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Subject: Global Groupings and Conventions

Important International institutions, agencies and fora- their structure, mandate.

  • Duty-Free Quota Free (DFQF) Scheme

    Central Idea

    • India offers a duty-free quota-free (DFQF) scheme to least developed countries (LDCs) under the World Trade Organisation (WTO).
    • A report by the LDC Group reveals that about 85% of the products offered by India remain unutilised under the DFQF scheme.

    World Trade Organisation (WTO)
    Establishment The WTO was established on January 1, 1995, following the Uruguay Round of Negotiations conducted from 1986 to 1994.
    Nature The WTO is the only global international organization dedicated to regulating trade rules between nations.
    Successor to GATT It is the successor to the General Agreement on Tariffs and Trade (GATT), which was in place from 1948 to 1994.
    Objectives To facilitate the smooth, predictable, and unrestricted flow of international trade.
    Working Principles Based on the principles of MFN and national treatment, ensuring equal and non-discriminatory treatment.
    Member-Driven Organization Governed by its member governments, and decisions are made through consensus among these members.
    Special and Differential Treatment for Developing Countries The WTO provides specific flexibilities and rights to least developed countries (LDCs) and developing nations.

     

    DFQF Scheme

    • The DFQF access for LDCs was initially decided at the WTO Hong Kong Ministerial Meeting in 2005.
    • India became the first developing country to extend this facility to LDCs in 2008, providing preferential market access on 85% of its total tariff lines.
    • The scheme was expanded in 2014, offering preferential market access on about 98.2% of India’s tariff lines to LDCs.

    Issues highlighted by WTO

    (1) Tariff Line Utilisation Data

    • WTO data from 2020 indicates that 85% of the tariff lines offered by India under the DFQF scheme show zero utilisation rate.
    • China’s utilisation rate for similar tariff lines is 64%, with only 8% of the lines showing a utilisation rate above 95%.
    • Utilisation rates for beneficiary LDCs vary significantly, with Guinea and Bangladesh having low rates (8% and 0% respectively), while Benin reports the highest utilisation rate of 98%.

    (2) Non-Preferential Tariff Route

    • Similar to China, significant amounts of LDC exports enter India under the non-preferential (most favoured nation) tariff route, despite being covered by the Indian preference scheme.
    • The report highlights the importance of preference margins, indicating potential duty savings.
    • For example, fixed vegetable oil exported from Bangladesh to India has a preference margin of 77.5 percentage points, implying a potential $74 million duty savings if the preference scheme were utilized.

    Challenges and Barriers

    • The report suggests that the low utilisation of the preference scheme by LDCs is not due to exporter awareness but rather existing barriers that hinder the effective use of preferences.
    • The specific barriers preventing LDCs from fully utilizing the scheme are not mentioned in the article.

  • India’s Initiative for ASEAN Women in UN Peacekeeping

    asean un peacekeeping

    Central Idea

    India-ASEAN Initiative for Women in UNPK Operations

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

    India’s Training and Capacity Building

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

    What is United Nations Peacekeeping?

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

    UN Peacekeeping is guided by three basic principles:

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

    UNPKF in operation

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

    Why UN Peacekeeping is needed?

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

    India’s Contribution to UN Peacekeeping

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

    Issues with UN Peacekeeping

    [A] Issues for India

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

    [B] Global Challenges

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

    Way Forward

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

    Conclusion

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

     

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  • WTO reforms a top priority: India

    wto

    Central Idea

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

    About WTO

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

     

    Prioritizing WTO Reforms

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

    Reforms that India is seeking

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

    Crossroads for WTO

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

    Importance of Addressing WTO Reforms

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

    India’s Aspirations in International Trade

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

    Way Forward

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

    Back2Basics: WTO Agreements and Accords

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

     

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  • India’s G20 Presidency and Disaster Risk Management

    Central Idea

    • The endorsement of a new working group on disaster risk reduction by the G20, under India’s presidency, presents an opportunity to prioritize disaster risk financing and achieve the targets set by the Sendai framework for 2030. The increasing occurrence of natural and human-made catastrophes globally has highlighted the need for competent financial risk management and insurance.

