💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF

Subject: International Relations

  • India could lead the G20 agenda in a unique way

    G20

    Context

    • The G20, or Group of 20, has emerged as the primary venue for international economic and financial cooperation. India assumed the presidency of the powerful grouping G20 on 1 December 2022, symbolising the motto and showcasing its philosophies of “Vasudhaiva Kutumbakam”, or “One Earth, One Family, One Future”.

    G20

    What One Earth, One Family, One Future suggests?

    • India committed to making India’s year of chairmanship one that will focus on “healing our ‘One Earth’, creating harmony within our ‘One Family’, and giving hope for our ‘One Future’ and LiFE (Lifestyle for Environment).

    Crack Prelims 2023! Talk to our Rankers

    What is Troika?

    • The troika means previous, current, and incoming presidency which comprise Indonesia, India, and Brazil, respectively.
    • The troika is leading the global agenda at G20 in the current turbulent economic times.
    • Beyond being a forum for policy discussions, the G20 plays the role of reconciling the irreconcilable.
    • The number of talks and years the group has been together has resulted in a mixed bag of success.

    How India should set up a global agenda: Proposed principles

    • Democratising the process of setting the agenda: While setting up the global agenda, it is critical to bring together all the partner nations to understand their priorities. It will ensure diversity, equity, inclusivity, sustainability, transparency, and long-term commitment. This can also help ensure that the domestic policies are aligned and support global priorities.
    • Strike a balance between the needs of developing and developed countries: Since India has a greater responsibility to shoulder, it should not work and seem biased. Similarly, developed nations should instead exercise greater caution with their rich resource pools. To create a win-win scenario rather than a zero-sum game, we must think in terms of multilateralism.
    • Critical to focus on determined priorities: It is critical to prevent the G20 from suffering as other multilateral forums such as the World Trade Organization (WTO) do from an over-expansion of its mandate. While being ambitious in their approach, it is crucial to set defined, limited long-term priorities.
    • Set concrete, measurable, and tangible goals: Measurable outcomes with short, medium, and long-term objectives are crucial. Financial considerations must be made in addition to ensuring inclusivity, sustainability, and accountability.
    • Prevent reinventing the wheels: To encourage faster mutual growth, it is necessary to prevent duplication of efforts. It is important to prevent duplication of existing international institutions, fragmentation of financial resources, and the weakening of the coordinating role of the existing multilateral organisations. The ‘cooperative and collaborative frameworks are key to successful outcomes.
    • Prejudice-free dialogues are required to promote solidarity: Prejudices on international platforms can pose a threat to global security. Dialogue as an antidote is a force for conflict prevention, management, and resolution.
    • Mutual safeguarding is necessary: Mutual safeguarding from disguised elements of neo-colonialism and hegemony is essential for cutting through the socio-cultural and geopolitical barriers between the Global South and the Global North.
    • The principle of Antyodaya (rise of the last person:): The global lens must capture every aspect of a community through inclusive dialogues, from the most marginalised to the most privileged. It is crucial to set the vertical and horizontal plans on a global and national level with the ‘last person standing in line’ in mind.

    G20

    India’s current global Image

    • India for global governance: While India’s successes are being assessed and unprecedented hopes are being expressed about our future, the country’s trust in the global governance architecture is evident through several examples from the recent past, like the roll-out of COVID-19 vaccines in India as well as remarkable vaccine diplomacy initiative ‘Vaccine Maitri’.
    • Fastest growing economy: With one of the world’s largest and fastest-growing economies, the country has earned its stripes during tough external and internal times.
    • India among the tops in global climate change performance index: Similarly, India has been ranked among the top five countries under the global Climate Change Performance Index. Moreover, it has taken the lead in spearheading the transition towards cleaner energy sources.
    • Social capitalism nature of economy: With its social capitalism, India has earned a geopolitical sweet spot in the world.

    G20

    Conclusion

    • India can lead the G20 agenda in a unique way the global community has never witnessed. Keeping the essential principles in mind when developing agendas, action-oriented plans, and decisions through collaborative efforts have the potential to yield revolutionary and positive results. The vision of shaping a new paradigm of human-centric globalisation is promising, provided the Global North and South communities provide equal support.

    Mains question

    Q. India assumed the presidency of the powerful grouping G20 with a motto One Earth, One Family, One Future. In this backdrop how India can set up an agenda for future and not only for a period of presidentship.

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Lay-off Indian techies scrambling for options to stay in US

    Thousands of Indian IT professionals in the US, who have lost their jobs due to the series of recent layoffs at companies like Google, Microsoft and Amazon, are now struggling to find new employment within the stipulated period under their work visas.

    Recent layoff is US

    • Nearly 200,000 IT workers have been laid off since November last year, including some record numbers in companies like Google, Microsoft, Facebook and Amazon.
    • As per some industry insiders, between 30 to 40 per cent of them are Indian IT professionals, a significant number of whom are on H-1B and L1 visas.

    What one means by Lay-Off?

    • A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance.
    • Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn.
    • When laid off, employees lose all wages and company benefits but qualify for unemployment insurance or compensation (typically in USA).

    Why do companies resort to layoffs?

    • Cost reduction: One of the main reasons why workers get laid off is because the company decides to cut back on costs in some way. The need can arise from the fact that the company is not making enough profits to cover its expenses or because it needs substantial extra cash to address paying off debt.
    • Staffing redundancies: Layoffs also occur when a company needs to eliminate some positions due to over-staffing, outsourcing, or a modification to the roles.  A company may want to eliminate redundant positions in order to make its operations more efficient.
    • Relocation: Moving the company’s operations from one area to another can also bring about the need to let go of some workers. Shutting down the initial location will not only affect the workers who get laid off but the surrounding community’s economy as well.
    • Merger or buyout: If a business is bought out or decides to merge with another, the change might lead to a change in the company’s leadership and corporate direction. If there’s new management, the chances are that they’ll come up with new goals and plans, and this can lead to layoffs.

