International Relations & Security

All (4049)Current Affairs (4038)Mains Practice (126)Mains PYQs by Subjects (40)

India – France: Strategic partners

Context: French President Emmanuel Macron graced India's Republic Day as the chief guest, marking his third visit to India since 2018.

India – France Bilateral Relations:

India and France share a longstanding and amicable relationship, marked by a Strategic Partnership established in 1998. This partnership signifies their alignment on various global issues, in addition to fostering a robust bilateral connection. The primary pillars of this Strategic Partnership include cooperation in Defence & Security, Space, and Civil nuclear domains. Beyond these, both nations have expanded their collaboration to encompass new frontiers such as security in the Indian Ocean region, joint efforts in addressing climate change and mutual focus on sustainable growth and development. India and France exhibit a high degree of alignment on regional and global matters.

Areas of cooperation
Economic	India and France have important bilateral investments and commercial cooperation, particularly in sectors involving IT corridors, smart-cities, railways, capital and trade exchanges, skill development etc. France has emerged as a major source of FDI for India with more than 1,000 French establishments already present in India. France is the 11th largest foreign investor in India which accounts for 1.68% of the total FDI inflows into India. A Joint Economic Committee which exists at the Ministerial level has setup FAST-TRACK system for French companies in India and Indian companies in France.
Defence & Security	India signed an Inter-governmental agreement to purchase 36 Rafale fighter aircraft, with formal induction held in 2020. The P-75 Scorpene Project, involving the construction of six submarines under technology transfer from DCNS (Naval group). Further, both countries hold regular defence exercises; viz. Exercise Shakti (Army), Exercise Varuna (Navy), Exercise Garuda (Air Force). (#PrelimsFact)
Diplomatic collaboration	Both nations have extended their collaborative efforts beyond the original pillars of nuclear, space, and defense. The agenda now includes vital aspects such as counterterrorism, intelligence sharing, and cybersecurity. The joint statement issued by them reinforces shared perspectives on ongoing conflicts in Ukraine and Gaza, showcasing an enhanced and diversified collaboration that surpasses the initial focus areas. Notably, France holds the distinction of being the first P-5 country to endorse India's pursuit of a permanent seat in the UN Security Council (UNSC). During the visit of PM Modi to France in 2023, both countries shared a document, “Horizon 2047” a strategic road map for the next 25 years, which includes cooperation in defence, space, nuclear energy, climate change and green transitions as well as education and people-to-people ties.
Cultural collaboration	Indian culture holds a significant presence in France, evident with the upcoming Vivekananda Cultural Centre in Paris. The ‘Namaste France’ cultural festival, initiated after President Hollande's 2016 visit, showcased diverse aspects of Indian culture across 40 French cities. In reciprocation, ‘Bonjour India’ was organized in India by French communities from November 2017 to February 2018. Moreover, every year at the famous Cannes Film Festival, an Indian delegation participates through an India pavilion to promote Indian films at the international stage.
Space & Technology	India and France have a rich history of cooperation in the field of space for over fifty years with ISRO and the French Space Agency, CNES carrying on various joint research programmes and launch of satellites. India and France issued a “Joint Vision for Space Cooperation” in 2018 and exchanged cooperative proposals addressing Earth observation, Maritime domain awareness, Global navigation satellite system, exploration of solar system, space transportation system and human spaceflight. CNES is supporting Indian human space flight programme – Gaganyaan, in the field of space medicine and supply of crew support elements.
Civil Nuclear Cooperation	An agreement on civil nuclear cooperation was signed between India and France in 2008. Subsequently, in 2010, the General Framework Agreement and the Early Works Agreement for the Jaitapur Nuclear Power Project (JNPP) were signed. (#PrelimsFact). Further, India is a member of International Thermonuclear Experimental Reactor (ITER), a multi-national consortium formed to construct an experimental fusion reactor, located in Cadarache, France. (#PrelimsFact)
Environment	Both India & France laid the foundation of the International Solar Alliance (ISA) at COP 15 Paris Summit to develop and deploy cost-effective and transformational energy solutions powered by the sun to help member countries develop low-carbon growth trajectories. A memorandum of understanding (MoU) on renewable energy was also signed which aims to enhance bilateral cooperation in solar, wind, hydrogen, and biomass energy. Notably, India joined the French-led High Ambition Coalition for Nature and People, aiming to safeguard 30% of global lands and oceans by 2030.
Diaspora / Community	The estimated Indian community in mainland France, including NRIs, is approximately 1,00,000, primarily originating from French enclaves like Puducherry, Karaikal, Yanam, Mahe, and Chandernagore. France hosts over 50 active Indian community organizations, with major communities hailing from Puducherry, Tamil Nadu, Gujarat, and Punjab. During President Macron's visit to India in March 2018, a Migration and Mobility Partnership Agreement was signed, facilitating temporary circular migration. (#PrelimsFact)
Maritime sector	Both nations hold significant influence in Indian ocean and Indo – Pacific region. Emphasizing the critical importance of the Indian Ocean Region, the "Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region" was welcomed by leadership from both countries, outlining a strategic framework for enhancing their ties. In 2022, they jointly established the Indo-Pacific Trilateral Development Cooperation Fund, aiming to support innovative and sustainable solutions for regional countries. Additionally, a reciprocal logistic agreement has been concluded, enabling India to leverage French facilities in Djibouti, Abu Dhabi, and Reunion Island, enhancing its strategic capabilities in the region.
Educational collaboration	In the field of S&T, the Indo-French Centre for the Promotion of Advance Research (CEFIPRA) based in New Delhi, established in 1987, plays a major role by identifying and funding joint proposals for research projects. Both countries have signed an Administrative Arrangement for Cooperation in Skill Development and Vocational Training under Migration and Mobility Partnership Agreement. Further, Knowledge Summit is being organized which is a bilateral forum dedicated to scientific and academic cooperation between France and India.

