agendas.
    • Economic Opportunities: BRICS represents a significant portion of the world’s population and economy. Joining the group could potentially provide countries with access to a large market and increased economic cooperation, including trade and investment opportunities among member countries.
    • Limited Options: Some countries may see BRICS as an attractive option for collaboration and engagement, particularly if they face limited opportunities to join other major multilateral groupings or regional blocs.
    • South-South Cooperation: BRICS is seen as a platform for South-South cooperation, promoting dialogue and collaboration among countries in the Global South. Joining BRICS allows countries to strengthen ties with like-minded nations and contribute to a collective voice for the interests of developing countries.
    • Counterbalance to Western Influence: The demand for expansion in BRICS can also stem from a desire to counterbalance the dominance of Western powers in global affairs. By joining BRICS, countries may seek to align themselves with a grouping that projects a non-western perspective and advocates for a more equitable international order.

    Prospects for expansion of BRICS and the criteria for new member admission

    1. Prospects for Expansion:
    • There is a growing interest from several countries in joining BRICS, indicating the perceived significance and appeal of the group.
    • As of now, 19 countries, including Argentina, Egypt, Indonesia, UAE, and Bangladesh, have expressed their desire to become members of BRICS.
    • The interest in expansion stems from various factors such as the desire to enhance global influence, the fear of missing out on membership in a prominent group, limited options for joining other groupings, and the aspiration to create a substantial forum for the Global South.
    1. Criteria for New Member Admission
    • Economic Size and Potential: Potential new members should have a significant and growing economy, demonstrating the potential to contribute to the group’s economic strength and cooperation.
    • Regional Representation: BRICS has aimed to have diverse regional representation, as seen with the inclusion of South Africa to represent Africa. New members could be considered based on their regional representation and the desire to ensure a broader geographic scope.
    • Political Stability and Compatibility: Political stability and compatibility with the values and principles of BRICS, including democracy, human rights, and governance, could be important considerations in the admission process.
    • Commitment to Cooperation: Prospective members should demonstrate a genuine commitment to international cooperation, multilateralism, and the principles and objectives of BRICS.
    • Mutual Benefits: The admission of new members should be mutually beneficial for both the existing members and the prospective members, contributing to enhanced economic cooperation, geopolitical influence, and the achievement of common goals.
    • Consensus Among Existing Members: Consensus among the existing BRICS member countries would be crucial in determining the admission of new members. The existing members would need to agree on the expansion and the specific countries to be admitted.

    The Future of BRICS: Key aspects

    • Economic Collaboration: BRICS has the potential to deepen economic collaboration and promote intra-BRICS trade and investment. By leveraging their collective market size and resources, member countries can explore new areas of economic cooperation, such as digital economy, technology, sustainable development, and infrastructure investment.
    • Institutional Development: The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) are key institutions established by BRICS. The group can focus on further developing and expanding the role of these institutions to effectively address financial challenges and support sustainable development projects.
    • Geopolitical Influence: By coordinating their positions on global governance, security, and geopolitical issues, member countries can amplify their collective voice and influence international discussions and decision-making processes. BRICS can also foster South-South cooperation and advocate for the interests of developing countries in global forums.
    • Expansion and Outreach: The interest from other countries to join BRICS presents an opportunity for expansion and outreach. The group can carefully consider the admission of new members, ensuring that the expansion aligns with the group’s objectives, principles, and criteria. By including new members, BRICS can broaden its geographic representation and potentially strengthen its collective influence.
    • Innovation and Technology Cooperation Member countries can collaborate in areas such as artificial intelligence, renewable energy, space exploration, and digital governance. Sharing expertise, research, and best practices can propel the group’s technological advancement and foster mutual growth.
    • Adaptation to Global Challenges: BRICS should collectively address global challenges such as climate change, public health crises, and sustainable development. By coordinating efforts, sharing knowledge, and pooling resources, the group can contribute to finding solutions and shaping global agendas on critical issues.

    Conclusion

    • The paradox of BRICS lies in its diminishing allure while attracting numerous nations eager to join. Despite facing internal tensions, BRICS has made significant contributions to the world’s multipolarity and economic cooperation. By addressing internal imbalances, seizing opportunities for growth, and staying responsive to global dynamics, BRICS can continue to play a significant role in shaping the international order and promoting the interests of emerging economies and the Global South.

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024 | Schedule your FREE session and get the Prelims prep Toolkit!

    Also read:

    Understanding the “China’s BRICS” game

     

  • India-Australia ties built on Trust: PM

    australia

    Central Idea

    • PM Modi addressed a community event in Sydney, emphasizing the strong foundations of trust and respect between India and Australia.
    • He credited the Indian diaspora for the success of this relationship.
    • The event aimed to strengthen cultural ties and was attended by over 21,000 people, including Australian PM Anthony Albanese.

    India-Australia Relations: A Backgrounder

    • The India-Australia bilateral relationship has undergone evolution in recent years, developing along a positive track, into a friendly partnership.
    • The two nations have much in common, underpinned by shared values of a pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement etc.
    • Several commonalities include strong, vibrant, secular and multicultural democracies, free press, independent judicial system and English language.