    Immediate triggers of Lay-Off

    • Pandemic Boom: During the pandemic, there was a surge in demand as people were in lockdown and they were spending a lot of time on the internet. The overall consumption saw an upsurge following which the companies went to increase their output to meet the market requirements.
    • Over hiring during pandemic: In order to meet the demands, many tech companies went on a hiring spree anticipating the boom to continue even after the pandemic. However, as the curbs were eased and people started stepping out of their homes, consumption fell, resulting in heavy losses to these big tech companies. Some of these resources were hired at a higher cost because of the sudden upsurge in demand.
    • Fear of recession: As the demand is coming back to pre-Covid levels and seeing the debt bubble almost about to burst and fearing recession, these companies are cutting down their costs by closing down low-performing projects and laying off the excess and high-cost resources they hired to accelerate growth.
    • Russia-Ukraine War: The war has also contributed to these layoffs as it has made the market more volatile. This is clearly visible from stock market volatility.
    • Inflation: Rising inflation has also impacted several world economies severely leading to a crisis in the job market as well. The world is currently hitting a reset button to overcome all these ups and downs.

    Various US Visa Programs

    1) H-1B visa

    • What is it: The H-1B visa category covers individuals who “work in a speciality occupation, engage in cooperative research and development projects administered by the US Department of Defense or are fashion models that have national or international acclaim and recognition.”
    • Who’s covered: The H-1B is most well known as a visa for skilled tech workers, but other industries, like health care and the media, also use these visas.

    2) H-2B visa

    • What it is: According to USCIS, the H-2B program allows US employers or agents “to bring foreign nationals to the United States to fill temporary non-agricultural jobs.”
    • Who’s covered: They generally apply to seasonal workers in industries like landscaping, forestry, hospitality and construction.

    3) J-1 visa

    • What it is: The J-1 visa is an exchange visitor visa for individuals approved to participate in work-and-study-based exchange visitor programs in the United States.

      Who’s covered:
      The impacted people include interns, trainees, teachers, camp counsellors, au pairs and participants in summer work travel programs.

    4) L-1 visa

    • What it is: The L1 Visa is reserved for managerial or executive professionals transferring to the US from within the same company, or a subsidiary of it. The L1 Visa can also be used for a foreign company opening up US operations.
    • Who’s covered: Within the L1 Visa, there are two subsidiary types of visas
    1. L1A visa for managers and executives.
    2. L1B visa for those with specialized knowledge.

    Why these matters?

    • A significantly large number of Indian IT professionals, who are on non-immigrant work visas like H-1B are L1.
    • They are now scrambling for options to stay in the US to find a new job in the stipulated few months’ time that they get under these foreign work visas after losing their jobs and change their visa status as well.

    Impacts of Lay-offs

    • Cut-throat market competition: Layoffs are a painful but expected fact of life in a market economy exposed to competition and trade.
    • Immense loss to the workers: Layoffs can be damaging psychologically as well as financially to the affected workers as well as their families, communities, colleagues, and other businesses.
    • Decreased customer loyalty: When a company lays off its employees it sends out a message to customers that it is undergoing some sort of crisis.
    • Emotional Distress: The person who is laid off suffers the most distress, but remaining employees suffer emotionally as well. The productivity level of employees who work in fear is likely to go down.

    Lessons for India

    • Indian startups grew at a notoriously faster pace than its neighboring regions.
    • But the layoffs are a sobering reminder that the bigger the startups became, the harder they fell.
    • Just because a startup had touched a sky-high valuation did not immediately mean its employees’ jobs were insured.

    Way forward

    • Voluntary retirement program: This enables individuals to transition to retirement smoothly.
    • Cut back on the extras: If a company is laying off workers to reduce costs, it can look for other avenues of saving money. For example, the company managers can freeze additional hiring, reduce or remove bonuses.
    • Consider a virtual office: Another way to cut down on costs is to keep only the most important staff onsite and send the rest of the workers home to work remotely.
    • Offer more unpaid time off: A company owner can also save money by offering more unpaid time off rather than eliminating workers’ positions.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Key takeaways form the World Economic Forum’s annual meeting

    World Economic Forum

    Context

    • The World Economic Forum’s Annual Meeting 2023, held in the Swiss town of Davos, ended Friday a conference that started in a world possibly fundamentally altered, but whose processes and outcomes remained pretty much business as usual.

    The theme this year was ‘Cooperation in a Fragmented World’.

    World Economic Forum (WEF)

    • Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
    • It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
    • The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

    Crack Prelims 2023! Talk to our Rankers

    World Economic Forum

    key takeaways from WEF on the economy

    • Positive outlook for economy: Most business leaders were upbeat about the economy, with US and the European Union (EU) seemingly beyond the risk of a recession now. China ending its zero Covid curbs and opening shop again added to the positive outlook.
    • Caution from central banks: Central banks of the major economies cautioned that concerns still remained, and said they would keep interest rates high to ensure inflation is under check. For example, Stay the course is my mantra, European Central Bank President quoted. The US Federal Reserve Vice Chair Lael Brainard was quoted as reminding investors that “inflation remains high, and policy will need to be sufficiently restrictive for some time.
    • Potential impact on energy prices: Many also pointed out that China opening up could mean a rise in its energy consumption, thereby driving up energy prices.
    • Concerns for developing economies: As the richer nations look to focus inwards, protecting their own workers, energy sufficiency, supply lines, etc., concerns were raised that this policy direction would hit developing economies.

