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GS Paper: GS2

  • India to seal a Free Trade Agreement (FTA) with UK

    India and the United Kingdom have launched formal Free Trade Agreement (FTA) negotiations with the aim of concluding an early harvest trade agreement over the next few months.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favourably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • The discussion is going for an FTA with Australia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement – discussed above

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

     

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  • Philippines approves deal for BrahMos Missile

    In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.

    About BrahMos Missile

    • BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
    •  They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
    • It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
    • The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
    • Such weapons are in the arsenal of most major militaries in the world.

    Its capability

    • BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
    • It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
    • An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.

    Various versions

    • The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
    • Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
    • The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.

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    Back2Basics:

    Explained: India’s Missile Capability

     

  • Desh Ke Mentor Programme and the Controversy

    A controversy recently broke out after the National Commission for Protection of Child Rights (NCPCR) recommended that the Delhi government suspend its flagship ‘Desh ke Mentor’ programme.

    What is the Desh Ke Mentor Programme?

    • The programme was launched in October 2021 and is aimed at connecting students in classes IX to XII with voluntary mentors.
    • People between the ages of 18 and 35 can sign up to be mentors through an app created by a team at the Delhi Technological University and will be connected with students based on mutual interests.
    • The mentorship entails regular phone calls for a minimum of two months, which can optionally be carried on for another four months.
    • The idea is for the young mentors to guide students through higher education and career options, preparation for higher education entrance exams, and dealing with the pressure of it all.

    How is a person selected to be a mentor?

    • The registration process takes place on the Desh ke Mentor app.
    • The volunteer has to fill in information about themselves such as their date of birth, education qualification, profession, organisation they work with and so on.
    • However, it is optional for them to upload any proof of identity.
    • Once the registration is complete, the mentor is connected to a set of children of the same gender as themselves whose interests align with theirs.
    • Students have to take parental consent before becoming a part of the programme.

    What are the concerns raised by the NCPCR regarding this process?

    • It has stated that assigning children to a mentor of the same gender as them does not necessarily assure their safety from abuse.
    • It has also expressed concern over the lack of police verification of the mentors.
    • It has a psychometric test which has not been scrutinized by professional practising experts.
    • It has also stated that limiting interactions to phone calls also does not ensure the safety of children since “child-related crime can be initiated through phone calls as well.”

    Back2Basics:  National Commission for Protection of Child Rights (NCPCR)

    • The NCPCR is an Indian statutory body established by an Act of Parliament, the Commission for Protection of Child Rights (CPCR) Act, 2005.
    • It works under the aegis of the Ministry of Women and Child Development and began operational on 5 March 2007.
    • It works to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and the UN Convention on the Rights of the Child.
    • As defined by the commission, a child includes a person up to the age of 18 years.

     

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  • National Education Alliance for Technology (NEAT) Scheme

    NEAT, first-of-its-kind government scheme, set in motion over two years ago, has finally taken shape, bringing courses offered by a group of edtech platforms within the reach of college and university students from socio-economically disadvantaged backgrounds.

    NEAT Scheme

    • The National Education Alliance for Technology (NEAT) is implemented by the All India Council for Technical Education (AICTE).
    • It aims to act as a bridge between edtech companies, academic institutions and students.
    • The initiative was taken after a Ministry of Education review noted that learning tools developed by edtech platforms that can supplement classroom teaching need to be made more accessible.
    • Accordingly, it was proposed that a portal be created where edtech platforms can be roped in to display their products after a shortlisting process.

    What are the products on display in the portal?

    • The NEAT portal has separate sections listing products for students and educational institutes respectively.
    • The companies were shortlisted by independent expert committees leaving no room for favouritism, he said.
    • Under the B2B (business to business) segment of the portal, courses are on offer for higher education institutes to purchase in bulk for their students.
    • And the B2C (business to customer) section lists courses that eligible students can browse through and choose from.
    • The courses range from accounting and finance to coding, including advanced programming languages like python.

    How to enroll into this scheme?

    • There are two different ways through which students can enroll under the scheme.
    • The basic objective of the scheme is to make students from disadvantaged backgrounds aware of the availability of such opportunities that can help them learn new skills or polish existing ones.
    • In that regard, the AICTE reached out to higher education institutes across the country, directing them to inform students about the portal and enroll them based on their needs and consent.
    • The edtech platforms have been allowed to charge fees as per their policies.

