India’s Commerce and Industry Minister Piyush Goyal, virtually took part in IPEF’s (Indo-Pacific Economic Framework) 1st Ministerial meeting in 2024, along with other IPEF partners.
What is the Indo-Pacific Economic Framework (IPEF)?
It is a US-led initiative that aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
The IPEF was launched in 2021with 12 initial partners who together represent 40% of the world GDP.
The IPEF is NOT a Free Trade Agreement (FTA)Â but allows members to negotiate the parts they want to.
Four main âPillarsâ of IPEF
Tradethat will include digital economy and emerging technology, labor commitments, the environment, trade facilitation, transparency and good regulatory practices, and corporate accountability, standards on cross-border data flow and data localisations;
Supply chain resilience to develop âa first-of-its-kind supply chain agreementâ that would anticipate and prevent disruptions;
Clean energy and decarbonization that will include agreements on âhigh-ambition commitmentsâ such as renewable energy targets, carbon removal purchasing commitments, energy efficiency standards, and new measures to combat methane emissions; and
Fair Economy Agreement, with commitments to enact and enforce âeffective tax, anti-money laundering, anti-bribery schemes in line with [American] valuesâ.
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Members Countries include:
Currently, India and 13 countries other located in the Pacific Ocean are its members: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
How is IPEF different from other trade deals?
No market access or tariff reductions have been outlined in the IPEF, although experts say it can pave the way to trade deals.
Itâs not a take-it-or-leave-it arrangement, like most multilateral trade deals are.
Since the IPEF is not a regular trade pact, the members so far are not obligated by all four pillars despite being signatories.
Practice MCQ:
Regarding the Indo-Pacific Economic Framework (IPEF), consider the following statements:
Mains PYQ Relevance:Â How does illegal transborder migration pose a threat to Indiaâs security? Discuss the strategies to curb this, bringing out the factors which give impetus to such migration. [UPSC 2014]
Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management. [UPSC 2016]
âChina is using its economic relations and positive trade surplus as tools to develop potential military power status in Asiaâ, In the light of this statement, discuss its impact on India as her neighbor. [UPSC 2017]
Mentor comments: Bhutan’s Gelephu project, aims to create a “Gelephu Mindfulness City” as a carbon-neutral economic hub spanning 1,000 square kilometers. This initiative focuses on sustainable industries like IT, education, and healthcare, positioning Gelephu as an investment destination and health and wellness center. This project is aligned with Bhutan’s Gross National Happiness philosophy, aiming to drive regional development and job creation responsibly. The project is crucial for Bhutan’s economic challenges, including the need to boost tourism revenues and address outmigration of youth seeking jobs abroad. Along this infrastructural learning, we need to align India’s involvement with its regional connectivity to emphasize the importance of land-based connectivity throughout Asia and the Indo-Pacific region.
Letâs learn.
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Why in the News?
The recent project by Bhutan government of âGelephu Mindfulness Cityâ holds geopolitical significance, offering Bhutan a controlled way to engage globally while managing relations with China.
About the Gelephu Project:
The Gelephu Mindfulness City project in Bhutan is a significant initiative envisioned by His Majesty the King Jigme Khesar Namgyel Wangchuck to create a unique economic hub with a focus on sustainable development and cultural preservation.
This project involves the establishment of a Special Administrative Region (SAR) covering 1000 square kilometers, emphasizing conscious and sustainable businesses inspired by Bhutan’s spiritual heritage and values.
The SAR will have executive autonomy, legal independence, and will prioritize businesses that align with Bhutan’s Gross National Happiness philosophy, aiming to drive regional development and job creation responsibly.
India’s involvement aligns with its regional connectivity plans, emphasizing the importance of land-based connectivity across South Asia and the Indo-Pacific region.
How are Bhutanese concerns aligned with India?
1) Geographical concerns:
Floods: With warmer temperatures than in the mountains, Gelephu gets high amounts of rainfall during a monsoon season that lasts several months, leading to considerable flooding each year.
Habitat and Conservation Issues: The surrounding forests and wildlife populations place Gelephu right in the middle of elephant corridors.
2) Geopolitical concerns:
China Factor: Pressure from its northern neighbor China to conclude a boundary resolution deal and to establish diplomatic ties.