    World Economic Forum

    Climate change and green energy discussions at World Economic Forum

    • The need for green energy and financing: Everyone agreed upon the need for green energy and the need for more money to flight climate change.
    • GAEA initiative to unlock $3 trillion financing: According to the WEF’s website, The World Economic Forum, supported by more than 45 partners launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050.
    • International Concerns and Reactions: The EU raised concerns over a US green energy law that benefits products, such as electric vehicles, made in America.
    • New Initiatives and Partnerships: The Press Trust of India (PTI) reported that more than 50 high-impact initiatives were launched at the event. 1.Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government strategic and technical direction. 2. A thematic centre on healthcare and life sciences is to be set up in Telangana. 3. The Coalition for Epidemic Preparedness and Innovations (CEPI) aims to develop new vaccines for future pandemics.

    Ukraine demands more military and financial aid

    • Military Aid and Financial Aid for Reconstruction: Ukraine kept up its demand for more military aid to fight its war against Russia, and more financial aid to rebuild after the war, saying the reconstruction fund commitments should start coming in now and not after the war ends.
    • President Zelenskyy’s Address and Criticism of US and Germany: While Ukraine President Volodymyr Zelenskyy gave a video address. In his address, Zelenskyy made an indirect criticism of the US and Germany dithering over sending tanks to his country.

    World Economic Forum

    Criticism and defence of the Davos Event

    • Spectacle of Rich and Powerful Talking about Poverty and Climate: The jarring spectacle of the Davos event where the uber-rich and powerful fly in on private jets to talk about poverty alleviation and climate action came in for criticism yet again.
    • Opportunity for Decision-Makers to Meet and Interact: However, others pointed out that despite its flaws, the conference is an opportunity for many decision-makers to meet and interact with each other.
    • The Economist’s View on the Importance of Communication and Conversation: As the Economist editor-in-chief Zanny Minton Beddoes put it, while the talks at Davos can be described as “highly-caffeinated speed dating”, more conversation and communication is better than less contact and less communication.

    Conclusion

    • The World Economic Forum highlighted the pressing need for green energy and financing to combat climate change. Though the event remained focused on business as usual, we can see that the WEF provided an opportunity for decision-makers to meet and interact, and more than 50 high-impact initiatives were launched at the event.

    Mains Question

    Q. Discuss some of the key takeaways from the WEF’s annual meeting 2023, with a specific focus on the discussions and initiatives related to the economy and climate change.

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

     

  • Indo-pacific and the New Eurasia

    pacific

    Context

    • Japan, which invented the contemporary geopolitical idea of the Indo-Pacific, is now well on its way to changing the way we think about the relationship between Asia and Europe. In his swing through Europe last week, Prime Minister Fumio Kishida’s message was simple, the security of Europe and the Indo-Pacific is indivisible.

    Crack Prelims 2023! Talk to our Rankers

    How Japan shaped the idea of Indo-pacific?

    • Japan is not alone for Indo-pacific anymore: Building on the ideas of his predecessor, the late Shinzo Abe, Kishida is determined to build strong military partnerships with Europe. Together Japan, South Korea and Australia are bridging the divide between Asia and Europe long seen as separate geopolitical theatres.
    • South Korea raising profile in Europe: South Korea, which does not always see eye to eye with Japan, is also joining the party by raising its profile in Europe. for example, Seoul, is selling major weapons platforms in Poland.
    • Australia eager to bring Europe in Indo pacific: Australia, which has joined the US and UK in the AUKUS arrangement, is equally eager to bring Europe into the Indo-Pacific.
    • Accelerated by Ukraine war: This process has been accelerated by Russia’s war in Ukraine and the alliance between Moscow and Beijing.

    The idea of Eurasia

    • Many used it as a neutral term: The idea of Eurasia is not new, many used it as a neutral term to describe the vast landmass that connected Europe and Asia.
    • Separate political spheres: Despite continental continuity, Europe and Asia emerged as separate political and cultural spheres over the millennia.
    • Russia as European and Asian: Russia, which straddles this space, saw itself as both a European and Asian power but had trouble becoming a part of either. When post-Soviet Russia’s effort to integrate with the West soured in the 2000s, it developed Eurasia and Greater Eurasia as new geopolitical constructs.
    • Putin’s Eurasian strategy: Consolidating the former Soviet space, restoring influence in Central Europe, building a strong alliance with China, and limiting Western influence in the continental heartland became part of Putin’s Eurasian strategy.

    China-Russia alliance

    • Altering geopolitical dynamics: Well before Kishida and South Korean President Yoon Suk-yeol turned to Europe, it was Xi Jinping and Vladimir Putin who altered the geopolitical dynamic in Eurasia.
    • Alliance without limits: Days before he ordered his armies into Ukraine, Putin travelled to Beijing last February to sign an agreement declaring an alliance without limits and no forbidden areas.
    • China’s tilt towards Russia: China, which had made a largely successful effort to cultivate Europe since the 1990s, deliberately avoided taking sides in Europe’s conflicts with Russia. But on the eve of the Ukraine war, Xi chose to tilt towards Moscow by blaming NATO for the crisis in Ukraine.
    • New kind of Eurasian alliance: Together, Putin and Xi unveiled a Eurasian alliance that they might have hoped would deliver the long-awaited coup de grace to the global hegemony of the West. What it did instead was to not only strengthen the Western alliance in Europe but also provide the basis for a new kind of Eurasia an alliance between China’s East Asian neighbours and Russia’s West European neighbours.

