The United Nations General Assembly (UNGA) adopted a 10-Year Action Plan for Landlocked Developing Countries (LLDCs), aiming to address their unique challenges.
Key Targets of the 10-Year Action Plan for LLDCs (2024–2034):
The Programme of Action for LLDCs aims to address their unique challenges through targeted actions across 5 priority areas:
Structural Transformation and Innovation:
Promote economic diversification and industrialization.
Advance science, technology, and innovation to enhance productivity and competitiveness.
Trade Facilitation and Regional Integration:
Simplify and enhance trade processes to improve access to global markets.
Strengthen participation in regional and global trade agreements.
Reduce trade costs through better policies and infrastructure.
Transit, Transport, and Connectivity:
Develop and modernize transit infrastructure, such as roads, railways, and ports.
Improve connectivity to reduce dependence on neighboring countries.
Enhance customs procedures to ensure smoother transit of goods.
Resilience to Climate Change and Disasters:
Build adaptive capacities to address vulnerabilities caused by climate change.
Develop strategies to reduce disaster risks and mitigate environmental challenges.
Means of Implementation:
Mobilize financial resources, technical assistance, and international support.
Foster partnerships among governments, international organizations, and private sectors.
What Are Landlocked Developing Countries (LLDCs)?
LLDCs are nations that lack access to a coastline and are surrounded by neighboring countries.
Currently, there are 32 LLDCs, primarily in Africa, Asia, Europe, and South America.
Europe: Armenia, Azerbaijan, North Macedonia, Moldova, Serbia.
South America: Bolivia, Paraguay.
Challenges Faced by LLDCs:
High Trade Costs: LLDCs face 1.4 times higher trade costs than coastal nations due to dependence on neighboring countries for transit and lengthy customs procedures.
Limited Market Access: Lack of direct access to global markets restricts their ability to compete internationally and increases transportation costs.
Infrastructure Deficits: Poor road, rail, and communication networks hinder connectivity and efficient trade operations.
Climate Vulnerability: LLDCs are highly susceptible to climate change impacts like droughts and floods, with limited resources to mitigate risks.
Economic and Political Dependence: Over-reliance on transit countries for trade routes leads to geopolitical challenges and limits economic diversification.
Q) What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (UPSC CSE 2018)
Mentor’s Comment: UPSC mains have always focused on topics like ‘WTO’ (2018) and ‘International Trading routes’ (2022).
An AllianzTrade survey found that 82% of exporters are optimistic about turnover growth in 2024, 73% are also concerned about geopolitical risks and protectionism, highlighting the need for trade policies that promote growth while ensuring inclusivity and equity among nations.
Today’s editorial likely critiques the current state of the World Trade Organization (WTO) by comparing it to its predecessor, the General Agreement on Tariffs and Trade (GATT). This content can be used to present ‘Trade issues’ and ‘Free movement regimes’ in Global politics in your mains answers.
_
Let’s learn!
Why in the News?
The trend of rising protectionism, especially when Donald Trump promised to impose high tariffs on imports from countries like China, Canada, and Mexico.
This shift raises concerns about increased consumer prices and disruptions in global supply chains, as countries focus more on supporting their domestic industries rather than cooperating internationally.
About the General Agreement on Tariffs and Trade (GATT):
The GATT is a foundational international treaty established in 1947 to promote global trade by reducing tariffs, quotas, and other trade barriers. Initially signed by 23 countries, GATT aimed to facilitate economic recovery after World War II, evolved through several negotiation rounds, and the key features included: • Non-Discrimination Principle: Member countries must apply tariffs equally to all members, ensuring fair trade practices. • Tariff Reductions: GATT successfully lowered average tariffs among member nations from over 20% to around 5%. • Trade Facilitation: It provided a framework for resolving trade disputes and encouraged multilateral negotiations to further reduce barriers. The Uruguay Round concluded with the Marrakesh Agreement in 1994, which established the WTO as a successor to GATT. The World Trade Organization (WTO) was established on January 1, 1995. By the time it transitioned into the WTO, GATT had become a crucial instrument for promoting global trade liberalization, covering approximately 90% of international trade.
