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Subject: International Relations

  • Strategic cooperation between India, Italy and Japan can ensure a free Indo-Pacific

    Context

    Recently, Mr. Draghi, Italy’s Prime Minister described Chinese competitive practices as “unfair” and invited the EU to be franker and more courageous in confronting Beijing on various issues. Against this backdrop, a trilateral partnership between India-Japan-Italy could play important role in the Indo-Pacific region.

    India’s growing centrality in Indo-Pacific strategic architecture

    • Countries that share similar values and face similar challenges are coming together to create purpose-oriented partnerships.
    • In the context of the Indo-Pacific, the challenges posed by China’s assertive initiatives clash with a region lacking multilateral organisations capable of solving problems effectively.
    • But as a new pushback against China takes shape and as Indian foreign policy becomes strategically clearer, there is new momentum to initiatives such as the Quad.

    India-Italy-Japan trilateral partnership

    • Recently, Italy has also begun to signal its intention to enter the Indo-Pacific geography.
    • It has done so by seeking to join India and Japan in a trilateral partnership.
    • Italy has become more vocal on the risks emanating from China’s strategic competitive initiatives.
    • On the Indian side, there is great interest in forging new partnerships with like-minded countries interested in preserving peace and stability in the Indo-Pacific.
    • The responsibility of keeping the Indo-Pacific free and open, and working for the welfare of its inhabitants falls on like-minded countries within and beyond the region.

    Potential of trilateral partnership

    • Their compatible economic systems can contribute to the reorganisation of the global supply chains that is now being reviewed by many players as a natural result of the Chinese mismanagement of the COVID-19 pandemic.
    •  At the security level, the well-defined India-Japan Indo-Pacific partnership can easily be complemented by Italy.
    • At the multilateral level, the three countries share the same values and the same rules-based world view.

    The way forward for trilateral cooperation

    • The Italian government must formulate a clear Indo-Pacific strategy that must indicate its objectives.
    • But Rome must go beyond that in defining and implementing, at the margins of the EU’s common initiatives, its own policy with respect to the Indo-Pacific.
    • The India, Italy and Japan trilateral initiative can be a forum to foster and consolidate a strategic relationship between these three countries, and specifically expand India-Italy bilateral relations.
    • A trilateral cooperation can be the right forum for India and Italy to learn more from each other’s practices and interests and consolidate a strategic dialogue that should include the economic, the security and the political dimensions.
    •  To consolidate the trilateral cooperation in this field, the three countries need to define a common economic and strategic agenda.

    Conclusion

    A clear political will is needed from all sides, and Italy, in particular, should recognise its interests in playing a larger role towards the maintenance of a free and open Indo-Pacific. Robust India-Italy strategic ties can be the first step towards the realisation of this goal.

  • EAM hands over relics of 17th century Georgian Queen St. Ketevan to Georgia

    After a long-standing request of Georgia, External Affairs Minister handed over the holy relics of 17th century Georgian Queen St. Ketevan nearly 16 years after they were found in Goa.

    Who was St. Ketevan?

    • Queen Ketevan was a 17th century Georgian Queen.
    • From Kakheti, a kingdom in eastern Georgia, she was tortured and killed in 1624 in Shiraz during the rule of the Safavid dynasty.
    • Portuguese missionaries were said to have carried the relics to Goa in 1627.
    • In 2005, after years of research and study of medieval Portuguese records, the relics were found at the St. Augustine Church in Old Goa.

    Importance of Georgia for India

    • Georgia a strategically important country situated at the intersection of Eastern Europe and Western Asia.
    • Relations between Georgia and India date back to ancient times.
    • The Panchatantra influenced Georgian folk legends. During the medieval period, Georgian missionaries, travelers, and traders visited India.
    • Some Georgians served in the courts of Mughal emperors, and a few rose to the rank of governor.
    • India was among the first countries to officially recognize Georgia, doing so on 26 December 1991.
    • India is a net exporter to Georgia.
    • The main commodities exported by India to Georgia are cereals, nuclear reactors, boilers, machinery and mechanical appliances, pharmaceuticals, electrical machinery and equipment, aluminium and aluminium articles.

