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Subject: International Relations

  • Financing economic recovery

    The article analyses the issue of socioeconomic disruption caused by the pandemic and response by regionally coordinated response to it.

    Context

    • With continued lockdown measures and restricted borders, countries in Asia and the Pacific have been experiencing sharp drops in foreign exchange inflows due to declines in export earnings, remittances, tourism and FDI.

    Financing 3 key areas by the U.N.

    • The United Nations is contributing through a global initiative, Financing for Development in the Era of COVID-19 and Beyond.
    • The initiative aims at comprehensive financing strategy to safeguard the Sustainable Development Goals.
    • Governments are united to ensure that adequate financial resources are available to steer an inclusive, sustainable and resilient post-COVID-19 recovery.
    • In the Asia-Pacific region, several countries have already adopted financing plans in following three key areas.
    • 1) To address the challenge of diminished fiscal space and debt vulnerability 2) To ensure sustainable recovery, consistent with the ambitions of the Paris Agreement and the 2030 Agenda 3) To harness the potential of regional cooperation in support of financing for development.

    Regional Conversation series by ESCAP

    • The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has recently launched its first-ever Regional Conversation Series on Building Back Better.
    • In this series ministers, decision-makers, private sectors and heads of international agencies participate.
    • Their participation results in sharing of collective insights on sharing pathways to resilient recovery from health pandemic and economic collapse.

    Debt Service Suspension initiative

    • To manage high levels of debt distress global initiatives like the Debt Service Suspension initiative is timely.
    • Central banks can continue to keep the balance of supporting the economy and maintaining financial stability.
    • This further involves enhancing tax reforms and improving debt management capacities, while using limited fiscal space to invest in priority sectors.
    • Exploring sustainability-oriented bonds and innovative financing instruments options such as debt swaps for SDG investment should be explored further.
    • Policy paradigm must mainstream affordable, accessible and green infrastructure standards.
    • We should also scale up the use of digital technology and innovative applications.
    • The financing support of micro, small and medium-sized enterprises must go hand in hand with these national job-rich recovery strategies.

    Role of regional cooperation

    • Regionally coordinated financing policies can restart trade, reorganise supply chains and revitalise sustainable tourism in a safe manner.
    • Across Asia and the Pacific, governments must pool financial resources to create regional investment funds.
    • Role of egional cooperation platforms to ensure  all countries receive an equitable number of doses of the vaccine is essential.

    Conclusion

    Through ESCAP, we can scale these efforts across the region, working closely with our member states, the private sector and innovators to build a collective financing response to mobilise the necessary additional resources.

  • Chushul Valley and its Significance

    The Chushul sub-sector has come into focus in the standoff between the Indian and PLA troops.

    Tap to read more about Himalayan River System

    What is the Chushul Valley?

    • The Chushul sub-sector lies south of Pangong Tso in eastern Ladakh.
    • It comprises high, broken mountains and heights of Thatung, Black Top, Helmet Top, Gurung Hill, and Magger Hill besides passes such as Rezang La and Reqin La, the Spanggur Gap, and the Chushul valley.
    • Situated at a height of over 13,000 feet close to the LAC, the Chushul Valley has a vital airstrip that played an important role even during the 1962 War with China.

    What is its strategic importance to India?

    • Chushul is one among the five Border Personnel Meeting points between the Indian Army and the People’s Liberation Army of China.
    • It enjoys tremendous strategic and tactical importance because of its location and terrain, which make it a centre for logistics deployment.
    • This sector has plains that are a couple of km wide, where mechanized forces, including tanks, can be deployed. Its airstrip and connectivity by road to Leh add to its operational advantages.
    • Indian troops have now secured the ridgeline in this sub-sector that allows them to dominate the Chushul bowl on the Indian side, and Moldo sector on the Chinese side.
    • They also have a clear sight of the almost 2-km-wide Spanggur gap, which the Chinese used in the past to launch attacks on this sector in the 1962 War.

    How is Chushul important to China?

    • Simply put, Chushul is the gateway to Leh. If China enters the Chushul, it can launch its operations for Leh.
    • After the initial attacks, including on the Galwan valley by the Chinese in October 1962, the PLA troops prepared to attack Chushul airfield and the valley to get direct access to Leh.
    • However, just before the attacks were launched, the area was reinforced by the 114 Brigade in November 1962, which also had under its command two troops of armour and some artillery.

    What are the challenges in this area?

