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Subject: International Relations

  • [24th December 2024] The Hindu Op-ed: The GATT-ification of the World Trade Organization

    PYQ Relevance:

    Q) What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (UPSC CSE 2018)

    Mentor’s Comment: UPSC mains have always focused on topics like ‘WTO’ (2018) and ‘International Trading routes’ (2022).

    An Allianz Trade survey found that 82% of exporters are optimistic about turnover growth in 2024, 73% are also concerned about geopolitical risks and protectionism, highlighting the need for trade policies that promote growth while ensuring inclusivity and equity among nations.

    Today’s editorial likely critiques the current state of the World Trade Organization (WTO) by comparing it to its predecessor, the General Agreement on Tariffs and Trade (GATT). This content can be used to present ‘Trade issues’ and ‘Free movement regimes’ in Global politics in your mains answers.

    _

    Let’s learn!

    Why in the News?

    The trend of rising protectionism, especially when Donald Trump promised to impose high tariffs on imports from countries like China, Canada, and Mexico.

    • This shift raises concerns about increased consumer prices and disruptions in global supply chains, as countries focus more on supporting their domestic industries rather than cooperating internationally.
    About the General Agreement on Tariffs and Trade (GATT):

    The GATT is a foundational international treaty established in 1947 to promote global trade by reducing tariffs, quotas, and other trade barriers. Initially signed by 23 countries, GATT aimed to facilitate economic recovery after World War II, evolved through several negotiation rounds, and the key features included:
    ‱ Non-Discrimination Principle: Member countries must apply tariffs equally to all members, ensuring fair trade practices.
    ‱ Tariff Reductions: GATT successfully lowered average tariffs among member nations from over 20% to around 5%.
    ‱ Trade Facilitation: It provided a framework for resolving trade disputes and encouraged multilateral negotiations to further reduce barriers.
    The Uruguay Round concluded with the Marrakesh Agreement in 1994, which established the WTO as a successor to GATT. The World Trade Organization (WTO) was established on January 1, 1995. By the time it transitioned into the WTO, GATT had become a crucial instrument for promoting global trade liberalization, covering approximately 90% of international trade.

    The Appellate Body was established in 1995 as part of the WTO under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU).
    ‱ Aim: It serves to hear appeals from reports issued by panels in disputes between WTO member countries, acting as a higher court for trade-related legal issues.
    ‱ Structure and Composition: The Appellate Body consists of 7 members, each appointed for a 4-year term by the Dispute Settlement Body (DSB). 
    ‱ Members can be reappointed for additional terms. A Chairperson is elected annually among the members to oversee the Appellate Body’s operations.

    About the Recent WTO Conference:

    ‱ The WTO for its 13th Ministerial Conference (MC13) in February 2024, raised critical issues such as dispute settlement reforms and the extension of the e-commerce moratorium.
    ‱ This context highlights the need to reevaluate the WTO’s structure and effectiveness.

    How is the WTO experiencing a “GATT-ification”?

    • Existential Crisis: The WTO is set to miss its target of revitalizing a fully functional dispute settlement system by the end of 2024, with the Appellate Body (AB) remaining non-operational for over five years due to U.S. blockages in appointing members.
      • The obstruction began during the Obama administration, escalated under Trump, and continues under Biden, reflecting a bipartisan consensus against the AB.
      • Anticipations of a protectionist Trump 2.0 administration could further worsen the situation. Because, in 2018, he imposed a 25% tariff on various Chinese products, indicating a shift towards unilateral trade actions.
      • The real issue extends beyond the AB’s functionality; it involves the WTO’s relevance in global trade.
    • Challenges for Developing Nations: The informal nature of current discussions has hindered effective participation from many developing countries. India proposes transitioning discussions on reforms to formal WTO bodies to ensure inclusivity and representation from developing countries.
    • Uncertain Future: The future of the WTO’s dispute settlement system remains uncertain as the deadline approaches, with ongoing debates about restoring functionality and addressing broader institutional challenges.

    What is the present Unraveling of WTO Dynamics?

