💥UPSC 2026, 2027, 2028 UAP Mentorship (March Batch) + Access XFactor Notes & Microthemes PDF

Type: IOCR

  • Foreign Policy Watch: India-China

    NATO and China

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NATO

    Mains level: Rise of China in the global agenda

    In a communiqué issued following the June 14 summit of its member-states in Brussels, the North Atlantic Treaty Organization (NATO), for the first time, explicitly described China as a security risk.

    Try answering this question:

    Q.NATO has been an ideal vehicle for power-projection around the world by the US. Critically comment.

    China as a global threat

    • China has never figured in NATO summit declarations before, except for a minor reference in 2019 to the “opportunities and challenges” it presented.
    • But China’s stated ambitions and assertive behaviour present systemic challenges to the rules-based international order and to areas relevant to NATO security.
    • China has reacted sharply. It has urged NATO to view China’s development rationally, stop exaggerating various forms of China threat theory.
    • The other two threats identified by the NATO communiqué are on predictable lines: Russia and terrorism.

    Focus over two nations

    • There is a significant difference, however, between a strategic focus on countering Russia and casting China as a “systemic challenge”.
    • This goes back to NATO’s founding mandate and subsequent history.

    What is NATO, btw?

    • NATO, the planet’s largest — and largest-ever — military alliance, was formed in 1949 by 12 Allied powers to counter the massive Soviet armies stationed in Eastern and Central Europe after Second World War.
    • According to Paul-Henri Spaak, the second Secretary-General of NATO, it was, ironically enough, Joseph Stalin who is the true father of NATO.
    • It was Stalin’s overreach — especially with the Berlin blockade of 1948-49 and the orchestrated coup in Czechoslovakia in 1948 — that convinced a diverse set of war-ravaged European nations to come together under an American security blanket.
    • The collective defence principle enshrined in NATO’s Article V states that “an attack against one ally is considered as an attack against all allies”.
    • The formation of NATO, and its Soviet counterpart, the Warsaw Pact, in 1955, inaugurated the Cold War era.

    NATO and its relevance now

    • NATO was completely successful in its mission of protecting the “Euro-Atlantic area” from Soviet expansion and preventing war between the two superpowers.
    • When the Soviet Union collapsed in 1991, questions were raised about NATO’s relevance and future.
    • Since the Non-aligned Movement (NAM) became irrelevant when the Communist bloc disappeared, one cannot justify the continuation of a military alliance formed to protect Europe from Communist expansion.

    Post-Cold War era mandate of NATO

    • Its bureaucracy succeeded in refashioning NATO for the post-Cold war era.
    • The refashioning rested on a paradigm shift — from collective defence, which implied a known adversary, to collective security, which is open-ended, and might require action against any number of threats.
    • The threat included unknown ones and non-state actors.
    • In other words, the elimination of one threat to Europe — communist Russia — did not necessarily mean that security risks to Europe have vanished.

    Why dismantle a beneficial arrangement

    • Another factor in the persistence of NATO is that, like all successful alliances, it has been a mutually beneficial arrangement.
    • For Europe, it was an attractive bargain where, in exchange for a marginal loss in autonomy, it enjoyed absolute security at a cheap price.
    • Not having to spend massively on defence allowed Europe to focus on building powerful economies and invest its surplus in a strong welfare state.
    • NATO also offered the added bonus of keeping Germany down — historically a major factor for peace and stability in the region.

    An effective American weapon

    • For the US, NATO has been an ideal vehicle for power projection around the world — in places beyond the Euro-Atlantic area, such as Iraq, Afghanistan and Libya.
    • It views NATO as a tool to ensure the primacy of American interests across the globe.
    • Unsurprisingly, NATO’s post-Cold War role has evolved in tandem with U.S. foreign policy priorities.
    • The NATO doctrine of “enlargement”, which Russia calls “expansion”, is essentially about extending the American military footprint by bringing in new members.
    • That is how NATO’s membership today stands at 30, having added 14 members between 1999 and 2020.

    The final truth

    • The Biden administration wants to mobilize NATO member-states behind its larger objective of containing China.
    • NATO’s European member states may view China as an economic rival and adversary, but they are unconvinced by the American line that it is an outright security threat.
    • This line also, in a way, points to the underlying logic behind NATO’s persistence in the post-Soviet world.
    • Unlike the Soviet Union, China offers no alternative vision of society that could make Western capitalism insecure.
    • In fact, its own economy is already deeply integrated into Western markets. China, nonetheless, is perceived as posing a ‘threat’.
    • It remains to be seen how far an ageing Europe would be willing to commit itself to a strategic path that prefers confrontation to collaboration like the US.