    What are the Challenges for India?

    • For India, the rise of Eurasia is making it harder to ride on two boats at the same time: Until now, India could easily hunt with the maritime coalition the Quad in the Indo-Pacific and run at the same time with the continental coalitions led by Russia and China.
    • US Europe and Japan on the one hand and China, Russia on the other: The conflict between the US, Europe, and Japan on the one hand and China and Russia on the other is now acute and shows no signs of immediate amelioration.
    • India’s security challenge on Himalayan frontier: On the downside, then, India’s mounting security challenges from China on the Himalayan frontier and the tightening embrace between Moscow and Beijing will mean the shadow over India’s continental strategy will become darker in the days ahead.
    • Strategic capabilities in partnership: On the upside, the possibilities for strengthening India’s strategic capabilities in partnership with the US and Europe as well as Japan, South Korea and Australia have never been stronger.

    Opportunities for India may include

    • Economic cooperation: Increased economic cooperation and trade between India and countries in Europe and Asia
    • India’s larger role in global affairs: The potential for India to play a larger role in regional and global affairs as a result of increased connectivity and cooperation
    • To address security concerns in Indo-Pacific: Opportunities for India to strengthen its ties with Japan and other countries in the region to address security concerns in the Indo-Pacific

    Conclusion

    • Japan’s strategy of promoting greater connectivity and cooperation between Europe and Asia could present both opportunities and challenges for India in terms of economic cooperation and geopolitical influence. India will have to carefully navigate and balance its relationships with various countries and groups in the region to maximize the opportunities and minimize the challenges.

    Mains question

    Q. Japan is now well on its way to changing the way we think about the relationship between Asia and Europe. In this backdrop discuss opportunities and challenges for India.

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Chinese hydro-hegemony over Brahmaputra

    brahmaputra

    India has planned to build a buffer reservoir in the proposed Arunachal hydropower project to counter China’s proposed 60,000 MW Medog hydropower project on the Brahmaputra River.

    Brahmaputra hydrology: A tool of aggression for China

    • China has continued to use the water of river Brahmaputra for its interest and has intentionally created hazardous conditions for downstream states like India and Bangladesh.
    • Concerns over China’s proposed 60,000 MW hydropower in Medog, Tibet are influencing the design of a proposed hydropower project in Arunachal Pradesh’s Upper Siang district.
    • Still only in the planning stage, a ‘pre-feasibility report’ on the 11,000 MW project, or more than five times the size of the largest such projects in India – has been submitted.

    What is Medog super-dam Project?

    • China is planning a mega dam in Tibet able to produce triple the electricity generated by the Three Gorges—the world’s largest power station.
    • The structure will span the Brahmaputra River before the waterway leaves the Himalayas and flows into India.
    • It is billed as able to produce 300 billion kilowatts of electricity each year and said to be largest dam in the world once completed.

    India’s plan: To build buffer reservoir

    • The design of the proposed project incorporates a buffer storage” of 9 billion cubic metres (or about 9 billion tonnes of water) during monsoonal flow.
    • This could act as a store of water worth a year’s flow that would normally be available from the Brahmaputra or buffer against sudden releases.

    Threats posed by Medog Project

    Chinese dams can hold large amounts of water, during times of droughts China could stop the flow of the river, jeopardizing the lives of millions of people in Arunachal Pradesh, Assam, and Bangladesh.

    • Reduced flow in the Brahmaputra: The 60,000 MW dam in Medog could reduce the natural flow of water from the Brahmaputra.
    • Triggering artificial floods: Away from India during lean patches, it might be used to trigger “artificial floods” in the Brahmaputra basin.
    • Degradation of the entire basin: Silt carried by the river would get blocked by dams leading to a fall in the quality of soil and eventual reduction in agricultural productivity.
    • Seismic threats: Seismologists consider the Himalayas as most vulnerable to earthquakes and seismic activity.
    • Ecological threats: The cumulative impact of these two megaprojects might aggravate ecological degradation, converting lotic ecosystems into lentic ones.
    • Water security: Damming Brahmaputra would result in water security in an era of unprecedented shifting climate patterns.
    • Catastrophic threat: Any damage to the mega dam, if constructed here, will cause dam breaching and consequent flood havoc in India and Bangladesh.

    Why are such issues unaddressed?

    • No treaty on water sharing: We do not have any bilateral or multilateral treaty or any other effective and formal instrument of understanding for collaborative management of the Brahmaputra River.
    • Hostility over borders: Undemarcated borders are at the core of all hostilities between India and China.

    India’s dilemma

    • Flood control dichotomy: India’s hydropower projects, while potentially beneficial in controlling flooding from the Brahmaputra in Assam and Arunachal Pradesh.
    • No deterrence to China: This might not necessarily serve as a strategic deterrent to China.
    • Resentment to Bangladesh: A large dam in India may help control floods within India but might open fresh disputes over water sharing with Bangladesh downstream.

    Way forward

    • There must be collaborative management of our shared rivers.
    • Hydro-diplomacy should form an important ingredient of Indian foreign policy, especially as India shares river basins with neighbors.