    • China’s Rise: China’s rise over the past two decades has significantly changed the global trade landscape. The U.S. facilitated China’s accession to the WTO in 2001, hoping it would adopt free-market principles and dismantle state-led industrial policies.
    • Expectations vs. Reality: Contrary to U.S. hopes, China did not dismantle its state-led policies and is perceived to have exploited the WTO system to its advantage. On the contrary, there is a belief in the U.S. that the WTO’s institutional controls limit its ability to address challenges posed by China.
    • The U.S. aims, as stated by international lawyer Daniel C.K. Chow, to undermine the WTO system, including the Appellate Body (AB), to gain more freedom in addressing the Chinese threat.
    • The U.S. can now implement trade remedial measures and develop industrial policies against China, even if they violate WTO laws, due to the lack of enforcement from the AB.

    Conclusion: The term ‘GATT-ification’, coined by Prof. Vidigal, highlights the shift in the international trading order and emphasizes that current negotiations cannot obscure the reality. The reversal shift to GATT-era diplomacy signifies a significant change in how international trade is governed, moving away from established multilateral frameworks toward more fragmented approaches.

    https://www.thehindu.com/opinion/op-ed/the-gatt-ification-of-the-world-trade-organization/article69019794.ece

  • UN Internal Justice Council (IJC)

    Why in the News?

    Justice Madan B Lokur, retired judge of the Supreme Court of India, has been appointed as the Chairperson of the United Nations Internal Justice Council (IJC).

    Justice Lokur’s Legacy:

    • Justice Lokur served on the Supreme Court of India from June 2012 to December 2018, delivering landmark judgments across diverse areas of law.
    • In August 2019, he was appointed to the non-resident panel of the Supreme Court of Fiji and reappointed for another three-year term in January 2022.
    • His notable judgments include:
      • Electoral Disqualification on Religious Grounds (January 2017): Authored a concurring opinion in a seven-judge bench ruling disqualifying electoral candidates for seeking votes based on religion, race, caste, or other identity markers.
      • Raising the Age of Consent in Marriages (October 2017): Alongside Justice Deepak Gupta, ruled to raise the age of consent within marriages to 18 years, bolstering child protection laws.

    About UN Internal Justice Council (IJC):

    Establishment
      • Established in 2009 to reform and strengthen the UN’s internal justice system.
    • Ensures the system operates effectively, impartially, and transparently, addressing workplace disputes within the UN.
    Overview and Structural Mandate Mandate:

    • Safeguards the independence and integrity of the internal justice system.
    • The IJC is responsible for overseeing the administration of the UN’s internal justice system.
    • It supervises:
    1. Office of Staff Legal Assistance (OSLA)
    2. UN Dispute Tribunal (UNDT)
    3. UN Appeals Tribunal (UNAT)
    • Recommends measures to ensure judicial independence and efficiency in dispute resolution.

    Composition:

    • 5 members: 2 tribunal judges (from UNDT and UNAT), two staff representatives, and one external legal expert.
    • Chairperson is selected by consensus and appointed by the UN Secretary-General.
    • Members serve a four-year term, renewable once.
    Powers, Functions, and Jurisdiction Judicial Appointments:

    • Recommends candidates for UNDT and UNAT judge positions based on merit and judicial competence.
    • Proposes a shortlist for final selection by the Secretary-General.

    Oversight and Accountability:

    • Monitors tribunal functioning to ensure fairness and transparency.
    • Identifies and addresses systemic issues, proposing improvements.

    Judicial Independence:

    • Protects the impartiality of tribunal judges and safeguards judicial integrity.
    • Advocates for institutional protections against external influence.

    Advisory Role:

    • Provides expert advice on internal justice reform.
    • Evaluates tribunal processes to enhance efficiency and accessibility for UN staff.

    Scope of Jurisdiction:

    • Covers grievances related to administrative decisions, employment conditions, and workplace disputes brought forward by UN staff worldwide.

  • India, Kuwait lift ties to ‘strategic partnership’

    Why in the News?

    During the first bilateral meeting, the leaders of India and Kuwait elevated their relationship to a “strategic partnership,” with trade and defense cooperation identified as the key pillars of their ties.

    What are the main areas of cooperation outlined in the new partnership?

    • Defence: Enhanced collaboration in training, joint exercises, defence industry development, and supply of defence equipment.
    • Trade and Investment: Focus on increasing bilateral trade, which was valued at approximately $10.47 billion in 2023-24.
    • Energy: Cooperation in energy sectors, with India being a significant importer of Kuwaiti oil.
    • Technology and Infrastructure: Engagement in IT, fintech, and infrastructure development.
    • Cultural and People-to-People Ties: Initiatives to strengthen cultural exchanges and community relations

    What prompted the elevation of ties to a strategic partnership?

