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GS Paper: GS2-19.Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

  • Why are Conflicts spreading in West Asia?

    west asia

    Introduction

    • What initially began as a localized conflict between Israel and Hamas has rapidly spiralled into a regional security crisis, casting a shadow of uncertainty and instability over West Asia.
    • This evolving crisis involves a complex web of state and non-state actors, each with its own objectives and strategies, making it a highly volatile and unpredictable situation.

    Escalation beyond Borders

    As Israel launched its military campaign in Gaza in response to Hamas’s cross-border attacks, concerns grew that the conflict could spill over beyond the borders of Palestine. The involvement of various actors has further complicated the situation:

    • Hezbollah’s Solidarity: Hezbollah, the Lebanese Shia group backed by Iran, fired rockets at Israeli forces in solidarity with the Palestinians. This action marked an extension of the conflict beyond the immediate theatre of operations.
    • Exchange of Fire: Israel and Hezbollah engaged in multiple exchanges of fire, with both sides exercising restraint to prevent a full-scale war. Nevertheless, these incidents escalated regional tensions.
    • Iran-Backed Militias: Iran, a key supporter of non-state actors in the region, provided backing to groups such as Hamas, the Islamic Jihad, Hezbollah, Houthis, and Shia militias in Iraq and Syria. This support has contributed to the widening of the crisis.
    • Houthi Disruptions: In a bid to express solidarity with the Palestinians, Houthi rebels in Yemen began targeting commercial vessels in the Red Sea. Controlling significant portions of Yemen, including the Red Sea coast, the Houthis disrupted maritime traffic in a crucial international waterway.

    Global Ramifications

    The crisis in West Asia has not remained confined to the region; it has global implications:

    • U.S. Airstrikes in Yemen: The United States, in support of Israel’s actions, conducted airstrikes in Yemen, directly involving itself in the regional conflict. These airstrikes added a new dimension to the crisis.
    • Hashad al-Shabi’s Escalation: The Shia Mobilisation Forces of Iraq and Syria, backed by Iran, launched over a hundred attacks against U.S. troops stationed in these countries. These attacks were seen as retaliation against U.S. support for Israel.
    • Spread of Instability: As instability spread across the region, extremist groups, including the Islamic State, sought to exploit the situation. Iraq and Syria, in particular, remained vulnerable to internal and external challenges.
    • Cross-Border Retaliation: In response to Iran’s actions, Pakistan carried out airstrikes in Iranian territory, further escalating tensions in the region.

    Key Players and Their Objectives

    Understanding the crisis requires an examination of the key players and their objectives:

    • Israel’s Aims: Israel’s primary objectives include dismantling Hamas and securing the release of hostages held by the group. Israel enjoys unwavering support from the United States in pursuing these goals.
    • Iran’s Backing: Iran plays a central role as the primary supporter of various anti-Israel non-state actors in West Asia, offering support to groups such as Hamas, the Islamic Jihad, Hezbollah, Houthis, and Shia militias.
    • U.S. Interests: The United States, with a significant military presence in the region, seeks to ensure Israel’s security, protect American troops and assets, and maintain the U.S.-led order in West Asia.

    Implications for Regional Security

    The crisis in West Asia has ushered in a period of heightened insecurity and instability:

    • Widespread Security Crisis: Unlike previous conflicts that often involved nation-states or specific non-state actors, this crisis encompasses a broader range of powerful states and non-state actors, creating a highly volatile environment.
    • Disruption of the Old Order: The crisis has exposed the fragility of the old U.S.-led order in the region. Iran-backed proxies directly target Israeli and American positions, while Iran flexes its military muscle through cross-border attacks.

    Looking Ahead

    As the crisis continues to unfold, several key factors warrant consideration:

    • No Clear Resolution: With more than 100 days of conflict, Israel’s objectives in Gaza remain unfulfilled, and there is no apparent path to a resolution. The ongoing war fuels retaliatory attacks by Hezbollah and Houthis.
    • Effectiveness of U.S. Airstrikes: U.S. airstrikes against various groups have not proven effective in deterring them from launching new attacks. The region remains volatile.
    • Potential for Further Instability: The ongoing instability in West Asia creates opportunities for extremist groups, including the Islamic State, to exploit the situation. Iraq and Syria remain particularly susceptible to internal and external challenges.
    • Changing U.S. Role: Historically, the United States played a dominant role in the region, but it now appears more as a disruptor than a guarantor of peace and stability. Restoring stability and ending the war present significant challenges.
    • A Glimmer of Hope: Amid the ongoing crisis, a positive development is the maintenance of the Saudi-Iran détente and the Saudi-Houthi peace, providing a ray of hope amidst the turmoil.