    The Need for Disaster Risk Financing

    • Recent years have witnessed a surge in both natural and human-made catastrophes worldwide. Disasters not only exacerbate poverty and hinder development but also generate social polarization.
    • Lack of competent financial risk management and insurance has allowed risks to proliferate, causing havoc in society and the economy. Annual disaster losses have a significant impact on low-income economies

    The Role of the G20 in Strengthening Financial Risk Management

    • Enhancing Risk Understanding and Integration: The G20 can support countries in enhancing their understanding of disaster risks and integrating them into government planning and budget processes. This includes promoting the development and dissemination of risk assessment tools, methodologies, and best practices.
    • Strengthening Regulation and Supervision in the Insurance Industry: Effective regulation, legislation, and supervision are crucial for the insurance industry to play a proactive role in managing disaster risks. The G20 can facilitate dialogue and cooperation among regulators and policymakers to establish robust frameworks that ensure fair and transparent insurance practices
    • Facilitating Public-Private Partnerships: Public-private partnerships are essential for managing and financing disaster risks effectively. The G20 can foster an enabling environment for partnerships between governments, private sector entities, and financial institutions.
    • Shifting from Ex-post to Ex-ante Financing Mechanisms: Traditionally, financial resources for disaster response, recovery, and reconstruction have been mobilized after an event occurs (ex-post financing). The G20 can advocate for a shift towards ex-ante financing mechanisms, where financial resources are pre-arranged and readily available to respond to disasters.
    • Encouraging Investment in Disaster Risk Reduction: There is a scarcity of investment in a development-oriented approach that focuses on reducing disaster risks. The G20 can promote investment in disaster risk reduction by raising awareness about the benefits of resilience-building measures and creating incentives for both public and private sectors to allocate resources towards risk reduction initiatives.

    What is Disaster Risk Reduction Working Group (DRRWG)?

    • The Disaster Risk Reduction Working Group is a newly endorsed working group within the G20 that focuses on disaster risk reduction.
    • It serves as a platform for member countries to collaborate and share knowledge on effective strategies for managing and reducing disaster risks.
    • It aims to address key components of comprehensive financial management strategies for disaster risks, including risk assessment, insurance coverage, financial assistance, and risk transfer mechanisms.

    Facts for prelims

    What is Coalition for Disaster Resilient Infrastructure (CDRI)?

    • The CDRI is an international coalition of countries, UN agencies, multilateral development banks, the private sector, and academic institutions that aim to promote disaster-resilient infrastructure.
    • Its objective is to promote research and knowledge sharing in the fields of infrastructure risk management, standards, financing, and recovery mechanisms.
    • It was launched by the Indian PM Narendra Modi at the 2019 UN Climate Action Summit in September 2019.
    • CDRI’s initial focus is on developing disaster-resilience in ecological, social, and economic infrastructure.

    Significance of the Disaster Risk Reduction Working Group (DRRWG)

    • Knowledge Sharing and Collaboration: The DRRWG provides a platform for member countries to share knowledge, experiences, and best practices in disaster risk reduction. It facilitates collaboration and learning from diverse approaches and methodologies employed by different nations.
    • Harmonization and Standardization: The DRRWG promotes harmonization and standardization of definitions, methodologies, and data collection practices related to disaster risk assessment and financing. This improves comparability and enables better analysis and benchmarking of disaster risks across different regions.
    • Access to International Markets: By harmonizing definitions and methodologies, the DRRWG helps countries improve access to international (re)insurance markets. Standardized approaches and better data quality enhance the confidence of insurers and reinsurers, facilitating the availability of insurance coverage and risk transfer mechanisms.
    • Comprehensive Financial Management Strategies: The DRRWG aims to address all key components of comprehensive financial management strategies for disaster risks. Comprehensive strategies enhance countries’ abilities to manage and reduce disaster risks effectively.
    • Investment in Disaster Risk Reduction: The DRRWG emphasizes the importance of investment in disaster risk reduction initiatives. By providing screening criteria for disaster-resilient investments and entities, the DRRWG helps guide investment decisions toward reducing risks and building resilience.
    • Global Resilience Building: The efforts of the DRRWG contribute to global resilience-building against disasters. By fostering cooperation, sharing expertise, and promoting best practices, the DRRWG strengthens the collective capacity of member countries to mitigate, manage, and recover from disasters, ultimately enhancing global resilience.