    The partnership aligns with Kuwait’s Vision 2035, where India is seen as a key partner in achieving developmental goals.

    • High-Level Engagement: The Prime Minister of India’s visit to Kuwait marked the first by an Indian Prime Minister in 43 years, which underscored the importance of the relationship and provided a platform for extensive discussions with Kuwaiti leaders.
    • Commitment to Expand Cooperation: During the meetings, both sides expressed a strong commitment to deepen bilateral cooperation across various sectors such as defence, energy, trade, investment, technology, health, education, and cultural exchanges.
    • Mutual Economic Interests: The two countries have significant economic ties, with India being one of Kuwait’s top trading partners. The bilateral trade was valued at approximately $10.47 billion in 2023-24.
    • Defense Cooperation: A critical aspect of the strategic partnership is the signing of a Memorandum of Understanding (MoU) on defense. This agreement aims to increase cooperation in areas such as joint military exercises, training, defence industry collaboration, and supply of defense equipment.
    • Shared Security Concerns: Both nations condemned terrorism in all its forms and agreed to enhance cooperation in counter-terrorism operations, intelligence sharing, and law enforcement. This shared commitment to security issues contributed to the decision to elevate their relationship.

    What are the expected outcomes of this strategic partnership?

    • Enhanced Bilateral Cooperation: The partnership aims to deepen cooperation across various sectors, including defence, trade, investment, energy, health, education, technology, and cultural exchanges. This includes institutionalizing defence collaboration through joint exercises, training, and supply of defence equipment.
    • Economic Growth: Both countries are looking to boost their economic ties, with bilateral trade already valued at approximately $10.47 billion in 2023-24. The partnership is expected to open new avenues for investment, particularly from Kuwaiti entities in sectors like pharmaceuticals, medical devices, and food parks in India.
    • Cultural Exchange Programs: A MoU on cultural exchanges for 2025-2029 has been signed, which will facilitate greater interaction in arts and culture between the two nations.
    • Increased People-to-People Ties: The strategic partnership is also anticipated to strengthen ties between the Indian expatriate community in Kuwait, which is the largest foreign community, and the local population, fostering mutual understanding and collaboration.
    • Regional Stability and Security Cooperation: Both nations have committed to addressing regional security challenges collaboratively, including counter-terrorism efforts and intelligence sharing. This cooperation is vital given the geopolitical dynamics in West Asia.

    Way forward: 

    • Strengthening Institutional Mechanisms: Both nations should establish regular bilateral consultations and working groups to ensure the effective implementation of agreements in defence, trade, energy, and other sectors, fostering long-term collaboration.
    • Expanding Regional and Global Cooperation: India and Kuwait should enhance their joint efforts in multilateral forums such as the UN and GCC, focusing on regional stability, economic development, and combating global security challenges, particularly terrorism.

    Mains PYQ:

    Q The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries. (UPSC IAS/2017)

  • In news: Panama Canal

    Why in the News?

    US President-elect Donald Trump criticized Panama for charging excessively for US ships’ use of the Panama Canal and threatened a US takeover of the canal.

    In news: Panama Canal

    About Panama Canal:

    Geographical Location:

    • Located in Central America, connecting the Atlantic Ocean (via the Caribbean Sea) to the Pacific Ocean.
    • 80 km long, spanning across the Isthmus of Panama.
    • Uses a system of locks to raise and lower ships across an elevation of 85 feet (26 meters).

    Historical Significance:

    • French started construction in 1881, led by Ferdinand de Lesseps, but failed.
    • Completed by the U.S. in 1914, under engineers George Washington Goethals and John Stevens.
    • Control was transferred from the U.S. to Panama in 1999 under the Torrijos-Carter Treaties (1977).
    • Present Significance:
      • Crucial for global trade, reducing travel time between the Atlantic and Pacific Oceans.
      • Strategic military value, especially during the World Wars.
      • Major contributor to Panama’s economy through tolls and trade-related activities.