As the enduring and trusted partnership between India and France continues to evolve, the deepening geopolitical dynamics in the Indo-Pacific region offer a compelling opportunity for an even closer collaboration, particularly in bolstering India's military capabilities.

Mass kidnappings in Nigeria

Context: In the midst of Nigeria's most severe economic downturn in recent memory, the nation grapples with significant security concerns exacerbated by a surge in kidnappings across its troubled northern territories by Boko Haram militants.

Why are kidnappings happening in Nigeria?

Economic challenges such as a struggling economy, high unemployment rates, and inflation, coupled with political instability in the Niger Delta, have created fertile ground for the growth of this illicit industry.
Ransom payments have become the primary incentive for kidnappings, as successive governments have struggled to address these multifaceted security issues.

About Nigeria:

It is a country in West Africa, which is situated between the Sahel to the north and the Gulf of Guinea to the south in the Atlantic Ocean.
It is the most populous country in Africa.
Capital City: Abuja
The largest city in Nigeria is Lagos, one of the largest metropolitan areas in the world and the largest in Africa.
It is a multinational state inhabited by more than 250 ethnic groups speaking 500 distinct languages. The three largest ethnic groups are the Hausa, Yoruba, and Igbo together constituting over 60% of the total population.
Active militant groups: Boko Haram
Nigeria is a member: Organization of the Petroleum Exporting Countries (OPEC), African Union (AU), Economic Community of West African States (ECOWAS), Organisation of Islamic Cooperation (OIC).
Important geographical regions of Nigeria: Jos plateau, Shebshi mountains range, Sokoto and Borno plains.

India-Pakistan Trade Ties

Context: Pakistan's Foreign Minister Mohammad Ishaq Dar has highlighted the need for revival of trade ties with India.

Evolution of India-Pakistan trade ties in recent times

India and Pakistan had taken trade measures against each other in 2019.
India's steps against trade with Pakistan: India had withdrawn the Most Favoured Nation (MFN) status to Pakistan and raised tariffs on all trade with Pakistan by multiple times. India has made opening of formal trade with Pakistan conditional on Pakistan ending state support to terrorism.
Pakistan's steps against trade with India: Following India's removal of Article 370 on J&K in August 2019, Pakistan had suspended direct trade ties with India.

Impact of closure of trade ties between India & Pakistan

Closure of India-Pakistan trade adversely affected businessmen, traders and transporters engaged at the Attari-Wagah land border.
The closure of formal trade ties between India and Pakistan led the trade between two countries through third countries such as Dubai and Singapore. Trade through these routes involve higher freight, transshipment and other transportation costs.

What is Most Favoured Nation?