    How will it benefit students from backward communities?

    • In order to do that, the government has mandated that every shortlisted company will have to offer free coupons to the extent of 25 per cent of the total registrations for their solution through NEAT portal.
    • Through this route, the government created a bank of 12.15 lakh free coupons over the last two years.
    • And it has now started distributing those coupons among students belonging to SC/ST/OBC and EWS categories with the annual family income cap fixed at Rs 8 lakh.

    What are the courses in demand?

    • The top five courses in terms of demand are python programming, C, C++, Java programming, data science, life science and healthcare analysis, and interview preparation.

     

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  • Mekedatu Dam Project

    The ‘Mekedatu march’ has been launched for the implementation of a project to build a reservoir on the Cauvery at Mekedatu near the Tamil Nadu border.

    What is the Mekedatu Project?

    • Mekedatu, meaning goat’s leap, is a deep gorge situated at the confluence of the rivers Cauvery and Arkavathi, about 100 km from Bengaluru, at the Kanakapura taluk in Karnataka’s Ramanagara district.
    • In 2013, then Karnataka announced the construction of a multi-purpose balancing reservoir project.
    • The project aimed to alleviate the drinking water problems of the Bengaluru and Ramanagara districts.
    • It was also expected to generate hydroelectricity to meet the power needs of the state.

    Issues with the project

    • Soon after the project was announced TN has objected over granting of permission or environmental clearance.
    • Explaining the potential for damage to the lower riparian state of TN, it said that the project was in violation of the final award of the Cauvery Water Disputes Tribunal.
    • It stated that the project will affect the natural flow of the river Cauvery considerably and will severely affect the irrigation in TN.

    What do the Cauvery Water Disputes Tribunal and the Supreme Court say?

    • The Cauvery Water Disputes Tribunal, in its final order on February 2007, made allocations to all the riparian States — Karnataka, Kerala and Tamil Nadu, apart from the Union Territory of Puducherry.
    • It also stipulated “tentative monthly deliveries during a normal year” to be made available by Karnataka to Tamil Nadu.
    • Aggrieved over the final order for different reasons, the States had appealed to the Supreme Court.
    • In February 2018, the court, in its judgment, revised the water allocation and increased the share of Karnataka by 14.75 thousand million cubic feet (tmc ft) at the cost of Tamil Nadu.
    • The enhanced quantum comprised 4.75 tmc ft for meeting drinking water and domestic requirements of Bengaluru and surrounding areas.

    What is Karnataka planning?

    • Encouraged by the Supreme Court verdict, Karnataka, which sees the order as an endorsement of its stand, has set out to pursue the Mekedatu project.
    • Originally proposed as a hydropower project, the revised Mekedatu dam project has more than one purpose to serve.
    • A hydropower plant of nearly 400 MW has also been proposed.
    • The Karnataka government has argued that the proposed reservoir will regulate the flow to Tamil Nadu on a monthly basis, as stipulated by the Tribunal and the Supreme Court.
    • This is why Karnataka has contended that the project will not affect the interests of Tamil Nadu farmers.

     

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  • The Indo-Pacific opportunity

    Context

    The geopolitics of the Indo-Pacific, which is changing fast. As it moves into 2022, the region will carry the imprint of the past five years, and will have to chart a course through inter-state tensions and crises, using both diplomacy and military preparedness.

    What will shape the geopolitics and geoeconomics of the Indo-Pacific?

    • Key players in the region: The region is central to world economy and peace, and nine countries are key players: the US, China, Japan, India, Germany, the UK, Russia, Australia and France.
    • The geopolitics and geo-economics of the Indo-Pacific will be largely shaped by the interplay of relations among these nations.
    • US-China relations: Of paramount importance is the US-China equation.
    • Expect this relationship to be marked by continually adversarial, competitive and cooperative traits.
    • Beijing’s south/east China policy, aggressive postures towards Taiwan, human rights violations in Xinjiang, the subjugation of Hong Kong’s citizenry and assertive economic outreach in the Indo-Pacific — these will weigh heavily on US-China relations.