    Present Geopolitics:

    • Trump raised concerns about China’s influence in the region, especially Panama’s role in China’s Belt and Road Initiative (BRI).
    • In recent years, Chinese companies have been involved in infrastructure projects around the Panama Canal, including logistics and energy sectors.
    • Panama’s 2018 signing of the BRI furthered its ties with China, a development that some view as a challenge to US influence in the region.

  • Crimes against humanity and an obtuse Indian stance

    Why in the News?

    India’s stance on a ‘crimes against humanity’ treaty reflects its longstanding reservations about the Rome Statute and the International Criminal Court.

    What is India’s stance on the proposed Crimes Against Humanity treaty?

    • Non-Party to the Rome Statute: India is not a signatory to the Rome Statute and has consistently expressed objections to the ICC’s jurisdiction, particularly regarding the powers of the ICC prosecutor and the role of the UN Security Council in prosecuting international crimes. India argues that it should be able to address such issues through its national legal system rather than through international mechanisms.
    • Call for In-Depth Study: For 5 years, India has advocated for a comprehensive examination of the need for a dedicated CAH treaty. This reflects its belief that existing frameworks may not adequately address the complexities of CAH.
    • Concerns Over Duplication: India is wary that a new CAH treaty could overlap with existing laws under the Rome Statute, potentially complicating accountability measures rather than clarifying them.

    How does India’s legal framework address crimes against humanity?

    • Lack of Domestic Legislation: Currently, India does not have specific domestic laws prohibiting crimes against humanity. The absence of such legislation was highlighted by Justice S. Muralidhar of the Delhi High Court, who noted that neither CAH nor genocide is included in India’s criminal law. This gap indicates a need for legislative action to align with international standards.
    • Emphasis on National Jurisdiction: India maintains that national courts are more suitable for addressing CAH and other international crimes, emphasising its preference for national over international jurisdiction in these matters.

    Why should India have proper legislation related to Crime against humanity?

    • Inadequate Domestic Legislation: Despite ratifying the Genocide Convention, India lacks domestic laws to enforce its provisions, creating a gap in prosecuting crimes like genocide and CAH.
    • International Accountability: Enacting CAH laws would align India’s legal framework with international standards, fulfilling commitments and enhancing global cooperation on prosecuting international crimes.
    • Justice for Mass Atrocities: India’s history of communal violence underscores the need for CAH laws to ensure justice, accountability, and deterrence against future atrocities while safeguarding human rights.
    • Leadership in Human Rights: By adopting CAH laws, India could address global issues like terrorism, advocate for accountability, and position itself as a leader in promoting justice and human dignity.
    • Empowering National Courts: CAH laws would strengthen Indian courts’ ability to handle serious human rights violations, reinforcing the country’s preference for national jurisdiction over international mechanisms.

    What are India’s specific concerns regarding the definitions and scope of crimes against humanity?

    • Definition of Crimes: India has raised objections to certain definitions within the proposed treaty. It argues against including “enforced disappearance” as a CAH while advocating for “terrorism” to be recognised as such. This reflects India’s broader security concerns and its focus on acts it deems more relevant to its national context.
    • Scope of Application: India contends that crimes committed only during armed conflicts should be classified as CAH, opposing any broader interpretation that includes peacetime offences. This position underscores India’s strategic interests and its approach to defining accountability in terms of state actions during conflicts rather than in peacetime contexts.

    Do you know?

    • Justice (Retd.) V Ramasubramanian has been appointed as the new chairperson of the National Human Rights Commission (NHRC).
    • Priyank Kanoongo (former NCPCR chief) and Dr. Justice Bidyut Ranjan Sarangi (Retd.) have been appointed as NHRC Members.

    About National Human Rights Commission (NHRC)