The Appellate Body was established in 1995 as part of the WTO under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). • Aim: It serves to hear appeals from reports issued by panels in disputes between WTO member countries, acting as a higher court for trade-related legal issues. • Structure and Composition: The Appellate Body consists of 7 members, each appointed for a 4-year term by the Dispute Settlement Body (DSB). • Members can be reappointed for additional terms. A Chairperson is elected annually among the members to oversee the Appellate Body’s operations.
About the Recent WTO Conference:
• The WTO for its 13th Ministerial Conference (MC13) in February 2024, raised critical issues such as dispute settlement reforms and the extension of the e-commerce moratorium. • This context highlights the need to reevaluate the WTO’s structure and effectiveness.
How is the WTO experiencing a “GATT-ification”?
Existential Crisis: The WTO is set to miss its target of revitalizing a fully functional dispute settlement system by the end of 2024, with the Appellate Body (AB) remaining non-operational for over five years due to U.S. blockages in appointing members.
The obstruction began during the Obama administration, escalated under Trump, and continues under Biden, reflecting a bipartisan consensus against the AB.
Anticipations of a protectionist Trump 2.0 administration could further worsen the situation. Because, in 2018, he imposed a 25% tariff on various Chinese products, indicating a shift towards unilateral trade actions.
The real issue extends beyond the AB’s functionality; it involves the WTO’s relevance in global trade.
Challenges for Developing Nations: The informal nature of current discussions has hindered effective participation from many developing countries. India proposes transitioning discussions on reforms to formal WTO bodies to ensure inclusivity and representation from developing countries.
Uncertain Future: The future of the WTO’s dispute settlement system remains uncertain as the deadline approaches, with ongoing debates about restoring functionality and addressing broader institutional challenges.
What is the present Unraveling of WTO Dynamics?
China’s Rise: China’s rise over the past two decades has significantly changed the global trade landscape. The U.S. facilitated China’s accession to the WTO in 2001, hoping it would adopt free-market principles and dismantle state-led industrial policies.
Expectations vs. Reality: Contrary to U.S. hopes, China did not dismantle its state-led policies and is perceived to have exploited the WTO system to its advantage. On the contrary, there is a belief in the U.S. that the WTO’s institutional controls limit its ability to address challenges posed by China.
The U.S. aims, as stated by international lawyer Daniel C.K. Chow, to undermine the WTO system, including the Appellate Body (AB), to gain more freedom in addressing the Chinese threat.
The U.S. can now implement trade remedial measures and develop industrial policies against China, even if they violate WTO laws, due to the lack of enforcement from the AB.
Conclusion: The term ‘GATT-ification’, coined by Prof. Vidigal, highlights the shift in the international trading order and emphasizes that current negotiations cannot obscure the reality. The reversal shift to GATT-era diplomacy signifies a significant change in how international trade is governed, moving away from established multilateral frameworks toward more fragmented approaches.
Justice Madan B Lokur, retired judge of the Supreme Court of India, has been appointed as the Chairperson of the United Nations Internal Justice Council (IJC).
Justice Lokur’s Legacy:
Justice Lokur served on the Supreme Court of India from June 2012 to December 2018, delivering landmark judgments across diverse areas of law.
In August 2019, he was appointed to the non-resident panel of the Supreme Court of Fiji and reappointed for another three-year term in January 2022.
His notable judgments include:
Electoral Disqualification on Religious Grounds (January 2017): Authored a concurring opinion in a seven-judge bench ruling disqualifying electoral candidates for seeking votes based on religion, race, caste, or other identity markers.
Raising the Age of Consent in Marriages (October 2017): Alongside Justice Deepak Gupta, ruled to raise the age of consent within marriages to 18 years, bolstering child protection laws.
About UN Internal Justice Council (IJC):
Establishment
Established in 2009 to reform and strengthen the UN’s internal justice system.
Ensures the system operates effectively, impartially, and transparently, addressing workplace disputes within the UN.
Overview and Structural Mandate
Mandate:
Safeguards the independence and integrity of the internal justice system.
The IJC is responsible for overseeing the administration of the UN’s internal justice system.
