18th G20 Summit in New Delhi
Why in News?
The 18th G20 Summit was held in New Delhi, India on September 9th and 10th, 2023. The summit was the first time India hosted the G20 Leaders' Summit.
- The theme of the summit was "Vasudhaiva Kutumbakam", which means "The world is one family".
- G20 Leaders' New Delhi Declaration achieved unanimous consensus, addressing diverse global issues, from Russia-Ukraine tensions to sustainable development, food security, and launching the Global Biofuel Alliance.
What are the Major Outcomes of G20 Summit 2023?
- Admittance of the African Union (G20 now G21):
- The G20 leaders agreed to admit the African Union as a permanent member of the G20, which is a major step towards increasing the representation of developing countries in the forum.
- The Impact of AU's Inclusion in G20:
- The AU's membership in the G20 offers an opportunity to reshape global trade, finance, and investment and would provide a greater voice to the Global South within the G20.
- It allows African interests and perspectives to be heard and recognized within the G20.
Global Biofuels Alliance (GBA)
- About:
- GBA is an India-led initiative that aims to develop an alliance of governments, international organizations, and industry to promote the adoption of biofuels.
- The initiative seeks to position biofuels as a key component of the energy transition and contribute to job creation and economic growth.
- It will help accelerate India’s existing biofuels programs such as PM-JIVANYojna, SATAT, and GOBARdhan scheme.
- As per IEA, there will be 3.5-5x biofuels growth potential by 2050 due to Net Zero targets, creating a huge opportunity for India.
- Formation and Founding Members:
- The alliance was launched with nine initiating members: India, the US, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates.
- GBA Members constitute major producers and consumers of biofuels. USA (52%), Brazil (30%) and India (3%), contribute about 85% share in production and about 81% in consumption of ethanol.
- 19 countries and 12 international organizations have already agreed to join.
- G20 Invited Countries supporting GBA:
- Bangladesh, Singapore, Mauritius, UAE
- Non-G20 supporting GBA:
- Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland
- International Organizations:
- World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN-Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.
- India – Middle East – Europe Economic Corridor (IMEC):
- A Memorandum of Understanding (MoU) was signed between the Governments of India, the US, Saudi Arabia, the European Union, the UAE, France, Germany and Italy to establish the IMEC.
- IMEC is part of a broader initiative called the Partnership for Global Infrastructure Investment (PGII).
- The PGII was initially introduced during the G7 summit in the UK in June 2021.
- PGII aims to finance infrastructure projects in developing countries through a combination of public and private investments.
- IMEC is a significant infrastructure project connecting India, the Middle East, and Europe.
- The project aims to establish a network of transport corridors, including railways and sea lanes.
- IMEC is seen as a response to China's Belt and Road Initiative (BRI), providing an alternative infrastructure network.
- G20 Global Partnership for Financial Inclusion Document:
- The G20 Global Partnership for Financial Inclusion document prepared by the World Bank has lauded the transformative impact of India's Digital Public Infrastructure(DPI) over the past decade under the Central Government.
- The document emphasizes the following initiatives that played a greater role in shaping the DPI landscape:
- Rapid Financial Inclusion:
- India's DPI approach achieved 47 years' worth of financial inclusion progress in just 6 years.
- Jan Dhan-Aadhar-Mobile (JAM) Trinity boosted the financial inclusion rate from 25% in 2008 to over 80% within 6 years.
- Regulatory frameworks, national policies, and Aadhaar-based verification complemented DPIs.
- Pradhan Mantri Jan Dhan Yojna (PMJDY) Success:
- PMJDY accounts tripled from 147.2 million (March 2015) to 462 million (June 2022).
- Women own 56% of these accounts, exceeding 260 million.
- PMJDY drove savings among low-income women, attracting over 12 million customers by April 2023.
- Government to Person (G2P) Payments:
- India's digital G2P architecture facilitated USD 361 billion transfers to beneficiaries from 53 ministries via 312 schemes.
- Achieved total savings of USD 33 billion by March 2022, equivalent to 1.14% of GDP.
- Unified Payments Interface (UPI) Dominance:
- May 2023 witnessed over 9.41 billion UPI transactions, valued at Rs 14.89 trillion.
- UPI transactions in FY 2022–23 neared 50% of India's nominal GDP.
- Private Sector Efficiency:
- DPI streamlined private organizations' operations, reducing complexity, costs, and time.
- Some NBFCs achieved 8% higher SME lending conversion rates, 65% savings in depreciation costs, and 66% cost reduction in fraud detection.