    Answer this PYQ in the comment box:

    Q.Consider the following pairs:

    Sea Bordering Country
    1. Adriatic Sea Albania
    2. Black Sea Croatia
    3. Caspian Sea Kazakhstan
    4. Mediterranean Sea Morocco
    5. Red Sea Syria

    Which of the pairs given above are correctly matched? (CSP 2019)

    (a) 1, 2 and 4 only

    (b) 1, 3 and 4 only

    (c) 2 and 5 only

    (d) 1, 2, 3, 4 and 5

  • Crafting a unique partnership with Africa

    This op-ed analyses the future of India-Africa cooperation in agriculture amid the looming Chinese involvement in African countries.

    Agricultural significance of Africa

    • With 65% of the world’s uncultivated arable land, employing over 60% of the workforce, and accounting for almost 20% of Sub-Saharan Africa’s GDP, agriculture is critical to Africa’s economy.

    China factor behind

    • As this relationship enters the post-pandemic world, it is vital to prioritize and channel resources into augmenting partnerships in agriculture.
    • This is crucial given its unexplored potential, centrality to global food security, business prospects and to provide credible alternatives to the increasing involvement of Chinese stakeholders in the sector.

    Analyzing Chinese engagement

    Chinese corporations, small and medium-sized enterprises and entrepreneurs adopt has provided a layered perspective of the sociopolitical, economic and environmental impact of Chinese engagement.

    • Trade: China is among Africa’s largest trading partners.
    • Credit facility: It is also Africa’s single biggest creditor.
    • Infrastructure: Its corporations dominate the region’s infrastructure market and are now entering the agri-infra sector.
    • Strategic support: While access to Africa’s natural resources, its untapped markets and support for ‘One China Policy’ are primary drivers of Chinese engagement with the region, there are other factors at play.

    China is going strategic in the guise of agriculture

    • Increasingly critical to China’s global aspirations, its engagement in African agriculture is taking on a strategic quality.
    • Chinese-built industrial parks and economic zones in Africa are attracting low-cost, labour-intensive manufacturing units that are relocating from China.
    • Chinese engineers interviewed spoke of how their operations in Africa are important to accumulate global experience in management, risk and capital investments.
    • Not only are they willing to overlook short-term profits in order to build a ‘brand China’, but they want to dominate the market in the long term, which includes pushing Chinese standards in host countries.
    • Chinese tech companies are laying critical telecommunications infrastructure, venture capital funds are investing in African fintech firms, while other smaller enterprises are expanding across the region.

    Agricultural landscape

    • While many Chinese entities have been active in Africa’s agriculture for decades now, the nature, form and actors involved have undergone substantial change.
    • In Zambia, Chinese firms are introducing agri-tech to combat traditional challenges, such as using drone technology to control the fall armyworm infestation.
    • They have set up over Agricultural Technology Demonstration Centers (ATDCS) in the continent where Chinese agronomists work on developing new crop varieties and increasing crop yields.
    • This ATDCs partner with local universities, conduct workshops and classes for officials and provide training and lease equipment to small holder farmers.
    • Chinese companies with no prior experience in agriculture are setting out to build futuristic ecological parks while others are purchasing large-scale commercial farms.

    Inducing their soft power

    • The exponential growth in the China-Africa economic ties and the emergence of Beijing as an alternative to traditional western powers have motivated change in perceptions across groups.
    • Governments and heads of state are recalibrating approaches, media houses are investing more resources for on-the-ground reporting.

    Dark Side of the Sino-Africa ties

    • Simultaneously, Africa-China relations are becoming complex with a growing, insular diaspora, lopsided trade, looming debt, competition with local businesses and a negative perception accompanied by greater political and socioeconomic interlinkages.
    • On occasion, there seems to be a gap between skills transferred in China and the ground realities in Africa.
    • In some cases, the technology taught in China is not available locally and in others, there is inability to implement lessons learnt due to the absence of supporting resources.
    • Larger commercial farms run by Mandarin-speaking managers and the presence of small-scale Chinese farmers in local markets aggravates socio-cultural stresses.

    India’s agricultural engagement

    • Diverse portfolios: India-Africa agricultural cooperation currently includes institutional and individual capacity-building initiatives, an extension of soft loans, supply of machinery, acquisition of farmlands and the presence of Indian entrepreneurs in the African agricultural ecosystem.
    • Land acquisition: Indian farmers have purchased over 6,00,000 hectares of land for commercial farming in Africa.
    • States cooperation: Sub-national actors are providing another model of cooperation in agriculture. Consider the case of the Kerala government trying to meet its requirement for cashew nuts with imports from countries in Africa.
    • Civil society: Similar ideas could encourage State governments and civil society organizations to identify opportunities and invest directly.
    • Agri-business: There is also promise in incentivizing Indian industries to tap into African agri-business value chains and connecting Indian technology firms and startups with partners in Africa.
    • Investment: In the past year, despite the pandemic, the sector witnessed a record increase in investments.

