International Relations - 3 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

China’s Outreach in Central Asia

Context

Recently, Chinese President Xi Jinping chaired the inaugural China-Central Asia Summit in Xi’an, Shaanxi Province.

The Central Asia region (CA) 

• It comprises the countries of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. 
• It is a diverse region with a mix of upper-middle and low-income countries with major strategic importance due to their geographic location and natural resource endowments.

About Summit 

• It saw the participation of the leaders of China and five Central Asian countries. 
• They jointly signed the ‘Xi’an Declaration and issued a blueprint for the future development of China-Central Asia relations. 
• The countries focused on the 10th anniversary of the Belt and Road cooperation to be a ‘new starting point’.
•  In focus also were people-to-people exchanges, a ‘Cultural Silk Road’ programme, and issues of regional terrorism and extremism.

Major Highlights 

• China: Its interest in the region grew rapidly. Central Asia was a readymade market for cheap exports and gave China overland access to markets in Europe and West Asia.
  • The summit is bound to have an important and far-reaching influence on China’s relations with Central Asian countries and carry global significance. 
  • China is ready to work with all parties to review past experience, chart a blueprint for cooperation, and demonstrate unity, creativity and efficiency, with a view to achieving sound and sustained growth of China-Central Asia relations.
• The approach of Central Asian countries: These former Soviet republics intend to maintain balanced regional and international engagements.
  • They have been able to successfully implement a multi-vectored foreign policy that stretches beyond the Russia-China axis.
  • Turkmenistan’s foreign policy: The basic parameter of Turkmenistan’s foreign policy since its independence in 1991 has been the country’s official status of ‘neutrality’. 
    • Turkmenistan will continue the policy of neutrality based on good neighbourliness, equality and mutually beneficial cooperation with all the countries of the world’.
  • Uzbekistan: The main priority of its foreign policy is regional security in Central Asia, which includes the precarious environment in Afghanistan. 
    • Other priority directions cover relations with the Commonwealth of Independent States (CIS) member-states, Russia, China, the United States, the European Union (EU), Turkey, South Korea, Japan, Malaysia, Indonesia, Singapore, and Vietnam.
  • Kyrgyzstan: Economic and security concerns have been the decisive factor in formulating the foreign policy strategies of Kyrgyzstan in the post-independence era. 
  • Tajikistan: The foreign policy of Tajikistan is an ‘open doors’ and a peace-seeking policy, indicating the ‘country’s readiness to build friendly relations with all countries and recognize shared interests based on reciprocal respect and equality’.

Implications 

• The brief overview of the foreign policy trajectories in Central Asia highlights their common characteristics, i.e., multi-vectorism. 
  • This pragmatic approach certainly pays off, as it provides the benefits of maintaining friendly ties with multiple players, including Russia.
• In this sense, the Central Asian republics could serve as a relevant example for other post-Soviet countries, e.g., Georgia and Moldova. 
•  Some may view this summit as a testament to an ever-expanding Chinese influence in the region, which poses a challenge to Russia’s ambitions.
  • Earlier, Russian President Vladimir Putin had held more than 50 meetings (both online and in person) with Central Asian leaders. 

Where does India stand in this situation?

• India made its biggest outreach to Central Asia with last year’s summit, but its relationships in the region, including in the SCO, remain security-driven.
• While India has trading ties with these countries, it is hobbled by the absence of a land route to Central Asia, with Pakistan denying it passage and Afghanistan being uncertain territory after the Taliban takeover. 
• The Chabahar port in Iran offers an alternative route, but it is not fully developed yet.
• There have been suggestions that India should provide connectivity for people and trade in Central Asia through “air corridors”, as it had done for Afghanistan.

Way Ahead

• The world needs a prosperous Central Asia. A dynamic and prospering Central Asia will help people in the region achieve their aspiration for a better life. 
  • It will also lend a strong impetus to global economic recovery.
• India’s leadership of the SCO this year may provide it with an opportunity to diversify relations with this strategic region.

India-Singapore Ties

Context

The Union Education Minister of India recently embarked on a three-day visit to Singapore with the aim of strengthening existing ties and exploring opportunities for widening bilateral engagement in education and skill development.

What are the Key Highlights of the Meeting?