    A significant role of groupings and individual nations

    • In this standoff, the role of new groupings and individual nations is significant.
    • Role of Quad: Foremost are the Quad, a strategic partnership between the US, India, Japan and Australia and the militaristic AUKUS (Australia, UK, US). 
    • India-Australia ties: Meanwhile, India and Australia are on track to deepen ties, not only bilaterally but also with the other two Quad powers.
    • The next Quad summit, probably hosted by Japan, will cement the grouping.
    • EU’s role: The EU’s Indo-Pacific strategy, announced last September, aims at increasing its economic and security profile in, and linkages with, the region.
    • UK’s role: Only by being more strategic and less mercantilist, more candid and assertive with China, and more cooperative with partners such as India, can the EU — and its former member the UK — hope to become vital players in the Indo-Pacific.
    • ASEAN, located in the middle of the Indo-Pacific waters, faces the heat of China’s aggression and the sharpening great power rivalry.
    •  It must enhance its realism and shed its tendency of wishing away problems.

    Suggestions for India

    • 1]Strengthen the Quad – especially by ensuring that the grouping fulfils its commitment to deliver at least one billion vaccine doses to Indo-Pacific nations by December 2022.
    • India must protect its established relationship with Russia, and show some resilience in dialogue with Beijing.
    • 2] Enhance relations with ASEAN nations: It must enhance cooperation with key Southeast Asian partners —Indonesia, Vietnam, Philippines and Thailand — while humouring ASEAN as a grouping.
    • 3] Give attention to African and Indian Ocean island states: The eastern and southern planks of Africa and the Indian Ocean island states need continued high policy attention and financial resources.
    • A clear economic and trade agenda to follow the flag in this vital region, is certain to yield long-term dividends.

    Consider the question “Indo-Pacific will present India strategic and economic opportunities that India must not miss. However, the region will have to chart a course through inter-state tensions and crises. Comment.”

    Conclusion

    India has done well by fulfilling its humanitarian duties during the pandemic. Learning how to convert them smartly into economic and strategic opportunities in its periphery is the focused task for the nation in 2022.

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  • [Burning Issue] India-Pakistan Relations

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    Pakistan’s National Security Committee (NSC) approved the country’s first-ever National Security Policy (NSP) – which is designed to be a “Comprehensive National Security Framework” and covers a five-year period from 2022-26. Pakistan’s (official) policy now leaves the door open for trade with India even without the settlement of the Kashmir issue – provided there is headway in bilateral talks. Earlier, Kashmir used to be at the centre stage of all Pakistani outcry.

    New Security Policy

    • The country’s new policy would act as an umbrella document, to be used as a guideline for Pakistan`s foreign, international and defence related policies.
    • The five-year-policy document, which will span 2022-26, is being touted by the Pakistan government as the country’s first-ever strategy paper of its kind.

    Key highlights of the document

    • Focus on trade: The 100-page policy document has also put out elaborate plans to open trade and business ties with India.
    • Silent on Kashmir: Kashmir issue with India has been identified as a ‘vital national policy’ issue for Pakistan.
    • No public discussion: Only a part of the national security policy will be made public.
    • Defying hostility with India: The document states that Pakistan is not seeking hostility with India for the next 100 years.
    • Curbing militancy: The new policy also deals with the issue of militant and dissident groups and advocates dialogue with ‘reconcilable elements.’
    • No re-conciliation with India: There are no prospects of rapprochement with India under the current government.
    • Others: On the internal front, the new policy identifies five key areas of population/migration, health, climate and water, food security and gender mainstreaming.

    Significance of such policy

    • Pakistan and India have mostly been at loggerheads with each other throughout history.
    • During the first term of Narendra Modi in 2014, the relations took a positive turn when he announced his intentions to have cordial relations with Pakistan.
    • He had also visited Islamabad in 2015 unannounced to attend a marriage ceremony in Ex-PMs family.
    • However, the relations deteriorated following the horrific 2016 Uri attacks.