    Way forward

    • A thorough impact assessment needs to be conducted of the existing capacity-building initiatives in agriculture for India to stand in good stead.
    • This could include detailed surveys of participants who have returned to their home countries.
    • Country-specific and localized curriculum can be drawn up, making skill development demand-led.
    • In all senses, India has consistently chosen well to underline the development partnership to be in line with African priorities.
    • It is pertinent, therefore, that we collectively craft a unique modern partnership with Africa.

    Conclusion

    • While India’s Africa strategy exists independently, it is important to be cognizant of China’s increasing footprint in the region.
    • Beijing’s model, if successful here, could be heralded as a replica for the larger global south.
    • It is important to note, however, that prominent African voices have emphasized that their own agency is often overlooked in the global discourse on the subject.

  • India-Turkey relations

    As a new round of geopolitical jousting begins on India’s north-western frontiers, Delhi must deal with a number of new actors that have carved out a role for themselves in the region.

    Overambitious Turkey

    • Our focus today is on Turkey’s regional ambitions (particularly in Afghanistan) and their implications for India.
    • Ankara is in negotiations with the US on taking charge of the Kabul airport which is critical for an international presence in Afghanistan that is coming under the Taliban’s control.
    • Turkey has been running Kabul airport security for a while, but doing so after the US pullout will be quite demanding.
    • Taking a longer view, though, Turkey is not a new regional actor in India’s northwest.

    Turkey and Afghanistan

    • Ankara and Kabul have recently celebrated the centennial of the establishment of diplomatic relations.
    • Through this century, Turkey has engaged purposefully with Afghanistan over a wide domain.
    • While it joined the NATO military mission in Afghanistan after the ouster of the Taliban at the end of 2001, Turkey avoided any combat role and differentiated itself from the Western powers.
    • Ankara has contributed to the training of the Afghan military and police forces.
    • It has also undertaken much independent humanitarian and developmental work.

    Affinity with Pakistan

    • Turkey’s good relations with both Afghanistan and Pakistan have also given space for Ankara to present itself as a mediator between the warring South Asian neighbours.
    • Turkey’s “Heart of Asia” conference or the Istanbul Process has been a major diplomatic vehicle for attempted Afghan reconciliation in the last few years.
    • Widespread goodwill for Turkey in Afghanistan has now come in handy for the US in managing some elements of the post-withdrawal phase.
    • In Pakistan, PM Imran Khan has rallied behind Erdogan’s ambition to seize the leadership of the Islamic world from Saudi Arabia.
    • Pakistan’s Army Chief had to step in to limit the damage with Saudi Arabia, which has long been Pakistan’s major economic benefactor.

    Challenges for India

    • Turkey’s growing role in Afghanistan opens a more difficult phase in relations between Delhi and Ankara.
    • India’s opposition to alliances and Turkey’s alignments reflected divergent international orientations of Delhi and Ankara after the Second World War.
    • And Turkey’s deepening bilateral military-security cooperation with Pakistan made it even harder for Delhi to take a positive view of Ankara.
    • Turkey and Pakistan were part of the Central Treaty Organization (CENTO) that was set up in 1955 by the British.
    • Although CENTO eventually wound up in 1979, Turkey and Pakistan remained close partners in a number of regional organizations and international forums like the Organization of Islamic Cooperation.

    Pre-Erdogan era Turkey

    • The shared secular values between Delhi and Ankara in the pre-Erdogan era were not enough to overcome the strategic differences between the two in the Cold War.
    • To make matters more complicated, the positive legacy of the Subcontinent’s solidarity with the Ottoman Empire and the Turkish Republic, emerged out of its ruins in the early 20th century, accrued mostly to Pakistan.
    • There were moments — during the tenures of PM Rajiv Gandhi and Mr Vajpayee, when India and Turkey seemed poised for a more productive relationship.
    • But those have been rather few and far between.