    Conclusion

    • The escalating regional crisis in West Asia underscores the intricate interplay of state and non-state actors in a highly volatile environment.
    • As the situation continues to evolve, its implications for regional stability and global security remain a subject of concern and vigilance.
  • Complex China-Taiwan Relations: A Historical Perspective

    taiwan

    Introduction

    • Taiwan’s presidential election on January 13, which saw the victory of the ruling party candidate Lai Ching-te, carries significant implications not only for the island but also for global geopolitics.
    • To understand the dynamics at play, it’s crucial to delve into the complex history and evolving relationship between China and Taiwan.

    Taiwan Tension: A Historical Background

    • Early Settlement: Taiwan’s first known settlers were Austronesian tribal people, believed to have migrated from southern China.
    • Chinese Records: Chinese records from AD 239 mention Taiwan, forming part of China’s territorial claim.
    • Qing Dynasty and Japan: Taiwan was administered by China’s Qing dynasty and later ceded to Japan after the First Sino-Japanese War.
    • Post-World War II: After World War II, Taiwan was officially considered occupied by the Republic of China (ROC), with the consent of the US and UK.

    Civil War and Exile

    • Civil War: A civil war broke out in China, leading Chiang Kai-shek and his Kuomintang (KMT) government, along with supporters, to flee to Taiwan in 1949.
    • Dictatorship Era: Chiang established a dictatorship that ruled Taiwan until the 1980s.
    • Transition to Democracy: After Chiang’s death, Taiwan embarked on a transition to democracy, holding its first elections in 1996.

    Status of Taiwan

    • Disagreement: There is disagreement regarding Taiwan’s status.
    • Independent Governance: Taiwan has its own constitution, democratically-elected leaders, and an armed forces.
    • Decline in Recognition: Over time, the number of countries recognizing Taiwan as the ROC government has dwindled, largely due to diplomatic pressure from China.

    Evolving Relations with China

    • 1980s Improvement: Relations started improving in the 1980s as Taiwan relaxed rules on visits and investments in China.
    • One Country, Two Systems: China proposed the “one country, two systems” option, which Taiwan rejected.
    • Political Shift: The election of Chen Shui-bian in 2000 marked a shift, as he openly backed Taiwan “independence.”
    • Anti-Secession Law: China passed an anti-secession law in 2005, threatening non-peaceful means against Taiwan.
    • Cross-Strait Relations: Cross-strait relations soured under President Tsai Ing-wen, with China cutting off official communications due to her refusal to endorse a single Chinese nation concept.

    US Involvement

    • US-Taiwan Relations: The US officially recognizes Beijing but remains Taiwan’s significant international supporter.
    • Defensive Commitment: The US is bound by law to provide Taiwan with defensive weapons, and President Joe Biden has stated a commitment to defending Taiwan militarily.
    • Contested Issue: Taiwan remains a contentious issue in US-China relations, with Beijing condemning perceived US support for Taipei.
    • Increased Tensions: China has intensified its “grey zone warfare” around Taiwan, sending fighter jets and conducting military drills in response to US-Taiwan exchanges.

    Conclusion

    • The results of Taiwan’s presidential election and the evolving China-Taiwan relationship have far-reaching implications for global politics.
    • Balancing diplomatic recognition, territorial disputes, and US involvement, the delicate equilibrium in the Taiwan Strait will continue to shape the course of international relations in the Asia-Pacific region.
  • Houthi Rebels and Regional Dynamics

    Houthi Rebels

    Introduction

    • The United States and the United Kingdom have initiated military strikes against Houthi groups in Yemen on January 11.
    • This action is a response to the Houthis’ continued aggression towards maritime vessels in the Red Sea, a crucial global trade route.

