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Subject: International Relations

  • Understanding the “China’s BRICS” game

    BRICS

    Context

    • At the 14thLeaders’ Meeting of the BRICS, held virtually in June 2022, China dwelt on the issue of expanding the group beyond its five existing members to include more emerging economies. At a time when China-India relations are at a low point, the proposal has raised concerns in New Delhi. As India deliberates its stance on this contentious issue, it is important to understand China’s approach towards BRICS.

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    BRICS

    All you need to know about BRICS

    • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
    • Jim O’Neill, a British economist, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China. He made a case for BRIC on the basis of econometric analyses projecting that the four economies would individually and collectively occupy far greater economic space and become among the world’s largest economies.
    • The importance of BRICS is self-evident: It represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
    • The five BRICS countries are also members of G-20.

    BRICS for China

    • Strategy of multiple engagements: For China, it is the grand strategy that is the Belt and Road Initiative (BRI) that threads its many engagements: BRICS, the Shanghai Cooperation Organisation (SCO), the Association of South East Asian Nations (ASEAN) where it is not directly a member, the Eurasian Economic Union, and the Regional Comprehensive Economic Partnership (RCEP).
    • Projecting the connection between BRICS and BRI: BRICS as an entity, has not signed any memorandum of cooperation with the BRI, In Chinese strategic thinking, the BRI and BRICS are deeply connected.
    • Repeated assertion by Xi Jinping: President Xi Jinping himself has harped on this notion in his speeches on multiple occasions, such as the 9th BRICS Business Forum in September 2017 and the 11th BRICS Leaders’ Meeting in November 2019. In his speech he stated that China would cooperate with other multilateral development institutions such as the BRICS New Development Bank to support BRI and jointly formulate guidelines to finance development projects. 

    BRICS

    China’s Approach towards BRICS: The Link with BRI

    • Policy of Five connectivities: Chinese scholars are of the opinion that the “five connectivities” in policy, infrastructure, trade, finance, and people-to-people constitute the common way forward for both the BRI and BRICS.
    • Economic development strategy: China has been working towards strengthening the interconnection of economic development strategies of different states along the BRI, particularly the BRICS nations, aligning and integrating BRI and BRICS infrastructure projects, ensuring unimpeded trade, pursuing multiple forms of cooperation.
    • China’s Silk Road Economic Belt and EEU: The most significant progress made so far by China in this regard has been the official docking between China’s Silk Road Economic Belt (the land part of the BRI) and the EEU (where Russia is the dominant player) in May 2015.
    • Infrastructure models that China is emphasising: A high-speed railway project from Moscow to Kazan is being constructed under this strategic cooperation, funded by the BRICS New Development Bank. This is the model that China wants to replicate with other BRICS nations as well. In December 2015, South Africa and China signed a memorandum of understanding on jointly promoting the construction of the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road.”

    Why China needs BRICS to promote the BRI?

    • To avoid direct conflicts: Chinese policymakers believe that although China is the main proponent of the BRI, it needs to avoid both strategic overdraft and direct conflicts with the pillars of the present international order while implementing the strategy.
    • To use resources effectively: To improve efficiency in the use of funds and other resources, China, it is argued, should shift from individually leading specific projects to constructing and leading various international institutions and exerting itself through institutional norms.
    • Strategic alignment and ambition to lead: President Xi emphasised this as well at the ‘Belt and Road’ International Cooperation Summit Forum in May 2017, saying that the BRI “is not about starting from scratch and reinventing the wheel, but realising strategic alignment and (reaping) complementary advantages (of various existing or new mechanisms).”
    • Dominating the financial mechanism through BRI partnership: Chinese scholars point out that all the BRICS countries have already been made part of the Asian Infrastructure Investment Bank (AIIB), one of China’s key financing mechanisms for the BRI. Further, given China’s clear dominance in the New Development Bank (NDB), Contingency Reserve Fund (CRA), the AIIB, as well as Silk Road Fund, it is only imperative for it to use these institutions to incentivise more BRICS countries to participate in the BRI, and to lay the foundation of a global financial system for the Chinese currency (RMB) trade settlement.
    • Creating an acceptable front: China is aware that the BRI has provoked extensive discussion around the world. It has been interpreted differently by different countries and has even drawn suspicion and caution in certain quarters. China is aware that to implement the BRI smoothly, it needs an additional front that is less controversial and more acceptable to the international community at large, and in particular, to developing countries.

    BRICS

    What are the concerns for India?