    • A Statutory Body established under the Protection of Human Rights Act (PHRA), 1993.
    • Chairperson: Former Supreme Court Justice or Chief Justice; appointed by the President.
    • Members:
      • Four full-time members:
        • 1 ex-SC Judge (Chairperson),
        • 1 ex-SC Judge,
        • 1 ex-Chief Justice of a High Court,
        • 1 expert in human rights (at least one woman).
      • Seven ex-officio members: Chairpersons of national commissions (SC/ST, Women, Minorities, etc.) and Chief Commissioner for Persons with Disabilities.
    • Appointment Process:
      • Appointed by the President on the recommendation of a committee (PM, Speaker of Lok Sabha, Home Minister, Leaders of Opposition, etc.).
      • Judicial appointments involve consultation with the Chief Justice of India.
      • Removal: Requires consultation with the Supreme Court and an order by the President.
    • Terms of Office:
      • Term: 3 years or until the age of 70 (whichever is earlier).
      • Eligible for reappointment but not for other government posts.
    • Limitations:
      • Cannot inquire into cases older than one year from the alleged violation.
      • Functions are recommendatory; lacks direct punitive powers.
      • Limited jurisdiction over cases involving the armed forces.
    • Functions:
      • Inquire into alleged human rights violations.
      • Recommend interim relief to victims.
      • Intervene in court proceedings on human rights matters.
      • Review constitutional and legal safeguards for human rights.
      • Promote human rights literacy and support NGOs.
    • Powers:
      • Can regulate its own procedure.
      • Exercises powers of a civil court with judicial authority.

    Way forward: 

    • Enact Comprehensive Domestic Legislation: India should introduce laws addressing crimes against humanity and other international crimes, aligning with global standards while addressing domestic concerns like terrorism and communal violence.
    • Advocate for Inclusive Global Frameworks: India can engage constructively in international negotiations on the CAH treaty, pushing for definitions and provisions that address its concerns, such as including terrorism, while leveraging its stance to lead global efforts in promoting accountability and human rights.

    Mains PYQ:

    Q What do each of the following quotations mean to you? “Condemn none: if you can stretch out a helping hand, do so. If not, fold your hands, bless your brothers, and let them go their own way.” – Swami Vivekanand (UPSC IAS/2020)

  • The political crisis in South Korea

    Why in the News?

    President Yoon Suk Yeol’s decision to declare martial law caused a nationwide crisis, leading to an impeachment and a long legal fight in South Korea’s Constitutional Court.

    south korea

    What Led to President Yoon Suk Yeol’s Declaration of Martial Law?

    • Political Frustration: Facing increasing opposition and a loss of support from the National Assembly after the April 2024 elections, Yoon declared martial law on December 3, 2024, in a desperate attempt to maintain control amid growing dissent against his administration’s policies and allegations of corruption involving his wife.
    • Opposition Assertiveness: The opposition parties gained significant power in the National Assembly, securing 192 out of 300 seats. Their assertive stance against Yoon’s government exacerbated tensions, prompting him to take extreme measures to suppress dissent.
    • Failed Military Response: Despite sending military and police forces to various locations, including the National Assembly, their reluctance to act against peaceful protests highlighted the lack of support for Yoon’s decision. The National Assembly members voted overwhelmingly against martial law, leading to its withdrawal shortly after its declaration.

    How Has the Political Landscape Changed Following the Impeachment Proceedings?

    • Increased Polarization: The impeachment motion against Yoon, which passed with 204 votes in favour on December 14, 2024, reflects deepening political polarization in South Korea.
      • The ruling People Power Party (PPP) faced internal conflict over how to respond to the impeachment, indicating fractures within conservative ranks.
    • Opposition Power Dynamics: The opposition has gained momentum and confidence following the successful impeachment motion. This shift has allowed them to challenge Yoon’s policies more aggressively and seek accountability for alleged corruption within his administration.
    • Public Sentiment: Yoon’s popularity has plummeted due to his handling of both domestic and foreign policies, as well as controversies surrounding his wife. This decline has strengthened the opposition’s position and increased public demand for accountability.

    What are the potential implications of this crisis for South Korea’s democratic institutions?

    • Erosion of Democratic Norms: The use of martial law and aggressive tactics against political opponents raises concerns about the erosion of democratic norms in South Korea. Such actions could set a precedent for future administrations to bypass democratic processes in times of political strife.
    • Judicial Independence at Stake: The ongoing impeachment proceedings will be reviewed by the Constitutional Court, which may face pressure from public opinion and political factions. The outcome could influence perceptions of judicial independence and integrity within South Korea’s legal system.
    • Long-Term Stability Concerns: If political leaders continue to engage in vendetta politics and prioritize partisan interests over national unity, it could undermine public trust in democratic institutions. This instability may hinder effective governance and exacerbate societal divisions.

    What are the challenges in India that could prevent a South Korea-like scenario?