Most Favoured Nation is the cornerstone of WTO agreements.
Although, Most Favoured Nation sounds like giving special treatment, but in the WTO system it means non-discrimination - ie treating all nations with most favoured nation status equally.
Each member treats all the other members equally as “most-favoured” trading partners. If a country improves the benefits that it gives to one trading partner, it has to give the same “best” treatment to all the other WTO members so that they all remain “most favoured”.
Countries which are not members of WTO such as Iran, Ethiopia, Turkmenistan, Uzbekistan, Algeria, Somalia, Sudan, and South Sudan etc. Member countries of WTO can impose any number of tariffs on these countries. Note: Currently 164 countries are members of WTO.
Exceptions to Most Favoured Nation: For example, countries can set up a free trade agreement that applies only to goods traded within the group — discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.
Security Exception: Article 21 of GATT gives contracting parties 'Security Exceptions' which allows countries to take trade measures which are necessary to protect the security of the nation. Using this clause,
- India withdrew MFN status of Pakistan (Though Pakistan is a member of WTO)
- US withdrew MFN status to Russia (Though Russia is a member of WTO).

Maritime Anti-Piracy Act, 2022

Context: The Indian Ocean region spanning across from the eastern coast of Africa to Indian coasts has been a hotbed for piracy activities. Although in the past, Indian Navy and Coast Guard have taken robust anti-piracy steps but due to the absence of any dedicated anti-piracy law, there were several hurdles in efficient handling of such operations.

In this regard, to boost the anti-piracy ecosystem in India and to give effect to United Nations Convention on the Law of the Sea (UNCLOS) relating to repression of piracy on the high seas and for matters connected therewith” (India ratified UNCLOS in 1995), India enacted Maritme Anti-Piracy Act, 2022. Indian Navy Chief Admiral has hailed this act as a "great enabler" such as success of recently conducted operation Sankalp in the Gulf of Aden.

Need for a dedicated Maritime Anti-Piracy Legislation:

Giving effect to the International Convention: India is a party to the United Nations Convention on the Law of the Sea (UNCLOS) adopted by the United Nations on 10 December 1982, and ratified the convention in 1995. But there was absence of any dedicated domestic law on maritime piracy.
Addressing inadequacy of Legal mechanism: Up until now, it did not have any domestic law on maritime piracy. Therefore, Indian Penal Code provisions relating to armed robbery are usually used to prosecute pirates apprehended by the Indian Navy and the Coast Guard. However, this has proven to be inadequate in the past. For ex: hijacking of Japanese ship MV Alondra Rainbow in 1999– first sea piracy case tried by an Indian court–is often cited as an example of such inadequacy. A group of armed Indonesian pirates were captured by the Indian Coast Guard in the Arabian Sea, and they were tried in India. While a sessions court in Bombay tried and convicted the pirates under various sections of the Indian Penal Code, the Bombay high court overruled the lower court’s decision and acquitted all the accused in April 2005.
Rising cases: Gulf of Aden– which separates Somalia and Yemen and connects the Arabian Sea to the Red Sea and through the Suez Canal to the Mediterranean Sea– has seen a rise in attacks by pirates operating from Somalia since 2008. This route is used by 2,000 ships each month for trade between Asia and Europe and the East coast of Africa. Now, with enhanced naval presence in the Gulf of Aden, pirates shifted their area of operations, leading to several such piracy incidents towards the western coast of India as well.

Important Features of the Anti-Piracy Act, 2022:

Applicable to high seas, which includes the Exclusive Economic Zone and all waters beyond the jurisdiction of any other State.

Definition of Piracy

Any illegal act of violence or detention or damage or destruction committed by any person, or by the crew or any passenger of a private ship. Such illegal acts come under the definition of piracy if they are committed against another ship or any person or property on board a ship, on the high seas.
If anybody voluntarily participated in operating a ship knowing that it is a pirate ship, they can also be held guilty of piracy.
Any act of inciting or of intentionally facilitating an act is also punishable as piracy.
Any act which is deemed piratical under the international law including customary international law.

Definition of Pirate Ship:

A pirate ship has been defined as a ship which is intended to be used by anybody who controls it for piracy activities. The law applies to ships, seaplanes, and other aircraft capable of being used as a means of transportation on water or being engaged in any operations at sea.