    Turkey’s departure from Secularism

    • Meanwhile, Turkey’s Islamist internationalism under Recep Tayyip Erdogan has inevitably led to its deeper alliance with Pakistan, greater meddling in South Asia, and a sharper contraction with India.
    • The Pakistani prism through which Delhi has long seen Ankara, however, has prevented it from fully appreciating the growing strategic salience of Turkey.
    • Erdogan’s active claim for leadership of the Islamic world has seen a more intensive Turkish political, religious, and cultural outreach to the Subcontinent’s 600 million Muslims.

    Self-goals on Kashmir

    • Turkey has become the most active international supporter of Pakistan on the Kashmir question.
    • Delhi is aware of Erdogan’s hypocrisy on minority rights.
    • While pitching for self-determination in Kashmir, Erdogan actively tramples on the rights of its Kurdish minority at home and confronts them across Turkey’s border in Syria and Iraq.

    Other ambitions in Asia

    • Erdogan was quick to condemn the Bangladesh government’s hanging of a senior extremist leader in 2016.
    • But in a reflection of his strategic suppleness, Erdogan also offered strong political support for Dhaka on the Rohingya refugee crisis.
    • As Bangladesh emerges as an attractive economy, Ankara is now stepping up its commercial cooperation with Dhaka.
    • Turkey, which hosted the Caliphate in the Ottoman era, had natural spiritual resonance among the South Asian Muslims.

    Riving the Caliphate

    • With the abolition of the Caliphate in 1924, Turkey’s Westernization under Ataturk reduced its religious significance.
    • Erdogan’s Islamist politics are about regaining that salience.
    • Erdogan’s strategy marks the declining relevance of the old antinomies — between alliances and autonomy, East and West, North and South, Islam and the West, Arabs and the Jews — that so resonate with the traditional Indian foreign policy discourse.

    Stance on Israel

    • Turkey was the first Muslim-majority nation that established full diplomatic relations with Israel.
    • Erdogan now actively mobilizes the Arab and Islamic world against Israel without breaking relations with Tel Aviv.
    • Erdogan’s outrage on Israel is about presenting himself as a better champion of Palestine than his Arab rivals.

    India’s option against Turkey

    • India, which has been at the receiving end of Erdogan’s internationalism, has multiple options in pushing back.
    • The recent naval exercise between India and Greece in the Mediterranean offers a small hint of India’s possibilities in Turkey’s neighbourhood.
    • Many Arab leaders reject Erdogan’s policies that remind them of Ottoman imperialism.
    • They resent Erdogan’s support of groups like the Muslim Brotherhood that seek to overthrow moderate governments in the Middle East.
    • There is much that India can do to up its game in the Arab world.

    Lessons for India

    • The new fluidity in geopolitics in India’s extended neighbourhood to the west.
    • Agency for regional powers is growing as the influence of great power weakens.
    • Religious ideology, like the more secular ones, is a cover for the pursuit of power.
    • Finally, Erdogan has carefully modulated his confrontation with major powers by avoiding a breakdown in relations.

    Conclusion

    • For Erdogan, the choices are not between black and white. That should be a good guide for India’s own relations with Turkey.
    • Delhi needs to vigorously challenge Turkey’s positions where it must, seize the opportunities opened by regional resentments against Erdogan’s adventurism, and at the same time prepare for a more intensive bilateral engagement with Ankara.

  • What lies ahead for Afghanistan after US exit?

    The US troops are departing away after coordinating the 20-year-long war in Afghanistan, effectively ending their military operations in the country.

    Why did the US invade Afghanistan?

    • Weeks after the 9-11 terrorist attacks, the US declared war on Afghanistan.
    • It was then ruled by the Taliban.

    Terror then gets safe heaven

    • Al-Qaeda’s leaders and key operatives fled to safe havens in Pakistan.
    • The US rejected an offer from the Taliban to surrender and vowed to defeat the insurgents in every corner of Afghanistan.
    • In 2003, US announced that major military operations in the country were over.
    • The US focus shifted to the Iraq invasion, while in Afghanistan, western powers helped build a centralized democratic system and institutions.
    • But that neither ended the war nor stabilised the country.

    Why is the US pulling back?

    • The US had reached the conclusion long ago that the war was unwinnable.
    • It wanted a face-saving exit.

    What are the terms of US exit?