    Also read:

    India & NATO

  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    World Competitiveness Ranking 2021

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: World Competitiveness Ranking

    Mains level: Not Much

    India’s position has remained unchanged at 43 for the third year in a row in the World Competitiveness Ranking by Switzerland-based Institute for Management Development (IMD).

    World Competitiveness Ranking

    • The IMD World Competitiveness Ranking ranks 64 economies and assesses the extent to which a country promotes the prosperity of its people by measuring economic well-being through hard data and survey responses from executives.
    • The ranking examines four factors — economic performance, government efficiency, business efficiency, and infrastructure.
    • The top-performing economies are characterized by varying degrees of investment in innovation, diversified economic activities, and supportive public policy.

    India’s performance

    • Among the BRICS nations, India is ranked second after China (16), followed by Russia (45th), Brazil (57th) and South Africa (62th).
    • Among the four indices used, India’s ranking in government efficiency increased to 46 from 50 a year ago, while its ranking in other parameters such as economic performance (37), business efficiency (32) and infrastructure (49) remained the same.
    • India has maintained its position for the past three years but this year, it had significant improvements in government efficiency.
  • G7 Open Societies Pact on Universal Rights

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: G7

    Mains level: Open Societies Pact

    India has signed off on a joint statement by G-7 and guest countries on “open societies” that reaffirm and encourage the values of “freedom of expression, both online and offline, as a freedom that safeguards democracy and helps people live free from fear and oppression”.

    What is the Open Societies Pact?

    • The ‘Open Societies Statement’ was adopted at the end of an outreach session titled ‘Building Back Together—Open Societies and Economies’, where PM Modi was invited as a lead speaker.
    • The joint statement was signed by the G-7 countries, and India, South Korea, Australia and South Africa, with host British Prime Minister Boris Johnson calling them “Democracies 11”.
    • It refers to “politically motivated internet shutdowns” as one of the threats to freedom and democracy.
    • It affirms “human rights for all, both online and offline, as set out in the Universal Declaration of Human Rights and other HR instruments, and opposition to any form of discrimination, so that everyone can participate fully and equally in society”.

    Why needs such a pact?

    • Democracy and freedom were a part of India’s civilizational ethos”.
    • However, the common concern is that open societies are particularly vulnerable to disinformation and cyber-attacks.

    Impact of the pact

    • While the statement is directed at China and Russia, India has been under scrutiny over Internet curbs in Jammu and Kashmir.
    • Moreover, the center is locked in a face-off over its new IT rules with tech giants such as Twitter, which described a police search at its offices in India last month as a “potential threat to freedom of expression”.
  • Foreign Policy Watch: India-China

    Rare Earth Metals at the heart of China-US rivalry

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rare earth elements

    Mains level: US-China Rivalry

    Beijing’s dominance in rare earth minerals, the key to the future of manufacturing, is a cause for concern for the West.

    Answer this question from CSP 2011 in the comment box:

    Q.What is the difference between a CFL and an LED lamp? 

    1. To produce light, a CFL uses mercury vapor and phosphor while an LED lamp uses semi-conductor material.
      2. The average life span of a CFL is much longer than that of an LED lamp
      3. A CFL is less energy-efficient as compared to an LED lamp.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What are Rare Earth Metals?

    • The rare earth elements (REE) are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table plus scandium and yttrium.
    • Rare earth elements are an essential part of many high-tech devices.
    • They have a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions.
    • Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems.
    • Rare earth minerals, with names like neodymium, praseodymium, and dysprosium, are crucial to the manufacture of magnets used in industries of the future, such as wind turbines and electric cars.

    Curbing dependence on China

    • At a time of frequent geopolitical friction among those three powers, Washington and Brussels want to avoid this scenario.
    • They are investing in the market for 17 minerals with unique properties that today are largely extracted and refined in China.
    • The expected exponential growth in demand for minerals that are linked to clean energy is putting more pressure on US and Europe to take a closer look.
    • Amid the transition to green energy, in which rare earth minerals are sure to play a role, China’s market dominance is enough to sound an alarm in western capitals.

    Why such a move?

    • In 2019, the U.S. imported 80% of its rare earth minerals from China.
    • The EU gets 98% of its supply from China.
  • US policy wise : Visa, Free Trade and WTO

    US, UK seek to sign New Atlantic Charter

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Atlantic Charter

    US President Joe Biden and British Prime Minister Boris Johnson seeks to sign a new Atlantic Charter.

    What is Atlantic Charter?