    Concerns with Pakistan’s National Security Policy

    • The vision laid out in the policy: There are concerns that this will result in increasing unchecked military control within the country and affect the borer-tensions with India as well.
    • Increased corruption: The Pakistan Army has never fully exposed the country’s defence spending and it does not allow inspection of its huge network of economic businesses and real estate.
    • Might increase extremism: There are concerns that Pakistan’s National Security Policy will result in increased radical events of extremism in the wake of challenging the security issues.
    • Hamper country’s growth: Diverting resources from development to military, in addition to Pakistan’s philosophy and attitude, is seen to hamper the country’s social growth and economic management.

    Implications of the National Security Policy of Pakistan on India

    • The policy hints at peace with other countries, especially in the neighbourhood.
    • Strategic establishment in India would need to look at the policy in the context of security challenges.
    • The policy will impact Pakistan’s approach to India as an open-ended subject by changing the military engagements and infrastructure built up along the border areas.
    • The economic pressures and primacy in the National Security Policy make India review its trade policy towards Pakistan and take advantage of better economic dynamics.
    • India needs to demarcate a clear distinction between geo-politics and geo-economics in the context of provision of the policy.
    • The policy is unlikely to bring any change in Pakistan’s active support to cross-border terrorism and position on Kashmir.

    China as anchor

    • Stoutly refusing to open up trade with India, Pakistan has looked to other economic and commercial partners among whom China is by far the most important.
    • The security relationship was the anchor of the China-Pakistan ties. Now, Pakistan hopes that China will offer its assistance to transform its economy.
    • It looks to the mechanisms under the China-Pakistan Economic Corridor (CPEC) to play a crucial role through connectivity, port development, power production and other investments.

    Factors behind the complex bilateral ties between the two countries

    (1) Cross-border Terrorism

    • Terrorism emanating from territories under Pakistan’s control remains a core concern in bilateral relations.
    • India has consistently stressed the need for Pakistan to take credible, irreversible and verifiable action to end cross-border terrorism against India.
    • Pakistan has yet not brought the perpetrators of the Mumbai terror attacks 2008 to justice in the ongoing trials, even after all the evidence have been provided to them.
    • India has firmly stated that it will not tolerate and comprise on issues regarding national security.
    • Based on attacks in India and involvement of the neighboring country, the Indian Army had conducted surgical strike at various terrorist launch pads across the Line of Control, as an answer to the attack at the army camp in Uri, Jammu and Kashmir.
    • India had again hit back over the cross-border terror attack on the convey of Indian security forces in Pulwama by carrying out a successful airstrike at a training camp of JeM in Balakot, Pakistan.

    (2) Kashmir

    • Due to political differences between the two countries, the territorial claim of Kashmir has been the subject of wars in 1947, 1965 and a limited conflict in 1999 and frequent ceasefire violations and promotion of rebellion within the Indian side of Jammu and Kashmir.
    • The then princely state remains an area of contention and is divided between the two countries by the Line of Control (LoC), which demarcates the ceasefire line agreed post-1947 conflict.

    (3) Siachen Glacier

    • Siachen Glacier is located in Northern Ladakh in the Karakoram Range.
    • Most of the Siachen Glacier is disputed between India and Pakistan. Before 1984, neither of the two countries had any permanent presence on the glacier.
    • Under the Shimla Agreement of 1972, the Siachen was called barren and useless. This Agreement also did not specify the boundary between India and Pakistan.
    • When India got intelligence that Pakistan was going to occupy Siachen Glacier, it launched Operation Meghdoot to reach the glacier first.
    • Following the success of Operation Meghdoot, the Indian Army obtained the area at a higher altitude and Pakistan army getting a much lower altitude. Thus, India has a strategic advantage in this region.
    • Following the 2003 armistice treaty between the two countries, firing and bombardment have ceased in this area, though both the sides have stationed their armies in the region.

    (4) Sir Creek Dispute

    • Sir Creek is a 96 km estuary in the Rann of Kutch. Rann of Kutch lies between Gujarat (India) and Sindh (Pakistan).
    • Pakistan claims the entire Sir Creek in accordance with a 1914 agreement that was signed between the Government of Sindh and Rulers of Kutch.
    • India, on the other hand, claims that the boundary lies mid-channel as per a 1925 map.
    • If one country agrees to the other’s position, the former will lose a vast amount of Exclusive Economic Zone that is rich with gas and mineral deposits.