    • Promoting priorities in contrast: China prioritises the ‘BRICS + Asia’ cooperation mechanism – ‘BRICS + ASEAN’ on the one hand, and ‘BRICS + Bay of Bengal’ on the other, thereby integrating BRICS more closely with the Southeast Asian countries as well as with the Bangladesh-China-India-Myanmar Economic Corridor (BCIM-EC) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) nations.
    • Aligning with BIMSTEC to counter India’s resistance to BRI: The aligning with BIMSTEC is particularly aimed at countering India’s reticence to endorse the BRI, while seeking its cooperation through either coercion (i.e., using other member states of the said groupings as bargaining chips to pressure India to cooperate) or deception (i.e., temporarily ignoring the BRI banner).
    • Using BRICS at its advantage: China wants to use the BRICS platform to establish links and influence policies of these key regional organisations, including the African Union in Africa, the Arab League in West Asia, the SCO in Central Asia, the South Asian Association for Regional Cooperation (SAARC) in South Asia, and ASEAN in Southeast Asia.
    • Ambition to formulate the world order in its own way: It wants BRICS, especially the BRICS New Development Bank, to strengthen cooperation with the IMF, the World Bank, and the World Trade Organization. This will enable China, through BRICS, to strengthen its international leadership, play a bigger role in the formulation of international rules, and influence the overall global governance mechanism.

    Conclusion

    • As China-US rivalry intensifies and the BRI faces a plethora of challenges, BRICS is increasingly gaining significance for China. Within the grouping, China sees itself as the ‘core’ of BRICS, while India as its weakest link.
    • India needs to accurately grasp the geopolitical shifts taking place within BRICS and deftly navigate the complex dynamics between the member states to safeguard its own interests within the grouping and avoid being drawn passively into China’s Great Game.

    Mains Question

    Q. China has focused on expanding the BRICS group to achieve its own ambitions. Discuss the significance of BRICS for China and India’s concerns.

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  • India, Iran discuss development of Chabahar Port

    Chabahar

    India and Iran held Foreign Office level consultations to continue cooperation for development of the Shahid Beheshti terminal of the Chabahar Port.

    Chabahar Port

    • In 2016, India signed a deal with Iran entailing $8 billion investment in Chabahar port and industries in Chabahar Special Economic Zone.
    • The port is being developed as a transit route to Afghanistan and Central Asia.
    • India has already built a 240-km road connecting Afghanistan with Iran.
    • All this were expected to bring cargo to Bandar Abbas port and Chabahar port, and free Kabul from its dependence on Pakistan to reach the outer world.
    • Completion of this project would give India access to Afghanistan and beyond to Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Europe via 7,200-km-long multi-modal North-South Transport Corridor (INSTC).

    Why is Chabahar back in the news?

    • The visit is a chance to strengthen ties and the maritime relationship between the two countries.
    • Due to pandemic, there were less number of visits from India to Iran and vice-versa and the pace of the project is also allegedly slower.
    • This visit will also highlight the importance of Chabahar as a gateway for Indian trade with Europe, Russia and CIS [Commonwealth of Independent States] countries.
    • India is keen in developing the Shahid Beheshti port as a “a transit hub” and link it to the International North South Trade Corridor (INSTC), that also connects to Russia and Europe.

    What is India’s strategic vision for Chabahar?

    • When the first agreement for Chabahar was signed by then PM Atal Bihari Vajpayee in 2003, the plan had a three-fold objective:
    1. To build India’s first offshore port and to project Indian infrastructure prowess in the Gulf
    2. To circumvent trade through Pakistan, given the tense ties with India’s neighbour and build a long term, sustainable sea trade route and
    3. To find an alternative land route to Afghanistan, which India had rebuilt ties with after the defeat of the Taliban in 2001
    • Subsequently, PM Manmohan Singh’s government constructed the Zaranj -Delaram Highway in Afghanistan’s South.
    • It would help connect the trade route from the border of Iran to the main trade routes to Herat and Kabul, handing it over to the Karzai government in 2009.
    • In 2016, PM Modi travelled to Tehran and signed the agreement to develop Chabahar port, as well as the trilateral agreement for trade through Chabahar with Afghanistan’s President Ashraf Ghani.

    Commencement of operations

    • Since the India Ports Global Chabahar Free Zone (IPGCFZ) authority took over the operations of the port in 2018, it has handled 215 vessels, 16,000 TEUs (Twenty-foot Equivalent Units) and four million tons of bulk and general cargo.

    Why is it gaining importance?

    • In the last few years, a fourth strategic objective for the Chabahar route has appeared, with China’s Belt and Road Initiative making inroads in the region.
    • The government hopes to provide Central Asia with an alternate route to the China-Pakistan Economic Corridor (CPEC) through Iran for future trade.

    Why is the Chabahar dream taking so long to realise?

    • India’s quest for Chabahar has hit geopolitical road-block after road-block; the biggest issue has been over Iran’s relationship with western countries, especially the United States.
    • In years when western sanctions against Iran increased, the Chabahar project has been put on the back-burner.
    • However, the nuclear talks resulted in the Joint Comprehensive Plan of Action (JCPOA) in 2015 came into being, the Chabahar port has been easier to work on.
    • In 2018, the Trump administration put paid to India’s plans by walking out of the JCPOA and slapping new sanctions on dealing with Iran.
    • This led to the Modi government “zeroing out” all its oil imports from Iran, earlier a major supplier to India, causing a strain in ties.
    • India also snapped ties with Afghanistan after the Taliban takeover in August 2021, which put an end to the humanitarian aid of wheat and pulses that was being sent to Kabul via Chabahar.
    • When India restarted wheat aid this year, it negotiated with Pakistan to use the land route to Afghanistan instead.