    • Diverse Federal Structure: India’s federal system and strong regional governments provide multiple centers of power, reducing the likelihood of concentrated national-level crises.
    • Robust Democratic Institutions: A vibrant judiciary, free press, and active civil society act as checks against potential abuses of power.
    • Electoral Accountability: Regular elections at various levels ensure political leaders remain answerable to the public, mitigating prolonged governance failures.
    • Cultural and Political Pluralism: India’s diversity in culture, language, and political ideologies discourages the kind of national consensus required for large-scale systemic crises like in South Korea.

    What should India do to prevent this type of situation? (Way forward)

    • Strengthen Democratic Institutions: India should prioritize the independence and resilience of democratic institutions, including the judiciary, Election Commission, and a free press, to ensure checks and balances against potential overreach by any government.
    • Promote Political Accountability and Transparency: Encourage bipartisan dialogue and accountability mechanisms to address corruption and governance issues, preventing political polarization and maintaining public trust in democratic processes.

    Mains question for practice:

    Q Analyze the factors that led to the declaration of martial law by President Yoon Suk Yeol in South Korea and discuss its implications for democratic institutions. What lessons can India draw from this crisis to strengthen its own democratic framework? (250 words) 15M

  • Places in News: Kailash Mansarovar

    Places in News: Kailash Mansarovar

    Why in the News?

    • India and China have agreed to resume the Kailash-Mansarovar Yatra.
      • The pilgrimage has been suspended since 2020 due to the COVID-19 pandemic and non-renewal of arrangements by China.

    India-China Talks on Border Management:

    • Disengagement and De-escalation: Agreed to continue implementing the October 2024 disengagement agreements for safe patrolling and grazing in certain areas.
    • Peace and Tranquility: Both sides agreed to maintain peace along the border and implement effective border management mechanisms.
    • Resolution of Boundary Dispute: Continued efforts toward a mutually acceptable solution to the boundary dispute.
    • Cross-Border Cooperation: Discussions included river cooperation, Nathula border trade, and other exchanges to strengthen bilateral relations.

    About Kailash Mansarovar:

    • Kailash Mansarovar is a sacred religious site located in the Tibetan Autonomous Region of China, near the borders of India, Nepal, and Tibet.
    • It consists of Mount Kailash, a peak considered to be the abode of Lord Shiva in Hinduism, and Mansarovar Lake, a high-altitude freshwater lake revered in Hinduism, Buddhism, Jainism, and Bon traditions.
    • Geographical Location:
      • Mount Kailash stands at an elevation of 6,638 meters (21,778 feet), making it one of the most difficult and revered peaks to approach.
      • The Mansarovar Lake is located at an altitude of 4,556 meters (14,950 feet) and spans approximately 88 square kilometers.
      • The region lies in the Tibetan Plateau.

    Religious Significance:

    1. Hinduism:
      • Mount Kailash is considered the abode of Lord Shiva and his consort Parvati. Pilgrims believe that a pilgrimage to Kailash is essential for liberation and salvation (Moksha).
      • Mansarovar Lake is believed to have been created by Lord Brahma. Bathing in its holy waters is believed to cleanse sins and grant spiritual merit.
    2. Buddhism:
      • The region is sacred as it is believed to be the home of Buddha Demchok, who represents supreme bliss.
      • The lake is also linked to the Jambhala, the god of wealth in Tibetan Buddhism.
    3. Jainism:
      • Jain tradition holds that Lord Rishabhanatha, the first Tirthankara, attained Nirvana at the peak of Mount Kailash.
    4. Bon Religion:
      • For practitioners of Bon, an ancient religion indigenous to Tibet, Kailash is regarded as the sacred center of the universe.

    Route and Access:

    • India to Kailash Mansarovar: The pilgrimage is generally undertaken through the Lipulekh Pass, a high-altitude pass that connects Uttarakhand (India) with Tibet.
    • Pilgrims usually travel through Nepal, and the journey is conducted via Kailash Mansarovar Yatra (KMY) under the Ministry of External Affairs (MEA).
    • Travel to Mount Kailash and Mansarovar Lake is restricted, and permits are required from the Chinese government.
    • Pilgrims from India are primarily facilitated through the Kailash Mansarovar Yatra organized by the Government of India and other authorized agencies.

    PYQ:

    [2016] Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management.

  • What is OPEC+?

    Why in the News?