    • Before the Doha talks started, the Taliban had maintained that they would hold direct talks only with the US, and not with the Kabul government, which they did not recognize.
    • The US effectively accepted this demand when they cut the Afghan government off the process and entered direct talks with the insurgents.
    • The deal dealt with four aspects of the conflict — violence, foreign troops, intra-Afghan peace talks and the use of Afghan soil by terrorist groups such as al-Qaeda and the IS.
    • According to the agreement, the Taliban promised to reduce violence, join intra-Afghan peace talks and cut all ties with foreign terrorist groups, while the US pledged to withdraw all its troops.

    Present situation in Afghanistan

    • After the agreement was signed, the US put pressure on the Afghan government to release thousands of Taliban prisoners — a key Taliban precondition for starting intra-Afghan talks.
    • Talks between Taliban representatives and the Afghan government began in Doha in September 2020 but did not reach any breakthrough.
    • At present, the peace process is frozen. And the US is hurrying for the exit.
    • The Taliban reduced hostilities against foreign troops but continued to attack Afghan forces even after the agreement was signed.
    • Kabul maintains that the Pakistan support for the Taliban is allowing the insurgents to overcome military pressure and carry forward with their agenda.

    Pakistani role in reviving Taliban

    • Pakistan was one of the three countries that had recognized the Taliban regime in the 1990s.
    • The Taliban captured much of the country with help from Pakistan’s ISI.
    • After the 9/11 attacks, Pakistan’s military dictator Musharraf, under pressure from the Bush administration, cut formal ties with the Taliban and joined America’s war on terror.
    • But Pakistan played a double game. It provided shelter to the Talabani leaders and regrouped their organization which helped them make a staged comeback in Afghanistan.
    • Pakistan successfully expected these groups to launch terror activities against India.

    Again in the spotlight

    • A violent military takeover of Afghanistan by the Taliban may not serve Pakistan’s core interests.
    • It wants to check India’s influence in Afghanistan and bring the Taliban to Kabul.
    • But a violent takeover, like in the 1990s, would lack international acceptability, leaving Afghanistan unstable for a foreseeable future.
    • In such a scenario, Pakistan could face another influx of refugees from Afghanistan and strengthening of anti-Pakistan terror groups, such as the Tehrik-i-Taliban.
    • From a strategic point of view, Pakistan would prefer the Taliban being accommodated in power through negotiations and a peaceful settlement.
    • But it’s not clear whether Pakistan has the capacity to shape the post-American outcome in Afghanistan.

    Why is India reaching out to the Taliban?

    • India had made contacts with the Taliban in Doha. New Delhi has not denied reports of its outreach to the Taliban.
    • India has three critical areas in dealing with the Taliban:
    1. One, protecting its investments, which run into billions of rupees, in Afghanistan;
    2. Two, preventing a future Taliban regime from being a pawn of the ISI;
    3. Three, making sure that the Pakistan-backed anti-India terrorist groups do not get support from the Taliban.

    Is the Afghanistan government doomed?

    • The American intelligence community has concluded that Kabul could fall within six months.
    • None of the global leaders are certain about the survival of the Afghan government.

    Taliban is pacing its action

    • One thing is certain — the American withdrawal has turned the balance of power in the battleground in favour of the Taliban.
    • They are already making rapid advances, and could launch a major offensive targeting the city centers and provincial capitals once the last American leaves.

    Future of Afghanistan

    There seems three possibilities:

    1. One, there could be a political settlement in which the Taliban and the government agree to some power-sharing mechanism and jointly shape the future of Afghanistan. As of now, this looks like a remote possibility.
    2. Two, an all-out civil war may be possible, in which the government, economically backed and militarily trained by the West, holds on to its positions in key cities. This is already unfolding.
    3. A third scenario would be of the Taliban taking over the country.

    Any nation planning to deal with Afghanistan should be prepared for all three scenarios.

  • US puts Pakistan, Turkey on Child Soldier Recruiter List

    The US has added Pakistan and 14 other countries to a Child Soldier Recruiter List that identifies foreign governments having government-supported armed groups that recruit or use child soldiers.

    Who is a child soldier?

    • The recruitment or use of children below the age of 15 as soldiers is prohibited by the UN Convention on the Rights of the Child (CRC).
    • Currently, 193 countries have ratified the CRC.
    • The CRC requires state parties to “take all feasible measures” to ensure that children under 18 are not engaged in direct hostilities.
    • It further prohibits the state parties from recruiting children under 15 into the armed forces.
    • It is considered a war crime under the Rome Statute of the International Criminal Court.
    • In addition, the Optional Protocol to the CRC further prohibits kids under the age 18 from being compulsorily recruited into state or non-state armed forces or directly engaging in hostilities.
    • The United States is a party to the Optional Protocol.