• The Union Education Minister met various key Ministers of the Singaporean Government and visited Spectra Secondary School.
  • It includes a constructive meeting with DPM & Minister for Finance, Singapore, on strengthening cooperation and focusing on skill development.
  • The meeting emphasized creating opportunities for lifelong learning, building a future-ready workforce, and making knowledge and skill development a key pillar of strategic partnership.
• The minister highlighted the National Education Policy (NEP) 2020 and its focus on vocational education, market relevance of training, and integration of skills qualifications framework with higher education qualification framework.
• The Minister stressed on learning from the best practices of Singapore, collaborate and customize it to meet Indian needs.

How are India’s Relations with Singapore?

• Background:
  • The close ties between India and Singapore have a history rooted in strong commercial, cultural and people-to-people links across a millennium.
  • The more modern relationship is attributed to Sir Stamford Raffles who, in 1819, established a trading station in Singapore on the route of the Straits of Malacca which later became a crown colony and governed from Kolkata till 1867.
    • After independence, India was one of the first countries to recognize Singapore in 1965.
• Trade and Economic Cooperation:
  • Singapore is among India's largest trade and investment partners in ASEAN and accounted for 27.3 % of our overall trade with ASEAN in 2021-22.
    • Singapore is also the leading source of Foreign Direct Investment into India.
    • Over the last 20 years the total investment into India from Singapore is almost 136.653 billion and accounts for nearly 23% of the total FDI inflows.
  • The Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore was signed in 2005.
    • India and Singapore have also collaborated on several initiatives to promote trade and investment, such as the India-Singapore Business Forum and the India-Singapore CEOs Forum.
  • Recently, India’s Unified Payments Interface (UPI) and Singapore’s PayNow have been integrated in February 2023 to enable faster Remittances between the two countries.
• Defence and Security Cooperation:
  • Both countries share common concerns about regional stability and maritime security in the Indo-Pacific region.
    • In 2015, they elevated their relationship to a Strategic Partnership on the occasion of the 50^th anniversary of the establishment of diplomatic relations.
  • They have also signed several agreements to enhance their defence ties, such as the Defence Cooperation Agreement (2003) and the Naval Cooperation Agreement (2017).
    • Military Exercises:
      • Navy: SIMBEX
      • Air Force: SINDEX
      • Army: Bold Kurukshetra
• Education, Science and Technology Cooperation:
  • The 28^th edition of the DST-CII India-Singapore Technology Summit was held in February 2022.
    • It highlighted collaboration of India and Singapore in AI, IoT, fintech, healthcare, biotech, smart manufacturing, green mobility, logistic and supply chain solutions, smart manufacturing, and sustainable urban development.
  • ISRO also launched Singapore’s first indigenously built micro-satellite in 2011.
  • Singapore is looking at collaborating with India in the area of digital public infrastructure on the lines of a national identity system like Aadhaar.
    • Another potential opportunity could be the integration of Singapore's 'Proxtera' (global digital hub of MSME ecosystems) with India's Open Network for Digital Commerce (ONDC)
• Cultural and People-to-People Ties: Both countries share a rich heritage of cultural diversity, linguistic affinity and religious harmony.
  • Ethnic Indians constitute about 9.1% or around 3.5 lakhs of the resident population of 3.9 million in Singapore. They have contributed significantly to Singapore’s economic development, social fabric and cultural diversity.
  • ASEAN-India Pravasi Bharatiya Divas (PBD) was held in Singapore on 6-7 January 2018 as part of commemoration of 25 years of ASEAN-India Partnership, with the theme, “Ancient Route, New Journey”.
• Cooperation in Infrastructure Development:
  • Singapore's expertise in infrastructure development, smart cities, and urban planning aligns with India's goals of sustainable development and building smart cities.
    • Singaporean companies have been actively involved in infrastructure projects in India, including the development of industrial parks, airports, and urban infrastructure.

Reforming UNSC and Bretton Woods

Context

Recently, at a press conference in Hiroshima, Japan, the UN Secretary-General has called for reforms in UNSC (United Nations Security Council) and Bretton Woods Institutions, citing that the current order is outdated, dysfunctional and unfair.

• In the face of the economic shocks from the Covid-19 pandemic and the Russia-Ukraine Conflict, the said institutions have failed to fulfil their core function as global safety nets.

What is the Bretton Woods System?