    (5) Water disputes

    • The Indus Waters Treaty is the water distribution treaty signed between India and Pakistan, brokered by World Bank.
    • According to the treaty, three rivers, Ravi, Sutlej and Beas were given to India for exclusive use and the other three rivers, Sindh, Jhelum and Chenab were given to Pakistan.
    • This treaty failed to address the dispute since source rivers of Indus Basin were in India, having the potential to create drought and famines in Pakistan.
    • Last year, Modi Government had stated that India would no longer allow its share of river waters to flow into Pakistan in response to the Pulwama terror attack.
    • According to the 1960 Indus Waters Treaty, India can exploit rivers under its control without disturbing the flow or quantum. India plans to divert its three rivers to the Yamuna.

    Major Achievements

    Some of the confidence-building measures taken to improve Indo-Pakistan relations are as follows:

    (1) Military CBMs

    • Agreement on the Prohibition of Attack against Nuclear Installations and Facilities was signed in 1988 and ratified in 1990. The first exchange took place on January 1, 1992.
    • As per the Agreement, India and Pakistan exchange the list of their nuclear installations to prevent attacking each other’s atomic facilities. This practise has been followed to date.
    • Agreement on Advance Notification on Military Exercises, Manoeuvres and Troop Movements were brought into effect in 1991 played a crucial role in deescalating the tensions on both sides of the LoC.
    • A communication link between Pakistan Maritime Security Agency and the Indian Coast Guard was established in 2005 to facilitate the early exchange of information regarding anglers who are apprehended for straying into each other’s waters.
    • A hotline between the Directors-General of Military Operations (DGMOs) of both the countries have been in effect since 1965 and was used in an unscheduled exchange to discuss troop movements and allay tensions in the aftermath of the 26/11 attacks.

    (2) Non-military CBMs

    • Delhi-Lahore Bus Service was initiated in 1999. It was suspended in the aftermath of the 2001 Indian Parliament Attack.
      • The bus service was later resumed in 2003 when bilateral relations had improved.
      • This service was recently suspended in 2019 in the aftermath of the abrogation of Article 370 and 35A of the Indian Constitution.
    • Samjhauta Express was launched following the signing of the Shimla Agreement connects the Pakistani city of Lahore and the Indian town of Attari.
      • It had been suspended frequently, but due to negotiations, it was restarted. In 2019, it was suspended after the revocation of the special status of Kashmir.
    • Weekly Bus Service between Srinagar and Muzaffarabad was initiated in 2005. It has withstood the test of times and still operational.
    • Since 2014, India has been successful in the repatriation of 2133 Indians from Pakistan’s custody (including fishermen), and still, about 275 Indians are believed to be in their custody
    • The Bilateral Protocol on Visits to Religious Shrines was signed between the two countries in 1974.
    • The protocol provides for three Hindu pilgrimages and four Sikh pilgrimages every year to visit 15 shrines in Pakistan while five Pakistan pilgrimage visit shrines in India.
    • An agreement between India and Pakistan for the facilitation of pilgrims to visit Gurdwara Darbar Sahib Kartarpur, Pakistan, was signed on 24 October 2019 in order to fulfill the long-standing demand of the pilgrims to have easy and smooth access to the holy Gurudwara.

    Failures in the CBM process

    • Although there are hotlines connecting both military and political leaders in both countries, they have been scarcely used when required the most.
    • The absence of communications has led to suspicions and accusations of misinformation.
    • There is a disproportionate emphasis on military CBMs and inadequate recognition of several momentous non-military CBMs.
    • Governments of both sides often use CBMs as political tools to win over specific constituencies, which can be very damaging in the long-run.
    • Public conciliatory statements, which are meant to be CBMs, can have the opposite effect if they are insincere.

    Way Forward

    (1) Reforming Pakistan’s political structure

    • Despite the democratic elections in Pakistan, the military wields real power in the country. This holds true especially on matters of defence, national security and foreign policy.
    • Pakistan’s Inter-Service Intelligence (ISI), consisting for personnel from Pakistan Armed Forces, is often accused of supporting and training separatist militant groups operating in India.
    • This makes it highly difficult for India to undertake diplomatic relations with the Pakistani government since it is not the decision-maker in the country.
    • Thus, a strong political reform in Pakistan, one that focuses on the welfare of the Pakistani nationals is vital to improving its relations with India.