It supervises:
Office of Staff Legal Assistance (OSLA)
UN Dispute Tribunal (UNDT)
UN Appeals Tribunal (UNAT)
Recommends measures to ensure judicial independence and efficiency in dispute resolution.
Composition:
5 members: 2 tribunal judges (from UNDT and UNAT), two staff representatives, and one external legal expert.
Chairperson is selected by consensus and appointed by the UN Secretary-General.
Members serve a four-year term, renewable once.
Powers, Functions, and Jurisdiction
Judicial Appointments:
Recommends candidates for UNDT and UNAT judge positions based on merit and judicial competence.
Proposes a shortlist for final selection by the Secretary-General.
Oversight and Accountability:
Monitors tribunal functioning to ensure fairness and transparency.
Identifies and addresses systemic issues, proposing improvements.
Judicial Independence:
Protects the impartiality of tribunal judges and safeguards judicial integrity.
Advocates for institutional protections against external influence.
Advisory Role:
Provides expert advice on internal justice reform.
Evaluates tribunal processes to enhance efficiency and accessibility for UN staff.
Scope of Jurisdiction:
Covers grievances related to administrative decisions, employment conditions, and workplace disputes brought forward by UN staff worldwide.
With Donald Trump potentially returning to the White House, OPEC+ delegates express concern over higher US oil production.
His administration’s focus on deregulating the energy sector could lead to increased oil output, contributing to a further erosion of OPEC+’s market share.
About ‘Organization of the Petroleum Exporting Countries’ Plus (OPEC+)
What is OPEC+?
Formation and Purpose:
OPEC+ is a coalition of OPEC members and non-OPEC oil-producing nations that work together to manage oil production and stabilize global oil prices.
The alliance was formed in 2016 in response to increasing oil production in the United States, particularly from shale oil, which led to falling oil prices.
OPEC Members:
OPEC was founded in 1960 and includes 12 member countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE), Venezuela.
Non-OPEC Members in OPEC+:
OPEC+ includes 10 non-OPEC members:
Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, Sudan.
Global Influence:
OPEC+ countries together produce approximately 40% of the world’s crude oil and control about 80% of the world’s proven oil reserves.
Factors are influencing OPEC+’s oil production cuts
Rising US oil production: The shale boom in the US has increased its market share, impacting OPEC+’s influence.
Global price stability: OPEC+ implements production cuts to prevent oil prices from falling too low.
Weak global demand: Extended cuts due to low demand, especially in major economies.
Implications of OPEC+’s policies
Reduced market share: OPEC+’s global oil share dropped from 55% in 2016 to 48% in 2024.
Price volatility: OPEC+’s production cuts aim to stabilize prices, but increasing US production affects this goal.
Economic stability: Production cuts help sustain favorable prices for oil-producing economies.
PYQ:
[2009] Other than Venezuela, which one among the following from South America is a member of OPEC?
Israel and Lebanon agreed to a ceasefire after 13 months of rising conflict, though it is linked to the UN Resolution 1701, which has not been fully implemented.
AboutUNSC Resolution 1701:
Details
What is it?
Passed on August 11, 2006, following the 34-day war between Israel and Hezbollah.
Aimed to end hostilities, ensure the security of Israel and Lebanon, and establish long-term peace along the Israel-Lebanon border.
Also designed to prevent Hezbollahfrom using southern Lebanon as a base for military operations against Israel.
Key Provisions and Objectives
Cessation of Hostilities: Aimed at halting the conflict between Hezbollah and Israel.
Disarmament of Armed Groups: Called for the disarmament of Hezbollah and all other armed groups in Lebanon, leaving only the Lebanese state with weapons authority.
Israeli Withdrawal: Mandated Israel’s full withdrawal from southern Lebanon, which had been occupied since the 1982 Lebanon War.
Lebanese Forces Deployment: Directed the Lebanese government to deploy its army in southern Lebanon to ensure peace and prevent Hezbollah’s rearmament.
UNIFIL Deployment: Increased deployment of the United Nations Interim Force in Lebanon (UNIFIL) to monitor the border and ensure compliance.