- Banks' customer onboarding costs in India dropped from USD 23 to USD 0.1 with DPI use.
- Lower Compliance Costs for KYC:
- Reduced compliance costs from USD 0.12 to USD 0.06, making lower-income clients more attractive.
- Cross-Border Payments:
- UPI-PayNow linkage enables faster and cheaper cross-border payments with Singapore.
- Account Aggregator Framework:
- Enabled 1.13 billion accounts for data sharing with 13.46 million consents raised.
- Data Empowerment and Protection Architecture (DEPA):
- Provides individuals control over their data, fostering innovation and competition.
What are the Other Key Highlights of G20 Summit 2023?
- Tripling the Global Renewable Energy Capacity By 2030:
- G20 countries promised to work towards tripling the global renewable energy capacity by 2030.
- If met, this single step could avoid carbon dioxide emissions by seven billion tonnes between now and 2030, according to an assessment by the International Energy Agency (IEA).
- Aligns with global efforts to limit global warming to 1.5 degrees Celsius.
- Represents a significant shift away from fossil fuels towards cleaner energy alternatives.
- The declaration acknowledges that current climate action is insufficient and highlights the need for trillions of dollars in financial resources to achieve the objectives of the Paris Agreement.
- Expanding renewable energy capacity on this scale could avoid about 7 billion tonnes of CO2 emissions between 2023 and 2030.
- Commitment to Global Food Security and Nutrition:
- The G20 leaders recognize the importance of addressing rising commodity prices, including food and energy prices, which contribute to cost-of-living pressures.
- They aim to eliminate hunger and malnutrition, acknowledging that global challenges like poverty, climate change, pandemics, and conflicts disproportionately affect vulnerable populations, particularly women and children.
- The G20 declaration highlights the human suffering and impacts of the war in Ukraine on global food and energy security, supply chains, inflation, and economic stability.
- G20 leaders called for the full, timely implementation of the Black Sea grain initiative.
- The agriculture working group during the G20 Presidency reached a historic consensus on two aspects: Deccan G20 High-level principles on Food Security and Nutrition and the Millet initiative called MAHARISHI.
- The seven principles under the high-level principles on food security and nutrition include humanitarian assistance, increasing food production and food security net programs, climate-smart approaches, inclusivity of agriculture food systems, one health approach, digitalization of the agriculture sector, and scaling responsible public and private investment in agriculture.
- MAHARISHI (Millets And OtHer Ancient Grains International ReSearcH Initiative) aims at advancing research collaborations and generating awareness about millets and other ancient grains during International Years of Millets 2023 and after.
- The G20 committed to promoting transparent, fair, and rule-based trade in agriculture, food, and fertilizer. They pledged not to impose export restrictions, reduce market distortions, and align with WTO rules.
- The G20 leaders emphasize the importance of strengthening the Agricultural Market Information System (AMIS) and the Group on Earth Observations Global Agricultural Monitoring (GEOGLAM) for greater transparency.
- This includes expanding AMIS to include vegetable oils and enhancing collaboration with early warning systems to avoid food price volatility.
- Small Arms and Terrorist Safe Havens:
- The 2023 New Delhi Declaration builds upon previous G20 declarations, especially the 2015 Turkiye declaration, which strongly denounced terrorism. Unlike the 2022 G20 Bali Leaders Declaration, which primarily focused on the financing of terrorism and the strengthening of the Financial Action Task Force (FATF), the New Delhi Declaration encompasses a wider range of concerns.
- The G20 leaders, in the New Delhi Declaration, clearly condemn terrorism in all its forms and manifestations.
- The declaration supports the FATF's efforts to enhance global asset recovery networks and recover criminal proceeds.
- Healthcare Resilience and Research:
- The G20 New Delhi Leaders' Declaration places significant emphasis on healthcare and prioritizes the need to build a resilient healthcare system.
- It commits to strengthening the global health architecture to create more resilient, equitable, sustainable, and inclusive health systems. The World Health Organization (WHO) is at the core of this effort.
- The goal is to enhance primary healthcare, the health workforce, and essential health services to levels better than pre-pandemic within the next two to three years.
- In addition to addressing ongoing epidemics like tuberculosis and AIDS, the G20 recognizes the importance of research on long Covid.
- India’s G20 presidency also pushed for the integration of evidence-based traditional medicine practices with modern medicine.
- There is an emphasis on adopting a one-health approach, which tracks diseases in animals, plants, and humans within the same mechanism, with a particular focus on tackling antimicrobial resistance.