Far away to the south, Gelephu offers Bhutan a way to open itself up in a controlled manner to the rest of the world, while also continuing negotiations with Beijing for a stable border.
Security Issues:Insurgencies in Assam and the northeastern states and just across the Indian border in Myanmar have been an area of great concern in the past.
This has led to a major military operation (Operation All Clear) by Bhutanâs former king in 2003, working with the Indian Army to drive out militant groups sheltering in the area.
Administrative Concern: As Gelephu is landlocked, it is dependent on primarily India, to provide the infrastructure for trade and transport out of the special administrative region.
3) Economic concerns:
Lag in Decision Making: Apart from hydropower, tourism is Bhutanâs mainstay, but the kingdom has always discouraged mass tourism, preferring instead a âhigh value, low volumeâ motto to ensure sustainability.
Bhutan needs to scale up its capacity to take in more tourists and visitors and land bigger planes in the narrow Paro valley.
Financial need for infrastructure: The Gelephu project involves scaling up the Gelephu airport and tarmac to international standards, which will need financing and expertise from India.
Employment issue: The growing âoutmigrationâ of Bhutanese youth in search of jobs abroad is another challenge, and the government hopes a mega project such as Gelephu will stem that.
Prevailing India-Bhutan Relationship:
Officially, the diplomatic relations between Bhutan and India were established in January 1968. This Bilateral relationship is majorly guided by the Indo-Bhutan Friendship Treaty.
Article 2 of the Treaty declares that India would not interfere in Bhutanâs administrative affairs and the latter would be guided by the formerâs advice in its external relations.
Economic Cooperation:
Since 2014, Indiaâs trade with Bhutan has almost tripled from USD 484 million in 2014-15 to USD 1422 million in 2021-22. This accounts for about 80% of Bhutanâs overall trade, with the balance of trade in Indiaâs favor.
India is the leading source of investments in Bhutan, comprising 50% of the countryâs total FDI. Interestingly, Bhutanese currency Ngultrum is officially pegged to the Indian Rupee.
Infrastructural Cooperation: India has constructed three Hydroelectric Projects (HEPs) in Bhutan:336 MW Chukha HEP, 60 MW Kurichhu HEP and 1020 MW Tala HEP.These three plants are operational and export surplus power to India. Hydropower projects in Bhutan are an example of win-win cooperation, providing a reliable source of inexpensive and clean electricity to India, generating export revenue for Bhutan and cementing our economic integration.
Growth Cooperation: For the 12th Five-Year Plan of Bhutan, India is assisting Rs. 45 billion.
What needs to be Indiaâs current interest w.r.t the recent escalating Geopolitics?
Climate Change: Indiaâs plans for a South Asian power grid (throughSolar and Wind power generation projects) that would draw electricity from Nepal and Bhutan, with supply to Bangladesh and Sri Lanka would lend itself to more consistent power supplies needed for Gelephu.
Connectivity: Nearly decades of deteriorating ties with Pakistan have seen the Indian government virtually cut off any plans for land connectivity over Indiaâs western border. The International North-South Transport Corridor, faces western sanctions, the IMEC and I2U2 initiative are challenged by Israelâs bombardment of Gaza and Houthi attacks in the Red Sea.
Conclusion:
At the 7th Indian Ocean Conference 2024, External Affairs Minister highlighted the need for lateral land-based connectivity across the Indian Ocean region, which is essential to supplement and complement the maritime flows. The Gelephu project offers a chance for the region to conjure an imagination beyond the problematic present. Although it is a huge gamble for Bhutan, but also a potential game changer for the region, with help from India.
Renewed clashes in eastern DRC between the Congolese army and Rwandan-backed M23 rebels have raised global concerns.
Context:
The conflict exacerbates the humanitarian crisis in the region, with increased fatalities, displacements, and food security risks.
The United Nations and several Western countries denounce the attacks and urge the M23 rebels to halt their offensive
What is the conflict?
Origin: Conflict in the eastern region of the Democratic Republic of the Congo (DRC) stems from the aftermath of the Rwandan genocide in 1994, where extremist Hutus killed hundreds of thousands of minority ethnic Tutsis and Hutu moderates.