    • An immediate challenge is of a flare-up as troops of the two countries are deployed within a distance of 800 to 1,000 metres of each other at Black Top and Reqin La.
    • Logistics also pose a major challenge. There is a need to carry water and food to the top which soldiers cannot do.
    • The harsh winter that lasts for eight months of the year poses a big challenge.
    • It is very difficult to dig in and make shelters on the ridgeline. The temperature falls to minus 30 degrees Celsius, and there are frequent snowstorms.

  • What is the 13th Amendment to the Sri Lankan Constitution, and why is it contentious?

    After the Rajapaksas’ win in the November 2019 presidential polls and the August 2020 general election, the spotlight has fallen on two key legislations in Sri Lanka’s Constitution.

    Sri Lankan amendments in news

    • One, the 19th Amendment was passed in 2015 to curb powers of the Executive President, while strengthening Parliament and independent commissions.
    • The Rajapaksa government has already drafted and gazetted the 20th Amendment.
    • The other legislation under sharp focus is the 13th Amendment passed in 1987, which mandates a measure of power devolution to the provincial councils established to govern the island’s nine provinces.

    What is the 13th Amendment?

    • It is an outcome of the Indo-Lanka Accord of July 1987, signed by the then PM Rajiv Gandhi and President J.R. Jayawardene, in an attempt to resolve the ethnic conflict and civil war.
    • The 13th Amendment, which led to the creation of Provincial Councils, assured a power-sharing arrangement to enable all nine provinces in the country, including Sinhala majority areas, to self-govern.
    • Subjects such as education, health, agriculture, housing, land and police are devolved to the provincial administrations.
    • But because of restrictions on financial powers and overriding powers given to the President, the provincial administrations have not made much headway.
    • In particular, the provisions relating to police and land have never been implemented.

    Why is it contentious?

    • The 13th Amendment carries considerable baggage from the country’s civil war years. It was opposed vociferously by both Sinhala nationalist parties and the LTTE.
    • The opposition within Sri Lanka saw the Accord and the consequent legislation as an imprint of Indian intervention.
    • It was widely perceived as an imposition by a neighbour wielding hegemonic influence.
    • The Tamil polity, especially its dominant nationalist strain, does not find the 13th Amendment sufficient in its ambit or substance. However, some find it as an important starting point, something to build upon.

    Why is it significant?

    • Till date, the Amendment represents the only constitutional provision on the settlement of the long-pending Tamil question.
    • In addition to assuring a measure of devolution, it is considered part of the few significant gains since the 1980s, in the face of growing Sinhala-Buddhist majoritarianism.

    Its criticism

    • Critics argue that in a small country, the provinces could be effectively controlled by the Centre.
    • The opposition camp also includes those fundamentally opposed to sharing any political power with the Tamil minority.
    • All the same, all political camps that vehemently oppose the system have themselves contested in provincial council elections.
    • The councils have over time also helped national parties strengthen their grassroots presence and organisational structures.

  • International Criminal Court (ICC)

    The U.S. has announced sanctions including asset freezes and visa bans against two officials of the International Criminal Court (ICC) at The Hague.

    International Criminal Court

    • The ICC is an intergovernmental organization and international tribunal that sits in The Hague, Netherlands.
    • It is the first and only permanent international court with jurisdiction to prosecute individuals for the international crimes of genocide, crimes against humanity, war crimes, and the crime of aggression.
    • It is intended to complement existing national judicial systems and it may therefore exercise its jurisdiction only when national courts are unwilling or unable to prosecute criminals.
    • The ICC lacks universal territorial jurisdiction, and may only investigate and prosecute crimes committed within member states, crimes committed by nationals of member states, or crimes in situations referred to the Court by the UNSC.

    Issues with ICC

    The ICC has faced a number of criticisms from states and society, including objections about-

    • its jurisdiction, accusations of bias, questioning of the fairness of its case-selection and trial procedures, and doubts about its effectiveness

    Implications of US sanction

    • The US action is perceived as a setback to the international rules-based multilateral order, and the decision to sanction anybody assisting the ICC will deter victims of violence in Afghanistan from speaking out.
    • The unilateral sanctions would encourage other regimes accused of war crimes to flout the ICC’s rulings.

    B2BASICS

  • Non-War Military Tactics used by China

    An annual report from the U.S. Department of Defense describes Chinese leaders’ use of tactics short of armed conflict to further the country’s objectives, citing border conflicts with India and Bhutan among the examples.

    Try this question:

    Q. What are Non-War Military Activities (NWMA)? Discuss how China is using NWMA as a tool for its overtly ambitious expansionist policy.