- Finance Track Agreements:
- India's G-20 presidency has laid the foundation for a coordinated and comprehensive policy and regulatory framework for cryptocurrencies.
- The emergence of global consensus on crypto asset regulation was emphasized.
- G-20 leaders have recognized the pressing need for more robust and effective Multilateral Development Banks (MDBs) to address the high developmental demands globally.
- The India Stack model of digital public infrastructure for financial inclusion is acknowledged as a promising approach.
- The G-20 leaders' New Delhi Declaration underscores the monitoring of risks associated with the rapid developments in the crypto-asset ecosystem.
- India-Mercosur Preferential Trade Agreement (PTA):
- India and Brazil agreed to work together for the expansion of India-Mercosur PTA to promote economic ties.
- Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay.
- The India-Mercosur PTA came into effect on June 1, 2009, aimed to eliminate customs duties on a limited number of goods agreed between India and the Mercosur bloc.
- Climate Financing Commitment:
- The declaration emphasizes a substantial increase in climate financing, calling for a "quantum jump" from billions of dollars to trillions of dollars.
- It underscores the need for significant financial resources, including USD. 5.8-5.9 trillion in the pre-2030 period for developing countries and USD 4 trillion per year for clean energy technologies by 2030 to achieve net-zero emissions by 2050.
- India’s Cultural Showcase:
- Bharat Mandapam (inspired from Anubhav Mandapam).
- Bronze statue of Lord Nataraja (Chola style).
- Konark Chakra of Odisha’s Sun Temple and Image of Nalanda University (used as iconic backdrops).
- Thanjavur Paintings and Dhokra art.
- Brass statue of Lord Buddha sitting under Bodhi tree.
- Diverse musical heritage (Hindustani, Folk, Carnatic, Devotional).
- Transition of G20 Presidency:
- Prime Minister of India handed over the customary gavel of the G20 chair to Brazilian President Luiz Inacio Lula da Silva, who will officially take over the presidency on December 1, 2023.
What are the Latest India-US Collaboration at G20 Summit 2023?
- India and the United States are strengthening their technology partnership, focusing on resilient semiconductor supply chains, and telecom infrastructure.
- India supports the US 'Rip and Replace' pilot project, aligning with the removal of Chinese telecom equipment.
- India and the US reaffirmed their commitment to deepen and diversify the India-US Major Defence Partnership through expanded cooperation in new and emerging domains such as space and artificial intelligence (AI).
- GE F-414 Jet Engine Agreement:
- The US recently completed the notification process for a commercial agreement between General Electric Aerospace and Hindustan Aeronautics Ltd. (HAL) to manufacture GE F-414 jet engines in India.
- This agreement marks a significant step in defence cooperation between the U.S. and India, highlighting India's commitment to enhancing its domestic defence manufacturing capabilities.
What’s the news?
The 18th G20 Summit, hosted by India in New Delhi from September 9 to 10, revolved around the theme One Earth, One Family, One Future. This global forum convened to deliberate on crucial issues encompassing food security, climate change, energy, development, healthcare, and digitalization.
Central idea
The G20 Summit marked a successful conclusion as India transferred the G20 Presidency to Brazil. India’s performance across various socioeconomic metrics within the G20 context reveals a mixed picture of progress and challenges.
GDP per capita comparison (1970–2022)
- 1970: India’s GDP per capita was $111.97, ranking 18th out of 19 regions analyzed. India had one of the lowest GDP per capita figures among the group.
- 2022: By 2022, India’s GDP per capita had risen significantly to $2,388.62. However, despite this growth, India had moved to the last position among the 19 regions, indicating that other regions had experienced more substantial economic growth during this period.
Human Development Index (HDI) comparison (1990–2021)
- 1990: In 1990, India’s HDI stood at 0.43, indicating a relatively low level of human development. At that time, India ranked towards the lower end of the list among the 19 countries and regions analyzed.
- 2021: By 2021, India’s HDI had improved to 0.63, signifying significant progress in terms of human development over the decades. However, despite this improvement, India still ranked at the bottom of the list among the 19 regions, highlighting the need for further advancements in various aspects of human development, including life expectancy, education, and living standards.
Health Metrics Comparison
- Life Expectancy (1990-2021):
- In 1990, India had an average life expectancy of 45.22 years.
- China, at the same time, had a lower average life expectancy of 33.27 years.
- By 2021, India’s life expectancy had increased to 67.24 years.