Refugee Crisis: Following the genocide, around two million Rwandan refugees fled to eastern Congo, leading to tensions between local Congolese and Rwandan emigrants.
First Congo War: Ethnic tensions escalated into the First Congo War, pitting Zairean soldiers against Tutsi militias and the Alliance of Democratic Forces for the Liberation of Congo (AFDL), supported by Rwanda and Uganda.
Political Changes: The AFDL captured Kinshasa, leading to the renaming of Zaire as the Democratic Republic of the Congo (DRC) in 1997.
Africa’s World War: The Second Congo War erupted in 1998, characterized as “Africa’s world war,” involving various armed groups, including the Rwanda-backed rebel group, the Rally for Congolese Democracy (RCD).
Despite multiple peace agreements, violence persists in the region, making it one of the deadliest conflicts since World War II.
Who are the M23 rebels?
Formation of M23 rebels: The March 23 Movement (M23) was formed in 2012 to defend Tutsi interests against Hutu militias, stemming from a 2009 ceasefire agreement. It broke away from the Congolese army, accusing the government of failing to integrate Tutsis.
Recent Resurgence: M23 resurged in 2022, citing attacks by Hutu militias. Recent attacks near Goma have exacerbated the humanitarian crisis, leading to protests urging Rwanda’s withdrawal of support.
Escalating Tensions: Violence has strained relations between the DRC and Rwanda, with the DRC accusing Rwanda of backing M23 rebels. Rwanda denies these allegations and attributes the escalation to Congo’s decision to send back regional peacekeepers.
Potential Regional Escalation: The worsening violence raises concerns about regional tensions and the involvement of more countries. Attacks on civilian settlements have caused significant casualties and forced health and aid workers to withdraw.
Measures to resolve these issues-Â
Regional Cooperation: Foster cooperation among neighboring countries to address cross-border security challenges and prevent the spread of violence. Establishing joint patrols and intelligence-sharing mechanisms can enhance security along shared borders.
Peacekeeping Missions: Increased peacekeeping efforts can help stabilize conflict-affected areas and create conducive conditions for peace talks.
Socio-Economic Development: Invest in socio-economic development initiatives in conflict-affected areas to address underlying drivers of instability and marginalization. Providing livelihood opportunities, access to education, healthcare, and infrastructure can help alleviate poverty and promote social cohesion.
Disarmament and Reintegration: Implement effective disarmament, demobilization, and reintegration (DDR) programs which should include vocational training, psychosocial support, and community-based reconciliation efforts.
International Support: Mobilize international support and Regional organizations, donor countries, and civil society actors to provide timely and coordinated assistance to affected populations.
Conclusion:
The conflict in eastern DRC, fueled by historical grievances and ethnic tensions, requires diplomatic engagement, regional cooperation, peacekeeping missions, comprehensive peace agreements, socio-economic development, disarmament, international support to achieve lasting peace and stability.
Mains PYQ-
The anti-colonial struggles in West Africa were led by the new elite of Western-educated Africans. Examine. (UPSC IAS/2016)
Much of the discussion over illegal immigration to the US has in recent weeks moved its focus south to the Darien Gap.
What is Darien Gap?
The Darien Gap spans northern Colombia and Southern Panama, covering approximately 97 km of dense jungle terrain.
It is situated in the narrowest part of the Isthmus of Panama, connecting North America to South America.
It covers an area of approximately 41,440 square km.
The landscape is characterized by dense rainforests, swamps, rivers, and rugged mountains.
It is one of the most biologically diverse regions on Earth, home to a wide array of plant and animal species, including jaguars, pumas, tapirs, and numerous bird species.
Why in the news?
Ans. Surge in Illegal Crossings
Escalating Numbers: In 2021, the Panamanian government recorded a staggering 133,000 crossings, with over half a million individuals transiting through the region in 2023.
Root Causes: Violence, insecurity, and limited legal immigration options in home countries propel individuals, including Venezuelans, Haitians, and Afghans, to undertake the perilous journey.
Try this PYQ from CSE Prelims 2015:
The area known as âGolan Heightsâ sometimes appears in the news in the context of the events is related to:
Ministers of Health, global malaria partners, funding agencies, scientists, civil society organizations, and other malaria stakeholders.