    What is US law?

    • The US adopted the Child Soldiers Prevention Act (CSPA) in 2008.
    • The CSPA prohibits the US government from providing military assistance, including money, military education and training, or direct sales of military equipment, to alleged countries.

    What is prohibited for countries on the list?

    The following types of security assistance are prohibited for countries that are on the list:

    • Licenses for direct commercial sales of military equipment
    • Foreign military financing for the purchase of defence articles and services, as well as design and construction services
    • International military education and training
    • Excess defence articles
    • Peacekeeping operations

    Criticism of the treaty

    • International treaties like CRS are valuable and necessary tools to establish international norms as they raise awareness regarding human rights abuses.
    • However, these treaties are limited in scope and nature, and they tend to be idealistic rather than practicable.
    • The UN’s mechanisms only bind state parties that ratify the treaties.
    • It, therefore, has no authority over countries that are not parties to the convention or are non-state entities, such as rebel militias recruiting child soldiers.
    • While the UN views its treaties and conventions as binding on state parties, it has no police power mechanism to enforce its decisions.
    • Therefore, the CRC and its Optional Protocol are limited by the signatories’ willingness to comply. Somalia, for example, is a signatory but it hasn’t ratified the convention.

  • OPEC+ seeks consensus on oil output

    OPEC+ has failed to reach a deal on oil output policy because the United Arab Emirates blocked some aspects of the pact.

    About OPEC

    • OPEC is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
    • It is headquartered in Vienna, Austria.
    • OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
    • Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.

    What is OPEC+?

    • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
    • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
    • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

    Must read:

    [Burning Issue] Oil Prices and OPEC+

    Concerns for India

    • Rising oil prices are posing fiscal challenges for India, where heavily-taxed retail fuel prices have touched record highs, threatening the demand-driven recovery.
    • India imports about 84% of its oil and relies on West Asian supplies to meet over three-fifths of its demand.
    • As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery.
    • This would hurt consumers, especially in our price-sensitive market.

    Answer this PYQ in the comment box:

    Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of (CSP 2020):

    (a) Crude oil

    (b) Bullion

    (c) Rare earth elements

    (d) Uranium

  • OECD-G20 Inclusive Framework Tax Deal

    India has joining the OECD-G20 framework for a global minimum tax.

    Must read

    What is Global Minimum Corporate Tax?

    What is this tax deal?

    • The proposed solution consists of two components:
    1. Pillar One is about the reallocation of an additional share of profit to the market jurisdictions and
    2. Pillar Two consists of minimum tax and subject to tax rules
    • Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed.
    • Further, the technical details of the proposal will be worked out in the coming months and a consensus agreement is expected by October.

    Why did India join?

    • The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets, consideration of demand-side factors in profit allocation.
    • There is a need to seriously address the issue of cross border profit shifting and need for the subject to tax rules to stop treaty shopping.
    • India is in favour of a consensus solution that is simple to implement and simple to comply with.
    • At the same time, the solution should result in the allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies.

    What is Base Erosion and Profit Shifting (BEPS)?

    • BEPS refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions.
    • It thus “erodes” the “tax base” of the higher-tax jurisdictions.
    • Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven.
    • It is alleged that BEPS is associated mostly with American technology and life science multinationals.

  • India-Africa relations

    The article deals with India’s strategy to deepen the ties with African nations and suggest a critical review of the implementation of India’s strategy.

    Need for review of India’s foreign policy for Africa

    • Africa is considered a foreign policy priority by India.
    •  Even as the COVID-19 era began in March 2020, New Delhi took new initiatives to assist Africa through prompt despatch of medicines and later vaccines.
    • But now the policy implementation needs a critical review.

    Four factors that explain need for a review of policy implementation

    1) Declining trade

    • Declining trade: Bilateral trade valued at $55.9 billion in 2020-21, fell by $10.8 billion compared to 2019-20, and $15.5 billion compared to the peak year of 2014-15.
    • Decline in investment: India’s investments in Africa too saw a decrease from $3.2 billion in 2019-20 to $2.9 billion in 2020-21.
    • The composition of the India-Africa trade has not changed much over the two decades.
    • Mineral fuels and oils, (essentially crude oil) and pearls, precious or semi-precious stones are the top two imports accounting for over 77% of our imports from Africa.
    • India’s top five markets today are South Africa, Nigeria, Egypt, Kenya and Togo.
    • The countries from which India imports the most are South Africa, Nigeria, Egypt, Angola and Guinea.