     

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  • What India gains from FTA with Australia?

    australia

    After 10 years of negotiations, India and Australia have finally agreed an interim free trade deal called the India-Australia Economic Cooperation and Trade Agreement (ECTA).

    What is the news?

    • Australia’s parliament has ratified the ECTA.
    • The two countries has signed the ECTA on April 2 this year.
    • The trade deal will now come into effect on a mutually agreed date.

    Key terms of the India-Australia ECTA

    • Under the India-Australia ECTA, duties on 100 percent tariff lines will be eliminated by Australia, covering 6,000 broad sectors.
    • Meanwhile, India’s tariffs on 90 percent of Australian goods exports, including meat, wool, cotton, seafood, nuts, and avocados, will be removed.
    • From day one, Australia will offer zero-duty access to India for almost 96.4 percent of exports by value. Presently, many of these products have a 4-5 percent customs duty imposed by Australia.

    Key benefits offered

    • Exporters, businesses, workers, and consumers in both markets are set to benefit from the trade liberalization, market opening, and freer movement of people.
    • Implementation of the trade agreement will create an estimated 1 million jobs.
    • The India-Australia ECTA agreement is expected to increase bilateral trade to about US$45-50 billion in the next five years from the existing US$31 billion.
    • India hopes to increase its merchandise exports by US$10 billion BY 2026-27.

    Special benefits to India

    • IT sector to be a big gainer as it contributes significantly to both economies
    • Visas to be offered to Indian chefs and yoga instructors
    • Work opportunities for Indian students pursuing education in Australia
    • Cheaper raw materials from Australia will make Indian goods more competitive in the global market
    • Medicines approved under rigorous US and UK regulatory regimes will benefit from a fast track mechanism to get approval in Australia (improving market prospects for India’s patented, generic, and biosimilar medicines)

    Volume of India-Australia Trade

    • Australia is the 17th largest trading partner to India and India is Australia’s ninth largest trading partner.
    • In 2021-22, India’s goods exports to Australia valued US$8.3 billion and imports were about US$16.7 billion. Two-way trade in goods and services in 2020 were valued at US$24.3 billion.
    • India’s merchandise exports to Australia grew 135 percent between 2019 and 2021.
    • India’s exports consist primarily of a broad-based basket largely of finished products. Around 96 percent of Australia’s exports are raw materials and intermediate products.

    How will Indian IT firms benefit from the deal?

    • Along with ECTA, the Australian parliament has also approved an amendment to the Double Taxation Avoidance Agreement (DTAA) – a long-standing tax issue for Indian companies operating in Australia.
    • As per industry estimates, Indian IT firms lost more than $1 bn in taxes due to the existing provisions in DTAA.
    • Most IT firms take up projects where they do some portion of work on-site, and some from India.
    • However, Australian courts had ruled that even the work done from India can be taxed as per local Australian laws.
    • The same income was subject to taxes in India too.

    What’s in it for pharma companies?

    • ECTA says Indian drugs that have already been approved in the UK and US will get faster approval in Australia too.
    • India has the highest number of USFDA-approved sites and other stringent regulatory agencies approvals too — which will yield results once ECTA comes into effect.
    • India exported $387 mn worth of pharma products to Australia registering a growth of 11.58% FY22.
    • India can now expect share in Australia’s US$ 13 billion pharma market to go up.

    Will ECTA give a push to labour-intensive industries?

    • Getting easier access for apparel, textiles, leather, footwear, gems & jewellery, furniture, machinery and electrical goods in western markets is India’s key aims in trade deals.
    • ECTA will see India getting zero duty on 98.3% of tariff lines from the day the agreement comes into force and on 100% of tariff lines within five years.

    Can India cut its trade deficit with Australia?

    • At the moment, Australia exports much more to India than it imports.
    • During the last financial year, India had a trade deficit of $8.5 billion with Australia with $8.3 billion worth of exports and $16.8 billion worth of imports.
    • Entering the Australian market is not just about lower tariffs as Australia is already a very open economy.
    • There already are firmly established players in Australia and displacing them would need cutting trade costs and signing a comprehensive deal.

     

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  • Foreign Policy: India as a Pole in Itself

    India

    Context

    • The ongoing war in Ukraine on the one hand and the confrontation between Russia and the United States and the West, on the other have increased the frequency/regularity of the question, whose side is India on, after all? Is India with Russia or with the U.S./the West in this war?

    What is the issue of India taking the either side?