• About:
  • The Bretton Woods system was a monetary framework created in 1944 by representatives of 44 nations at the Bretton Woods Conference in New Hampshire, USA. It aimed to establish stability and cooperation in international Monetary after World War II.
  • The Bretton Woods Agreement created two important organizations—the International Monetary Fund (IMF) and the World Bank.
    • While the Bretton Woods System was dissolved in the 1970s, both the IMF and World Bank (Bretton Woods institutions) have remained strong pillars for the exchange of International Currencies.
• Need for Reforming Bretton Woods Institutions:
  • While these institutions performed well over their first 50 years – they have been struggling in more recent times as problems of rising inequality, financial instability and Protectionism have re-emerged.
  • The threat of Climate Change and ecological stress, rising disasters and a more interconnected world with new threats like cyber-security and pandemics require a new International Financial Architecture.
  • There has been biases in fund allocation and unregulated Special Drawing Rights (SDRs), the IMF allocated USD 650 billion in SDRs during the pandemic.
    • The G7 countries, with a population of 772 million people, received USD 280 billion. The African continent, with 1.3 billion people, received only USD 34 billion.

What is the United Nations Security Council?

• About:
  • The UN Security Council was established by the UN Charter in 1945 and is one of the 6 principal organs of the United Nations.
  • UNSC has 15 members: 5 permanent members (P5) and 10 non-permanent members elected for 2-year terms.
    • The P5 are: US, Russia, France, China and the UK.
  • India has been a non-permanent member of the Council during 1950-51, 1967-68, 1972-73, 1977-78, l984-85, 1991-92, 2011-12 and for the 8^th time, entered the UNSC in 2021 and was on the council for the term 2021-22.
• Issues with the UNSC:
  • Creating Problems for the Developing Countries:
    • Developing countries are facing problems in three dimensions: Moral, power-related, and practical.
    • A systemic and unjust bias in global economic and financial frameworks in favour of rich countries is generating “great frustration in the developing world”.
  • Limits the Representation:
    • The absence of Africa, as well as countries like India, Germany, Brazil, and South Africa, from the permanent membership of the UN Security Council is seen as a significant drawback.
    • It limits the representation of important nations and their perspectives on global issues, hindering effective decision-making on complex and interconnected problems.
  • Misuse of Veto Power:
    • The P5 have anachronistic veto power in the UNSC which has faced criticism for being undemocratic and limiting the Council's ability to make important decisions when any of the P5 disagrees.
    • Many argue that such elite decision-making structures are not suitable for the current global security landscape.

What can be done to Address these Issues?

• Bretton Woods:
  • There is a need to reshape and revitalize three global institutions -the IMF, WBG and the WTO (World Trade Organization) where:
    • The IMF will focus on macroeconomic policy and financial stability, with stricter surveillance of advanced economies and their impact on global crises.
    • The restructured WBG will prioritize sustainability, shared prosperity, and leveraging private capital effectively. It should work with others to address global challenges and act as a wholesaler of finance.
    • A stronger WTO is needed for fair trade, faster dispute resolution, and the ability to respond swiftly to emergencies.
  • The system needs more automatic and rule-based financing mechanisms to avoid delays and political influences.
  • There needs to be regular calibrated SDR issues, global pollution taxes, and financial transaction taxes.
    • A well-structured G-20 could provide overarching guidance to the Bretton Woods system and its interactions with other institutions.
• UNSC:
  • There is a need to ensure equal representation for all regions, including Africa, along with decentralization of power and authority, which will allow nations from all regions to voice concerns related to peace and democracy in their countries, making decision-making more representative and democratic.
  • The focus should be on addressing global issues rather than preserving the privileges of the P5 nations.
  • Urgent correction is needed to balance power between the P5 and the rest of the world, ensuring a more democratic and legitimate governance of the UNSC for international peace and security.
  • The IGN (Intergovernmental Negotiation) process, which discusses UNSC reform, should be revised and re-energized, avoiding procedural tactics that hinder progress.

G7 Summit: Climate Goals, Gandhi Statue & Quad Climate

Initiatives

 

Context

During the recent 49^th G7 summit, member countries had outlined key milestones in their climate Wishlist in response to ongoing studies and reports that continue to raise alarms about the worsening state of climate change, urging immediate action.

• Furthermore, at the same summit, the Prime Minister of India unveiled a bust of Mahatma Gandhi in Hiroshima, Japan.
• Additionally, the Quad Leaders' Summit also took place on the sidelines of the G7 summit, emphasizing shared democratic values, strategic interests, and initiatives for the Indo-Pacific region.