Signatory countries
Burkina Faso, Cameroon, the Democratic Republic of the Congo, Ghana, Mali, Mozambique, Niger, Nigeria, Sudan, Uganda, and Tanzania.
These countries collectively account for over 70% of the global malaria burden.
Pledges
Effective tackling of malaria threat in Africa, leading better and investing more money in fighting malaria, using new technology for data, etc.
Investing more in health infrastructure, personnel, and programs, collaborating across sectors, forming partnerships for funding, research, and innovation.
Showing strong commitment to quickly reducing malaria deaths and holding each other and their countries accountable for the commitments.
The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) convened in Abu Dhabi, UAE, from February 26 to March 2, drawing participation from 166 member countries.
The conference culminated in the adoption of a ministerial declaration outlining a reform agenda to bolster the WTO’s role in regulating global trade and facilitating seamless cross-border commerce.
About World Trade Organization (WTO)
Details
Establishment
1995, replacing GATT
Objective
To regulate international trade
Headquarters
Geneva, Switzerland
Members
164
India is a Founding Member.
Objectives
Formulate rules for trade
Negotiate further liberalization
Settle disputes
Assist developing countries
Cooperate with major economic institutions
Principles
Non-Discrimination
Most Favored Nation
National Treatment
Reciprocity
Predictability through Binding Commitments
Transparency
Encourage Development and Reforms
Important Trade Agreements
Agreement on Agriculture (AoA),
Agreement on TRIPS (Trade-Related Aspects of Intellectual Property Rights),
Agreement on the Application of Sanitary and Phytosanitary Measures (SPS),
Agreement on Technical Barriers to Trade (TBT),
Agreement on Trade-Related Investment Measures (TRIMS),
General Agreement on Trade in Services (GATS) etc.
WTO Agreement on Agriculture (AoA)
Negotiated during Uruguay Round (1995)
Aims to reform trade in agriculture
Allows support for rural economies with fewer trade âdistortionsâ
Focuses on improving market access, reducing subsidies, and eliminating export subsidies
Subsidies Types:
Green Box – No distortion in trade
Amber Box – Can distort production and trade (subject to limits)
Blue Box – Subsidies linked to production-limiting programs
Most Favoured Nation Clause
Ensures non-discriminatory trade
Prevents discrimination among trade partners
First clause in GATT
Special trade statuses extended to all WTO members
Key Decisions at MC13
Dispute Settlement System: Member countries reaffirmed their commitment to establishing a fully functional dispute settlement system by 2024.
Special and Differential Treatment (S&DT): Emphasis was placed on enhancing the utilization of S&DT provisions to support the development objectives of developing and least developed countries (LDCs).
Challenges to Multilateral Trading Order
Rising Protectionism: Developed economies, amid growing domestic pressures, have exhibited a propensity towards protectionist policies, challenging the prevailing globalized trade paradigm.
Supply Chain Disruptions: Ongoing conflicts and sanctions have disrupted global supply chains, necessitating a reassessment of trade norms to ensure resilience and efficiency.
Development Disparities: Concerns persist regarding the equitable treatment of nations, with attention directed towards mitigating disparities between richer nations and LDCs.
India’s Approach
Public Stockholding (PSH) Programme: India advocated for a resolution concerning the PSH program, crucial for ensuring food security. The program enables the procurement and distribution of essential food grains to millions of beneficiaries at subsidized rates.
Fisheries Subsidies: India proposed measures to regulate fisheries subsidies, advocating for support to poor fishermen within national waters while curbing subsidies for industrial fishing in international waters.
E-commerce Customs Duties: India pressed for the removal of the moratorium on customs duties for cross-border e-commerce, citing the need to safeguard revenue generation in the digital trade landscape.
Outcomes
Agriculture: MC13 witnessed the formulation of a text addressing agricultural issues, marking a significant milestone after decades of negotiations.
Fisheries: Progress towards consensus on fisheries regulations was noted, with expectations of finalization by mid-year.
E-commerce Duties: Despite efforts, the exemption from customs duties for e-commerce transactions was extended for an additional two years, disappointing several developing economies.
Conclusion
The outcomes of MC13 underscore the imperative for collaborative efforts to address pressing challenges in global trade.