Punishment:

Whoever commits any act of piracy, shall be punished—

with imprisonment which may extend to imprisonment for life or with fine or with both; or
with death or with imprisonment for life, if such person in committing the act of piracy causes death or an attempt thereof,
In addition, shall also be subject to restitution or forfeiture of property involved in the commission of such offence.
An attempt to commit piracy or helping someone to commit piracy is punishable with a jail term of up to ten years or with fine or with both.
Participating or organizing or directing others to participate in an act of piracy will be punishable with up to 14 years of imprisonment, or a fine or both.

Implementing Authority:

Central government can confer powers of arrest, investigation, and prosecution– as are available to a police officer under the Code of Criminal Procedure– to any of its officers or any state government officer.
Authorised personnel may, either generally or on suspicion that a ship is engaged in piracy on the high seas, board such a ship and arrest the persons or seize the pirate ship and property on board.
The ship or property seized shall be disposed of only by the order of the court.

Adjudicating Authority:

Central Government shall, after consulting Chief Justice of the concerned High Court, by notification, specify—

one or more Courts of Sessions in a State, to be Designated Court for the purposes of this Act;
territorial jurisdiction of each such court:
- Court would have the jurisdiction to handle cases against any person apprehended by or in the custody of the authorised personnel or police– irrespective of their nationality or citizenship of the person along with Indian citizens, or resident foreign nationals in India or stateless people.
- Note: However, warships and government-owned ships employed for non-commercial purposes will not be under the jurisdiction of the court.

Bail Conditions:

Designated Court shall presume, unless the contrary is proved, that the accused person had committed such offence. (Presumption of Guilt).
A person conducting a prosecution before a Designated Court shall be deemed to be a Public Prosecutor appointed under the said Code (Code on Criminal Procedure).

Extradition Provisions:

The offences under this Act shall be deemed to have been included as extraditable offences and provided for in all extradition treaties made by India with any other State and which extend to and are binding on India on the date of commencement of this Act.
In the absence of a bilateral extradition treaty, the offences under this Act shall be extraditable offences between India and other State on the basis of reciprocity.
For the purposes of application of the provisions of the Extradition Act, 1962 (34 of 1962) to the offences under this Act, any ship registered in other State shall, at any time while that ship is operating, be deemed to be within the jurisdiction of that other State whether or not it is for the time being also within the jurisdiction of any other State.

NOTE: No suit, prosecution or other legal proceedings shall lie against authorised personnel for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act.

No suit or other legal proceeding shall lie against the Central Government or any State Government for any damage caused or likely to be caused for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act

WTO’s Existential Crisis

Context: The 13th biennial ministerial meeting of the World Trade Organisation (WTO) ended without any significant accomplishments, as the member countries could not agree on how to solve several issues staring at the international community.

What is a World Trade Organisation (WTO)?

It is an international organisation established in 1995 through the Marrakesh Treaty to promote free and fair international trade.
It is successor to the General Agreement on Tariffs and Trade (GATT), a multilateral agreement which came into being in 1947 to promote trade in Goods.
Under GATT, 8 rounds of negotiations took place. The 8th Round of Negotiations are referred to as the Uruguay Round (1986-94), which ultimately led to the establishment of WTO in 1995.
The WTO is based at Geneva, Switzerland. Presently, it has 164 member countries.

Structure of WTO

Ministerial Conference:
- The Topmost decision-making body of WTO is the Ministerial Conference.
- Usually meets every two years.
- Brings together all members of the WTO, all of which are countries or customs unions.
- The Ministerial Conference can take decisions on all matters under any of multilateral trade agreements.
The General Council oversees the operation of the agreements and ministerial decisions on a regular basis. It also acts as a Dispute Settlement Body and a Trade Policy Review Body, each with its own chairman.
Director General (DG), appointed for a period of four years by the Ministerial Conference, heads the Secretariat of the WTO.

What are the Principles of International Trade Subscribed by the WTO?

Most Favoured Nation: Each of the WTO member countries should “treat all the other members equally as ‘most-favoured’ trading partners.”. "Grant someone a special favour (such as a lower customs duty rate) and you have to do the same for all other WTO members". However, some exceptions such as FTAs are allowed.
National Treatment: Imported and locally produced goods should be treated equally. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights, and patents. National treatment only applies once a product, service or item of intellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally produced products are not charged an equivalent tax.
Special and Differential Treatment: Give developing countries special rights such as longer time periods for implementing agreements and commitments, support to help developing countries to build the infrastructure to undertake WTO work etc.