    Various non-war military tactics

    The report describes Non-War Military Activities (NWMA) as one of two kinds of military operations (the other is war) used by the PLA. NWMA can be conducted internationally or domestically and encompass activities in multiple domains.

    (1) Provoking armed conflict

    • China calibrates its coercive activities to fall below the threshold of provoking conflict with the United States, its allies and partners, or others in the Indo-Pacific region.
    • It can notably include operations in which the PLA uses coercive threats and/or violence below the level of armed conflict against states and other actors to safeguard its expansionism.
    • These tactics are particularly evident in China’s pursuit of its territorial and maritime claims in the South and East China Seas as well as along its border with India and Bhutan.

    (2) Neo-imperialist tools

    • China also employs non-military tools coercively, including economic tools during periods of political tensions with countries that China accuses of harming its national interests.
    • The Belt and Road Initiative is leading to a greater overseas military presence for China in the guise to protect its economic interests.

    (3) Multilateralism as a strategic messaging tool

    • The report says that China uses multilateral forums and international organisations to generate new opportunities to expand its influence, strengthen its political influence.
    • It promotes strategic messaging that portrays China as a responsible global actor, advances its development interests, and limit outside interference in and criticism of its initiatives.
    • The Brazil Russia India China South Africa (BRICS) grouping and Shanghai Cooperation Organization are among those cited as examples of this alleged phenomenon.

  • India needs an internationalism that is rooted in realism

    The article analyses India’s approach towards regional integration in Asian unity and internationalism and its consequences.

    Clash between internationalism and nationalism

    • Three current developments reveal the clash between grandiose internationalism and the intractable nationalism.
    • 1) India pulled out of the military exercise of the Shanghai Cooperation Organisation, which was to herald a new era of Eurasian unity.
    • Sharpening contradictions between India and China comes in the way of uniting such a large geopolitical space.
    • 2) Turkish President Recep Tayyip Erdogan’s claim to leadership of the Muslim world that has run into resistance from a large section of the Arab rulers.
    • 3) The tension between the globalism of the US foreign policy establishment and Donald Trump’s “America First” nationalism.

    Internationalism and threats to it

    • Western liberalism has had more power than anyone else to promote internationalism.
    • But the liberal internationalist effort at constructing supra-national institutions now faces big setbacks.
    • The greatest resistance to the liberal internationalist vision has not come within the US.
    • Trump channelled the American resentments against the globalist excesses of the Wall Street, Washington and the Silicon Valley.

    India’s nationalism

    • Indian nationalism was inevitably influenced by liberal internationalism, socialism, communism, pan-Islamism, pan-Asianism and Third-Worldism to name a few.
    • Both the Asian Relations Conference (Delhi 1947) and the Afro-Asian Conference (Bandung 1955) showed up the deep differences among the Asian elites.
    • India then turned its back on Asianism to claim the leadership of the broader Non-Aligned Movement.
    • After the Cold War, India re-embraced Asianism in the 1990s when it unveiled the Look East Policy.
    • India also joined the Asian regional institutions led by the Association of South-East Asian Nations.

    RCEP joining issue

    • Few could have anticipated that Delhi would walk out of one of the most consequential agreements negotiated by the ASEAN — the RCEP — that sought Asia-wide economic integration.
    • Delhi believed that the contradiction between India’s domestic commercial interests and a China-led Asian economic regionalism was irreconcilable.

    India’s approach toward Asian regionalism

    • Eurasian regionalism led by Moscow and Beijing is also facing tensions and there is deepening conflict between Indian and Chinese interests.
    • India’s diplomatic finesse on the SCO has become increasingly unsustainable after Chinese aggression in eastern Ladakh.
    • India underestimated the economic and political consequences of China’s rapid rise while seeking economic regionalism in East Asia and the multi-polar world with Russia and China.
    • India took a benign view of Chinese power and has been shocked to discover otherwise in 1962 and in 2020.

    Conclusion

    India today needs more internationalism, than less, in dealing with the Chinese power. But it must be an internationalism that is rooted in realism and tethered to India’s economic and national security priorities.

  • Supply Chain Resilience Initiative (SCRI)

    With COVID-19 and trade tensions between China and the US threatening supply chains or actually causing bottlenecks, Japan has mooted the Supply Chain Resilience Initiative (SCRI) as a trilateral approach to trade, with India and Australia as the other two partners.

    Q.Discuss the efficacy of the idea of Supply Chain Resilience Initiative (SCRI) initiaited by Japan.