While strides were made in certain areas such as agriculture and fisheries, unresolved issues surrounding e-commerce and development disparities persist.
As nations navigate the evolving trade landscape, sustained dialogue and concerted action are essential to foster inclusive and sustainable economic growth worldwide.
Try this PYQ from CSE Prelims 2015:
The terms âAgreement on Agricultureâ, âAgreement on the Application of Sanitary and Phytosanitary Measuresâ and Peace Clauseâ appear in the news frequently in the context of the affairs of the:
(a) Food and Agriculture Organization
(b) United Nations Framework Conference on Climate Change
(c) World Trade Organization
(d) United Nations Environment Programme
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Recently Philippines and China Coast Guard collided with each other near the Second Thomas Shoal of the Spratly Islands in South China Sea.
About Second Thomas Shoal
It is located approximately 105 nautical miles (195 km) west of Palawan, Philippines.
It lies within the Philippines’ EEZ (exclusive economic zone).
The shoal is part of the Spratly Islands, which are subject to overlapping territorial claims by multiple countries, including China, the Philippines, Vietnam, Malaysia, and Taiwan.
It is strategically significant due to its location in the South China Sea, a major maritime trade route rich in natural resources.
Note: An Exclusive Economic Zone (EEZ) is an area of the ocean, generally extending 200 nautical miles (230 miles/370.15 km) beyond a nation’s territorial sea, within which a coastal nation has jurisdiction over both living and non-living resources.
 What is the South China Sea Dispute?
It is a dispute over territory and sovereignty over ocean areas, and the Paracels and the Spratlys â two island chains claimed in whole or in part by a number of countries.
China, Vietnam, the Philippines, Taiwan, Malaysia, and Brunei all have competing claims.
Alongside the fully-fledged islands, there are dozens of rocky outcrops, atolls, sandbanks, and reefs, such as the Scarborough Shoal.
China claims by far the largest portion of territory â an area defined by the ânine-dash lineâ which stretches hundreds of miles south and east from its most southerly province of Hainan.
Beijing says its right to the area goes hundreds of centuries to when the Paracel and Spratly island chains were regarded as integral parts of the Chinese nation.
It showed the two island groups falling entirely within its territory. Those claims are mirrored by Taiwan.
Spat over Chinese claims
China has backed its expansive claims with island-building and naval patrols.
The US says it does not take sides in territorial disputes but has sent military ships and planes near disputed islands, calling them âfreedom of navigationâ operations to ensure access to key shipping and air routes.
Both sides have accused each other of âmilitarizingâ the South China Sea.
There are fears that the area is becoming a flashpoint, with potentially serious global consequences.
Try this PYQ from CSE Prelims 2011:
Q.Southeast Asia has captivated the attention of global community’ over space and time as a geostrategically significant region. Which among the following is the most convincing explanation for this global perspective?
(a) It was the hot theatre during the Second World War
(b) Its location between the Asian powers of China and India
(c) It was the arena of superpower confrontation during the Cold War period
(d) Its location between the Pacific and Indian oceans and its pre-eminent maritime character
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Frustrated by the continuous actions against them by Sri Lankan authorities, Tamil Nadu fishermen announced an indefinite strike starting February 17, disrupting their daily activities.
The fishermen’s protest led to an unprecedented decision to abstain from the annual St. Antonyâs Church festival at Katchatheevu, a significant event symbolizing their fishing rights.
Katchatheevu Island: Historical Background
Colonial Influence: Katchatheevu, a 285-acre island, has its origins in a 14-century volcanic eruption. It was historically under the control of the Jaffna kingdom in Sri Lanka and later the Ramnad Zamindari in India.
British-Era Claims: Both India and Sri Lanka claimed Katchatheevu in the early 20th century to establish fishing boundaries. The ownership dispute continued even during the British Raj.
1974 Indo-Sri Lankan Maritime Agreement
Landmark Decision: Indira Gandhiâs government decided to cede Katchatheevu to Sri Lanka as part of the 1974 agreement, aiming to establish maritime borders.
Political Implications: The decision raised concerns in Tamil Nadu, where voices protested the lack of state assembly consultation and the impact on traditional fishing rights.