What are the Main Climate Wishlist of the G7?

• Global Peak in Emissions by 2025:
  • The G7 emphasized the need for a global peak in emissions by 2025.
    • While this is not mandated under the Paris Agreement, achieving it is not implausible.
  • Developed countries are witnessing a decline in emissions, although not at the required pace while developing countries' emissions are still increasing.
  • If all countries only fulfill their existing commitments, emissions in 2030 would be about 11% higher than 2010 levels.
• Ending Fossil Fuel Use:
  • The G7 does not set a specific deadline for ending fossil fuel use but commits to accelerating the phase-out of "unabated fossil fuels" in line with 1.5 degree Celsius trajectories.
  • They aim to eliminate "inefficient fossil fuel subsidies" by 2025 or earlier without specifying the definition of "inefficient subsidies."
  • The G7 countries claim to have stopped financing new fossil fuel-based energy projects, except in limited circumstances.
• Net-Zero Targets:
  • The G7 reiterates its commitment to achieve net-zero status by 2050 and urges other major economies to do the same.
  • The world as a whole must become net-zero by mid-century to meet the 1.5-degree Celsius target.
  • China aims for net-zero by 2060, while India has set 2070 as its target.
  • Post-2050 targets of major developing countries may change with evolving technologies and cleaner energy adoption.

What are the Challenges in Implementing the G7 Climate Wishlist?

• Insufficient Action and Inconsistencies:
  • G7 countries account for 20% of global emissions but have not effectively fulfilled their pledges.
  • Lack of sufficient and consistent actions to align with the 1.5-degree Celsius and 2-degree Celsius temperature goals.
  • G7 member countries Failure to update nationally determined contributions (NDCs) . Paris Agreement targets.
• Inadequate Climate Finance Support:
  • G7 countries have been slow and insufficient in providing climate finance to developing nations agreed under the Paris Agreement targets.
  • Developing countries, disproportionately affected by climate impacts, require support for adaptation and resilience.
  • Oxfam reports that only 20% of climate finance from rich countries in 2019 was allocated for adaptation, with minimal reaching least developed countries.
• Continued Reliance on Fossil Fuels:
  • Criticism directed at the G7 countries for their ongoing dependence on fossil fuels, particularly coal.
    • Fossil fuels, especially coal, are highly carbon-intensive energy sources exacerbating climate change.
  • Oil Change International highlights that G7 countries provided significant public finance for fossil fuels, surpassing investments in clean energy.

Why did the PM of India Unveil Gandhi’s Bust in Hiroshima?

• Mahatma Gandhi was one of the most influential leaders of the twentieth century, who championed the principles of non-violence, peace, justice and human dignity. His statue was unveiled at Hiroshima Peace Memorial Park , as a tribute to his legacy and a reminder of his relevance in today's world.
• The symbolic gesture was meant to highlight the shared commitment of the G7 and its partners to prevent another nuclear catastrophe and to pursue nuclear disarmament and non-proliferation.
• It was also meant to acknowledge the suffering and resilience of the Hibakusha, the survivors of the atomic bombings of Hiroshima and Nagasaki in 1945.
• The statue was also seen as a recognition of India's role and contribution to global peace and security, as well as its partnership with Japan on various issues, including climate change.
• The unveiling ceremony was attended by the G7 leaders, as well as the Prime Minister of India, who was invited as a guest to the summit along with other leaders from Australia, South Korea, and South Africa.

What Were the Outcomes of the Quad Leaders' Summit?

• The Quad Leaders' Summit was held on May 23, 2023, on the sidelines of the G7 summit. It was attended by the Prime Minister of India, President Joe Biden of the US, Prime Minister Scott Morrison of Australia and Prime Minister Yoshihide Suga of Japan.
• The Quad is an informal strategic dialogue among four democracies that share common interests and values in the Indo-Pacific region.
• One of the key areas of cooperation among the Quad members is climate change. The leaders issued a joint statement that reaffirmed their commitment to the Paris Agreement and its full implementation.
• They also announced several initiatives to enhance collaboration on clean energy transition, innovation, adaptation, and resilience. Some of these initiatives are:
  • Launching a new Quad Climate Working Group to coordinate their efforts on domestic and international climate policies.
  • Establishing a Quad Clean Energy Partnership to support the deployment of clean energy technologies in Indo-Pacific countries through technical assistance, capacity building, and financing mechanisms.
  • Supporting a Quad Green Shipping Network to promote decarbonization of maritime transport through information sharing, best practices, and standards development.
  • Expanding cooperation on disaster risk reduction and management through joint exercises, training, and information sharing.
  • Supporting nature-based solutions for climate mitigation and adaptation through the conservation and restoration of ecosystems such as forests, wetlands, and mangroves.