    • India doesn’t support the either camp: When great powers seek India’s support during geopolitical contestations, such as the one over Ukraine, they end up facing a stubborn India that is reluctant to toe the line.
    • India is not a satellite state: The inherent reason behind Indian reluctance, however, is not stubbornness but a sense of self which views itself as a pole in the international system, and not as a satellite state or a camp follower.
    • India has a different position than two poles: India refuses to take sides because it views itself as a side whose interests are not accounted for by other camps or poles.
    • India projects the multipolar world order: New Delhi’s constant exhortations of a multipolar world are also very much in tune with this thinking about itself as a pole in a multipolar world.

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    India

    India’s history of not taking the side (non-alignment)

    • Historically different civilization: The origins of this thought can be found in the character of the country’s long struggle for independence; the pre- and post-Independence articulations of leaders such as Jawaharlal Nehru, Gandhiji, and Bal Gangadhar Tilak among others on international politics; the (not uncontested) primacy India inherited as the legatee state of the British empire in South Asia; India’s larger than life civilizational sense of self.
    • Non-Aligned Movement (NAM) experiment: NAM have contributed to India’s desire for a unique foreign policy identity and a voice in the comity of nations. For much of its modern independent history, India’s foreign policy has been a unique experiment.
    • Independent foreign policy: Historically, India’s view of itself as a pole is evident in the manner in which it used to pursue non-alignment for several decades after Independence. Some vestiges of this continue to inform India’s foreign policy to this day.
    • Non-alignment is not a neutrality: It is also important to point out that India’s non-alignment is often misunderstood given that a number of foreign commentators and practitioners interpret it as neutrality. For India, however, non-alignment is not neutrality, but the ability to take a position on a given issue on a case-by-case basis.

    How India asserts itself as a different pole in international affairs?

    • No domination in south Asia: India has a different view of itself as a pole. It has not actively sought to dominate the South Asian regional subsystem even when it could.
    • No alliance like NATO: Its balancing behaviour has been subpar, it has refused to build alliances in the classical sense of the term, or sought camp followers or allegiances. As a matter of fact, even its occasional balancing behaviour (for instance, the 1971 India-Soviet Treaty during the Bangladesh war) was contingent on emergencies.
    • South Asia is not a Strategic periphery: It does believe it has a strategic periphery in South Asia where it has a natural claim to primacy.
    • Doesn’t allow interference in south Asia: It discourages interference by other powers in that space.
    • India speaks for global south: India often tends to speak for ‘underprivileged collectives’, physical (South Asia) or otherwise (NAM, developing nations, global south, etc. in varying degrees); and it welcomes the rule of law and regional order.

    India

    What should world learn from India’s position as a pole in itself?

    • India as unique player in international system: India’s recent or past statements on issues of global importance be it Ukraine or Iraq, or the North Atlantic Treaty Organization’s aerial campaign in Serbia, or bringing climate change to the United Nations Security Council (UNSC) indicate that it tends to take positions that not just suit its interests but are also informed by its sense of being a unique player on the global stage.
    • India as partner not cheerleader: Western powers must, therefore, treat India as a partner rather than as a cheerleader. They should mainstream India into global institutions such as the UNSC, and consult India rather than dictate to India which side to take.

    India

    Conclusion

    • As India becomes the chair of the G20 and the SCO in 2022, it will further seek to assert itself as a major pole in the international system, and dissuade demands to follow one camp or another. Therefore, those wishing to work with India on the global stage must learn to deal with the ‘India pole’.

    Mains Question

    Q. Analyse the India’s policy of not taking the position of west or Russia on global issues. How India asserts itself as a different pole in international affairs?

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  • Moscow Format to Engage with the Talibans

    The Moscow Format of Consultations on Afghanistan was recently held in the Russian capital.

    What is the Moscow Format?

    • The Moscow format was introduced in 2017 on the basis of the six-party mechanism for consultations between special representatives from Russia, Afghanistan, China, Pakistan, Iran and India.
    • The present meeting includes a group of 10 nations including India, China, Pakistan, Iran and the Central Asian republics with Taliban officials.
    • Russia had previously convened a new meeting of the ‘Extended Troika’ on Afghanistan which included Russia, the United States, China and Pakistan.
    • The US pulled out of the last meeting.
    • Taliban did not participate in the talks but, welcomed the discussion and declared that it will not allow Afghan territory to be used against “stability of the region”.

    Key outcomes of the meet

    • The dialogue called for respect for all Afghan ethnic groups and minorities in a bid to create national reconciliation in the war torn country.
    • The Russian hosts, presented a White Book on the civilian losses in Afghanistan due to the actions of the NATO forces during the past two decades.
    • The representatives at the talks also called for “complete unfreezing” of Afghanistan’s assets by Washington.

    Urging the Taliban Govt.