    • The Atlantic Charter was a statement issued on 14 August 1941 that set out American and British goals for the world after the end of World War II.
    • The charter’s adherents signed the Declaration by United Nations on 1 January 1942, which was the basis for the modern United Nations.
    • The charter inspired several other international agreements and events that followed the end of the war.
    • The dismantling of the British Empire, the formation of NATO, and the General Agreement on Tariffs and Trade (GATT) all derived from the Atlantic Charter.

    Why sign new charter?

    • At their meeting, the two leaders plan to sign what they’re calling a new Atlantic Charter, pledging to “defend the principles, values, and institutions of democracy and open societies.”
    • US hopes to reassure European allies that the US had shed the transactional tendencies of Donald Trump’s term and is a reliable partner again.
    • The US staunchly opposed the Brexit movement, the British exodus from the European Union that Mr. Johnson championed, and has expressed great concern with the future of Northern Ireland.
    • Biden once called the British leader a “physical and emotional clone” of Trump.
  • Higher Education – RUSA, NIRF, HEFA, etc.

    [pib] QS World University Rankings 2022

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: QS World University Ranking

    Mains level: State of higher education in India

    The Prime Minister has congratulated IIT Bombay, IIT Delhi and  IISc Bengaluru for top-200 positions in QS World University Rankings 2022.

    QS World University Rankings

    • QS World University Rankings is an annual publication of university rankings by Quacquarelli Symonds (QS).
    • It comprises the global overall and subject rankings (which name the world’s top universities for the study of 51 different subjects and five composite faculty areas).
    • It announces ranking for five independent regional tables (Asia, Latin America, Emerging Europe and Central Asia, the Arab Region, and BRICS).

    Highlights of the 2022 Report

    • IIT Bombay ranks joint-177 in the world, having fallen five places over the past year.
    • IIT Delhi has become India’s second-best university, having risen from 193 ranks in last year’s ranking to 185 in the latest ranking. It has overtaken IISc Bangalore, which ranks joint-186.
    • The Indian Institute of Science (IISc), Bengaluru, has been ranked the “world’s top research university.
    • The top three institutions globally are — Massachusetts Institute of Technology (MIT), University of Oxford, and Stanford University ranked at number one, two, and three respectively.
  • BRICS Summits

    BRICS

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: BRICS

    Mains level: Future agenda of BRICS

    As India is gearing up to host this year’s BRICS summit, the grouping is facing fresh challenges, from disputes among member countries to tackling COVID-triggered crises and opportunities.

    What is BRICS?

    • To be clear, BRICS was not invented by any of its members.
    • In 2001, Goldman Sachs’ Jim O’Neill authored a paper called “Building Better Global Economic BRICs”, pointing out that future GDP growth in the world would come from China, India, Russia and Brazil.
    • Significantly, the paper didn’t recommend a separate grouping for them, but made the case that the G-7 grouping, made up of the world’s most industrialized, and essentially Western countries, should include them.
    • O’Neill also suggested that the G-7 group needed revamping after the introduction of a common currency for Europe, the euro, in 1999.
    • In 2003, Goldman Sachs wrote another paper, “Dreaming with BRICs: Path to 2050”, predicting that the global map would significantly change due to these four emerging economies.
    • In 2006, leaders of the BRIC countries met on the margins of a G-8 (now called G-7) summit in St. Petersburg, Russia, and BRIC was formalized that year.

    Issues in its consolidation

    • Common ground for the members was built by ensuring that no bilateral issues were brought up, but the contradictions remained.
    • Many economists soon grew tired of “emerging” economies that didn’t reach the goals they had predicted.
    • Others saw India’s closer ties with the US after the civil nuclear deal as a sign its bonds with BRICS would weaken.
    • Meanwhile, Russia, which had hoped to bolster its own global influence through the group, had been cast out of the G-7 order altogether after its actions in Crimea in 2014.
    • China, under Xi Jinping, grew increasingly aggressive, and impatient about the other underperforming economies in the group, as it became the U.S.’s main challenger on the global stage.

    Long-term prospects

    • China’s decision to launch the trillion-dollar Belt and Road Initiative in 2017 was opposed by India, and even Russia did not join the BRI plan, although it has considerable infrastructure projects with China.
    • South Africa’s debt-laden economy and the negative current account have led some to predict an economic collapse in the next decade.
    • Brazil’s poor handling during the Covid-19 crisis has ranked it amongst the world’s worst-affected countries, and its recovery is expected to be delayed.
    • India’s economic slowdown was a concern even before Covid-19 hit, and government policies like “Aatmanirbhar” were seen as a plan to turn inward.