    What is Supply Chain Resilience (SCR)?

    • In the context of international trade, SCR is an approach that helps a country to ensure that it has diversified its supply risk across a clutch of supplying nations instead of being dependent on just one or a few.
    • Unanticipated events whether natural or man-made that disrupt supplies from a particular country or even intentional halts to trade, could adversely impact economic activity in the destination country.

    What is Japan proposing?

    • The pandemic has brought into sharp focus the assembly lines which are heavily dependent on supplies from one country.
    • While Japan exported $135 billion worth of goods to China in 2019, it also imported $169 billion worth from the world’s second-largest economy, accounting for 24% of its total imports.
    • So, any halt to supplies could potentially impair economic activity in Japan.
    • In addition, the U.S.-China trade tensions have caused alarm in Japanese trade circles for a while now.
    • If the world’s two largest economies do not resolve their differences, it could threaten globalisation as a whole and have a major impact on Japan.
    • It is heavily reliant on international trade both for markets for its exports and for supplies of a range of primary goods from oil to iron ore.

    Japan eyeing India as a partner for the SCRI

    • Japan is the fourth-largest investor in India with cumulative FDIs touching $33.5 billion in the 2000-2020 periods.
    • It accounts for 7.2% of inflows in that period, according to quasi-government agency India Invest.
    • Imports from Japan into India more than doubled over 12 years to $12.8 billion in FY19. Exports from India to the world’s third-largest economy stood at $4.9 billion that year, data from the agency showed.
    • It is a clear reflection that the two countries are unlikely to allow individual cases to cloud an otherwise long-standing and deepening trade relationship.

    Where does Australia stand?

    • Australia, Japan and India are already part of another informal grouping, the Quadrilateral Security Dialogue, or the Quad, which includes the U.S.
    • Media reports indicate that China has been Australia’s largest trading partner and that it counts for 32.6% of Australia’s exports, with iron ore, coal and gas dominating the products shipped to Asia’s largest economy.
    • But relations including trade ties between the two have been deteriorating for a while now.
    • China banned beef imports from four Australian firms in May and levied import tariffs on Australian barley.

    India’s stand to gain or lose

    • Following the border tensions, partners such as Japan have sensed that India may be ready for dialogue on alternative supply chains.
    • Earlier, India would have done little to overtly antagonize China. But an internal push to suddenly cut links with China would be impractical.
    • China’s share of imports into India in 2018 stood at 14.5%. It supplies dominate segments of the Indian economy.
    • Sectors that have been impacted by supply chain issues arising out of the pandemic include pharmaceuticals, automotive parts, electronics, shipping, chemicals and textiles.
    • Over time, if India enhances self-reliance or works with exporting nations other than China, it could build resilience into the economy’s supply networks.

  • Striving for amicable relations with Pakistan

    The article pitches for the resumption of India-Pakistan relations. But there are obstacles on both the side which come in the way of such resumption.

    Pakistan and relations over Kashmir issue

    •  In July, the Turkish president had assured Pakistan’s parliament of his country’s support for Islamabad’s Kashmir stand.
    • More recently, Malaysia’s former Prime Minister, Mahathir Mohamad, has reiterated his backing for that stand.
    • Iran’s current negotiations with China do not necessarily mean alignment with the latter’s Kashmir policy.
    • Saudi Arabia and the Gulf countries invited official criticism in Pakistan first time for their refusal to back Pakistan in its disputes with New Delhi.
    • Pakistan’s foreign minister had made a remark against Saudi Arabia over its reluctance to convene the meeting of IOC.
    • Given the long history of Saudi-Pakistani relations, such remarks suggest a high degree of frustration.

    India’s vulnerabilities and relations with Pakistan

    • An excess of confidence and an unwillingness to think things through may be India’s vulnerabilities.
    • Army’s chief of staff made the statement this year, “If Parliament wants that area [PoK] should be ours at some stage, and if we get such orders, we will definitely act on those directions.”
    • Prime Minister made the statement regarding time of a week to 10 days to defeat the neighbouring country in case of war.

    Picturing resumption of relations with Pakistan

    • In case of war, aware of the total devastation to follow, neither side in an India-Pakistan conflict will press the nuclear button.
    • On the other hand, it is also possible, before any war, to imagine negotiations that lead, not necessarily in that order, to a resumption of trade, travel and normal relations, the renunciation of terrorism, and the restoration of the democratic rights of the people of Kashmir.
    • While no realistic person today expects such talks, it is not a crime to picture them.