    Background of the Conflict

    • Houthi Attacks on Shipping: Since November 2023, Houthi forces have targeted ships in the Red Sea and Gulf of Aden, disrupting one of the world’s busiest maritime trade routes.
    • Israeli-Hamas Conflict: The Houthis’ actions are in response to the Israeli military’s bombardment of Gaza following an attack by Hamas on October 7, which resulted in significant casualties.

    Houthi Group and Regional Dynamics

    • Who Are the Houthis?: The Houthis are a Shia militant group engaged in the civil war in Yemen, controlling significant parts of the country, including the capital Sana’a.
    • Regional Rivalries: The conflict reflects long-standing regional rivalries, with Iran backing the Houthis and Saudi Arabia supporting the Yemeni government. The Houthis’ involvement in the Israel-Hamas war is also seen as part of these broader regional dynamics.

    Concerns for Global Trade

    • Impact on World Trade: Approximately 12% of global trade passes through the Red Sea and Suez Canal, making the security of this route critical.
    • Alternative Routes: Due to safety concerns, some ships have been rerouted around the Cape of Good Hope, leading to increased transit times and fuel costs.

    Implications for the Region

    • Operation Prosperity Guardian: Launched by the US, this coalition aims to ensure maritime security in the region, but partner countries have shown reluctance to contribute significantly.
    • Risks of Wider Conflict: There are concerns about the conflict spreading beyond Israel and Gaza, with the potential for unpredictable outcomes in the Middle East.
    • Impact on Yemeni Peace Negotiations: The strikes may affect ongoing peace negotiations in Yemen, mediated by Oman and the United Nations.
  • The evolving role of the Colombo Security Conclave

    Colombo Security Conclave

    Key Highlights:

    • The Colombo Security Conclave (CSC) aims to promote a safe, secure, and stable Indian Ocean, with India playing a leadership role.
    • The CSC’s revival in 2020, after a standstill since 2014, reflects India’s evolving strategic vision for the Indian Ocean.
    • India seeks to institutionalize its role in the region, addressing security challenges and emerging threats through the CSC.
    • China’s growing influence in the Indian Ocean is a significant factor driving the CSC’s revival, with Beijing investing in the Belt and Road Initiative (BRI) and establishing a presence in key locations.

    Key Challenges:

    • Domestic political changes in member-states can impact the CSC’s effectiveness, as seen with the Maldives’ absence from a recent meeting.
    • The nationalist and pro-China sentiments in member-states may hinder collaboration, affecting the CSC’s ability to address regional challenges.
    • Despite concerns about China’s actions in the Indian Ocean, some regional countries may not view China as a threat, limiting the CSC’s collective response.

    Key Terms/Phrases:

    • Colombo Security Conclave (CSC)
    • Indian Ocean
    • Belt and Road Initiative (BRI)
    • Maritime security
    • Regional collaboration
    • Extra-regional powers
    • Indo-Pacific
    • National Security Adviser (NSA)

    Key Quotes:

    • “The lack of capacity of island nations to secure the seas and counter transnational threats has continued to motivate India.”
    • “China’s outreach to the Indian Ocean is to control crucial sea lines of communication and trade, limiting India’s influence.”

    Key Statements:

    • “The CSC offers India an opportunity to institutionalize its role, shape the regional security architecture, and better address existing and emerging threats.”
    • “The strategic accommodation and flexibility of the CSC contribute to the security of the Indian Ocean.”

    Key Examples/References:

    • China’s naval capabilities, defense relationships, and infrastructure projects in the Indian Ocean.
    • Maldives’ absence from a recent CSC meeting due to preferences for a close relationship with China or nationalist sentiments.

    Key Facts/Data:

    • The CSC was revived in 2020, with the inclusion of Mauritius, Seychelles, and Bangladesh.
    • China’s investments in the Indian Ocean include the Belt and Road Initiative projects and control of Sri Lanka’s Hambantota port.

    Critical Analysis:

    • The vulnerability of the CSC to domestic political changes highlights challenges in maintaining consistent regional collaboration.
    • The balance between addressing security concerns and managing relationships with China is crucial for the CSC’s success.