    Issues with BRICS nations

    • Concerns about aggressions from Russia in Ukraine and Eastern Europe and China in the South China Sea, the border with India and internally in Hongkong and Xinjiang are clear visible.
    • There is creeping authoritarianism in democracies like Brazil and India have made investors question long-term prospects of the group.
    • In the market, BRICS has been mocked for being “broken”, while others have suggested it should be expanded to include more emerging economies like Indonesia, Mexico and Turkey, called the “Next-11”.

    A roadmap to progress

    • BRICS is an idea that has endured two decades, an idea its members remain committed to, and not one has skipped the annual summits held since 2009.
    • Along the way, BRICS has created the New Development Bank (NDB) set up with an initial capital of $100 billion.
    • There is a BRICS Contingent Reserve Arrangement fund to deal with global liquidity crunches, and a BRICS payment system proposing to be an alternative to the SWIFT payment system.

    Reforming the multilaterals

    • The BRICS ministerial meeting held this week sent several important signals to that end, issuing two outcome documents.
    • It included the first “standalone” joint statement on reforming multilateral institutions, including the UN and the UNSC, IMF and World Bank and the WTO.
    • It remains to be seen how far countries like China and Russia, which are already “inside the tent” at the UNSC, will go in advocating for the other BRICS members.
    • Another important agreement was the BRICS ministerial decision to support negotiations at the WTO for the waiver of trade-related intellectual property rights (TRIPs) for vaccines and medicines to tackle the Coronavirus.

    Way forward

    • What appears clear is in the post-Covid world, priorities for all economies will change, and offer up a churning in the world of the kind seen two decades ago, when the idea of a grouping of emerging economies was first floated.
    • For BRICS, the next few months could crystallize that idea, or sink it further, leaving others to wonder whether the “Rise of the Rest” as it was once called, is an idea whose time will ever come at all.
  • OBOR Initiative

    Colombo Port City Project and Chinese involvement

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Chinese encroachment of Lankan Sovereignty

    Sri Lanka recently passed the controversial Colombo Port City Economic Commission Bill, which governs the China-backed Colombo Port City project worth $1.4 billion, amid wide opposition to the creation of a “Chinese enclave” in the island nation.

    Colombo Port City Project

    • The Colombo Port City has grabbed headlines in Sri Lanka in recent months even as the relentless third wave of the COVID-19 pandemic sweeps through the country.
    • Almost an artificial island, the territory coming up on 2.69 square kilometers of land reclaimed from Colombo’s seafront has stirred controversy since its inception.
    • Those backing it see in that patch of land their dream of an international financial hub — a “Singapore or Dubai” in the Indian Ocean.

    When was it launched?

    • The project was launched in September 2014 by Chinese President Xi Jinping during a visit to the island nation under the Mahinda Rajapaksa administration’s second term.
    • After President Mahinda Rajapaksa was ousted in January 2015, the successor “national unity” government of Maithripala Sirisena and Ranil Wickremesinghe went ahead with the project after briefly halting it.
    • On returning to power in November 2019, the Rajapaksas vowed to expedite the project. The Sri Lankan government says the project will bring in around 83,000 jobs and $15 billion initially.

    Issues with the project

    • But skeptics claim that it could well become a “Chinese colony”, with the Bill, which is now an Act.
    • The law provides China substantial “immunity” from Sri Lankan laws, besides huge tax exemptions and other incentives for investors.

    What is the extent of China’s involvement?

    Effectively, China has substantial control over two key infrastructure projects in Sri Lanka for a century.

    • The port city project is financed chiefly through Chinese investment amounting to $1.4 billion.
    • In return, the company will receive 116 hectares (of the total 269 hectares) on a 99-year lease.
    • The city separates from but located adjacent to the Colombo Port, the country’s main harbor — is the third major port-related infrastructure project where China has a significant stake.
    • China Merchants Port Holdings has an 85% stake in the Colombo International Container Terminal under a 35-year ‘Build Operate and Transfer’ agreement with the Sri Lanka Port Authority.
    • In 2017, the Sirisena-Wickremesinghe administration, unable to repay the Chinese loan with which it was saddled by the previous government, handed over the Hambantota Port to China on a 99-year lease.