Fishing Ambiguity: The agreement allowed Indian fishermen access to Katchatheevu âhitherto,â but fishing rights remained ambiguous, leading to disputes.
Sri Lankan Civil War and Beyond
Civil War Dynamics: The Sri Lankan civil war (1983-2009) shifted focus from the Katchatheevu issue as Sri Lankaâs naval forces grappled with internal strife.
Post-War Reality: Post the civil war, Sri Lanka reinforced maritime defense, leading to the arrest of Indian fishermen venturing into their waters, reigniting demands for Katchatheevuâs retrieval.
Tamil Naduâs Persistent Concerns
Political Backlash: Tamil Nadu politicians across parties raised objections against ceding Katchatheevu without state assembly consent, citing historical ties and livelihood impacts.
Legal Battles: Late J Jayalalithaâs AIADMK filed petitions challenging the 1974 agreement, arguing it affected traditional fishing rights. However, the Union governmentâs stance remained unaltered.
Governmentâs Position: Despite vocal demands from Tamil politicians, the Modi government maintained that the islandâs status was finalized in 1974 and reclaiming it would require drastic measures.
Contemporary Implications
Symbol of Sovereignty: Katchatheevu symbolizes regional and sovereignty concerns, reflecting tensions between Tamil Naduâs interests and central government decisions.
Geopolitical Dilemma: The case highlights the delicate balance between historical claims, political sentiments, and international agreements in the context of bilateral relations.
Conclusion
The island of Katchatheevu continues to serve as a reminder of Indiaâs historical intricacies, reflecting the delicate balancing act between state interests, national decisions, and regional aspirations.
While Tamil Naduâs calls for retrieval echo in the political corridors, the longstanding 1974 agreement and subsequent geopolitical realities create a complex landscape.
As the islandâs fate intertwines with broader diplomatic relations, Katchatheevu remains a testament to the complexities of national sovereignty and regional sentiment.
India stresses the need for stringent monitoring during a recent review of the loan to Pakistan when the new PM Shehbaz Sharif seeking additional funding support from the IMF.
Background:
Taking a tough stance, India has batted for âstringent monitoringâ of any emergency funds provided by the International Monetary Fund (IMF) to Pakistan, stressing that such funds must not be redeployed towards defense bills or repayment of loans from other countries.
Indiaâs position was put across to the IMFâs executive board during a recent review of an ongoing $3 billion short-term Stand-By Arrangement (SBA) granted to Pakistan by the Fund.
About International Monetary Fund (IMF):
The IMF works to achieve sustainable growth and prosperity for all of its 190 member countries.
It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.
The IMF is governed by and accountable to its member countries.
Aims and Objectives:
Furthering international monetary cooperation;
Encouraging the expansion of trade and economic growth;
Discouraging policies that would harm prosperity.
Functions of IMF:
Policy Advice: As part of this process, which takes place at the global and regional levels, the IMF identifies potential risks and recommends appropriate policy adjustments to sustain economic growth and promote financial stability.
Financial Advice: The IMF provides financial support to countries hit by crises to create breathing room as they implement policies that restore economic stability and growth. It also provides precautionary financing to help prevent crises. IMF lending is continuously refined to meet countriesâ changing needs. The causes of crises can be domestic, external, or both.
Domestic factors include inappropriate fiscal and monetary policies, which can lead to large current account and fiscal deficits and high public debt levels; an exchange rate fixed at an inappropriate level, which can erode competitiveness and result in the loss of official reserves, and a weak financial system. Political instability and weak institutions also can trigger crises.
External factors include shocks ranging from natural disasters to large swings in commodity prices. With globalization, sudden changes in market sentiment can result in capital flow volatility. Both are common causes of crises, especially for low-income countries.
Significance of IMF monitoring:
Essential in identifying risks that may require remedial policy adjustments.
International cooperation on these efforts is critical in todayâs globally integrated economy, in which the problems or policies of one country can affect many others.
Focuses on individual countries or bilateral surveillance, and the global economy or multilateral surveillance.