    How India can guide G20’s disaster management initiatives?

    • Setting the Agenda: India, as the G20 president, can prioritize disaster management on the agenda of G20 meetings and discussions. By emphasizing the importance of disaster resilience and risk reduction, India can ensure that member countries address these issues at the highest level of international cooperation.
    • Knowledge Sharing and Capacity Building: India can lead efforts to facilitate knowledge sharing and capacity building among G20 member countries in the field of disaster management. This can involve organizing workshops, training programs, and conferences to promote the exchange of best practices, lessons learned, and innovative approaches.
    • Policy Advocacy: India can advocate for policy measures that strengthen disaster management capabilities. This includes encouraging the adoption of robust regulatory frameworks, promoting risk-based approaches, and supporting the integration of disaster risk reduction into national development plans and policies.
    • Financial Commitments: As the G20 president, India can encourage member countries to allocate financial resources towards disaster risk reduction and resilience-building initiatives. By highlighting the economic and social benefits of such investments, India can mobilize support for increased funding and financing mechanisms for disaster management.
    • Public-Private Partnerships: India can promote partnerships between governments and the private sector to enhance disaster management efforts. By fostering collaboration and sharing expertise, technologies, and resources, India can facilitate the development of innovative solutions and strengthen resilience across sectors.
    • International Cooperation: India can leverage its position as G20 president to strengthen international cooperation in disaster management. This involves collaborating with other international organizations, regional bodies, and stakeholders to coordinate efforts, share data and information, and foster a collective response to global disaster risks.

    Conclusion

    • Prioritizing disaster risk financing within the G20, under India’s presidency, presents an opportunity to convert intentions into investment opportunities. India’s experience in dealing with natural disasters positions it to lead in disaster risk management.

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    Also Read:

    Disasters at Himalayan Region (Uttarakhand)

  • Preparedness and Resilience for Emerging Threats (PRET) Initiative

    pret

    Central Idea: The World Health Organization (WHO) has launched a PRET initiative to be better prepared for future outbreaks of a similar scale and devastation as the COVID-19 pandemic.

    What is PRET Initiative?

    • The Preparedness and Resilience for Emerging Threats (PRET) initiative is launched by the WHO to prepare for future outbreaks of a similar scale and devastation as the COVID-19 pandemic.
    • It is aimed at providing guidance on integrated planning for responding to any respiratory pathogen such as influenza or coronaviruses.
    • The current focus of PRET is on respiratory viruses, but work is already underway to assess what should be the next group of pathogens to be mitigated under this initiative.
    • It can serve to operationalize the objectives and provisions of the Pandemic Accord, which is currently being negotiated by WHO Member States.

    Three-pronged approach of PRET

    • The three-pronged approach includes-
    1. Updating preparedness plans
    2. Increasing connectivity among stakeholders in pandemic preparedness planning, and
    3. Dedicating sustained investments, financing, and monitoring of pandemic preparedness.
    • The approach has a special focus on bridging the gaps highlighted during the COVID-19 pandemic and ensuring community engagement and equity are at the centre of preparedness and response efforts.

     

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  • What do OPEC+ production cuts mean for India?

    opec

    OPEC+ countries announced a voluntary oil production cut of 1.16 million barrels per day, which could impact the Indian economy, which depends on oil imports for 85% of its energy needs.

    Recent trend in crude oil prices

    • Crude oil prices crashed in April 2020 due to the pandemic and recovered when economies opened up.
    • Subsequently, prices rocketed in early 2022, but then the global economy slowed and a recession in advanced markets looms large.
    • This has resulted in declining demand for crude oil from major economies, causing oil prices to start falling again.

    What is OPEC+?

    • OPEC+ is a group of oil-producing countries that cooperate to manage the global supply and prices of crude oil.
    • It is made up of the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC countries, including Russia, Mexico, Kazakhstan, and others.
    • OPEC was founded in 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • The organization’s primary objective was to coordinate and unify petroleum policies among member countries to secure fair and stable prices for petroleum producers and a regular supply for consumers.