Arms Embargo: Imposed restrictions to prevent the transfer of weapons to Hezbollah.
Implementation of Taif Accords (1989): The resolution emphasizes the full implementation of this accord, which is critical for the disarmament of non-state actors in Lebanon and the consolidation of Lebanese state authority across the country.
Implementation and Violations
Partial Implementation: While Israel withdrew from southern Lebanon, Hezbollah retained its weapons and continued its terror operations.
Lebanese Army Deployment: The Lebanese army was deployed in southern Lebanon but struggled to assert full control, as Hezbollah’s influence remained strong in the region.
UNIFIL’s Role: UNIFIL, while active, faced challenges in fully enforcing the provisions of the resolution due to Hezbollah’s continued presence and the complexities of local politics.
Violations: Despite the resolution’s provisions, violations have included Hezbollah’s stockpiling of weapons and cross-border skirmishes, as well as the failure to fully disarm all armed groups, undermining the resolution’s goals.
Taif Accords Violation: This has hindered the establishment of complete state sovereignty in Lebanon.
PYQ:
[2018] “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss.
The International Criminal Court (ICC) has issued arrest warrantforIsraeli PM Benjamin Netanyahu accusing them of war crimes and crimes against humanity.
About theInternational Criminal Court (ICC)
Details
What is it?
• First international permanent court to prosecute individuals for serious international crimes.
• Established under the Rome Statute (1998, w.e.f 2002).
• 124 countries are States Parties to the Rome Statute.• Headquarters: The Hague, Netherlands.
Structural Mandate
• Official languages: English, French, Arabic, Chinese, Russian, and Spanish.
• Members: 124 States Parties to the Rome Statute; Palestine (2015) and Malaysia (2019) became the latest members.
• Notable non-members: India, Israel, the US, Russia, Ukraine, and China.
• Funding: By contributions from member states and voluntary contributions.
• Enforcement: Relies on state cooperation for enforcement, as it does not have its own police force.
Composition
• Judges: Consists of 18 judges elected by the Assembly of States Parties for a term of 9 years.
• Prosecutor: Leads the Office of the Prosecutor and investigates crimes.
• Additional Components: Includes the Trust Fund for Victims (2004), Detention Centre, and the Assembly of States Parties.
Jurisdiction
Prosecutes 4 main crimes:
War Crimes: Violations of the laws of war.
Crimes against Humanity: Acts like murder, enslavement, and torture.
Genocide: Intent to destroy a national, ethnical, racial, or religious group.
Crimes of Aggression: Unjustified military action against another state.
• ICC can only prosecute crimes committed after the Rome Statute’sentry into force (July 1, 2002).
PYQ:
[2018] “Rule of Law Index” is released by which of the following?
According to a joint report by the UN and the Intergovernmental Authority on Development (IGAD), at least 65 million people are food insecure in the Horn of Africa.
Food Insecurity in Horn of Africa Region:
Of the 65 million affected, 36 million reside in IGAD member states: Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and Uganda.
Main Causes:
Extreme weather and climate change are primary drivers of food insecurity, leading to severe conditions.
Conflict has also destroyed infrastructure and sources of food and income, worsening the situation.
About theHorn of Africa:
Details
Location
A peninsula in northeastern Africa, extending into the Arabian Sea.
Geographical Composition
Comprises the countries of Djibouti, Eritrea, Ethiopia, and Somalia.
Population
Approximately 115 million people.
Area
Covers about 2 million square kilometers.
Geographical Features
Includes mountains, plateaus, deserts, and coastlines. Significant areas include the Ethiopian Plateau, Ogaden Desert, and Eritrean and Somalian coasts.
Historical Name
Known as Bilad al Barbar or Berber Land in ancient times.
Significance
Known for diverse landscapes and unique biodiversity.
Strategic importance due to proximity to oil-producing regions in the Middle East.
Key Bodies of Water
Lies to the south of the Gulf of Aden and along the southern boundary of the Red Sea.
Grand Renaissance Dam: Under construction by Ethiopia on the Nile River, impacting regional water dynamics.
Shipping Routes
Major shipping routes pass through the Red Sea, with Djibouti serving as a critical maritime hub for international trade.
