12

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 5

1

Summary

International Relations August 2023 Part I Class

INTRODUCTION (1:17 PM)

INDIA-GREECE (01:19 PM)

 The Indian Prime Minister recently visited Greece for the first time in four decades.

 More about news:

 India and Greece agreed to upgrade their bilateral ties to a level of strategic partnership and
further expand bilateral cooperation in political, security, and economic
spheres.

 Indian Prime Minister was conferred with the "Grand Cross of the Order of Honour",
Greece’s second-highest civilian honor.

 India welcomed Greece into the International Solar Alliance and looked forward to Greece’s
membership of the Coalition for Disaster Resilient Infrastructure.

 Both countries agreed on finalizing the Mobility and Migration Partnership Agreement to
facilitate skilled migration.

 Significance of Greece for India:

 Greece supported India’s membership at NSG (Nuclear Suppliers Group) and bid for a
permanent seat on the United Nations Security Council.

 Geostrategic: Greece borders the Mediterranean Sea, which covers three continents, i.e.,
Asia, Africa, and Europe, and thus can help enhance India’s outreach to
the Mediterranean region.

 The Mediterranean region is vital for India’s Indo-Pacific policy.

 Access to the European Market: India is exploring a multi-modal link between Mumbai and
the European mainland via the Greek transshipment Port of Piraeus.

 This is also part of the Newly announced India-Middle East-Europe Economic


Corridor Sealed at G20 Summit 2023.

 Defence and Security: With Greece expanding its defense expenditure from US$5 billion to
8.4 billion (2019- 2022), it can act as a potential market for India’s defense exports.

 India and Greece have engaged in joint naval exercises in the Mediterranean Sea and
multinational air force Exercise INIOCHOS-23.

 Concerns associated with India- Greece relations:

 Lack of bilateral engagements: The absence of high-level interaction in four decades has
resulted in a lack of strong strategic connections.
 China’s Presence: Chinese state-owned shipping company COSCO has approx 60% stake in
the Piraeus port and thus can hamper India’s connectivity plans and trade opportunities
through the port.

 Low trade and investment with Greece.

 Way forward:

 Enhance engagements: Greece and Cyprus are two EU member states that can act as a
bridge between the European Union and India, and thus, urgent steps are required to
strengthen bilateral ties.

INIOCHOS-23 (1:50 PM)

 The Indian Air Force (IAF) participated in Exercise INIOCHOS-23, a multinational air exercise
hosted by the Hellenic Air Force. The exercise was conducted at the Andravida Air Base in
Greece from 24 Apr 2023 to 04 May 2023. The Indian Air Force participated with four Su-30
MKI and two C-17 aircraft.

 The objective of the exercise was to enhance international cooperation, synergy, and
interoperability among the participating Air Forces.

 It also enabled the participating contingents to engage in professional interactions, providing


valuable insight into each other’s best practices.

BRICS (2:02 PM)

 The 15th BRICS summit, the first in-person meeting since 2019 was held
in Johannesburg, South Africa.

 More on News:

 South Africa has chosen the theme “BRICS and Africa: Partnership for Mutually Accelerated
Growth, Sustainable Development, and Inclusive Multilateralism” for the summit.

 Apart from BRICS leaders, South Africa had invited all 55 members of the African Union
(AU) to the event and about 20 other leaders from Asia, South America, and Small Island
States who represent the Global South for sessions on the sidelines of the summit.

 Outcome of BRICS Summit:

 Expansion of BRICS: BRICS members agreed to induct six new member countries with their
membership coming into effect from January 2024. These countries include Argentina,
Egypt, Ethiopia, Iran, Saudi Arabia and the UAE.

 Johannesburg II Declaration: It encapsulates significant BRICS viewpoints on global


economic, financial, and political matters.

 Three pillars: BRICS members committed themselves to strengthening the framework of


mutually beneficial BRICS cooperation under the three pillars of

 a) Political and security,

 b) Economic and financial, and

 c) Cultural and people-to-people cooperation.


 India’s Proposals:

 Space cooperation: India’s Prime Minister called for establishing a BRICS space exploration
consortium that could focus on space research and weather monitoring for global good.

 BRICS is already working on the BRICS satellite constellation.

 Inclusion in G20: India proposed that all the BRICS nations and the African Union be
permanent members of the G20.

MALABAR: NOT JUST AN EXERCISE (02:51 PM)

 India, Japan, the United States, and Australia held the Malabar naval exercise off the coast of
Sydney (Pacific Ocean) for the first time. Previously, it was held in the Indian Ocean.

 Few Previous Malabar QUAD exercises are as follows: 1992/ 2007/2015/2020/2023

 1992: Malabar naval exercise commenced in 1992 as a bilateral exercise between India and
USA.

 2007: For the first time, the exercise also included Australia, Japan and Singapore.

 2015: Japan became a permanent participant in the Malabar exercise

 2020: Australia rejoined it after the revival of Quad (Quad 2.0).