    Key functions of OPEC+

    • Oil Production Regulation: OPEC+ regulates oil production of its member countries to ensure that oil prices remain stable and there is no oversupply or undersupply of oil in the market.
    • Price Control: It aims to control the price of crude oil by regulating the supply of oil to the market.
    • Market Monitoring: OPEC+ closely monitors the global oil market to understand the demand and supply dynamics of oil.
    • Coordination: OPEC+ member countries work together to make decisions on oil production levels, pricing policies, and other matters that impact the global oil market.
    • Research and Development: OPEC+ invests in research and development to explore new technologies and methods that can help member countries to produce oil more efficiently and sustainably.

    Reason behind recent production cuts

    • OPEC+ countries aim to support market stability by reducing oil supplies.
    • The recent production cuts, totalling 3.7% of global demand, will raise crude oil prices per barrel and help cover up the losses producer countries faced after prices crashed.

    Impact on Indian economy

    • India is the third-largest oil consumer and imports 85% of its total crude oil requirement.
    • The cut could raise crude by $10/barrel, increasing import bill and worsening the current account deficit by around 0.4% of GDP.
    • This will impact foreign exchange reserves and result in the depreciation of the rupee, which in turn can increase imported inflation.

    Impact on common people

    • If the rise in crude oil import bill is passed on to the public, it may lead to cost-push inflation as every economic activity gets affected by oil price movement.
    • On the flip side, state-controlled oil marketing companies may be stopped from passing on the increased burden to consumers, further worsening the financial balance of the oil public sector units.

    Alternatives for India

    • India can turn to Russia for more supplies of cheap crude, but of late there has been a small decline in Russia’s share in India’s oil imports.
    • As a long-term strategy, the government should focus on alternative energy sources and building better roads.
    • The government should work on bringing petroleum products within the goods and services tax, and promote energy-efficient use of vehicles or an eco-driving culture.

     

  • What is UN Democracy Fund?

    democracy

    Central Idea: The article provides an explanation of the UN Democracy Fund (UNDEF), its history and objectives, as well as the involvement of India and the United States in its establishment.

    Why in news?

    • There is a controversy surrounding the fund’s support for NGOs funded by George Soros, who is on a watchlist in India.
    • He had alleged the Adani turmoil will weaken Indian politics and lead to a “democratic revival” in the country.

    What is UN Democracy Fund?

    • The UNDEF was established in 2005 with an initial contribution of $10 million each from the United States and India.
    • Its aim is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • It is funded entirely by voluntary contributions from member states and is governed by an advisory board composed of 16 members representing different regions of the world.

    Role in promoting democracy and civil society

    • UNDEF’s mission is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • The fund solicits and receives up to 3,000 proposals from NGOs around the world each year.
    • An advisory board considers these proposals and recommends proposals for approval by the Secretary-General.
    • Between 30 to 50 projects are chosen every year, and in 15 rounds of funding so far, UNDEF has supported over 880 two-year projects in more than 130 countries.

    India’s involvement in the governance of UNDEF

    • India has been a member of the UNDEF advisory board since the fund’s inception.
    • The board is composed of 16 members representing different regions of the world, and it includes the eight largest member state contributors and six other states to reflect diverse geographical representation, including one “small island” and developing states.
    • It also has two individual members and two CSOs.
    • The CSOs currently serving on the board include CIVICUS and Transparency, Accountability and Participation Network.

    India’s involvement in the establishment of UNDEF

    • India played a key role in the establishment of UNDEF as it was one of the founding members of the fund.
    • In 2005, India’s then PM, Manmohan Singh, and US President George W. Bush announced the US-India Global Democracy Initiative, which included support for the UNDEF.
    • India has contributed to the fund on several occasions since its inception, although its contributions have decreased in recent years.