What is the Group of Seven (G7)?

• It is an intergovernmental organization that was formed in 1975.
• The bloc meets annually to discuss issues of common interest like global economic governance, international security and energy policy.
• The G7 countries are the UK, Canada, France, Germany, Italy, Japan and the US.
• All the G7 countries and India are a part of G20.
• The G7 does not have a formal charter or a secretariat. The presidency, which rotates among member countries each year, is in charge of setting the agenda. Sherpas, ministers and envoys hammer out policy initiatives before the summit.
• The 49^th G7 summit was held in Hiroshima, Japan.

What is QUAD?

• It is the grouping of four democracies –India, Australia, the US, and Japan.
• All four nations find a common ground of being democratic nations and also support the common interest of unhindered maritime trade and security.
• The Quad is billed as four democracies with a shared objective to ensure and support a “free, open, and prosperous” Indo-Pacific region.
• The idea of Quad was first mooted by Japanese Prime Minister Shinzo Abe in 2007. However, the idea couldn’t move ahead with Australia pulling out of it, apparently due to Chinese pressure.
• Finally in 2017, India, Australia, the US and Japan, came together and formed this “quadrilateral” coalition.

India- EU Trade and Technology Council 

About

• The meeting will be co-chaired on the Indian side by the Ministers for External Affairs, Commerce and Industry, and Communications, Electronics, and Information Technology.
• Trade and Technology Council was launched by Prime Minister Narendra Modi and President of European Commission Ursula von der Leyen during Ms Leyen's visit to India in April last year.
• Both sides established three Working Groups under the Council.
• These are Working Group on Strategic Technologies, Digital Governance, and Digital Connectivity, Working Group on Green and Clean Energy Technologies, and Working Group on Trade, Investment and Resilient Value Chains.
• Meetings of the three Working Groups have also taken place leading to the Ministerial meeting in Brussels.

Rasht-Astara Railway and INSTC

Russia and his Iran has signed a deal to finance and build the 162 km Rasht-Astara Iranian railway, the main connection in the emerging North-South Transport Corridor.

Rasht-Astara Railway Link

• The Rash Astra Railway is a 162-kilometer railway connecting Rasht (Iran) and Astara (Azerbaijan) on the border.
• It is part of the International North-South Transport Corridor (INSTC) and will significantly diversify global traffic flows.
• The railway will facilitate connections between Russian ports on the Baltic Sea and Iranian ports in the Indian Ocean and the Gulf.

About INSTC

• The INSTC is a 7,200-kilometer Multi-Mode Transit System connecting India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
• It promotes transportation cooperation among member states and includes ship, rail, and road routes.
• Membership has expanded to include additional countries, and observer states and Baltic countries have expressed interest in joining.

Significance of INSTC for India

• Central Asia trade: India has invested in the Chabahar Port in Iran, which serves as a doorway for trade with Central Asian countries.
• Extended connection: INSTC offers potential connections to the Baltic, Nordic, and Arctic regions.
• Bypassing Pakistan: INSTC provides an alternate route for India to connect with Central Asia, bypassing obstacles in Pakistan.
• Fastest freight: It reduces transit time by 40% and freight costs by 30% compared to the Suez Canal route.
• Alternative to Suez: Russia claims the project could ultimately rival the Suez Canal in terms of trade flows.

Challenges of INSTC

• Challenges include limited financial support from major international institutions due to US sanctions on Iran.
• Harmonization of tariffs and customs, increased private sector involvement, and improved informational connectivity are necessary for success.

Conclusion

• More financing, cooperation, political will, and strategic planning are required to realize the full benefits of INSTC.
• Addressing demand deficits and enhancing informational connectivity are crucial.
• Collaboration and the establishment of industrial parks and special economic zones can contribute to the corridor’s development and commercial value.