- Despite this improvement, India’s ranking remained the same, and China surpassed India in terms of life expectancy.
- Infant Mortality Rate (1990-2021):
- In 1990, India had an infant mortality rate of 88.8 per 1,000 live births, ranking it at the bottom of the 20 regions analyzed.
- By 2021, India’s infant mortality rate had improved to 25.5 per 1,000 live births.
- India’s ranking improved to 19th place, just ahead of South Africa (26.4), but it still lags behind many other regions in terms of infant mortality.
Labor Force Participation Rate (LFPR) Comparison (1990-2021-22)
- 1990:
- In 1990, India’s LFPR for individuals above 15 years of age was 54.2%.
- This LFPR ranking placed India at the 18th position among the 20 regions analyzed.
- India was ahead of Italy (49.7%) and Saudi Arabia (53.3%) in LFPR.
- 2021-22:
- By 2021-22, India’s LFPR had decreased to 49.5%.
- This decline resulted in a slip in India’s ranking to 19th place.
- India was now only ahead of Italy (49.4%) among the 20 regions in terms of LFPR.
Women’s Representation in Parliament (1998-2022)
- 1998:
- In 1998, women constituted 8.1% of the Indian Parliament.
- At that time, India ranked 15th out of the 19 regions analyzed in terms of women’s representation in Parliament.
- While there were women in leadership positions, India’s representation was relatively low compared to some other regions.
- 2022:
- By 2022, women’s representation in the Indian Parliament had nearly doubled to 14.9%.
- However, despite this increase, India’s ranking had slipped to the 18th position among the 19 regions.
- India was just ahead of Japan (9.9%) in terms of women’s representation in Parliament.
Environmental Progress
- Carbon Emissions (1990 and 2020):
- In 1990, India was the lowest emitter of CO2 among the 20 regions analyzed.
- This demonstrated India’s relatively low carbon emissions at that time.
- In 2020, India maintained its status as the lowest emitter of CO2 among the same regions, indicating a consistent trend of relatively low carbon emissions.
- Renewable Energy Adoption (1990 and 2015):
- In 1990, most G20 nations, excluding the U.S. and Mexico, generated less than 2% of their electricity from renewables.
- By 2015, India had made some progress, with 5.36% of its electricity coming from renewable sources.
- However, India’s ranking in this regard was 13th out of the 20 regions analyzed, suggesting relatively slow progress in adopting eco-friendly energy sources compared to some other G20 nations.
Conclusion
As India hands over the G20 Presidency to Brazil, there is an opportunity for the nation to build on its successes and address areas that require further attention to achieve a more balanced and equitable socioeconomic landscape.
Strengthening India-Saudi Arabia Strategic Partnership
What’s the news?
Crown Prince Mohammed bin Salman’s India visit showcased a significant infrastructure project linking India to Europe. It also bolstered economic, energy, and defense cooperation through crucial agreements, underscoring his influential role in shaping the India-Saudi Arabia relationship.
Central idea
During his New Delhi visit, Prince Mohammed’s announcement of the India-Middle East-Europe Economic Corridor, challenging China’s Belt and Road Initiative, marked a significant milestone in bilateral ties. His extended stay for a state visit and the inaugural India-Saudi Arabia Strategic Partnership Council meeting underscored the relationship’s growing significance.
Historical Foundations
- Diplomatic relations between India and Saudi Arabia date back to 1947, reflecting centuries of socio-cultural and economic ties.
- The watershed moment in their relationship occurred during King Abdullah’s visit to India in 200, which led to the Delhi Declaration.
- Subsequently, the Riyadh Declaration in 2010 elevated their ties to a strategic partnership. Prime Minister Modi’s visit to Riyadh in 2016 marked enhanced cooperation in various domains, highlighted by the conferment of Saudi Arabia’s highest civilian honor upon him.
Economic Ties: Driving India-Saudi Arabia Relations
- Bilateral Trade:
- In the fiscal year 2022–23, India and Saudi Arabia recorded a remarkable bilateral trade value of $52.76 billion, underscoring the depth of their economic engagement.
- This bilateral trade figure accounted for 4.53% of India’s total trade during the same period, reflecting the significance of Saudi Arabia as a trade partner.
- Investments in Saudi Arabia:
- As of January 2022, a total of 2,783 Indian companies had registered as joint ventures or 100% owned entities in Saudi Arabia.
- These investments collectively amounted to approximately $2 billion, showcasing the strong presence of Indian corporate giants such as L&T, Tata, Wipro, TCS, TCIL, and Shapoorji Pallonji in the Saudi market.