    Contradictions with UNDEF

    • India’s relationship with UNDEF has been marked by contradictions.
    • While India has supported the fund and contributed to it, it has also put George Soros on a watchlist in India while UNDEF has no objections to the fund giving grants to NGOs funded by Soros.
    • This underscores a contradiction between the imperatives of the Modi government’s high table diplomacy and its domestic political ideology.
    • It requires only Delhi to deploy a soft touch in the former while playing hardball at home for domestic audiences.

    India’s contribution so far

    • India has contributed to UNDEF on several occasions since its inception, although its contributions have decreased in recent years.
    • India gave $5 million to the fund in 2005, 2006, 2008, 2009 and 2011, but no contribution was made in 2007 and 2010.
    • The contributions began dipping from 2012, with the amount being $4.71 million that year.
    • In 2014, India slashed its funding, contributing only $200,000 that year and in 2015.
    • In 2016, it was a mere $50,000, and no contribution was made in 2017.
    • In 2018 and 2019, India was back with $100,000, and in 2020, 2021 and 2022, it gave $150,000.

     

  • India elected to UN Statistical Body

    Central idea: India has been elected to the UN Statistical Commission for a four-year term.

    About United Nations Statistical Commission

    • The UN Statistical Commission is the topmost body of the global statistical system, bringing together the Chief Statisticians from member states worldwide.
    • Responsibilities of the Commission include setting statistical standards and developing concepts and methods, implemented at national and international levels.
    • The Commission was established in 1947 and is headquartered in New York.
    • The United Nations Statistics Division (UNSD) is overseen by the Commission.
    • The Commission is a Functional Commission of the UN Economic and Social Council.

    Membership details

    • There are 24 member states of the Commission.
    • Members are elected by the Economic and Social Council based on equitable geographical distribution, including:
    1. African States (5)
    2. Asian States (4)
    3. Eastern European States (4)
    4. Latin American and Caribbean States (4)
    5. Western European and other States (7)

     

  • India’s WTO Challenge on MSP Programs for Food Grain

    wto

    Central idea: India has been criticized at the World Trade Organization (WTO) for not adequately addressing questions raised by members regarding its Minimum Support Price (MSP) programs for food grain, particularly rice.

    Minimum Support Price (MSP)

    • MSP is the price at which the government buys crops from farmers to support them against any sharp fall in farm prices.
    • It is announced by the Government of India for 23 crops ahead of each sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • It is an important tool to protect farmers from any sharp fall in farm prices.

     Genesis of the row

    • WTO members such as the US, Australia, Canada, the EU, and Thailand have alleged that India did not provide sufficient responses during consultations.
    • The MSP programs have breached prescribed subsidy limits and are under scrutiny at the WTO argued these countries.
    • With this, India became the first country to invoke the Bali ‘peace clause’ to justify exceeding its 10% ceiling for rice support in 2018-2019 and 2019-2020.

    What is ‘Bali Peace Clause’?

    • India’s minimum support price (MSP) falls under the amber box subsidies category.
    • India has exceeded its limits for amber box subsidies for rice for two consecutive years, which is why it has been challenged at the WTO.
    • The Bali ‘peace clause’ allows developing countries to exceed their 10% ceiling without facing legal action by other members.
    • However, it is subject to numerous conditions, such as not distorting global trade and not affecting food security of other members.
    • India’s MSP programs are subject to the ‘peace clause’, but some WTO members have accused India of habitually not including all required information in its notifications.

    Allegations of Inadequate Reporting by India

    • WTO members have been accusing India of not reporting all public stockholding programs under the ‘peace clause’.
    • Some members have pointed out that India also lacks an adequate monitoring mechanism to ensure that no stocks are exported.
    • India, on the other hand, argues that it is not obligated to notify any public stockholding programs other than for the crop where the subsidy limits were breached.

    Impact on India’s MSP Programs

    • The criticism from WTO members could have an impact on India’s MSP programs for food grain, particularly rice.
    • The conditions set under the ‘peace clause’ could limit India’s ability to exceed the subsidy limits and support its farmers.
    • India may have to provide more detailed notifications and monitoring mechanisms to address the concerns of other members and ensure compliance with WTO regulations.

    Why is India defending its stance on MSPs?