    Way Forward:

    • Strengthen institutional mechanisms within the CSC to mitigate the impact of domestic political changes.
    • Continue to focus on the five pillars of cooperation, addressing maritime security, counter-terrorism, cyber-security, humanitarian aid, and disaster relief.
    • Enhance efforts to build trust among member-states and address concerns related to nationalist and pro-China sentiments.
  • The hypocrisy of Western democracy

    Understanding the Israel-Palestine conflict - Frontline

    Central idea 

    The article explores the tragic situation in Palestine, emphasizing the West’s complicity in enabling Israel’s actions. It highlights the suppression of freedom of expression, media bias, and challenges in Europe, calling for an exposé of Western democracies’ hypocrisies and a truthful reckoning to address the root causes of Palestinian oppression.

    Key Highlights:

    • Tragic Toll: The passage reveals the staggering death toll of over 17,000 Gazans since October 7, underscoring the magnitude of the ongoing tragedy.
    • West’s Enabling Role: The West is implicated in enabling Israel’s actions through support, framing the conflict, and reducing Palestine to the actions of Hamas.

    Key Challenges:

    • Freedom of Expression Suppression: Western societies, despite professing democracy, are suppressing freedom of expression, particularly in universities, where pro-Palestine advocates face public exposure.
    • Media Bias: The media, a significant influencer, is criticized for its overwhelming bias towards Israel, neglecting the historical roots and international illegality of Israeli occupation.

    Key Terms and Phrases:

    • Zionism and Apartheid: These terms highlight ideological aspects and the discriminatory nature of certain Israeli policies.
    • Genocidal Intent and Settler Colonialism: These phrases emphasize the severity of actions and the historical context of Israeli actions in Palestinian territories.

    Key Quotes:

    • “The West has shockingly enabled this [tragedy] in various ways,” pointing to the culpability of Western nations.
    • “The media has been key in framing the Palestine-Israel conflict for 75 years,” exposing the media’s role in shaping public perception.

    Key Examples and References:

    • University Actions: Instances of Harvard and Columbia exposing details of pro-Palestine students highlight the suppression faced by advocates.
    • European Countries’ Stance: The passage cites bans on pro-Palestinian protests in countries like the U.K., France, Germany, and Italy as concrete examples of European support for Israel.

    Key Facts and Data:

    • Death Toll: Over 17,000 Gazans killed since October 7, quantifying the scale of the tragedy.
    • Harvard’s Philanthropy Dependency: Highlighting that 45% of Harvard’s revenue in 2022 came from philanthropy underscores the potential influence of donors.

    Critical Analysis:

    • Suppression of Free Speech: The critical analysis underscores the severe impact of suppressing freedom of expression on informed dialogue.
    • Media’s Role: Emphasizing media bias prompts reflection on the potential manipulation of public opinion.

    Way Forward:

    • Expose Hypocrisies: Advocates for change should actively expose the hypocrisies of Western democracy, challenging the status quo.
    • Acknowledge Complicity: A call to acknowledge Western complicity in Palestinian oppression encourages introspection and accountability.
    • Listen to Dissenting Voices: Encouraging the acknowledgment of dissenting voices, including Jewish dissenters, fosters a more inclusive dialogue.
    • Truthful Reckoning: Highlighting the need for a truthful reckoning emphasizes the importance of understanding historical roots and actions for a sustainable resolution.
  • Is the emerging global order bipolar?

     

    The Emerging Global Order Bipolar

    Central idea

    The world order is shifting, with the U.S. leading but China rising fast. India needs to navigate complex relations, address internal challenges, and focus on economic and military growth for a strong role globally. Amid global conflicts, balancing alliances is crucial for India’s position in the evolving geopolitical landscape.

    Key Highlights:

    • Global Order Dynamics: Shifting landscape with China’s rise, Russian challenges, and the emergence of middle powers like India.
    • Asymmetric Bipolarity: Viewing the world order as asymmetric bipolarity, where the U.S. remains pre-eminent but China rapidly advances.
    • China’s Impact: Unprecedented economic and military growth redefines international power dynamics.

    Key Challenges:

    • Russia-China Nexus: The war in Ukraine strengthens Russia-China ties, posing strategic challenges for India.
    • Global Security Complexities: Conflicts in Eastern Europe and West Asia contribute to a multifaceted global security landscape.
    • Diplomatic Maneuvering: Navigating complex relations with the U.S., China, and Russia amid evolving global power dynamics.