    Historical Perspective

    • Early colonization: The historical ties between India and Australia started immediately following European settlement in Australia from 1788.
    • A penal colony: All trade, to and fro from the penal colony of New South Wales was controlled by the British East India Company through Kolkata.
    • Diplomatic ties: India and Australia established diplomatic relations in the pre-Independence period, with the establishment of India Trade Office in Sydney in 1941.
    • Expansion of ties: The end of the Cold War and simultaneously, India’s decision to launch major economic reforms in 1991 provided the first positive move towards development of bilateral ties.

    Various dimensions of ties

    [A] Political partnership

    • Both countries are members of-
    1. G-20
    2. ASEAN Regional Forum (ARF),
    3. IORA (Indian Ocean Rim Association),
    4. Asia Pacific Partnership on Climate and Clean Development,
    5. East Asia Summit and
    6. The Commonwealth
    7. QUAD (Quadrilateral Security Dialogue)
    • Australia has been extremely supportive of India’s quest for membership of the APEC (Asia Pacific Economic Cooperation).
    • Australia wholeheartedly welcomed India’s joining of the MTCR (Missile Technology Control Regime).

    [B] Trade and Economy

    • 5th largest trade partner: India is the 5th largest trade partner of Australia with trade in goods and services.
    • Huge trade volume: Two-way trade between India and Australia was worth A$ 24.3 billion ($18.3 billion) in 2020, up from just $13.6 billion in 2007, according to the Australian government.
    • Uranium exports: After a series of attempts, in 2016, Australia opened the door for uranium exports to India.
    • R&D: An Australia-India Strategic Research Fund (AISRF) which was established in 2006, supports collaboration between scientists in India and Australia on cutting-edge research.

    [C] Cultural ties

    • P2P ties: There is a longstanding people-to-people ties, ever increasing Indian students coming to Australia for higher education.
    • Bond over cricket and tourism: Growing tourism and sporting links, especially Cricket and Hockey, have played a significant role in further strengthening bilateral relations between the two countries.
    • Skilled workforce: India is one of the top sources of skilled immigrants to Australia.
    • Indian students: The number of Indian students continue to grow with approximately 105,000 students presently studying in Australian universities.
    • Diaspora: After England, India is the second largest migrant group in Australia in 2020.

    [D] Strategic Partnership

    • In 2009, India and Australia established a ‘Strategic Partnership’, including a Joint Declaration on Security Cooperation which has been further elevated to Comprehensive Strategic Partnership in 2020.
    • The Mutual Logistics Support Agreement has been signed during the summit that should enhance defence cooperation and ease the conduct of large-scale joint military exercises.
    • There is a technical Agreement on White Shipping Information Exchange.
    • Both nations conduct bilateral maritime exercise AUSINDEX. In 2018, Indian Air Force participated for the first time in the Exercise Pitch Black in Australia.
    • Foreign and Defence Ministers of both countries agreed to meet in a ‘2+2’ format
    • The first-ever Quad Leaders’ Virtual Summit held on 12 March 2021 saw the participation of Prime Ministers of India, Australia, Japan and President of USA.
    • A Civil Nuclear Cooperation Agreement between the two countries was signed in September 2014 during the visit of then PM Tony Abbott to India.

    Significance of the ties

    • COVID Management: Australia is one of the few countries that has managed to combat COVID-19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels.
    • STEM: From farming practices through food processing, supply and distribution to consumers, the Australian agribusiness sector has the desired R&D capacity, experience and technical knowledge.
    • Natural resources: Australia is rich in natural resources that India’s growing economy needs. It also has huge reservoirs of strength in higher education, scientific and technological research.
    • Alliance with US: The two countries also have increasingly common military platforms as India’s defence purchases from the US continue to grow.
    • Affinity with ASEAN: Australia has deep economic, political and security connections with the ASEAN and a strategic partnership with one of the leading non-aligned nations, Indonesia.
    • Containing China: The Indo-Pacific region has the potential to facilitate connectivity and trade between India and Australia. Both nations can leverage their equation in QUAD to contain China.

    International cooperation

    • Support at UNSC: Australia supports India’s candidature in an expanded UN Security Council.
    • APEC: Australia is an important player in APEC and supports India’s membership of the organisation. In 2008, Australia became an Observer in SAARC.

    Some irritants in ties

    • Trade imbalance: India’s trade deficit with Australia has been increasing since 2001-02 due to India-Australia Free Trade Agreement. It is also a contentious issue in the ongoing RCEP negotiations which India left.
    • High tariff on agri products in India: India has a high tariff for agriculture and dairy products which makes it difficult for Australian exporters to export these items to India.
    • Non-tariff barriers in Australia: At the same time, India faces non-tariff barriers and its skilled professionals in the Australian labour market face discrimination.
    • Visa Policy: India wants greater free movement and relaxed visa norms for its IT professionals, on which Australia is reluctant.
    • Future of QUAD: Australian lobby has sparked speculation over the fate of the Quadrilateral Consultative Dialogue (the ‘Quad) involving India, Australia, Japan and the United States.
    • Nuclear reluctance: Building consensus on non-nuclear proliferation and disarmament has been a major hurdle given India’s status as a nuclear power.
    • Racism against Indians: Increasing Racist attacks on Indians in Australia has been a major issue.

    Way forward

    • Upgradation of 2+2 format: It is prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.
    • Removal of trade barriers: Both nations need to resolve disputes at the WTO with regard to the Australian sector can act as a serious impediment.
    • Balancing China: An ‘engage and balance’ China strategy is the best alternative to the dead end of containment.

     

    Get an IAS/IPS ranker as your personal mentor for UPSC 2024