    • Prevent poppy cultivation: Participating countries called upon the Taliban setup to “fulfil its commitments to eradicate terrorism and drug trafficking” that continue to emanate from the Afghan territory.
    • Stop atrocities: The return of the Taliban has been followed by a series of attacks on Shia Hazaras and growing atrocities against women and political opponents.
    • Inclusive govt. formation: The participants underscored the importance of forming a “truly inclusive government in Afghanistan, reflecting the interests of all major ethno-political groups of the country.”

     

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  • The case of India-UK Free Trade Agreement

    Free Trade Agreement

    Context

    • To achieve the export target of $2 trillion by 2030, India is going the whole hog on free trade agreements (FTAs). India is negotiating FTAs with countries such as the European Union, Canada, the U.K., and Israel.

    Importance of FTA

    • FTA include multiple trade aspects: FTAs cover a wide array of topics such as tariff reduction impacting the entire manufacturing and the agricultural sector; rules on services trade; digital issues such as data localization; intellectual property rights that may have an impact on the accessibility of drugs; and investment promotion, facilitation, and protection.
    • Great impact on economy and society: Consequently, an FTA has a far-reaching impact on the economy and society. Given this, one legitimately expects transparency and greater scrutiny of the FTA process both during and after the negotiations.

    Free Trade Agreement

    What are the problems with Indian FTA negotiations?

    • Lack of transparency in negotiations: India negotiates most FTAs behind closed doors with very little information about the objectives and processes followed and negligible scrutiny.
    • No robust framework for FTA negotiations: This is not the case in other countries with whom India is negotiating such an FTA. In the U.K., for example, there are several robust mechanisms that foster a certain degree of transparency in the FTA negotiations. Furthermore, there are institutional apparatuses that enable the scrutiny of the actions of the executive, during and after the signing of the FTA.

    Free Trade Agreement

    Case study of FTA framework in U.K

    • Detailed information on FTA’s: Department of International Trade (DFIT), U.K., publishes a policy paper laying down the strategic objectives behind negotiating an FTA and why it is important for the U.K. to have an FTA with a particular country. This policy paper is fairly detailed listing the specific advantages of signing an FTA such as the economic gains expected, distributional impacts, the environmental impact, and the labour and human rights dimensions of the FTA.
    • Inputs from stakeholders: The policy paper that the DFIT publishes also contains the inputs and responses received by various stakeholders such as businesses, non-governmental organizations, and others. Furthermore, the policy paper also explains the government view on specific suggestions
    • FTA scrutiny by parliament: In the U.K., the strategic objectives identified by the government for signing an FTA are scrutinized by the U.K. Parliament. This job is performed by the International Agreements Committee (IAC) of the British Parliament. The IAC hears expert witnesses on the FTA, critically examines the government’s strategic objectives for each FTA under negotiation, and offers key recommendations wherever it finds gaps in the government’s approach. The U.K. government then responds to these recommendations.
    • Parliament has to ratify the FTA: In the U.K, under the Constitutional Reform and Governance Act, 2010, the executive has to lay down a treaty before the British Parliament for 21 sitting days with an explanatory memorandum before ratifying it. This allows Parliament to be apprised of the treaty the executive is going to ratify.

    Free Trade Agreement

    The contrast case of India’s FTA

    • No publicly produced document in India: In India, no such document is produced publicly that makes a case for signing an FTA and assessing its impact on the environment and society at large. The Commerce Ministry the nodal body dealing with FTAs on its website provides the bare minimum information about FTA negotiations.
    • No record of discussion with the stakeholders: Seemingly, the Commerce Ministry also undertakes stakeholder consultations and inter-ministerial meetings but there is no public record of these discussions and the government’s response to the concerns of stakeholders.
    • No parliamentary scrutiny: In India, there is no mechanism for such parliamentary scrutiny of the executive’s actions during the FTA negotiations. India’s parliamentary system allows for department-related parliamentary committees that discuss various topics of importance and offer recommendations. However, the Parliamentary Standing Committee on Commerce (PSCC) rarely scrutinises the Indian government’s objectives behind negotiating and signing an FTA.
    • No role for parliament to ratify the FTA: In India, there is no mechanism for any role of Parliament in the ratification of treaties including FTAs. Entering into treaties and matters incidental to it such as negotiations, signing and ratification are within the constitutional competence of Parliament. But, Parliament in the last seven-plus decades has not exercised its power on this issue, thus giving the executive unfettered freedom in negotiating, signing, and ratifying treaties including FTAs.

    Recommendations for Improving the India’s FTA framework

    • Publicise the objectives of FTA: India should take a leaf out of the U.K. book and develop a law on entering treaties including FTAs. This law should have the following parts. The executive should make a clear economic case outlining its strategic objectives publicly for entering into negotiations for a treaty such as an FTA.
    • Mandatory consultation with all stakeholders: The executive should be under an obligation to consult all stakeholders, respond to their concerns and make this information publicly available.
    • Dedicated parliamentary committee to scrutinize the FTA: The Indian Parliament should constitute a committee on the lines of the U.K.’s IAC that will scrutinise the strategic objectives behind entering into an FTA.
    • Mechanism to ratify the FTA by parliament: The executive should place the FTA on the floor of Parliament for a certain duration, allowing Parliament to debate it, before ratifying it.