    Key Terms and Phrases:

    • Asymmetric Bipolarity: Understanding the dynamics of uneven power distribution in the current world order.
    • People’s Power: The 21st century characterized by unprecedented connectivity, interactions, and global integration.
    • Military-Industrial Complex: The influence of industries producing destructive weapons on global violence.
    • Two-Front Dilemma: China’s strategic challenge, facing pressures in the Western Pacific and the Line of Actual Control.
    Key Quotes and Anecdotes for extra marks:

     

    “The present world order is in a state of flux, with asymmetric bipolarity as a defining feature.”

    “China’s GDP growth from $300 billion in 1990 to $19.3 trillion today is a historic shift in global power dynamics.”

    “India must acknowledge China as a long-term competitor, addressing power asymmetry through comprehensive national growth.”

    “Global violence is fueled by the military-industrial complex spreading instruments of death and destruction.”

    Key Statements and Examples:

    • Russia’s Pivot: Economic sanctions and the Ukraine conflict drive Russia towards closer ties with China.
    • India’s Diplomatic Complexities: Balancing trade ties with China and managing strategic challenges with the U.S. and Russia.
    • China’s Economic Surge: Unprecedented GDP growth influencing global power dynamics and necessitating India’s strategic response.

    Key Facts and Data:

    • China’s GDP Growth: A remarkable shift from $300 billion to $19.3 trillion in the last four decades.
    • India-China Trade: Standing at $138 billion, showcasing the intricate nature of bilateral relations.
    • War in Ukraine: Ongoing for the past 20 months, contributing to evolving geopolitical dynamics.

    Critical Analysis:

    • Recognition of Asymmetric Bipolarity: Acknowledging and adapting to the current world order’s uneven power distribution.
    • Comprehensive National Growth: Emphasizing India’s need to strengthen its comprehensive national power amid power asymmetry with China.
    • Global Relations Management: Recognizing and addressing challenges in India’s diplomatic strategy amidst evolving global dynamics.

    Way Forward:

    • Internal Strengthening: Addressing internal fault lines, fostering societal cohesiveness, and focusing on comprehensive national growth.
    • Strategic External Balancing: Balancing relations with the U.S. to maintain China’s two-front dilemma and preserving India’s strategic autonomy.
    • Advocacy for Global Disarmament: Addressing the root issue of the military-industrial complex, promoting global disarmament for a more peaceful world.
  • UK’s Rwanda asylum seeker deportation plan is lawful, court rules

    rwanda

    Britain’s plan to send migrants to Rwanda is lawful, London’s High Court ruled, in a victory for PM Rishi Sunak who has made a high-stakes political promise to tackle the record number of migrant arrivals.

    Immigrant’s crisis in UK

    • Since 2018, there has been a marked rise in the number of refugees and asylum seekers that undertake dangerous crossings between Calais in France and Dover in England.
    • Most such migrants and asylum seekers hail from war-torn countries like Sudan, Afghanistan, and Yemen, or developing countries like Iran and Iraq.
    • The Britain that has adopted a hardline stance on illegal immigration, these crossings constitute an immigration crisis.
    • The Nationality and Borders Bill, 2021, which is still under consideration in the UK, allows the British government to strip anyone’s citizenship without notice under “exceptional circumstances”.
    • The Rwanda deal is the operationalization of one objective in the Bill which is to deter illegal entry into the United Kingdom.

    What is the Rwanda Deal?

    • The UK and Rwanda Migration and Economic Development Partnership or the Rwanda Deal is a Memorandum of Understanding (MoU) signed between the two governments.
    • Under this deal, Rwanda will commit to taking in asylum seekers who arrive in the UK on or after January 1, 2022, using illegally facilitated and unlawful cross border migration.
    • Rwanda will function as the holding centre where asylum applicants will wait while the Rwandan government makes decisions about their asylum and resettlement petitions in Rwanda.
    • Rwanda will, on its part, accommodate anyone who is not a minor and does not have a criminal record.