    2) Covid impact

    • COVID-19 has brought misery to Africa.
    • As on June 24, 2021, Africa registered 5.2 million infections and 1,37,855 deaths.
    • A recent World Health Organization survey revealed that 41 African countries had fewer than 2,000 working ventilators among them.
    • Despite these shortcomings, Africa has not done so badly.
    •  Sadly though, with much of the world caught up in coping with the novel coronavirus pandemic’s ill effects, flows of assistance and investment to Africa have decreased.
    • While China has successfully used the pandemic to expand its footprint by increasing the outflow of its vaccines.
    • Unfortunately India’s ‘vax diplomacy’ has suffered a setback. 

    3) Global competition for influence

    • Africa experienced a sharpened international competition, known as ‘the third scramble’, in the first two decades of the 21st century.
    • A dozen nations from the Americas, Europe and Asia have striven to assist Africa in resolving the continent’s political and social challenge.
    • These nations, in turn, stand to benefit from Africa’s markets, minerals, hydrocarbons and oceanic resources, and thereby to expand their geopolitical influence.

    4) Geopolitical tensions in Asia

    • Geopolitical tensions in Asia and the imperative to consolidate its position in the Indo-Pacific region have compelled New Delhi to concentrate on its ties with the United Kingdom, the EU, and the Quad powers, particularly the U.S.
    • Consequently, the attention normally paid to Africa lost out.
    • This must now change.

    Way forward for India-Africa relation

    • For mutual benefit, Africa and India should remain optimally engaged.
    • The third India-Africa Forum Summit was held in 2015.
    • The fourth summit, pending since last year, should be held as soon as possible, even if in a virtual format.
    • Fresh financial resources for grants and concessional loans to Africa must be allocated, as previous allocations stand almost fully exhausted.
    • The promotion of economic relations demands a higher priority.
    • Industry representatives should be consulted about their grievances and challenges in the COVID-19 era.
    • To impart a 21st-century complexion to the partnership, developing and deepening collaborations in health, space and digital technologies is essential.
    • India should continue its role in peacekeeping in Africa, in lending support to African counter-terrorism operations, and contributing to African institutions through training and capacity-enhancing assistance.
    • To overcome the China challenge in Africa, increased cooperation between India and its international allies, rates priority.
    • The recent India-EU Summit has identified Africa as a region where a partnership-based approach will be followed.
    •  When the first in-person summit of the Quad powers is held in Washington, a robust partnership plan for Africa should be announced. 

    Conclusion

    India should review the policy implementation and make changes in line with the changing geopolitical realities.

  • Places in news: Black Sea

    Russia accused Britain of spreading lies over a warship confrontation in the Black Sea.

    What is the issue?

    • Russia annexed Ukraine’s Crimean Peninsula in 2014, a move that was not recognized by most countries in the world.
    • Russia has frequently responded at NATO warships visits near Crimea, casting them as destabilizing.
    • NATO members Turkey, Greece, Romania and Bulgaria are in the Black Sea, but warships from the US, UK and other NATO allies also have made increasingly frequent visits in a show of support to Ukraine.

    About Black Sea

    • The Black Sea is a marginal sea of the Atlantic Ocean lying between Europe and Asia; east of the Balkans (Southeast Europe), south of the East European Plain in Eastern Europe, west of the Caucasus, and north of Anatolia in Western Asia.
    • It is supplied by major rivers, principally the Danube, Dnieper, and Don.
    • The watersheds of many countries drain into the sea beyond the six that share its coast.
    • The Black Sea is bordered by Bulgaria, Georgia, Romania, Russia, Turkey, and Ukraine.

    Must answer this PYQ in the comment box:

    Q.Consider the following pairs:

    Sea

    Bordering country
    1. Adriatic Sea Albania
    2. Black Sea Croatia
    3. Caspian Sea Kazakhstan
    4. Mediterranean Sea Morocco
    5. Red Sea Syria

    Which of the pair given above are correctly matched? (CSP 2020)

    (a) 1, 2 and 4 only

    (b) 1, 3 and 4 only

    (c) 2 and 5 only

    (d) 1, 2, 3, 4 and 5