Climate
Characterized by a mix of arid, semi-arid, and temperate climates, influencing agriculture and livelihoods in the region.
Geopolitical and strategic importance for India:
The Horn of Africa is located near the Middle East, a region vital for global oil production.
Around 40% of Middle Eastern oil flows through the Red Sea shipping lanes adjacent to the Horn, making it a critical point for energy security.
Djibouti and the surrounding areas control access to the Bab el Mandeb Strait, which links the Red Sea to the Gulf of Aden and is one of the world’s busiest maritime chokepoints.
Several countries, including the US, France, and China, have established military bases in Djibouti to secure their interests in this strategic region.
China’s presence in Djibouti and other Horn of Africa nations aligns with its “string of pearls” strategy, which aims to secure military and economic footholds around India.
The Horn region serves as a gateway to Africa for Indian investments in infrastructure, energy, and mining sectors.
The region, particularly Somalia, poses threats from Pirates and terrorist groups like Al-Shabaab.
PYQ:
[2016] Consider the following statements:
The India-Africa Summit
held in 2015 was the third such Summit
was actually initiated by Jawaharlal Nehru in 1951
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Two earthquakes struck Iran sparking rumours of a nuclear test.
However, the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) in Vienna swiftly refuted these claims using its International Monitoring System (IMS) designed to detect nuclear tests.
About International Monitoring System (IMS):
IMS is a global monitoring network established by the CTBTO to detect nuclear explosions anywhere in the world.
It is a global network of over 300 monitoring facilities across 89 countries, using seismic, infrasound, hydroacoustic, and radionuclide technologies to detect nuclear explosions worldwide.
The CTBTO shares IMS data with member-states in near real-time, ensuring access to accurate, verified data.
Over 16 gigabytes of data are transmitted daily from IMS stations to the CTBTO’s International Data Centre (IDC) in Vienna.
Analysts use this IMS data to distinguish natural events (like earthquakes) from nuclear explosions.
Created to implement the Comprehensive Nuclear-Test-Ban Treaty (CTBT), opened for signature in 1996.
Purpose of the CTBT
Aims to ban all nuclear explosions worldwide, regardless of purpose (military or civilian).
Key Elements of the CTBT
• Total Ban on Nuclear Tests: Prohibits all nuclear explosions.
• Verification Mechanisms: Establishes a global monitoring network and allows for on-site inspections.
• Distant Monitoring by IMS: Employs technologies for monitoring compliance.
Signature and Ratification
Signed by 183 states and ratified by 164; has not entered into force as eight specific states among 44 Annex-2 states have yet to ratify.
Key Non-Ratifying States
The states that have not ratified the treaty include United States, China, Iran, Egypt, Israel, India, Pakistan, and North Korea.
Compliance Verification
CTBT establishes a global monitoring network of over 300 facilities for detection and verification, along with provisions for on-site inspections.
Significance
Plays a crucial role in global efforts toward nuclear disarmament and non-proliferation, fostering international cooperation and stability.
PYQ:
[2018] What is/are the consequence/consequences of a country becoming the member of the ‘Nuclear Suppliers Group’?
It will have access to the latest and most efficient nuclear technologies.
It automatically becomes a member of “The Treaty on the Non-Proliferation of Nuclear Weapons (NPT)”.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
[2011] Recently, the USA decided to support India’s membership in multilateral export control regimes called the “Australia Group” and the “Wassenaar Arrangement”. What is the difference between them?
The Australia Group is an informal arrangement which aims to allow exporting countries to minimize the risk of assisting chemical and biological weapons proliferation, whereas the Wassenaar Arrangement is a formal group under the OECD holding identical objectives.
The Australia Group comprises predominantly Asian, African and North American countries whereas the member countries of Wassenaar Arrangement are predominantly from the European Union and American Continents.
Which of the statements given above is/are correct?
Israel’s Knesset has banned the United Nations Relief and Works Agency (UNRWA) from operating within its borders, citing alleged ties between UNRWA staff and Hamas.
What is Israel’s Knesset?
The Knesset is Israel’s unicameral parliament, established in 1949.