    Rationale of the deal

    • The deal aims to combat “people smugglers”, who often charge exorbitant prices from vulnerable migrants to put them on unseaworthy boats from France to England that often lead to mass drownings.
    • The UK contends that this solution to the migrant issue is humane and meant to target the gangs that run these illegal crossings.

    What will the scheme cost the UK?

    • The UK will pay Rwanda £120 million as part of an “economic transformation and integration fund” and will also bear the operational costs along with an, as yet undetermined, amount for each migrant.
    • Currently, the UK pays £4.7 million per day to accommodate approximately 25,000 asylum seekers.
    • At the end of 2021, this amounted to £430 million annually with a projected increase of £100 million in 2022.
    • The Rwanda Deal is predicted to reduce these costs by outsourcing the hosting of such migrants to a third country.

    Will the Rwanda Deal solve the problem of illegal immigration?

    • This deal will be implemented in a matter of weeks unless it is challenged and stayed by British courts.
    • While Boris Johnson’s government is undoubtedly bracing for such legal challenges, it remains unclear if the Rwanda Deal will solve the problem of unlawful crossings.
    • Evidence from similar experiences indicates that such policies do not fully combat “people smuggling”.

    Criticisms of the deal

    • There are dangers of transferring refugees and asylum seekers to third countries without sufficient safeguards.
    • The refugees are traded like commodities and transferred abroad for processing.
    • Such arrangements simply shift asylum responsibilities, evade international obligations, and are contrary to the letter and spirit of the Refugee Convention.
    • Rwanda also has a known track record of extrajudicial killings, suspicious deaths in custody, unlawful or arbitrary detention, torture, and abusive prosecutions, particularly targeting critics and dissidents.

    Do any other countries send asylum seekers overseas?

    • Yes, several other countries — including Australia, Israel and Denmark — have been sending asylum seekers overseas.
    • Australia has been making full use of offshore detention centres since 2001.
    • Israel, too, chose to deal with a growing influx of asylum seekers and illegal immigrants from places like Sudan and Eritrea by striking deals with third countries.
    • Those rejected for asylum were given the choice of returning to their home country or accepting $3,500 and a plane ticket to one of the third countries.
    • They faced the threat of arrest if they chose to remain in Israel.

     

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  • End-to-end Encryption and related issues

    encrypt

    Apple recently announced that it will be increasing the number of data points protected by end-to-end encryption on iCloud.

    What is end-to-end encryption?

    encrypt

    • End-to-end encryption is a communication process that encrypts data being shared between two devices.
    • It prevents third parties like cloud service providers, internet service providers (ISPs) and cybercriminals from accessing data while it is being transferred.
    • The process of end-to-end encryption uses an algorithm that transforms standard text into an unreadable format.
    • This format can only be unscrambled and read by those with the decryption keys, which are only stored on endpoints and not with any third parties including companies providing the service.
    • This encryption has long been used when transferring business documents, financial details, legal proceedings, and personal conversations.
    • It can also be used to control users’ authorisation when accessing stored data, which seems to be what Apple intends to do.

    Where is it used?

    • End-to-end encryption is used to secure communications.
    • Some of the popular instant-messaging apps that use it are Signal, WhatsApp, iMessage, and Google messages.
    • However, instant messaging is not the only place where user data is protected using end-to-end encryption.
    • It is also used to secure passwords, protect stored data and safeguard data on cloud storage.

    Why are tech companies using it?

    • Preventing data breach: Tech companies often cite data breach issue.
    • Extra protection: Encryption puts extra layer of protection that would protect valuable digital information against hacking attacks.
    • Prevent snooping: It is also seen as a technology that secures users’ data from snooping by government agencies, making it a sought-after feature by activists, journalists, and political opponents.
    • Capital generation: It showcases any company’s position as a provider of secure data storage and transfer services.

    What does it mean for users?

    • End-to-end encryption ensures that user data is protected from unwarranted parties including service providers, cloud storage providers, and companies that handle encrypted data.
    • Encrypted data can only be decrypted by trusted devices.
    • No one else can access this data and it remains secure even in the case of a data breach in the cloud storage.

    Why are government agencies unhappy with it?