- Saudi Investments in India:
- Saudi Arabia reciprocates India’s economic overtures with substantial investments in various sectors.
- Notable Saudi investors in India include Aramco, SABIC, Zamil, e-holidays, and the Al Batterjee Group, with a cumulative investment reaching $3.15 billion as of March 2022.
- Saudi Public Investment Fund (PIF):
- The Saudi Public Investment Fund (PIF) has emerged as a pivotal player in strengthening economic ties between the two nations.
- PIF has strategically invested in several Indian startups, including Delhivery, FirstCry, Grofers, Ola, OYO, Paytm, and PolicyBazaar, through the SoftBank Vision Fund.
- In June 2020, PIF announced a substantial investment of $1.49 billion (equating to a 2.32% stake) in Reliance Industries’ Jio Platforms, followed by a $1.3 billion investment (2.04% stake) in Reliance Retail Ventures Ltd. in November 2020.
- PIF’s interest in the Indian market extends to the agriculture and food sectors, with the acquisition of a 29.91% stake in Daawat Foods Ltd. in May 2020, with an investment of $17.23 million.
- West Coast Refinery and Petrochemicals Project:
- Among the most significant proposed investments is the $44 billion West Coast Refinery and Petrochemicals Project in Maharashtra.
- This mega project is a collaborative effort between Saudi Aramco, Abu Dhabi National Oil Company, and an Indian consortium comprising Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation.
Energy Cooperation: India’s Vital Link with Saudi Arabia
- Crude Oil Supply:
- Saudi Arabia stood as India’s third-largest source of crude oil and petroleum products in FY23.
- India imported a substantial 39.5 million metric tonnes (MMT) of crude oil from Saudi Arabia during the fiscal year, constituting a significant 16.7% of India’s total crude oil imports.
- LPG Imports:
- Liquid petroleum gas (LPG) is a vital component of India’s energy mix, and Saudi Arabia contributes significantly to this sector.
- India imported 7.85 MMT of LPG from Saudi Arabia in FY23, accounting for a noteworthy 11.2% of India’s total petroleum product imports during the same period.
Defence Partnership: Strengthening India-Saudi Arabia Security Ties
- High-Level Visits:
- A pivotal moment in the strengthening of defence ties was the landmark visit of General Manoj Mukund Naravane, the then Chief of the Indian Army, to Saudi Arabia in December 2020.
- This visit underscored the commitment of both nations to enhancing their defence cooperation.
- Naval Cooperation:
- India and Saudi Arabia have forged extensive naval cooperation, as exemplified by the initiation of the bilateral naval exercise Al Mohed al Hindi.
- Two editions of this exercise have already been successfully conducted, further cementing their maritime partnership.
- Defence Industries and Capacity-Building:
- Both countries have actively engaged in cooperation in the realm of defence industries and capacity-building.
- This signifies their shared interest in fostering self-reliance and enhancing their defence capabilities.
- Joint Development and Production:
- The joint statement issued during Crown Prince Mohammed bin Salman’s visit emphasized the deepening of defence cooperation and expressed mutual interest in exploring avenues for joint development and production of defence equipment.
Indians in Saudi Arabia: A Strong and Respected Community
- A Living Bridge: Comprising more than 2.4 million individuals, this community is not only an essential part of Saudi society but also serves as a living bridge connecting India and Saudi Arabia.
- Contributions to Development: The Indian diaspora in Saudi Arabia plays an active and constructive role in the nation’s progress and development.
- Members of this community are engaged in various sectors, including construction, healthcare, education, and services, contributing their expertise and labor to the kingdom’s advancement.
- Humanitarian Assistance: The joint statement issued during high-level visits and diplomatic interactions highlights the strong bond between India and Saudi Arabia. It acknowledges Saudi Arabia’s commitment to taking excellent care of the Indian diaspora, as exemplified by their support during critical situations.
- In particular, Saudi Arabia’s assistance in the evacuation of Indian nationals stranded in Sudan through Jeddah under Operation Kaveri is a testament to the collaborative spirit and humanitarian approach of both nations.
- Facilitating Religious Pilgrimage: Saudi Arabia plays a crucial role in facilitating religious pilgrimages for Indian citizens.
- The support provided to Indian Hajj and Umrah pilgrims underscores the kingdom’s commitment to ensuring a smooth and spiritually fulfilling journey for Indian Muslims.