    • India faces several challenges in the agricultural sector, including climate change, soil degradation, and water scarcity.
    • The country also has to deal with farmers’ distress due to low prices for their produce, which is why the MSP program was introduced in the first place.
    • The challenge posed by the WTO to the MSP program could further exacerbate the problems faced by Indian farmers.

    Back2Basics: WTO and its Subsidies Boxes

    The World Trade Organization (WTO) is an intergovernmental organization that is responsible for regulating international trade between nations.

    • Establishment: It was established on January 1, 1995, and currently has 164 member countries.
    • Objective: To ensure that trade flows as smoothly, predictably, and freely as possible.
    • Frameworks: Negotiating and formalizing trade agreements, resolving trade disputes between member countries, and monitoring national trade policies.
    • Working principles: Non-discrimination, transparency, and fairness in international trade.

    The WTO has three types of subsidy boxes – green, blue, and amber. Each box represents a different level of trade-distorting subsidies.

    1. Green box subsidies: These subsidies are considered non-trade-distorting and are allowed under WTO rules. They include measures such as research, disease control, and infrastructure development.
    2. Blue box subsidies: These subsidies are considered less trade-distorting than amber box subsidies but can still distort trade to some extent. They include measures such as direct payments to farmers to reduce production, provided that certain conditions are met, such as the use of fixed areas or yields.
    3. Amber box subsidies: These subsidies are considered the most trade-distorting and are subject to reduction commitments under the WTO Agreement on Agriculture. They include measures such as price support, input subsidies, and direct payments that are not subject to certain conditions.

     

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  • What is the Interpol, and what is a Red Notice?

    interpol

     

    In a major setback to Indian agencies, Interpol has taken down from its website the Red Notice against a fugitive who is wanted in connection with the ₹13,578-crore Punjab National Bank fraud cases.

    What is the news?

    • The person whom the Union Ministry of Home Affairs has listed as a “terrorist” under the Unlawful Activities (Prevention) Act (UAPA).

    Why has Interpol rejected India’s request?

    • The Interpol has said that India has failed to provide sufficient information to support its case.
    • It criticized the UAPA for being misused to target minority groups and human rights activists without “respecting” their right to due process and a fair trial.
    • While acknowledging the separatists leader, the Interpol has said that his activities have a “clear political dimension”, which cannot be the subject of a Red Corner Notice.

    What is the Interpol?

    • The Interpol, or International Criminal Police Organization, is an inter-governmental organization comprising 195 member countries, which helps police forces in all these countries to better coordinate their actions.
    • It enables member countries to share and access data on crimes and criminals and offers a range of technical and operational support.
    • It is run by a secretary general with its headquarters in Lyon, France, with a global complex for innovation in Singapore, and several satellite offices in different regions.
    • India accepted Interpol membership in June 1956.

    How does it function in member countries?

    • Interpol has a National Central Bureau (NCB) in each member country, which is the central point of contact for both the general secretariat and the other NCBs around the world.
    • Each NCB is run by police officials of that country, and usually sits in the government ministry responsible for policing. (MHA in case of India.)
    • Interpol manages 19 police databases with information on crimes and criminals (from names and fingerprints to stolen passports), accessible in real-time to countries.
    • It also offers investigative support such as forensics, analysis, and assistance in locating fugitives around the world.

    What is a Red Notice?

    • Criminals or suspects often flee to other countries to evade facing justice.
    • A Red Corner Notice, or Red Notice (RN) alerts police forces across the world about fugitives who are wanted internationally.
    • Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence.
    • A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
    • An RN is published by Interpol at the request of a member country.

    Indian fugitives on this RN

    • Among the most popular Indians on this list are jeweller Mehul Choksi and diamantaire Nirav Modi.

    Is an RN a warrant of arrest?

    • An RN is only an international wanted persons’ notice; it is not an international arrest warrant.
    • Interpol itself does not want individuals; they are wanted by a country or an international tribunal.
    • This means the Interpol cannot compel law enforcement authorities in any country to arrest the subject of an RN.
    • It is up to individual member countries to decide what legal value to give to an RN, and the authority of their national law enforcement officers to make arrests.
    • Interpol says that an RN must comply with its constitution and rules.
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