    • The FBI in a statement expressed displeasure at the idea of increasing use of end-to-end encryption by technology companies.
    • It said that while it remains a strong advocate of encryption schemes that give “lawful access by design”, that would enable tech companies “served with a legal order” to decrypt data.
    • Attempts by government agencies across the globe, in the past, to access encrypted data hosted and stored by tech companies have met with strong resistance.
    • Law enforcement agencies seeks to weaken encryption with backdoors.
    • Thus is considered ill-advised and could compromise the reliability of the internet.

     

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  • Price cap on Russia’s Oil and India’s contextual response

    cap

    Context

    • Recently, G7 proposal to impose a price cap on Russian oil came into effect. The proposal, which took months to fructify, seeks to achieve a delicate balance how to starve the Russian state of oil revenues so as to financially cripple its war against Ukraine, but without causing supply disruptions in the global oil market which would cause prices to spiral. The move, however, risks fracturing the global crude oil market.

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    What is Price cap on Russian oil?

    • The $60 per barrel and denial of infrastructure services to Russian oil: The $60 per barrel cap is intended to cut Russia’s oil revenues while keeping Russian crude on the market by denying insurance, maritime services, and finance provided by the Western allies for tanker cargoes priced above a fixed dollar-per-barrel cap.
    • Aim to hurt Russia’s oil revenue and create a pressure: The US-proposed cap aims to hurt Moscow’s finances while avoiding a sharp oil price spike if Russia’s oil is suddenly taken off the global market.
    • Impact on shipping: Without insurance, tanker owners may be reluctant to take on Russian oil and face obstacles in delivering it.

    cap

    Russian response to the price cap

    • Russia refused to abide by the measure: Russia has said it will not observe a cap and will halt deliveries to countries that do.
    • Retaliate by shutting off the shipments: It could retaliate by shutting off shipments in hopes of profiting from a sharply higher global oil price on whatever it can sell around the sanctions.
    • Russia said price cap will not hurt financing the war: Russia recently said that the cap would not hurt the financing of its “special military operation” in Ukraine.
    • Others buyers may bypass the restrictions putting countries interests first: Buyers in China and India might not go along with the cap, while Russia or China could try to set up their own insurance providers to replace those barred by US, UK and Europe. It is also possible that these countries will find creative ways to bypass the restrictions imposed by the G7.

    cap

    How impacts global oil supply chain?

    • Russian oil can now only be shipped using G7 countries infrastructure: Broadly speaking, Russian oil can now be shipped across the world using the infrastructure of the G7 countries tankers, insurers, etc only if it is sold at a price of $60 per barrel or less.
    • Higher price for buying oil from Russia: This makes buying oil from Russia at a higher price in the week prior to this announcement, Urals crude was trading in the mid-$60s range  a difficult proposition as most of the companies that offer shipping and insurance services are located in these G7 nations.
    • Countries wish to buy are at disadvantage but still not higher than brent crude oil: While Russia has refused to abide by this measure, and the cap will place countries that do opt for buying oil from Russia at a price higher than $60 at a disadvantage, it will still be at a considerable discount compared to Brent crude oil which is currently trading at around $81 per barrel.
    • Countries that continued trade despite of objections: So far, despite objections from western nations, countries like India and China have continued to trade with Russia.

    cap

    India’s response and the bilateral trade with Russia

    • India’s bilateral trade with Russia has surged to an all-time high: In fact, as reported in this paper, India’s bilateral trade with Russia has surged to an all-time high in the first five months of the year (April-August).
    • India putting its interests first and taking advantage of discounted price: Putting its interests first, India has raised its oil imports from Russia, taking advantage of the discounts being offered the country which used to import less than 1 per cent of its import requirement from Russia, now imports around a fifth from it.
    • As India is an oil importer, the trade at discounted price will give some relief in current account deficit and economic stability: After all, for an oil importer like India, which meets an overwhelming share of its requirements through imports, lower crude oil prices will moderate the price pressures in the economy and bring relief to the current account deficit, easing risks to macroeconomic stability.
    • India rejected the so-called moral duty: India has rejected any “moral” duty to join the price cap coalition.

    Conclusion

    • Attempts to use trade as a weapon will only distort the global market and hurt energy-poor consumers not responsible for the war. India’s response so far to the West’s retaliation against Russia for the war in Ukraine has been guided by its sovereign interests. This must continue to be the guiding principle.