    Conclusion

    Amicable relations with Pakistan may seem remote but they are worth striving for.

  • Leveraging its market to force China to settle border issue

    The article charts out the plan to leverage the potential and the present size of the India markets to settle the boundary dispute with China.

    Boycott of Chinese goods: view and counterview

    • After Galwan incident, there have been calls for the boycott of Chinese goods.
    • Counter views have been expressed that the Indian economy is so dependent on China that the costs would be disproportionately higher for India.
    • Our dependence can be reduced substantially if there is a national will and resolve to do so.

    Need for mutually acceptable boundary agreement

    • China may not be willing to go back substantially from the areas they have occupied.
    • Agreeing on maintaining peace and tranquillity or clarification of the LAC has left space for the Chinese to create border incidents which have now led to casualties.
    • So India needs to get China to seriously negotiate a mutually acceptable boundary agreement.

    India could use its market as leverage

    • Size of Indian market: The size of the Indian market and its potential in the coming years provides India considerable leverage.
    • But to use this leverage, Indians, individual consumers as well as firms, have to accept that there would be a period of adjustment in which they would have to pay higher prices.
    • The Chinese have a competitive advantage and are integral to global supply chains.
    • But whatever they sell is, and can be, made elsewhere in the world.
    • Indian can produce everything imported by China: Most of what we import from China was, is and can be made in India itself.
    • With volumes and economies of scale, the cost of production in India would decline as it did in China.

    Steps need to be taken to use market as leverage

    • Focus on those imports from China which have been increasing: The initial focus should be on items which are still being made in India and where imports from China have been increasing.
    • Depriciate Rupees: If the RBI let the currency depreciate in real terms it would be equivalent to an increase in import duties of about 10 per cent.
    • China-specific safeguard duties and use of non-tariff trade barriers should be used in segments like electrical appliances to let Indian producers expand production and increase market share.
    • Government Finances for expansion: The government should also facilitate the flow of finances for expansion and provide technical support for testing, improving quality and lowering costs of production.
    • Look for other players: In critical areas such as Active Pharmaceutical Ingredients, we need a vigorous approach to procure from elsewhere and have early production in India.
    • The government could provide support for environmental compliance to bring down costs of production.This would create demand for domestic goods and services.
    • There are strategic sectors where we should reduce vulnerability: Like scrutiny of -Chinese FDI, Chinese 5G participation etc.
    • Assured government procurement: In critical areas like solar panel and grid storage batteries private investment for manufacturing in India would be triggered by assured government procurement.

    Consider the question “Size and potential of India market could be leverage by India to settle the issues it has with its neighbour. What India needs to achieve this is a strategy and its implementation. Comment.”

    Conclusion

    A sustained and graded economic response to the recent Chinese conduct on the border is needed. We should signal India’s firm resolve and willingness to bear the cost. China could choose to settle the border amicably and have full access to our market. We could then work together to make this the Asian century.

  • BRICS Innovation Base for 5G and AI Technology

    China has made a proposal to create what it has termed a BRICS innovation base to take forward 5G and Artificial Intelligence (AI) cooperation.

    Try this question from CSP 2019:

    Q.With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

    1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
    2. LTE is data-only technology and VoLTE is voice-only technology.

    Select the correct answer using the code given below.

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    BRICS Innovation Base

    • China is considering the establishment of a BRICS innovation base in China, in order to strengthen practical cooperation with the BRICS.
    • It has urged fellow nations, including India, to boost cooperation in areas including 5G and AI in partnership with Huawei.
    • The move could pose an awkward question for India, which is the only country in the grouping that is leaning towards excluding Chinese participation in the roll-out of India’s 5G networks.

    Huawei in BRICS

    • In South Africa, Huawei is providing services to three of its telecom operators in the roll-out of their 5G networks.
    • Brazil has allowed participation in trials but yet to take a final call.
    • India is unlikely to allow Chinese participation in 5G, particularly in the wake of recent moves to tighten investment from China and national security concerns.

    Back2Basics: BRICS

    • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
    • The BRICS Leaders Summit is convened annually. It does not exist in form of organization, but it is an annual summit between the supreme leaders of five nations.
    • On November 30, 2001, Jim O’Neill, a British economist who was then chairman of Goldman Sachs Asset Management, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China.
    • The grouping was formalized during the first meeting of BRIC Foreign Ministers on the margins of the UNGA in New York in September 2006.
    • The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
    • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.