    Brahmaputra River

    brahmaputra

    • Origin → Chemayungdung Glacier (Kailash Range, Tibet)
    •     In Tibet, known as TSANG – PO
    •     In China, known as YARLUNG ZANBO
    •     Forms grand canyon in Tibet
    •     Turns southward near Namcha – Barwa
    •     Enters Arunachal Pradesh as Dihang River at Sadiya, emerging from the mountains
    •     Joined by Dibang river from the north & Lohit river from the south → Known as Brahamputra
    •     Turns at Dhubri to enter into Bangladesh
    •     After joining Teesta, known as Jamuna in BD
    •     Joins Ganga & Megna → Merges to BOB.
    •     Forms many river island of which Majuli is world 2nd largest one
    •     Major tributaries → Dihang, Lohit, Subansiri, Teesta, Meghna (Barack in Assam), Manas

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • World Economic Forum (WEF) Summit at Davos

    davos

    The World Economic Forum has begun its annual summit in Davos, Switzerland,

    World Economic Forum (WEF)

    • Headquartered in Geneva, Switzerland, WEF is an international not-for-profit organization, focused on bringing the public and private sectors together to address the global political, social, and economic issues.
    • It was founded in 1971 by Swiss-German economist and Professor Klaus Schwab in a bid to promote the global cooperation on these most pressing problems.
    • The first meeting of WEF was held more than five decades ago in Davos, which has been the home of the annual gathering almost ever since, also becoming the shorthand for the event.

    Tap to read more about important reports published by the World Economic Forum (WEF).

    WEF partners

    • The WEF is largely funded by its partnering corporations.
    • These are generally global enterprises with an annual turnover greater than $ 5 billion.
    • For these corporations, the WEF provides a platform “to shape the future, accessing networks and experts to ensure strategic decision-making on the most pressing world issues.”
    • Partners range from Apollo Tyres to Apple – they can be from any industry, as long as they wish to engage using WEF’s platforms.
    • WEF also partners with public subsidies.

    Why are the summits held at Davos?

    • Sometimes described as Europe’s highest town, Davos has been the venue for the WEF’s annual meeting every year since its inception – with one exception.
    • Davos, a ski resort, and the annual host of WEF’s meeting is a quaint town located on the lap of the Swiss Alps.
    • In many ways, it is a surprising choice for a meeting of global economic giants and geopolitical leaders.
    • The meeting was held in New York in 2002 in a gesture of solidarity following the 9/11 attacks.

    Who are the attendees and what actually happens in Davos?

    • Typically, Davos attracts global business executives and policymakers – and it’s strictly invite-only.
    • Usually attending will be the sitting U.S. president, top EU and UN leaders, business leaders and entrepreneurs, academics, heads of NGOs and charities, the media, activists and even some celebrities.
    • Donald Trump, Jens Stoltenberg, Ursula von der Leyen, Greta Thunberg, Elton John and many other high-profile names have all previously attended Davos.
    • The conference includes hundreds of discussions, keynote speeches and panels, and all-important networking sessions, usually behind closed doors in five-star hotels.
    • CEOs and investors seize the opportunity for face-to-face deal-makings.

    Davos 2023: What’s on this year’s agenda?

    • This year’s annual meeting in Davos will take place January 16–20, 2023.
    • The theme is “cooperation in a fragmented world” and within that are five sub-themes, including the energy and food crises, inflation, technology for innovation, social vulnerabilities and geopolitical risks.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • India-Egypt Relations

    ties

    Context

    • The decision to invite President Abdel Fattah al Sisi of Egypt as the Chief Guest on Republic Day is an important gesture and should go a long way in imparting fresh momentum to India’s ties with the largest country in the Arab world.

    Crack Prelims 2023! Talk to our Rankers

    What makes Egypt a pivotal player?

    • With a population of almost 110 million, a location that straddles Africa and Asia, a standing army that is the largest in the region, a capital that hosts the League of Arab States and a diplomatic presence that punches above its weight in global affairs, Egypt is a pivotal player.

    ties

    Why Egypt matter to India?

    • Close relationship immediately after Independence: It is a country with which India enjoyed an exceptionally close relationship in the first couple of decades after our independence.
    • Shipping route: The Sumed pipeline runs from Ain Sukhna on the Red Sea coast to Sidi Kerir on the Mediterranean coast in Egypt. It is an important sea route.
    • Shared vision of NAM: The personal equation between PM Nehru and President Nasser was legendary and the two also became the stalwarts of the non-aligned movement during the Cold War of the 1960s.
    • Joint fighter project: At the political level, the two countries were close enough for India to send clandestine arms shipments to Egypt during the Suez crisis in 1956 and contemplate nuclear cooperation and a joint fighter project in the 1960s.
    • Indian literature in Egypt: It was a time when Mahatma Gandhi and Rabindranath Tagore were household names and their works were translated into Arabic by leading figures of Arab literature.

    A drift for almost 30 years

    • The two countries drifted apart Particularly during President Hosni Mubarak’s long innings from 1981 to 2011.
    • According to diplomatic folklore, an apparently minor protocol gaffe over seating arrangements during the New Delhi NAM summit in 1983 was seen as a personal affront and it took all of 25 years before Mubarak could be persuaded to return to India in November 2008.