The Importance of Mohammed bin Salman
- Vision 2030 and Domestic Reforms:
- MBS has introduced Vision 2030, a transformative plan aimed at modernizing Saudi Arabia’s economy and society.
- Notable reforms include granting women the right to drive, opening cinemas, welcoming tourists, and diversifying the economy away from oil.
- Economic Transformation:
- Under Vision 2030, MBS has spearheaded efforts to attract foreign investments, boost non-oil sectors, and create jobs.
- The plan has led to substantial investments in technology, entertainment, and tourism.
- Regional Diplomacy:
- MBS has pursued an active foreign policy to enhance Saudi Arabia’s regional influence and stability.
- This includes initiatives to reconcile with regional adversaries like Iran and engage with Israel.
- Strengthened Global Ties:
- MBS has worked to bolster Saudi Arabia’s relationships with global powers, including the United States, India, and China.
- These partnerships encompass economic collaborations, strategic alliances, and military cooperation.
- Controversies and Criticisms:
- MBS has faced criticism and controversy, notably concerning human rights issues and the Jamal Khashoggi case.
- These events have affected Saudi Arabia’s international image and diplomatic relations.
Conclusion
The India-Saudi Arabia partnership is poised for further growth, fueled by economic, energy, defence, and cultural ties. As Crown Prince Mohammed bin Salman continues to navigate the global stage, India is actively engaging with Saudi Arabia to bolster this pragmatic partnership for mutual benefit and regional stability.
20th ASEAN-India Summit and the 18th East Asia Summit
Why in News?
Recently, the Prime Minister (PM) of India attended the 20th Association of Southeast Asian Nations(ASEAN)-India Summit and the 18th East Asia Summit (EAS) in Jakarta, Indonesia.
- The two summits were an opportunity for India to strengthen its relationships with ASEAN countries and reaffirm its commitment to a free, open, and rules-based Indo-Pacific.
What are the Key Highlights of the 20th ASEAN-India Summit?
The PM of India presented a 12-point proposal for strengthening India – ASEAN cooperation covering connectivity, digital transformation, trade and economic engagement, addressing contemporary challenges, people-to-people contacts, and deepening strategic engagement.
- The 12-point proposal included the following:
- Establishing multi-modal connectivity and economic corridor that links South-East Asia-India-West Asia-Europe.
- Offered to share India’s Digital Public Infrastructure Stack with ASEAN partners.
- Announced an ASEAN-India fund for Digital Future focusing on cooperation in digital transformation and financial connectivity.
- Announced renewal of support to the Economic and Research Institute of ASEAN and East Asia (ERIA) to act as a knowledge partner for enhancing our engagement.
- Called for collectively raising issues being faced by Global South in multilateral fora
- Invited ASEAN countries to join the Global Centre for Traditional Medicine being established by WHO in India.
- Called for working together on Mission LiFE(Lifestyle for the Environment.
- Offered to share India’s experience in providing affordable and quality medicines to people through Jan-Aushadhi Kendras.
- Called for a collective fight against terrorism, terror financing, and cyber-disinformation.
- Invited ASEAN countries to join the Coalition for Disaster Resilient Infrastructure. Called for cooperation in disaster management.
- Called for enhanced cooperation on maritime safety, security, and domain awareness.
What are the Key Highlights of the 18th East Asia Summit?
- Reaffirming Commitment to East Asia Summit:
- The PM of India emphasized the significance of the EAS mechanism and reaffirmed India's support for further strengthening it.
- India's strong support for ASEAN centrality and called for ensuring a free, open and rules-based Indo-Pacific.
- Quad's Vision and Global Challenges:
- Insights into the PM's discussion on the Quad's vision and the cooperative approach to address global challenges like terrorism, climate change, and resilient supply chains.
- India's Initiatives in Climate Change:
- India's initiatives in climate change, including ISA (International Solar Alliance), CDRI (Coalition for Disaster Resilient Infrastructure), LiFE (Mission LiFE), and OSOWOG (One Sun One World One Grid) was highlighted.
ASEAN Denies Myanmar’s Chairmanship for 2026
Context
Myanmar won’t be allowed to lead Association of Southeast Asian Nations in 2026
More About the News
- Southeast Asian leaders have decided that Myanmar will not take over the rotating leadership of their regional bloc as scheduled in 2026
- ASEAN leaders have condemned the Myanmar military’s removal of Aung San Suu Kyi’s democratically elected government and have demanded her release from detention, along with other officials.
- The Philippines will take over the chairmanship of ASEAN in 2026.