    Conclusion

    • While the executive’s constitutional prerogative of entering into an FTA or international treaties, in general, is indisputable, this power should be exercised in a manner that makes the executive answerable. After all, an integral facet of democracy is to hold the executive to account for its actions. It should be no different for negotiating international treaties including FTAs.

  • Bali G20 summit

    g20

    Leaders of the G-20 nations gathered at Bali in Indonesia for the 17th summit of the world’s most advanced economies.

    Agenda of this summit

    • The motto for this summit is Recover Together, Recover Stronger.
    • The leaders will engage in discussions over three sessions on-
    1. Food and Energy security
    2. Health Partnership for Global Infrastructure and Investment, and
    3. Digital Transformation

    About G-20

    • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
    • Collectively, the G20 economies account for around 85 percent of the Gross World Product (GWP), 80 percent of world trade.
    • To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
    • In addition to it, the group also hosts separate meetings of the finance ministers and foreign ministers.
    • The G20 has no permanent staff of its own and its chairmanship rotates annually between nations divided into regional groupings.

    Aims and objectives

    • The Group was formed with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
    • The forum aims to pre-empt the balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
    • It seeks to address issues that go beyond the responsibilities of any one organization.

    Members of G20

    • The members of the G20 consist of 19 individual countries plus the European Union (EU).
    • The 19 member countries of the forum are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States.
    • The European Union is represented by the European Commission and by the European Central Bank.

    Why was the G-20 created?

    For emerging nations: It was created as an acceptable medium between the more “elitist” G-7 (then the G-8), and the more unwieldy 38-member Organisation for Economic Co-operation and Development (OECD).

    • Increasing representation: Over the past two decades, the global economic balance has shifted, and the G-20 has been seen as a more representative and egalitarian grouping of global leadership.
    • Reducing groupism within: The G-20 was conceived in a more unified, post-Soviet era, when western economies made the rules, China was just on the rise and Russia was still recovering from its breakup.
    • Economic boost for west: It was particularly useful in steering the global economy after the global financing crisis and banking collapse of 2008.
    • Global-south on focus: Significantly, next year the “Troika” of G-20 will be made up of emerging economies for the first time with India, Indonesia and Brazil — an indicator of the shift in the global economic agenda towards the Global South.

    Economic significance of G-20

    • G-20 countries represent 85% of the global GDP.
    • It accounts for 75% of global trade and 66% of the world population.

    What makes this G-20 different from others?

    • War mongers at table: For the world, this is the first G-20 since Russia began the war in Ukraine and the west imposed sanctions on Russia.
    • Hosting a stronger China: This is only the second time Chinese President Xi Jinping has travelled abroad since the COVID pandemic, and the first time since he was re-elected at China’s Party Congress last month.
    • Next chair for India: For India, the importance of the summit of the world’s most advanced economies is that it is India’s turn to host the summit next.

    Bilateral meets on the sidelines

    • All eyes will also be on the bilateral summits happening by the sidelines — including the Biden-Xi summit at a time when U.S.-China tensions are at a high.
    • While neither Delhi nor Beijing have confirmed a Modi-Xi meeting, any interaction between the two leaders will be the first since the military stand-off at the LAC.
    • PM Modi is expected to meet many of the G-20 leaders and others, and will invite them to next year’s summit in India.
    • Among the leaders who are attending for the first time as heads of their countries are UK PM Rishi Sunak.

     

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  • What is the East Asia Summit?

    Vice President Jagdeep Dhankhar addressed the East Asia Summit on the last day of his visit to Cambodia, as the three-day Association of South East Asian Nations (ASEAN) summit concluded.

    East Asia Summit

    • Simply, the EAS is an ASEAN initiative and refers to the annual Meeting of Heads of States/Governments of these countries, where they are able to discuss common concerns and interests.
    • Beginning in 2005, 16 participating countries comprised EAS, with their first meeting in Kuala Lumpur, Malaysia.
    • These members were the 10 ASEAN countries, Australia, China, India, Japan, New Zealand, and the Republic of Korea.
    • ASEAN’s 10 member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
    • The United States and the Russian Federation joined at the 6th East Asia Summit in 2011.

    Why was it created?

    • Its creation was based on the idea of enhancing cooperation among East Asian countries and those in the neighbouring regions.
    • Six priority areas of cooperation were identified – environment and energy, education, finance, global health issues and pandemic diseases, natural disaster management, and ASEAN Connectivity.