    ties

    Growing ties and willingness to work together 

    • Egypt showed its intent to work together: President Sisi came into power in 2014 and Egypt again showed its intent, first through his participation in the India-Africa Forum Summit in Delhi in 2015 and again through a state visit in 2016.
    • Back-to-back visits by India and emphasis on defence cooperation: Defence cooperation is clearly one of the themes and high-level exchanges over the last two years led to Desert Warrior, the first-ever joint tactical exercise by the air force of the two countries, with IAF sending five Mirage 2000 fighters and a refuelling aircraft to El Berigat Airbase in Egypt.
    • Egyptian interest in India’s Tejas and Dhruv: The Egyptians have also shown some interest in India’s Tejas fighter jets and Dhruv light attack helicopters, although this is still at a fairly preliminary stage.
    • Cooperation to counter hostilities: Equally important is the behind-the-scenes support provided by them in countering hostile moves by Pakistan at forums like the Organisation of Islamic Cooperation (OIC) and by refraining from making any adverse comment during the Nupur Sharma affair.
    • Mutual goodwill: Both countries also demonstrated mutual goodwill by helping each other at crucial times over the last two years.
    • Remdesivir supplied by Egypt to India: When India was hit hard by the second wave of COVID-19, Egypt responded by dispatching three plane loads of medical supplies and providing 300,000 doses of Remdesivir in May 2021.
    • India reciprocated by supplying wheat: India reciprocated a year later when Egypt, the world’s largest importer of wheat, was facing a dire situation following the abrupt halt in wheat shipments from Ukraine. The Indian response also paved the way for Egypt to visit India’s wheat growing areas and register India for regular wheat exports to the country.
    • Bilateral trade is well below the potential but it is growing: Bolstered by these tailwinds, bilateral trade has grown by almost 75 percent last year to touch US$ 7 billion, although this is well below the potential, given the size of the two economies. But it is Egypt’s emerging investment scenario that offers a more interesting opportunity.

    Current status of Egypt’s economy and India’s investment

    • Egypt’s economy is struggling: Growth in the non-oil sector has been anaemic, foreign exchange reserves have dwindled and the Egyptian pound has been in free fall, with the International Monetary Fund (IMF) administering a bitter dose of medicine to fix some of the problems.
    • Economic and administrative reforms: After several abortive starts and forced by the gravity of the economic crisis, the Egyptian government finally seems to be getting serious about implementing both economic and administrative reforms
    • Ease of doing business is welcomed by India: Indian companies have invested in Egypt and by and large, they have done well. Indian companies are positive in their feedback, with some saying quite candidly that after years of apathy, they are finally being heard and action is being taken to make ease of doing business a reality.
    • Plan to develop Suez Canal Economic zone into global manufacturing hub: The ambitious plans to develop the Suez Canal Economic Zone into a global manufacturing hub are now gathering critical mass. Gurgaon-based ReNew Power seems to be the first off the blocks from India and has signed an agreement to set up a Green Hydrogen facility. It is clearly driven by attractive tax incentives, cheap and abundant land, 365 days of sun to produce the solar energy needed for the electrolysers, and the strategic location that makes it easy to access the European markets.

    ties

    Way ahead to further improve the ties

    • For India, a deeper economic engagement with Egypt therefore acquires an additional strategic imperative.
    • While Egypt clearly needs to do more to market itself as an investment destination in India, it is also important for industry bodies like CII, FICCI and ASSOCHAM to take a more pro-active approach.
    • ReNew Power has shown the way but it will need a joint government-industry initiative to acquire the scale needed to make an impact.

    Conclusion

    • For now, there are clear indications that India under Prime Minister Modi and Egypt under President Sisi may finally be moving towards achieving some of the potential in bilateral ties that has remained unfulfilled for the last four decades.
  • Analyzing Multilateralism in Light of BIMSTEC

    Multilateral

    Context

    • While the efficacy of multilateral cooperation is often questioned amidst the compelling the politics of force and global power politics, the world simply does not yet have any other alternative to structured cooperation. Much like the progress and relevance of multilateral cooperation, the fate of BIMSTEC too needs to contextualized in a world order that demands action and resolve.

    Crack Prelims 2023! Talk to our Rankers

    What is BIMSTEC?

    • The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation: (BIMSTEC) is an international organisation of seven South Asian and Southeast Asian nations, housing 1.73 billion people and having a combined gross domestic product of US$4.4 trillion (2022).
    • Members: The BIMSTEC member states Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand are among the countries dependent on the Bay of Bengal.

    Present status of BIMSTEC

    • Poor connectivity and resources: On the one hand, the geographical limits of BIMSTEC suffer from poor intra-regional connectivity which is fundamental to enhancing economic engagement; on the other, the grouping itself is beleaguered by the lack of an institutional structure, operational blueprint, and financial resources.
    • New found interest: The BIMSTEC has indeed shown intent in recent years with member nations taking the first steps since the organisation’s inception towards according the latter agency, mobility, and funds.
    • Most recent activities: These include the adoption of a charter that accords the grouping a legal status; a reduction in the number of priority areas from 14 to seven pillars thereby allowing for more focused engagement, the signing of memorandums on technology transfer, diplomatic training and a master plan on connectivity all of which are of import to the grouping’s future as aspirational countries in a region that has already become the gravitational centre of global geopolitics.
    • Outcome of economic and political stability: The ‘renewed interest’ after remaining dormant for over two decades is attributed to the economic and political stability and growth that member states (barring Myanmar) have witnessed together with the world’s interest being directed towards the opportunities and Indo-Pacific and an increasingly hostile China.
    • BIMSTEC has lot of ground to cover: As a regional organisation, the BIMSTEC is, on paper, well-positioned to gear shared efforts towards the harnessing of economic, natural, and labour potential of member nations.