Some Facts About ASEAN
- ASEAN is a political and economic organization aimed primarily at promoting economic growth and regional stability among its members.
- It was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the founding fathers of ASEAN: Indonesia, Malaysia, Philippines, Singapore and Thailand.
- Current members of ASEAN are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
- The motto of ASEAN is “One Vision, One Identity, One Community”.
- The ASEAN Secretariat is located in Jakarta, Indonesia.
How did ASEAN originate and evolve
- Association of Southeast Asia (ASA), 1961: It was formed by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote economic, cultural, and social cooperation.
- Bangkok Declaration, 1967: It formally established the ASEAN.
- First ASEAN Summit, 1976: In the summit, member countries pledged to work towards regional peace and stability.
- Treaty of Amity and Cooperation (TAC), 1976: It established a framework for peaceful relations and cooperation among member states.
- ASEAN Free Trade Area (AFTA), 1992: It aimed to create a free trade area among member countries.
- ASEAN Charter, 2008: It provides a legal framework for the organization and strengthens its institutional structure.
- ASEAN Economic Community (AEC), 2015: It aimed to integrate the economies of member countries and promote regional economic growth.
- ASEAN joins Regional Comprehensive Economic Partnership(RCEP), 2020: ASEAN members join RCEP, a free trade agreement.
Negotiations to Revive Black Sea Grain Deal
Context
In recent news, the Turkish President and his Russian counterpart have engaged in discussions aimed at reviving the Black Sea Grain Deal, which Russia withdrew from in July 2023.
Black Sea Grain Initiative
- Overview: The Black Sea Grain Initiative was established to address the increasing food prices resulting from disruptions in the supply chain, primarily caused by Russian actions in the world's major food-producing regions.
- This agreement, negotiated by the United Nations (UN) and Turkey, was signed in Istanbul back in July 2022. Specifically, the initiative permits the export of commercial food and fertilizers, including ammonia, from three crucial Ukrainian ports situated along the Black Sea: Odesa, Chornomorsk, and Yuzhny/Pivdennyi.
- Objective: Initially set for a 120-day duration, the deal was designed to create a secure maritime corridor for Ukrainian exports, particularly focusing on food grains. The primary goal was to stabilize markets by ensuring an ample supply of grains, thereby mitigating food price inflation.
- The Role of the Joint Coordination Centre (JCC): The JCC was established to oversee the implementation of the Black Sea Grain Initiative. This coordination centre is based in Istanbul and includes representatives from Russia, Turkey, Ukraine, and the UN, with the UN also serving as the Secretariat for the Centre. All commercial vessels are required to register directly with the JCC, ensuring proper monitoring, inspection, and safe passage.
Understanding Russia's Exit from the Grain Deal
- Russia asserts that the commitments made under the agreement have not been fulfilled, and it continues to face challenges exporting its agricultural products and fertilizers due to the numerous sanctions imposed by Western countries.
- While there are no direct restrictions on Russia's agricultural products, the nation claims that barriers related to payment platforms, insurance, shipping, and logistics are hindering its exports.
- Russia also argues that it initially agreed to the grain deal to contribute to global food security, but Ukraine has predominantly exported to higher and middle-income countries.
- Russia's withdrawal was attributed to the failure to uphold a parallel agreement that promised to eliminate obstacles to its food and fertilizer exports, particularly citing shipping and insurance restrictions despite its recent record-breaking wheat exports.
Turkey's Role in Facilitating the Deal
- Turkey has played a pivotal role in trying to revive the grain deal. The nation has consistently committed to renewing arrangements that have helped prevent food crises in various regions of Africa, the Middle East, and Asia.
- Both Ukraine and Russia are substantial suppliers of wheat, barley, sunflower oil, and other essential goods to developing nations.
- Turkey's close relationship with Russia during the 18-month Ukraine conflict has positioned it as a crucial trading partner and logistical hub for Russia's international trade.
- Despite its NATO membership, Turkey refrained from imposing Western sanctions on Russia after its invasion of Ukraine, highlighting its unique diplomatic standing.
Significance of the Black Sea Grain Initiative
- Ukraine ranks among the world's largest exporters of wheat, maize, rapeseed, sunflower seeds, and sunflower oil. Its access to deep-sea ports along the Black Sea enables direct trade with Russia and Europe, as well as grain importers from the Middle East and North Africa.