    Concerns from within Sri Lanka

    • Since its launch, the Colombo Port City project has faced opposition from environmentalists and fisherfolk, who feared that the project would affect marine life and livelihoods.
    • However, in the absence of wider political and societal support, their resistance did not dent successive governments’ resolve to pursue the project.
    • The more recent opposition was specific to the Colombo Port City Economic Commission Bill.
    • The resistance came from Opposition parties and civil society groups, including many who do not oppose the project per se, but rather its governance by “an all-powerful commission answerable to no one”.
    • Significantly, a section of Buddhist monks, wielding much influence in Sri Lankan politics and the Sinhala society, also opposed the Bill and said that it eroded Sri Lanka’s sovereignty.
  • G20 : Economic Cooperation ahead

    G7 members endorse global minimum tax

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: G7, Global Minimum Tax

    Mains level: Global Minimum Tax negotiaitions

    Finance Ministers from the Group of Seven (G7) rich nations have reached a landmark accord setting a global minimum corporate tax rate, an agreement that could form the basis of a worldwide deal.

    Why a global minimum?

    • Major economies are aiming to discourage multinationals from shifting profits — and tax revenues — to low-tax countries regardless of where their sales are made.
    • Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.
    • With its proposal for a minimum 15% tax rate, the Biden administration hopes to reduce such tax base erosion without putting American firms at a financial disadvantage, allowing competition on innovation, infrastructure and other attributes.

    Where are the talks at?

    • The G7 talks feed into a much broader, existing effort.
    • The OECD has been coordinating tax negotiations among 140 countries for years on rules for taxing cross-border digital services and curbing tax base erosion, including a global corporate minimum tax.
    • The OECD and G20 countries aim to reach a consensus on both by mid-year, but the talks on a global corporate minimum are technically simpler and less contentious.
    • If a broad consensus is reached, it will be extremely hard for any low-tax country to try and block an accord.

    How would a global minimum tax work?

    • The global minimum tax rate would apply to overseas profits.
    • Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the minimum rate.
    • This would eliminate the advantage of shifting profits.

    What about that minimum rate?

    • Talks are focusing on the U.S. proposal of a minimum global corporation tax rate of 15% – above the level in countries such as Ireland but below the lowest G7 level.
    • Any final agreement could have major repercussions for low-tax countries and tax havens.
    • The Irish economy has boomed with the influx of billions of dollars in investment from multinationals.
    • Dublin, which has resisted EU attempts to harmonize its tax rules, is unlikely to accept a higher minimum rate without a fight.
    • However, the battle for low-tax countries is less likely to be about scuppering the overall talks and more about building support for a minimum rate as close as possible to its 12.5% or seeking certain exemptions.

    Back2Basics: G7

    • The G7 or the Group of Seven is a group of the seven most advanced economies as per the International Monetary Fund (IMF).
    • The seven countries are Canada, USA, UK, France, Germany, Japan and Italy. The EU is also represented in the G7.
    • These countries, with the seven largest IMF-described advanced economies in the world, represent 58% of the global net wealth ($317 trillion).
    • The G7 countries also represent more than 46% of the global gross domestic product (GDP) based on nominal values, and more than 32% of the global GDP based on purchasing power parity.
    • The requirements to be a member of the G7 are a high net national wealth and a high HDI (Human Development Index).
  • Foreign Policy Watch: India-SCO

    SCO Agreement on Mass Media Cooperation

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: SCO

    Mains level: India-SCO cooperation

    The Union Cabinet has accorded an ex post facto approval for signing and ratifying an agreement on cooperation in the field of mass media between all member states of the Shanghai Cooperation Organization (SCO).

    Highlights of the Agreement

    • The agreement, which was signed in June 2019, would provide an opportunity for the member states to share best practices and new innovations in the field of mass media.
    • It aims to promote equal and mutually beneficial cooperation among associations in the field of mass media.
    • The main areas of cooperation in the agreement are the creation of favorable conditions for the wide and mutual distribution of information through mass media in order to further deepen the knowledge about the lives of the peoples of their states.
    • It will assist in broadcasting television and radio programmer and those, distributed legally within the territory of the state of the other side.

    What is SCO?

    • After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
    • The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
    • The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
    • Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
    • The fight against the “three evils” of terrorism, separatism and extremism has become its mantra. Today, areas of cooperation include themes such as economics and culture.

    Try this PYQ now:

    Q. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?

    (a) United Nations Environment Programme

    (b) World Trade Organization

    (c) ASEAN- India Free Trade Agreement

    (d) G-20 Summits

    India’s entry to the SCO

    • India and Pakistan both were observer countries.
    • While Central Asian countries and China were not in favor of expansion initially, the main supporter — of India’s entry in particular — was Russia.
    • A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
    • From 2009 onwards, Russia officially supported India’s ambition to join the SCO. China then asked for its all-weather friend Pakistan’s entry.