    (2) People-to-people relations

    • Propaganda is currently being used by both sides through the media to justify each other’s stand on conflicting issues.
    • This is creating misconception, hatred and stereotyping among the people of both countries.
    • This method is also used for political gains of both nations, with the least consideration towards people’s welfare and the need for peace.
    • Steps must be taken to facilitate travel between the two countries, ease up visa regimes, provide security for tourists, set up student and faculty exchanges, and invite professionals, intellectuals and artists to events to promote the bilateral ties.

    (3) Promote trade

    Steps that can be undertaken to improve bilateral trade include:

    • Remove non-tariff barriers and bureaucratic hurdles that are currently impeding trade.
    • Cut down duties
    • Improve customs clearance procedures
    • Proportionate trade is beneficial for both sides and is possible through the right government policies.

    (4) Promoting soft diplomacy

    • Use of Indus Waters Treaty to promote hydro diplomacy. Both nations can come together to construct Water Grid between their territories to address the water problems in the region.
    • Cultural diplomacy can be used through the exchange of ideas, values, traditions, and other cultural aspects to strengthen bilateral ties, enhance socio-cultural cooperation and promote individual national interest.
    • Promotion of Cricket diplomacy i.e., the use of cricket as a diplomatic tool to overcome differences between the two countries.
    • To a certain extent, soft diplomacy improved the people-to-people relations between the two countries and eased the tensions on both sides.

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  • China does not have it all its way in the South China Sea

    Context

    South-East Asian countries are increasingly wary of their giant neighbour.

    Background of dispute

    • Disputes in the South China Sea go back decades.
    • But it was only ten years ago that China, which makes maritime claims for nearly the whole sea, greatly upped the ante.
    • Countries involved: They involve Brunei, China, Malaysia, the Philippines, Taiwan and Vietnam, all with contesting claims.
    • China provoked a stand-off that left it in control of an uninhabited atoll, Scarborough Shoal, which under un maritime law clearly belongs to the Philippines.
    • Then China launched a massive terraforming exercise, turning reefs and rocks into artificial islands hosting airstrips and bases.

    China’s strong-arm tactics

    • China’s long-term aim is to project Chinese power deep into the South China Sea and beyond, and to hold the Americans away during any conflict.
    • The immediate aim, though, is to dominate politically and economically as much as militarily.
    • China has challenged oil-and-gas activity by both Indonesia and Malaysia, and sent drilling rigs to both countries’ eezs and continental shelves.
    • It has bullied foreign energy companies into dropping joint development with Vietnam and others.

    Implications

    • China has paid a diplomatic price.
    • Impact on relations with ASEAN: Had Mr Xi engaged in none of the terraforming and bullying, China would be better admired among members of the ten-country Association of South-East Asian Nations (ASEAN).
    • Naval presence of the US: The United States and its Western allies have upped their naval presence in the sea, welcomed by most ASEAN members.

    Negotiation on Code of conduct on South China Sea

    • For years China dragged its feet on agreeing with ASEAN a code of conduct on the South China Sea, a principle agreed on 20 years ago in order to promote co-operation and reduce tensions.
    • These days, China likes to play willing.
    • China is demanding, in effect, the right of veto over ASEAN members’ naval exercises with foreign powers.
    • It also wants to keep out foreigners from joint oil-and-gas development.
    • Such demands are unacceptable to members.

    Conclusion

    Despite China’s efforts to establish its wild claims of sovereignty, China has been facing sustained resistance from the ASEAN countries.

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  • How to deal with hate speech

    Context

    On January 12, 2022 , the Supreme Court of India agreed to hear petitions asking for legal action to be taken against the organisers of, and speakers at, the “Hardwar Dharma Sansad”.

    What constitutes hate speech

    • Hate speech is speech that targets people based on their identity, and calls for violence or discrimination against people because of their identity.
    • There is an absence of any legal or social consensus around what constitutes “hate speech.”
    • As societies around the world have long understood, the harm in hate speech is not restricted to direct and proximate calls to violence.
    • Inciting discrimination is part of hate speech: Hate speech works in more insidious ways, creating a climate that strengthens existing prejudices and entrenches already-existing discrimination.
    • This is why – with the exception of the United States of America – most societies define hate speech in terms of both inciting violence, but also, inciting discrimination.