- The initiative has been credited with making a substantial impact on the global cost of living crisis. This agreement facilitated the secure export of nearly 33 million metric tons (36 million tons) of grain and other commodities from three Ukrainian ports, even amid Russia's ongoing conflict. Those stockpiling grain in the hope of making significant profits due to supply shortages were compelled to sell.
Conclusion
This initiative has also made a substantial impact on the global cost of living crisis by ensuring the safe export of essential commodities, even in the midst of Russia's ongoing conflict. It has prevented hoarding and speculative practices, contributing to a more stable global food market.
As negotiations continue to unfold, it is essential for all parties involved to consider the broader implications of their decisions, not only on their respective nations but also on global food security and the well-being of millions of people worldwide. The Black Sea Grain Initiative serves as a reminder of the interconnectedness of nations in the face of challenges that transcend borders, and the importance of diplomacy and cooperation in finding solutions to these pressing issues.
ADB Regional Conference and PM Gati Shakti
Why in News?
Recently, the 2023 Regional Cooperation and Integration (RCI) Conference was organised by the Asian Development Bank (ADB) at Tbilisi, Georgia where India showcased its PM Gatishakti National Master Plan.
What is the Asian Development Bank?
- About:
- ADB is a regional development bank established in 1966 with the objective of promoting social and economic development in Asia and the Pacific.
- It has 68 members; 49 are from within Asia and the Pacific and 19 outside. India is a founding member.
- ADB assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
- As of 31st December 2022, ADB's five largest shareholders are Japan and the US (each with 15.6% of total shares), China (6.4%), India (6.3%), and Australia (5.8%).
- It is headquartered in Manila, Philippines.
- About ADB Conference:
- Theme for 2023 Conference:
- Strengthening Regional Cooperation and Integration through Economic Corridor Development (ECD).
- Objective:
- Explore ways to integrate spatial transformation/area-centric approach with the ECD and strengthen regional cooperation through a broader approach.
- Knowledge sharing on application of the ECD framework and operational guidelines for investable projects.
- Participation:
- The conference saw participation from more than 30 member countries.
- India’s Role:
- At the RCI Conference, India offered its indigenously developed GIS-based technology though knowledge sharing to ADB and South Asia Subregional Economic Cooperation (SASEC) countries for enhancing socio-economic planning and regional cooperation.
What is PM GatiShakti National Master Plan for Multi-modal Connectivity?
- It is a Made in India initiative, a transformative ‘whole-of-government’ approach for integrated planning of multimodal infrastructure connectivity to economic nodes and social infrastructure, thereby improving logistics efficiency.
- PM Gati Shakti principles bring socio-economic area-based development as part of regional connectivity.
- PM GatiShakti was launched in October 2021.
- The Gati Shakti scheme subsumed Rs. 110 lakh crore National Infrastructure Pipeline launched in 2019.
- PM Gatishakti National Master Plan is a Geographic Information System (GIS) data-based digital platform with over 1400 data layers and 50+ tools.
- It provides visual representation of trunk and utility infrastructure, land use, existing structures, soil quality, habitation, tourism sites, forest sensitive areas etc.
- The initiative is also being implemented to enhance connectivity with regional partners as well. Some of the suitable examples are:
- The Indo-Nepal Haldia Access Controlled Corridor project (eastern Indian states and Nepal)
- Regional Waterways Grid (RWG) project for multimodal connectivity to growth centres and border points.
Coup in Gabon
Context
Recently, military officers in Gabon say they have taken power and put the president, Ali Bongo Ondimba, under house arrest.
About Gabon
- Location: It’s an oil-rich country on the west coast of Central Africa, with a small population of just 2.4 million.
- Gabon is a member of the Opec oil cartel, with a production of 181,000 barrels of crude a day, making it the eighth-largest producer of oil in sub-Saharan Africa.
- Political Stability: Gabon till date has not been afflicted by jihadi violence and had been seen as relatively stable.
- Unemployment: According to World Bank, nearly 40% of Gabonese aged 15-24 were out of work in 2020.
- About Ali Bongo: He was declared the winner of Saturday’s disputed elections and has been president since 2009.
- Before that, his father was in power for 41 years.
Why so many coups?
- Gabon becomes the latest in Africa to suffer an attempted coup.
- If successful, the coup would be the eighth in west and central Africa since 2020.
- The most recent one, in Niger, was in July, while the military has also seized power in Mali, Guinea, Burkina Faso and Chad.
- Coup threaten a reversal of the democratization process the continent has undergone in the past two decades.
- Reason for Rampant Coup: Corruption, mismanagement and poverty.