It consists of 120 members, elected every four years through proportional representation, and is responsible for legislation, government oversight, and electing the president.
About UNRWA:
Details
Full Name
United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA)
Establishment
Established by the UN General Assembly in 1949.
Primary Purpose
To provide relief, healthcare, and education for Palestinian refugees displaced after the 1948 Arab-Israeli war.
Headquarters
Originally in Beirut, moved to Vienna in 1978, and relocated to Gaza in 1996.
Mandate Renewal
The mandate has been renewed repeatedly, currently extended until June 30, 2026.
Fields of Operation
Operates in Jordan, Lebanon, Syria, Gaza, and the West Bank, including East Jerusalem.
Beneficiaries
Supports over five million Palestinian refugees and their descendants displaced in 1948 and 1967.
U.S. economists Daron Acemoglu, Simon Johnson, and James A. Robinson won the 2024 Economics Nobel for their research on how the formation of institutions influences a nation’s prosperity and economic success.
What are the key factors that explain why some nations are rich while others are poor?
Quality of Institutions: According to the 2024 Nobel laureates, the primary determinant of economic success is the quality of a country’s institutions. Inclusive institutions, which ensure secure property rights, political freedoms, and economic opportunities, tend to promote growth.
Rule of Law and Property Rights: When laws protect private property and are enforced impartially, individuals are incentivized to invest and engage in economic activities. Weak or corrupt legal systems can deter investments and slow growth.
Political Stability and Governance: Countries with stable, democratic governance structures often provide a conducive environment for economic activities. In contrast, political instability and authoritarianism can hinder development.
Geography and Natural Resources: Some scholars argue that geographic factors, such as access to trade routes and natural resource endowment, play a role in shaping a nation’s wealth. However, resource-rich nations can still struggle if their institutions are weak (resource curse).
Human Capital and Education: Nations that invest in education and healthcare build a skilled and productive workforce, which can drive long-term economic growth.
Technological and Industrial Development: The ability to adopt and innovate technologies is crucial for economic advancement, which historically facilitated the “Great Divergence” during the Industrial Revolution.
How do historical contexts and colonial legacies impact current economic outcomes?
Colonial Institution Setup: Colonizers often set up institutions based on their motivations and local conditions. In places with harsh climates or high disease rates, extractive institutions were established to exploit resources quickly.
Impact of Extractive Institutions: In countries where extractive institutions were set up, economic policies often focused on resource extraction and wealth concentration, which led to long-term stagnation. For instance, regions in Africa and South Asia that experienced extractive colonial policies face lasting developmental challenges.
Path Dependence: Colonial institutions created trajectories that persisted even after independence. Post-colonial governments often inherited the same extractive structures, leading to continued corruption, inequality, and weak rule of law.
Unequal Development: Colonialism exacerbated regional disparities by favouring some areas (urban centres, resource-rich regions) over others, affecting infrastructure development and economic integration.
What criticisms exist regarding the theories proposed by the Nobel laureates?
Oversimplification of Institutional Role: Critics argue that attributing economic success primarily to institutions might ignore other important factors, such as culture, geography, and international trade dynamics, which also significantly shape economic outcomes.
Neglect of Global Power Structures: Some scholars believe that focusing on domestic institutions alone overlooks the influence of global economic structures and the power imbalances that exist between countries, which can perpetuate inequality.
Limited Consideration of Economic Policies: Critics point out that macroeconomic policies, market dynamics, and state-led development strategies also play a crucial role in determining economic trajectories, beyond institutional quality alone.
Debate Over Inclusiveness of “Inclusive Institutions”: Some argue that even countries with ostensibly inclusive institutions (e.g., Western democracies) can exhibit extractive practices, such as unequal wealth distribution, labor exploitation, and environmental degradation.
Way forward:
Strengthen Institutions with Reforms: Focus on reforming political and economic institutions to promote inclusiveness, transparency, and rule of law, ensuring secure property rights and equal opportunities for all citizens.
Address Global Inequities and Support Development: International efforts should aim to reduce global economic disparities by promoting fair trade, debt relief, and development aid.