    Topics discussed

    The following issues have been discussed by the countries

    • Chinese claims over the South China Sea
    • United Nations Convention on the Law of the Sea (UNCLOS),
    • Terrorism
    • Actions of North Korea and
    • Conflict situation in Myanmar

    EAS’s links with India

    • This year marks the 30th anniversary of ASEAN-India relations and is being celebrated as the ASEAN-India Friendship Year.
    • In a joint statement, ASEAN-India acknowledged the deep civilizational linkages, maritime connectivity, and cross-cultural exchanges between Southeast Asia and India.
    • All these have grown stronger over the last 30 years, providing a strong foundation for ASEAN-India relations.

    New developments

    • India has announced an additional contribution of USD 5 million to the ASEAN-India science and technology fund.
    • It would enhance cooperation in sectors of public health, renewable energy and smart agriculture.

     

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  • Russia’s withdrawal from Kherson

    kherson

    Ukraine’s defence and intelligence unit has reported on the withdrawal of Russian troops from Kherson but predicts it to be a delusion for a retreat.

    Where is Kherson?

    • Geographically, Kherson is a strategic location for Russia and Ukraine.
    • Situated in the northwest of the Dnipro River, the province shares borders with Donetsk, Crimea and the Black Sea.

    Why is it important for Russia?

    • With Moscow capturing Crimea in 2014, the occupation of Kherson in March 2022 has benefited Russia in transferring its military from Crimea to counter Ukraine.
    • It provides access to Odesa and Black Sea ports in the west and serves as the main route to secure southern Ukraine.

    Implications of regaining for Ukraine

    • For Ukraine, regaining Kherson is significant to protect its population in Kalanchak and Chaplynka districts and also to recapture Crimea.
    • Kherson is also an important agricultural region, with irrigation channels.

    How did Kherson come under Russia’s control?

    • In early March 2022, Kherson was captured by Russia through intense fighting.
    • The battle of Kherson proved to be the starting point to capturing and occupying the southern part of Ukraine while the battles for Kharkiv and Kyiv in the north progressed.
    • Russia’s hold over Kherson since March 2022 enabled Moscow to capture the key port cities — Mariupol in the Sea Azov, and Odesa, thus expanding control.
    • Kherson’s irrigation canals were used as defence positions, creating a strong line preventing Ukraine’s counter-attacks.
    • Russia also had positioned its soldiers in Kherson and stockpiled the ammunition.

    Why has Moscow announced its withdrawal from Kherson?

    • Mobilisation failure: When Russia was advancing rapidly in capturing the southern and northern cities of Ukraine, its military personnel and weapon systems started to run thin.
    • Unexperienced troops: The failure of new recruits added an additional challenge to Russia to keep its hold against the Ukraine counter-offensive in Kherson.
    • Inability of Russia to govern Kherson: Despite imposing martial law, Russia could not effectively rule Kherson; the three-level security in the occupied areas could not enforce Russia’s control on the ground.
    • Ukraine’s expanding counter-offensive: Until August, Ukraine was supplied only with short-range and low-grade weapons by the West. On the other hand, Russia has been facing challenges in augmenting its military hardware on the battleground.

    Is the withdrawal final, or a tactical move by Russia?

    • Ukraine is advancing: Russia’s new mobilisation has failed to stop the advancing of Ukraine forces.
    • Russia is weakening: The challenges to remobilise its defence systems and the shortage of weapons must have played a role in Russia’s withdrawal.
    • Inevitable western intervention: With Ukraine strengthening its military capacity through support from the west, upgrading from land-based to air-based to heavy battle tanks, Russia is facing a challenge to hold its occupied territories in Ukraine.

    Conclusion

    • Withdrawal from Kherson exposes a serious gap in Russia’s strategy to hold southern Ukraine.
    • However, it also underlines its strategy — to withdraw under serious attack or resistance by the Ukrainian forces — as it happened in Kyiv and Kharkiv.

     

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  • G20 Presidency: India can be voice for developing world

    G20

    Context

    • Government of India launched the logo, website and theme for India’s presidency of the G20, setting the tone for the country’s G20 presidency, beginning December 1. Modi’s clarion call was “One Earth, One Family, One Future”, aptly underscored by the phrase “Vasudhaiva Kutumbakam”.

    What is G-20?

    • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
    • It brings together 19 of the world’s major economies and the European Union.
    • Its members account for more than 80% of global GDP, 75% of trade and 60% of population
    • To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
    • India has been a member of the G20 since its inception in 1999.

    Do you know the aims and objective of G20?