    Mains Question

    Q. G7 recently imposed a price cap on Russian oil driven by US and west. In light of this Discuss how it disrupt the global oil supply chain and how India is responding?

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  • India and UNSC

    UNSCContext

    • There is greater support for India to be a permanent member of the UN Security Council and also a broad global consensus over the need to reform the Council, said External Affairs Minister S Jaishankar. India has once again renewed its bid for permanent membership of UNSC.

    What is UNSC?

    • The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations (UN) and is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, and approving any changes to the UN Charter.
    • Its powers include establishing peacekeeping operations, enacting international sanctions, and authorizing military action. The UNSC is the only UN body with the authority to issue binding resolutions on member states.

    UNSCWhat is the composition of UNSC?

    • Presently there five permanent members (P-5) with veto and 10 non-permanent members without veto elected for tenure of 2 years.
    • India has been the non-permanent member multiple times. Presently India is serving its tenure that will end in December 2022.

    UNSCWho are P-5 members?

    • The victors of World War 2 – USA, RUSSIA, CHINA, UK, FRANCE.

    What are the hurdles that India facing?

    • Elite club: Most exclusive club in international relations. All other clubs have been breached. Until a quarter century ago, the nuclear weapon club had five members, the same five as the P-5.India, Pakistan, North Korea and Israel have since joined the club. But UNSC is unbreachable till date.
    • All are reluctant: The inescapable fact is that none of the P-5 wants the UNSC’s ranks to be increased. One or the other of them might make some noise about supporting one or more of the aspirants. Each is confident that someone among them will torpedo the enlargement of the club. Declarations of support for India’s candidature need to be taken with a fistful of salt.
    • Veto issue: Former UN Secretary-General Kofi Annan bluntly told India not to expect to get the veto power. Though India has said it will not accept a seat without veto power.
    • China-Pakistan axis: China, which has historically blocked India’s aspirations to become a permanent member of the UNSC. Beijing has an “all-weather ally” in Islamabad, another neighbour who also strongly opposes India’s candidature to the UNSC.
    • Odd man out: Four out of the five permanent members of the United Nations Security Council have bilaterally expressed official affirmations of support for India’s candidature to a permanent seat in an expanded UN Security Council.
    • Coffee club opposition: Members like Italy, South Korea, Canada, Spain, Mexico, Turkey, Argentina, Pakistan, and others, who have together formed the Uniting for Consensus (UfC) movement. Also known as the Coffee Club, the movement argues that bids for permanent seats by India, Japan, Germany, and Brazil (G4 countries) must not be considered without first reaching an international consensus regarding the form and size of the new Security council.

    UNSCWhat are the Efforts taken by India?

    • Text based negotiation: External affairs minister is canvassing for the country’s candidature, meeting his counterparts from several countries. He has repeated the call, made often in the past, for a text-based negotiation on what has been euphemistically referred to as the reform of the United Nations Security Council (UNSC), i.e., negotiation on a written document outlining the proposed reform instead of just holding forth verbally.
    • Woking together with G-4: INDIA, JAPAN, GEMANY, BRAZIL works together to get permanent UNSC seat however these efforts are opposed by coffee club.
    • Multilateral engagements: By expanding its footprint in multilateral organisations, India is gearing up to become a global rule-maker.
    • Distinguished group of experts suggested a few years ago that a new category of semi-permanent members should be created. Countries would be elected for a period of eight to 10 years and would be eligible for re-election. India ought to give serious consideration to this idea.
    • With or without veto: According to former foreign secretary Chinmaya gharekhan, if by some miracle we are offered or manage to obtain permanent membership without veto, we must grab it. Even a permanent membership without veto will be tremendously helpful in protecting our interests.

    Conclusion

    • Looking at the present geopolitical divide India’s dream of seat at the highest table is unlikely to get fulfilled in near future. India must analyse the utility of UNSC membership for securing its national interest. India should not give up anything in bargain against UNSC seat which harms its international interest.

    Mains question

    Q. India’s quest for UNSC is like “Sisyphus carrying the boulder  just to see how it falls”. In this context Analyse the utility of Permanent seat at UNSC.

     

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