 Geopolitical importance of Malabar exercise and connected events:

 Strategic Convergence: Shifting exercise from the Malabar Coast to the Bay of Bengal and
alternating between the latter and the Western Pacific region suggests a strategic
convergence between the participants in the ‘Indo-Pacific’.

 Balance of Power: China’s assertiveness in the Indo-Pacific region through OBOR, logistics
bases, debt traps, etc., disturbs the balance of power in the region.

 General Indo-Pacific Stability: The QUAD and the Malabar Exercise should be viewed as a
major step towards building a sustainable Indo-Pacific coalition.

 Significance of these developments for India:

 Development of strong maritime order: A conducive maritime order requires to be


underpinned by naval power projection capabilities. This includes sea-control (aircraft
carriers/surface ships) and sea-denial (submarines, underwater drones, etc) capabilities.

 National Military Capabilities: Although the Quad’s present objectives, its members also
actively cooperate to build each other’s economic, technological, and military capabilities,
specifically in the context of rising China.

 Strengthening India’s SAGAR policy: ‘SAGAR’ (‘Security and Growth for All in the Region’)
vision posits the requirement to safeguard the region alongside protecting our national
interests.

GLOBAL VALUE CHAINS (03:04 PM)

 Trade and Investment Ministers of G20 nations under India’s G20 Presidency agreed to
map Global Value Chains (GVCs) and adopted a G20 Generic Framework for Mapping GVCs.
 GVCs consist of intricate production networks that are distributed across multiple firms and
countries for cost optimization and for achieving production efficiency.

 Distinct from international trade: Unlike traditional international trade whose transactions
involve only two countries (an exporting country and an importing country), GVC trade
crosses borders multiple times.

 GVC Participation: Countries can participate in GVCs by engaging in either backward or


forward linkages.

 Current GVC distribution: A few countries in Asia, Europe, and North America have driven
GVC expansion over the past 30 years.

 Significance of GVC Participation for countries:

 Spur economic growth by taking part in a global economy.

 Countries can create specialized industries for specific stages of the value chain.

 Achieving economies of scale in a niche area or part of a product.

 Opportunities for technology transfer and knowledge sharing open up in GVCs.

 Risks and Challenges in GVC Participation:

 Economic gaps: There is a risk of widening economic gaps between countries since the gains
from GVC participation are not distributed equally across and within countries.

 Risk of external shocks: GVC participation increases the local economy’s exposure—albeit
not necessarily its ability to cope with—external shocks.

 Inflation linkage: GVCs create strong links in price formation, implying that inflation in one
country is more likely to spill over to its direct and indirect trading partners.

 Gaps in GVC participation: There exists a significant gap between the ability of developing
and developed countries in GVC participation.

 Challenges to MSMEs: MSMEs across the world, especially in developing countries, face
significant impediments with the entry of global firms and the associated competition in
local markets.

 What should be the strategy for participation in GVCs?

 Building trust: A key to robust and adaptable global supply chains is trust. Quality
infrastructure fosters this trust among trading partners, addressing consumer demands and
facilitating private-sector collaboration.

 Encouraging interoperability: The interoperability of standards and protocols among


countries is essential for allowing supply chains to operate properly. These standards
encapsulate best practices for safety, quality, and efficiency.

 Mapping vulnerabilities: It is crucial to identify the hidden vulnerabilities within GVCs and
develop resilience strategies to mitigate the impact of external shocks. For example,
developing capabilities of local industries through schemes like Performance Linked Incentive
(PLI).
IFMC (03:46 PM)

 The IMFC advises and reports to the IMF Board of Governors on the supervision and
management of the international monetary and financial system, including responses to
unfolding events that may disrupt the system.

 It also considers proposals by the Executive Board to amend the Articles of Agreement and
advises on any other matters that may be referred to it by the Board of Governors.

 Although the IMFC has no formal decision-making powers, in practice, it has become a key
instrument for providing strategic direction to the work and policies of the Fund.

 The IMFC usually meets twice a year, at the Bank-Fund Annual and Spring Meetings. For
each meeting, the Managing Director prepares a draft agenda that is discussed by the
Executive Board, approved by the IMFC Chair, and formally adopted by the IMFC at the
meeting.

 A number of international institutions, including the World Bank, participate as observers in


the IMFC’s meetings.

 The size and composition of the IMFC mirrors that of the Executive Board. The IMFC has 24
members who are central bank governors, ministers, or others of comparable rank and who
are usually drawn from the governors of the IMF's 190 member countries, with the newest
members.

 Andorra joined the IMF in October 2020.

Practice Question: BRICS has immense potential but also significant limitations, Discuss in the
context of India’s engagement with the grouping. (150 Words/10 Marks)

THE SYLLABUS OF INTERNATIONAL RELATIONS AUGUST 2023 IS COMPLETED.

You might also like