    • With Donald Trump potentially returning to the White House, OPEC+ delegates express concern over higher US oil production.
      • His administration’s focus on deregulating the energy sector could lead to increased oil output, contributing to a further erosion of OPEC+’s market share.

    About ‘Organization of the Petroleum Exporting Countries’ Plus (OPEC+)

    What is OPEC+? Formation and Purpose:

    • OPEC+ is a coalition of OPEC members and non-OPEC oil-producing nations that work together to manage oil production and stabilize global oil prices.
    • The alliance was formed in 2016 in response to increasing oil production in the United States, particularly from shale oil, which led to falling oil prices.

    OPEC Members:

    • OPEC was founded in 1960 and includes 12 member countries:
      Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE), Venezuela.

    Non-OPEC Members in OPEC+:

    • OPEC+ includes 10 non-OPEC members:
      Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, Sudan.

    Global Influence:

    OPEC+ countries together produce approximately 40% of the world’s crude oil and control about 80% of the world’s proven oil reserves.
    Factors are influencing OPEC+’s oil production cuts
    • Rising US oil production: The shale boom in the US has increased its market share, impacting OPEC+’s influence.
    • Global price stability: OPEC+ implements production cuts to prevent oil prices from falling too low.
    • Weak global demand: Extended cuts due to low demand, especially in major economies.
    Implications of OPEC+’s policies
    • Reduced market share: OPEC+’s global oil share dropped from 55% in 2016 to 48% in 2024.
    • Price volatility: OPEC+’s production cuts aim to stabilize prices, but increasing US production affects this goal.
    • Economic stability: Production cuts help sustain favorable prices for oil-producing economies.

     

    PYQ:

    [2009] Other than Venezuela, which one among the following from South America is a member of OPEC?

    (a) Argentina
    (b) Bolivia
    (c) Ecuador
    (d) Brazil

  • India and Sri Lanka need to go beyond the stated positions

    Why in the News?

    Sri Lankan President Anura Kumara Dissanayake’s visit to India, his first international trip as per tradition, underscores the continuity in India-Sri Lanka bilateral relations.

    What are the current China-related challenges in India-Sri Lanka relations?

    • Geopolitical Tensions: Sri Lanka’s historical ties with China, particularly during the Mahinda Rajapaksa regime, have raised concerns in India regarding potential Chinese influence in the region.
      • China’s investment in Sri Lanka, particularly in the Hambantota Port, is closely tied to its broader String of Pearls strategy.
    • Economic Dependency: Sri Lanka’s reliance on Chinese investments has created a “debt trap” scenario, limiting its ability to align with Indian interests fully. The need for economic assistance from both nations complicates Sri Lanka’s foreign policy decisions, as it seeks support without alienating either side.
    • Balancing Act: Sri Lanka is attempting to navigate its relationships with India and China, which often puts it in a difficult position.
      • President Anura Kumara Dissanayake has expressed intentions to strengthen ties with India while maintaining relations with China, indicating a desire for a balanced approach. However, this balancing act is complicated by India’s concerns over Chinese influence and activities in the Indian Ocean.

    How can India and Sri Lanka enhance their economic and strategic partnerships?

    • Trade Agreements: There is a push for an upgraded India-Sri Lanka Free Trade Agreement (FTA) to facilitate bilateral trade and investment. This could include provisions for Foreign Direct Investment (FDI) protection and expanded coverage of goods and services.
    • Production-Linked Incentive (PLI) Scheme: Implementing a regional PLI scheme could encourage Indian businesses to invest in Sri Lanka, particularly in sectors like renewable energy and electronics. This initiative would help build regional supply chains and reduce dependency on imports.
    • B2B Engagement: Strengthening business-to-business ties, especially between smaller enterprises, could enhance economic collaboration. This involves increasing participation in trade fairs and fostering connections between businesses in southern Indian states and Sri Lanka.

    What role does regional stability play? (Way forward)

    • Security Cooperation: Regional stability is crucial for both nations as they address external threats, particularly from China. Dissanayake’s assurance that Sri Lankan territory will not be used against Indian interests is vital for maintaining security cooperation and trust between the two countries.
    • Economic Recovery: As Sri Lanka recovers from its recent economic crisis, stable relations with India are essential for securing ongoing support from international financial institutions like the IMF. Enhanced cooperation can serve as a model for regional partnerships that promote stability and economic growth across South Asia.
    • Geopolitical Balance:  A collaborative approach can help mitigate risks associated with external influences and ensure that both nations can pursue their national interests without compromising sovereignty.