Conclusion: There is uncertainty around Pakistanâs ability to quickly negotiate a new IMF program after the current one expires in April 2024 remains very high. Pakistanâs government liquidity and external vulnerability risks will remain very high until there is clarity on a credible longer-term financing plan
Prelims: With reference to the âTrans-Pacific Partnershipâ, consider the following statements: 1. It is an agreement among all the Pacific Rim countries except China and Russia. 2. It is a strategic alliance for the purpose of maritime security only. Which of the statements given above is/are correct? (UPSC CSE 2016) a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2
Mains: 1. âThe USA is facing an existential threat in the form of China, which is much more challenging than the erstwhile Soviet Union.â Explain. (UPSC CSE 2021)
2. What is the significance of Indo-US defense deals over Indo-Russian defense deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC CSE 2020)
Note4Students:
Mains: Geopolitical and challenges over the Globe;
Prelims: International Relations; Major Powers;
Mentor comments: Russia and North Korea relationship has been strengthening since Russia’s invasion of Ukraine in 2022, with both countries preparing for a summit between their leaders in 2024. Both countries share common challenges and strategic objectives. With Indian perspective, we need to be aware as these recent changes can lead to the beginning of a trio, Russia-North Korea-China, in the Asian continent.
Letâs learn.
Why in the News?
Recently, the strengthening of Russia and North Korea ties can be a challenging geo-political factor through Global security.
Context:
Recently, since the Russia-Ukraine war, North Korea and Russia have been discussing cooperation in sensitive areas.
They are exploring energy collaboration and have been engaged in infrastructure projects. The partnership has far-reaching implications for regional stability and global geopolitics.
Common Challenges and shared strategic objectives between both Countries:
Energy collaboration: Energy collaboration has also formed another crucial aspect of the partnership. Russia has been a key supplier of fuel to North Korea.
Moscow needs arms, artillery, rockets, and missiles to sustain its invasion of Ukraine while Pyongyang is in dire need of commodities and food. Therefore the mainstay of bilateral cooperation is the food-for-arms agreement.
This has raised concerns about the potential for increased belligerence on the part of Pyongyang, which could destabilize the Korean Peninsula and East Asia.
Resource cooperation: Russia has emerged as a potential savior for North Korean development in sectors such as energy and transportation, and even in addressing Pyongyangâs chronic food shortages.
Infrastructure cooperation: Infrastructure projects such as the Rajin-Khasan railway linking Russia to North Koreaâs Rajin port, have bolstered economic cooperation.
How does this relationship have far-reaching Implications for Regional Stability and Geopolitics?
The American factor: The strain in relations with Western countries has led Russia and North Korea to adjust their foreign policy priorities. Russia sees engagement with North Korea as a way to influence security dynamics in Northeast Asia, particularly concerning the US and its allies.
For example, The North Korean Foreign Minister in October 2023 observed that powerful ties between Moscow and Pyongyang could potentially offset the US-led efforts of a strong alliance between Washington (US), Tokyo (Japan), and Seoul (S. Korea).
The China factor: Russia, often in diplomatic collaboration with China, underscores a desire to shape regional security architecture independently of Western influence.
In Feb 2024, the US imposed sanctions on the producer of the car against Russia. The sanctions and trade restrictions also targeted Chinese firms that the U.S. said were assisting Russia’s war.
What does it mean for the world? (Way Forward)
Need for Western strategy:The West’s strategic goals in the Ukraine war involve rationalizing with Russia, supporting democracy, and reconstructing Ukraine post-war.
Need for Trans-Atlantic alliance: While Russia has endured casualties and the long-term effects of sanctions, China has remained relatively unscathed. The war in Ukraine has highlighted the need for broader support beyond the trans-Atlantic alliance, including major economies like India.
Abiding by the Global South: Involving the Global South in Ukraine’s reconstruction and sanctions against Russia is seen as crucial for shaping postwar geopolitics.
Practice Question: Russia- North Korea’s deepening ties are based on common challenges and shared strategic objectives. In the light of the above statement, discuss its far-reaching implication on global geo-politics.
Approach for the Answer:
1. Introduction: Theme: Russia-North korea Deepening ties
2. Body: Demand 1: Common challenges and shared objectives of their deepening ties Demand 2: Implication on global geopolitics of their deepening ties
3. Way Forward: Give suggestions to address the negative implications of their ties on global geo-politics.
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