    • The Group was formed with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
    • The forum aims to pre-empt the balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
    • It seeks to address issues that go beyond the responsibilities of any one organization.
    • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

    G20

    Current Global scenario and India’s G20 Presidency

    • War between Russia and west: It must nonetheless countenance a complex geopolitical moment, with tensions between G7 nations and Russia over the war in Ukraine, and growing friction between the US and China.
    • India’s efforts to be a meditator: PM Modi’s recent advice to President Putin that “now is not the time for war” is anchored in the ethos of peace and non-violence, the legacy of Buddha and Gandhi.
    • Energy crisis: The developmental agenda must receive first billing. Differences over energy diversification and the emerging challenges in trade and technology will need reconciliation.
    • Economic crisis: Stagflation in the US, China and Europe threatens to affect the global economic outlook. Policy coherence in macroeconomics and trade is an important imperative.
    • Supply chain disruptions: At the “Global Supply Chain Resilience” meeting in October 2021, Modi advocated cooperation on three critical aspects trusted source, transparency and time frame to improve global supply chains. At the SCO Summit this year, he cited the disruption of supply chains due to the Ukraine crisis and spoke of the unprecedented energy and food crises.

    g20

    What India can show to the world?

    • Growing economy and rising stature: India’s G20 presidency coincides with its growing confidence, matched by its rising stature and high economic growth rate.
    • India’s digital infrastructure: India’s commitment to digital transformation will be a key element in forging an accessible and inclusive digital public architecture. The country’s exemplary success with the Unified Payments Interface (UPI), Direct Benefits Transfer and Aadhaar authentication in welfare schemes has growing relevance to the developing world.
    • Efforts for TRIPS waiver on vaccine: The use of the CoWIN platform enhanced vaccine accessibility and equity. India has made a strong pitch for a TRIPS waiver to ensure equitable access to vaccine production.
    • Vaccine assistance to the world: India’s commitment to advancing South-South cooperation is well acknowledged. At the height of the pandemic, India provided 250 million vaccine doses to 101 countries, apart from other medical assistance.
    • SAGAR and Blue Economy: India’s global initiatives in recent years such as SAGAR (Security and Growth for All in The Region), “blue economy”, “clean oceans”, and disaster-resilient infrastructure have the potential to gain traction in the G20.
    • India as true climate leader: PM Modi’s “Panchamrit” announcements at COP26 — net zero by 2070, non-fossil energy capacity to 500 GW by 2030, 50 per cent of energy requirement through renewables by 2030, reduction of carbon emission by 1 billion tonnes by 2030, and reduction of carbon intensity in the Indian economy to less than 45 per cent by 2030 — established India as a climate leader.

    What should be India’s Priority as President of G20?

    • Open application programming interface: As economies everywhere move rapidly towards digitalization, it is important to develop a consensus on an open source, open application programming interface (API) and an interoperable framework for public digital platforms on which the private sector can freely innovate. This would help maximize the impact of the digital transformation for the global public good, including new data, measurement tools, indicators of economic growth and the achievement of Sustainable Development Goals (SDGs).
    • Promotion of LiFE philosophy: At the COP26 in Glasgow, Modi proposed Mission LiFE, which places individual behavior at the centre of the global climate action narrative. The Mission intends to establish and nurture a global network of individuals known as Pro-Planet People (P3), committed to adopting and promoting environmentally friendly lifestyles. This is based on the idea that responsible individual behavior can undo the damage wrought upon nature.
    • Focus on climate financing: At COP27 as well as during its G20 presidency, India will have to focus attention on climate finance, especially a new quantified goal beyond the existing annual $100 billion pledge by Advanced Economies (AEs) to assist developing nations in climate change adaptation and mitigation from 2020 to 2025. The delayed pledge is expected to be fulfilled in 2023 during India’s presidency and from there on, the G20 needs to raise the bar.
    • Clean energy partnership: The G20 presidency will provide India with an opportunity to give impetus to several of its initiatives for clean energy partnerships especially in solar, wind and hydrogen with the EU, Japan and the US. It will provide a platform to give a fillip to the idea of, “One Sun, One World, One Grid”, first mooted by Modi at the International Solar Alliance (ISA) in 2018.
    • Achieving the Net Zero target: India has the scale and capacity to set a shining example of rapid and decarbonized economic growth to help realize the G20’s global net zero ambitions. A viable international framework for development and international trade in GH2, together with green ammonia and green shipping, is the key. Reliable supplies of critical minerals and technological collaborations for energy storage, including a global battery coalition, could provide answers.
    • Nuclear energy as an alternative: Given the nascent support today for civilian nuclear energy in Europe due to energy market volatility, the G20 could work toward an expanded and robust civilian nuclear energy cooperation framework, including for small modular reactors.
    • Reforming the multilateralism: Multilateral institutions are perceived today as unrepresentative, ineffective, or worse still, both. The call for a new multilateralism and reassessment of the Global Financial Order to ensure adequate credit enhancement and blended finance for sustainable green transitions reflects a popular global sentiment.

    g20

    Conclusion

    • India’s presidency should represent the widest and most vulnerable constituencies, especially in South Asia. This can truly advance intra-South Asian economic integration, which is so essential for India’s rise.

    Mains question

    Q. India assumed G20 presidency with a mantra of Vasudhaiva Kutumbakam. In light of this What should be the India’s Priority as President?