    Mains PYQ:

    Q What do you understand by ‘The String of Pearls’? How does it impact India? Briefly outline the steps taken by India to counter this. (UPSC IAS/2013)

  • China is the world’s largest debt collector

    Why in the News?

    By the end of 2023, China emerged as the leading debt collector, holding over 25% of the world’s bilateral external debt.

    • Two decades ago, Japan, followed by Germany, France, the United States, and the United Kingdom, dominated global lending, with China rarely extending loans.

    What is China’s ‘Debt Trap Policy’?

    • China’s “Debt Trap Policy” (also known as the ‘slicing strategy’) refers to a strategy where it provides excessive loans to developing countries, often for large infrastructure projects, which these nations struggle to repay. This policy is primarily associated with China’s Belt and Road Initiative (BRI). 
    • When countries default on their loans, they may be forced to cede control of critical assets to China, effectively creating a debt-for-equity swap.
      • Notable examples include Sri Lanka’s Hambantota port, which was leased to China for 99 years after the country failed to meet repayment obligations.

    Which countries have been affected by China’s debt trap policy?

    • Sri Lanka: Struggled with $8 billion in debt, leading to the leasing of the Hambantota port.
    • Pakistan: Owes approximately $22 billion, close to 60% of its bilateral debt.
    • Laos: Faces significant economic challenges with $6 billion owed to China, over 75% of its bilateral debt.
    • Angola: Owes $17 billion, about 58% of its external debt.
      These countries often find themselves in financial distress due to high interest rates and the burden of debt repayments consuming essential public resources.

    How are developing countries managing their debt to China?

    Developing countries are employing various strategies to manage their debts to China:

    • Debt Restructuring: Nations like Zambia are negotiating terms to restructure their debts in light of economic difficulties.
    • Attracting Investment: Countries are seeking new foreign investments or loans from other nations or institutions to alleviate their financial burdens.
    • Engaging in Bilateral Talks: Some nations are attempting to engage China in discussions aimed at debt forgiveness or more favourable repayment terms. However, China’s reluctance to forgive debt complicates these negotiations.

    What are the implications of this debt burden on regional and global geopolitics?

    The implications of China’s debt policies extend beyond economics into geopolitics:

    • Increased Influence: By becoming the largest creditor, China gains substantial leverage over debtor nations, potentially influencing their foreign policy and strategic decisions. This is particularly evident in South Asia and Africa, where countries may align more closely with Chinese interests due to their indebtedness.
    • Economic Dependency: Nations heavily reliant on Chinese loans risk becoming economically dependent on China, which can limit their sovereignty and decision-making capabilities. This dependency can also lead to geopolitical tensions with other powers, such as India or the United States.
    • Potential Instability: The growing debt burden could lead to financial crises in several nations, resulting in political instability. The inability of countries like Sri Lanka and Pakistan to manage their debts raises concerns about broader regional stability and economic health.

    What are the challenges to India due to this policy?

    • Rising Chinese Influence and Strategic Risks: China’s lending practices are expanding its influence in South Asia, particularly in nations like Pakistan, Sri Lanka, and Nepal, undermining India’s role as a regional leader.
      • This includes control over strategic assets such as Sri Lanka’s Hambantota Port and infrastructure under the China-Pakistan Economic Corridor (CPEC) in the POK region, which poses direct security threats to India.
    • Geopolitical and Economic Competition: China’s assertiveness in the Indo-Pacific region, coupled with favorable loan terms, challenges India’s investments and diplomatic efforts.
    • Regional Instability and Spillover Effects: Debt-driven economic instability in countries like Sri Lanka results in political unrest and humanitarian crises, which can spill over into India, necessitating responses to refugee inflows and potential destabilization in the region.

    Way forward: 

    • Strengthening Regional Partnerships: India should enhance economic and strategic cooperation with neighbouring countries through competitive financing, capacity-building initiatives, and infrastructure projects under transparent terms to counter China’s influence and foster regional stability.
    • Promoting Multilateral Solutions: India can collaborate with global institutions like the IMF, World Bank, and Quad partners to offer alternative financial support.

    Mains PYQ:

    Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (UPSC IAS/2018)