    Challenges in dealing with hate speech

    • Legal challenge: Our laws – as they stand – are unequipped to deal with the challenges of hate speech.
    • The laws commonly invoked in such cases are section 295A of the Indian Penal Code (blasphemy) and section 153A of the Indian Penal Code (creating enmity between classes of people).
    • Hate speech will not always be self-evident: Hate speech, by its very nature, will not always trumpet itself to be hate speech.
    • Rather, it will often assume plausible deniability – as has been seen in the Hardwar case, where statements, worded with the right degree of ambiguity, are now being defended as calls to self-defence rather than calls to violence.
    • Any comprehensive understanding of hate speech is a matter of judgment, and must take into account its ambiguous and slippery nature.
    • Lack of social consensus against hate speech: No matter how precise and how definite we try to make our concept of hate speech, it will inevitably reflect individual judgment. 
    • If, therefore, social and legal norms against hate speech are to be implemented without descending into pure subjectivity, what is needed – first – is a social consensus about what kind of speech is beyond the pale.
    •  In Europe, for example, holocaust denial is an offence – and is enforced with a degree of success – precisely because there is a pre-existing social consensus about the moral abhorrence of the holocaust.

    Conclusion

    Achieving this social consensus is an immense task, and will require both consistent legal implementation over time, but also daily conversations that we, as a society need to have among ourselves.

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  • India extends $900 mn aid to Sri Lanka

    India has confirmed a $400 million currency swap with Sri Lanka while deferring another $500 million due for settlement to the Asian Clearing Union (ACU).

    What is the news?

    • Sri Lanka is facing a severe dollar crunch that economists say might lead to a default on external debt and create a food shortage in the imports-reliant island nation.
    • In this regard, the Reserve Bank of India has extended currency swap facilities of $900 million to Sri Lanka.

    What are Currency Swaps?

    • A currency swap, also known as a cross-currency swap, is an off-balance sheet transaction in which two parties exchange principal and interest in different currencies.
    • Currency swaps are used to obtain foreign currency loans at a better interest rate than could be got by borrowing directly in a foreign market.

    Practice question for mains:

    Q. What are Currency Swaps? Discuss the efficacy of Currency Swap Agreements for enhancing bilateral cooperation in Indian context.

    How does it work?

    • In a swap arrangement, RBI would provide dollars to a Lankan central bank, which, at the same time, provides the equivalent funds in its currency to the RBI, based on the market exchange rate at the time of the transaction.
    • The parties agree to swap back these quantities of their two currencies at a specified date in the future, which could be the next day or even three months later, using the same exchange rate as in the first transaction.
    • These swap operations carry no exchange rate or other market risks, as transaction terms are set in advance.

    Why does one need dollars?

    • FPIs investors look for safer investments but the current global uncertainty over COVID outbreak has led to a shortfall everywhere in the global markets.
    • This has pulled down foreign exchange reserves of many small and developing countries.
    • This means that the government and the RBI cannot lower their guard on the management of the economy and the external account.

    Benefits of currency swap

    • The absence of an exchange rate risk is the major benefit of such a facility.
    • This facility provides the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.
    • Swaps agreements between governments also have supplementary objectives like the promotion of bilateral trade, maintaining the value of foreign exchange reserves with the central bank and ensuring financial stability (protecting the health of the banking system).

    Back2Basics: Asian Clearing Union (ACU)

    • The ACU with headquarters in Tehran, Iran, was established on December 9, 1974, at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • The primary objective of ACU was to secure regional co-operation as regards the settlement of eligible monetary transactions among the members of the Union/
    • It now aims to provide a system for clearing payments among the member countries on a multilateral basis.
    • The unit of settlement of ACU transactions is a common unit of account of ACU, and the unit is equivalent to one USD, and the Asian Monetary Unit may be denominated as ACU dollars and Euro.

    Must read:

    [Burning Issue] India – Sri Lanka relations in recent times

     

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