    Understanding the Multilateral cooperation/Multilateralism

    • Hybrid rather than binary affairs: An assessment of multilateralism has to move away from binary understandings of world architectures. They are in essence, hybrid affairs, combining universal aspirations such as human rights with a more prosaic system of managed competition. This format is here to stay.
    • Achieving common objectives through collective strengths: Multilateral organisations help as facilitators of regional objectives by pooling the strengths of members for advancement, as lobbying entities for regional aspirations and demands on the global stage functions which form the core purpose of these groupings. But multilateralism also suffers from its own set of drawbacks.
    • Political disagreements: Perhaps the biggest limitations of multilateral engagement are ineffectiveness and becoming unwieldy as they comprise several member countries in terms of certain types of decision-making, particularly, those which are political.
    • This is particularly true of large regional or global organisations, with ASEAN being the exception that proves the rule.
    • Mini-laterals: To mitigate this challenge, smaller and more focused undertakings began in recent years in the form of mini-lateral engagement to enable smaller, and more ‘like-minded’ nations to band together for function-based cooperation.
    • BBIN as an example: In the South Asian region, an example of mini-lateral engagement is the BBIN sub-regional framework which has, however, because of the operational complexities, continued to struggle.

    What should be the way forward?

    • Addressing the illegal migration: Multilateral forums also allow for united articulations of challenges unique to particular regions. Among the BIMSTEC’s common challenges are irregular migration, environmental degradation, transnational crimes, terrorism and insurgencies and drug trafficking, the efforts towards the mitigation of many of which, particularly the issue of migration and climate action, need the involvement of the world’s major powers.
    • Support through G20 presidency: India’s G20 presidency in 2023 offers a unique opportunity to leverage New Delhi’s enhanced position in global politics to usher support for BIMSTEC’s necessities and objectives.
    • Intent is stronger than hurdles: The success of groupings be it large or small rests on intent shown by members regardless of operational, financial, political or institutional constraints.
    • Finance, institutions and structure: A grouping that comprised members from what is frequently referred to as the least integrated region in the world, without sufficient financing, and devoid of institutional structures to guide its operations, there has been much to be concerned about regarding BIMSTEC. And yet, because the grouping has demonstrated intent, so far, BIMSTEC’s promise holds more sway than its impediments.

    Conclusion

    • BIMSTEC have suffered from lack of funding, dedicated institution and proper structuring of the grouping. Hopefully new mini-laterals (BBIN) will revive the BIMSTEC in much objective stronger and successful way. India should take the lead in revival of this multilateral forum.

    Mains Question

    Q. Analyze the present status of BIMSTEC. What are the weaknesses of BIMSTEC and suggest way forward?

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • If Japan goes nuclear, should India welcome the decision?

    nuclear

    Context

    • Japan’s National Security Strategy released in December is a remarkable document. Russia’s invasion of Ukraine, China’s assertive rise, and Democratic People’s Republic of Korea (DPRK-North Korea) provocations are listed as key developments creating for Japan the most severe and complex security environment since the end of the Second World War.

    Crack Prelims 2023! Talk to our Rankers

    nuclear

    What are Japan’s new concerns?

    • Chinese increasing military power: Unconstrained by bilateral or multilateral agreements, Chinese military power is noted as growing exponentially. In less than a decade, the Chinese nuclear arsenal would match numbers currently held by the US and Russia. Expectations are low that the US would have the will or the capacity to bring China to the arms control table.
    • DPRK is riding a runaway proliferation train: Having shaken off all the limits to its nuclear programme it pretended to accept during the Trump Administration, its nuclear programme is perhaps now unstoppable.
    • The inadequacy of its current defence posture and its military alliance with the US: As underlined by the document, extended deterrence including nuclear weapons is the cornerstone of the US-Japan alliance. Its success until now allowed Japan the luxury of its three nuclear no’s policy no production, possession, or introduction of nuclear weapons on its territory.

    nuclear

    What worries Japan in its future adequacy and the options

    • The stated option: The National Security Strategy calls for Japan to strengthen the deterrence and response capabilities of its alliance with the US, including extended deterrence by the US, backed by its full range of capabilities, including nuclear.
    • Possibility trends of nuclear-sharing by Japan: The unstated part is the possibility of nuclear-sharing by Japan. If implemented, this may be new to Asia but is a long-standing US practice with its key NATO allies in Europe. US willingness to share nuclear-powered submarines with Australia as part of AUKUS is an indicator of possible trends.
    • Possibility of Japan itself acquiring nuclear weapons: The document makes no reference to this. But there are references to the US – in Japan’s view the world’s greatest comprehensive power finding it increasingly difficult to maintain a free and open international order. Behind Japanese politeness, the message is clear.
    • Strategic autonomy in Japanese style: Significantly, the document adds that Japan would seek to strengthen its defence capabilities to the point at which Japan is able to take primary responsibility for its defence, without excluding support from the US.

    nuclear

    How India should view this development?

    • If Japan goes nuclear, India should welcome the decision: In our separate ways, India and Japan privileged nuclear disarmament as a priority. But there comes a time when this national preference must be subordinated to the demands of national security.
    • Understanding the reason: India reached this conclusion reluctantly but with good reason in 1998. If Japan were to reach the same conclusion, it too would have good reason to do so.
    • Ensuring self-defence capabilities and Upholding the sovereignty: Its technological capabilities are not in doubt. It is for Japan to exercise its inherent and inalienable right of ensuring the necessary means of self-defence. Thinking the unthinkable in terms of changing policy is an attribute of sovereignty, not its negation.

    Way ahead

    • Japan’s turn towards an explicit nuclear option will come, if at all, not out of choice but out of necessity.
    • Its strategic predicament, laid bare by the document, is compounded by the lack of easy answers, a predicament that India should view with sympathy and understanding of a fellow Asian country.
    • Japan is also a strong supporter of the NPT, and its derivative non-proliferation regime but it is also painfully aware that the NPT does precious little to constrain China, nor for that matter DPRK.
    • The gap between Japan’s security needs in a nuclearized world and its non-nuclear public sentiment was papered over in the past by US extended deterrence. It looks less likely that will be the case in the future.

    Conclusion

    • A multipolar Indo-Pacific can be truly multipolar only if Japan is assured of national defence through the means of its choosing. As a strategic partner and friend, we must keep faith that Japan will make the right decision at the right time.

    Mains question

    Q. Recently Japan released its National security strategy. In this backdrop discuss what concerns Japan and how India should view this development?

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • India’s role in chaotic world order

    India

    Context

    • As the great powers get at each other’s throats, the prospects for multilateral agreements have diminished. On both the economic and political fronts, the conflict among the major powers has sharpened. That makes India’s chairmanship of G20 more challenging.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    Historical understanding of major global events

    • Major wars and rebalancing: Major wars have always reshaped great power relations and rearranged the international system. Russia’s war against Ukraine will be no exception.
    • First world war: The First World War saw the collapse of the Ottoman, Austro-Hungarian, and the Russian empires. It also helped the Bolsheviks in Russia form the Soviet Union, gave birth to new nations in Europe, and accelerated the rise of Asian nationalism.
    • The Second World War: Hastened the demise of European colonialism and heralded the rise of the United States and the Soviet Union as the superpowers. Washington and Moscow managed an armed peace in a divided Europe during the Cold War. The process of decolonization saw the birth of a number of new nations in Asia and Africa.
    • The Cold War: It led to the collapse of the Soviet Union, undid its sphere of influence in East and Central Europe and led to the rise of the unipolar moment. The era of massive economic interdependence that followed the Cold War saw the rapid rise of China and a slower but definitive emergence of India as a major power.

    How Russia and China are colluding to change regional and global world order?

    • Asserting themselves against US: Moscow and Beijing, which were willing to acquiesce in the unipolar moment in the 1990s, began to assert themselves against the US-led international order in the 21st century. Europe focused on strengthening its economic and political integration, and sought greater strategic autonomy from the United States.
    • Apparent decline of USA: As they drew steadily closer over the last decade, Russia’s Vladimir Putin and China’s Xi Jinping bet that the apparent American decline was real and irreversible. That emboldened Putin to fancy his chances in ending Ukraine’s sovereignty.
    • China backed Russia against Europe: The seeming political disarray in the West also convinced Xi to back Putin’s attempt to reorder European regional security order. The partnership without limits and no forbidden areas of cooperation was unveiled less than three weeks before Putin invaded Ukraine on February 24, 2022.

    Outcome of Russia’s failed attempt to capture Ukraine

    • Only option is diplomacy: As the costs of war mount, the case for diplomacy will gain ground in 2023. While both sides talk about peace, they are also gearing up to fight through the harsh winter. Bridging that gulf between Russian and Ukrainian negotiating positions will occupy diplomacy in 2023.
    • Weaker Russia: Whatever the nature of the eventual settlement, Russia will come out weaker from this military misadventure. Putin’s attempts to eliminate Ukraine as an independent nation and roll back the eastward expansion of NATO have backfired. The war has consolidated Ukraine as a nation and NATO has expanded to include Sweden and Finland.
    • Self-defense Inability of Europe: The war has also demonstrated Europe’s inability to defend itself against Russia despite the EU’s economy being 10 times larger than that of Russia. But for now, and the near term, Europe will remain dependent on the US to defend it against an expansionist Russia. While Europe is weaker, trans-Atlantic NATO has become stronger.
    • US industries are winning: The US is emerging as a big winner from the Ukraine war. American oil companies are raking it in from high energy prices. US weapons like the HIMARS and its high technology companies like SpaceX with its Starlin satellite system and Palantir with its algorithms have actively shaped the battlefield in favour of Ukraine, the underdog in the war. Far more consequential is the fact that without being directly involved in the fight, the US is influencing the direction of the war and has the most leverage in defining the terms of peace in Ukraine.

    Impact of Chinese and Russian aggression on Mid-power countries

    • US as reliable partner: Thanks to the overreach of Putin and Xi, the US has become a valuable partner for the middle powers at the receiving end of Russian and Chinese bullying.
    • Eyeopener for Germany and Japan: Russian expansionism in Europe and Chinese aggressiveness in Asia have compelled Germany in Europe and Japan in Asia to boost their defence spending.
    • Regional security Policy: Poland in Europe and Australia and South Korea in Asia have embarked on ambitious regional security policies.

    What should be the approach of India?

    • India should rework its status: India that long relied on Russia to provide a regional balance of power will have to rework its great power sums. This should not be too hard, given India’s improving relations with the US and Europe and its focus on diversifying its defence partnerships.
    • Boosting the domestic capabilities: Delhi, however, will have to move much faster in developing the national capabilities and international partnerships to deter China’s aggressive actions on the border and balance Beijing’s power in the Indo-Pacific. Delhi certainly can’t take for granted that its current economic and political advantages will endure.
    • Prevent the breakdown of multilateral system: Finally, it is unlikely the world will return to the kind of multilateralism we got used to since the 1990s. India’s G20 leadership would be a success if it can prevent the complete breakdown of the multilateral system and generate major power consensus on a few issues.

    Conclusion

    • India should take the advantage of chaotic world order to strengthen itself. Indigenous military capabilities, double digit economic growth and securing core foreign policy interest should be the top priorities for India.

    Mains Question

    Q. Major wars in world have often culminated into rebalancing of international politics. Comment. What should be the India’s approach towards new emerging global order in the aftermath of Russia-Ukraine war?

    (Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more