What are the Issues that the WTO is Plagued With?

Stalemate in Negotiations: The WTO follows the process of consensus-based decision-making. However, it has frequently led to deadlocks in negotiations, thereby hindering the ability to reach meaningful agreements on crucial matters like agricultural subsidies, intellectual property rights, and market access.
Concerns of Developing Nations: Developing countries contend that negotiations are often dominated by developed nations, giving them an edge in shaping rules that favour their interests. These countries encounter difficulties in fully engaging in negotiations and struggle with the complexities of adhering to and implementing trade regulations and standards.
Self-Classification of Members: There are instances when relatively well-off members self-identify themselves as developing countries to take advantage of special treatment provisions. This has raised concerns about fairness and equity.
Dysfunctional Dispute Settlement Mechanism: The WTO's dispute settlement mechanism faces a crisis due to the United States' blocking of appointments to the Appellate Body. This situation presents challenges for members in enforcing WTO obligations without a functional appeals process.
Limited Capacity to Detect & Address Violations: There are concerns about the WTO's limited capacity to detect and address violations of its multilateral agreements in a prompt and efficient manner.
Rise in Protectionism and Bilateralism: Recently there has been a surge in protectionist policies and a shift toward bilateral or regional trade pacts, circumventing the broader multilateral framework of the WTO.
Emerging Challenges: Various new concerns have arisen since 1995, including the intersection of trade with issues like climate change, Sustainable Development Goals (SDGs), gender equality, and human rights. However, the WTO has lagged behind in incorporating these demands into its original framework.

How to Reform the WTO?

Breaking the Deadlock in Dispute Settlement System: Functioning of the Dispute Settlement System is crucial in ensuring the rules-based trading order. Efforts should be made to appoint the members of the Appellate Body at the earliest.
Enhancing Transparency to Boost Legitimacy: Enhanced transparency on both national and international levels is necessary to improve the quality and legitimacy of WTO regulations. This involves avoiding closed-door meetings or exclusive discussions (like mini-ministerials or green rooms) that exclude certain members from important decision-making processes.
Institutional Reforms:
- Establishing an Executive Committee: To enhance the WTO's decision-making processes, there’s an inherent need to establish an executive committee to address the lack of leadership within the WTO and offer guidance for future negotiations.
- Strengthening the Secretariat's Role: The WTO should bolster the Secretariat's role as a pivotal agenda setter within the organisation and improve its ability to conduct research and gather data.
Giving a Voice to Smaller Nations: As per the foundational principle of consensus, all members' viewpoints, including those of smaller nations, must be respected. This includes refraining from using political or economic pressure to coerce a country into agreeing to decisions that contradict its fundamental interests.
Enhanced Technical Assistance for Developing Nations: This includes providing improved technical assistance to developing nations and granting them access to independent advice, such as from UNCTAD, to enable their full participation in WTO activities.

Conclusion

Reforming the World Trade Organisation is of critical importance, without which the trade multilateralism will be beset with problems, thereby pushing the world to higher levels of uncertainty and volatility.

Sri Lanka likely to secure six-year moratorium

Context: Sri Lanka is finalising a debt treatment plan with India and the Paris Club. Sri Lanka is likely to get a moratorium of up to six years as well as a reduced interest rate during the repayment period.

More information from the news:

Official Creditor Committee (OCC): As many as 17 countries that have extended loans to Sri Lanka formed the Committee in 2023 for ease of debt restructuring negotiations. China stayed out of the platform, but has been attending its meetings as an observer.
Sri Lanka defaulted on its nearly $50-billion external debt in 2022. The country has been engaging with its diverse lenders to work out a debt treatment plan that is compatible with its pace of recovery.
Sri Lanka made considerable progress in negotiating a deal with its bilateral creditors, however, the private creditors holding the largest chunk of Sri Lanka’s foreign debt continue to pose a challenge.
IMF assistance:
- Sri Lanka is to receive the next instalment of the International Monetary Fund’s assistance, as part of the $3 billion package it obtained last year, to recover from the unprecedented financial crash in 2022.
- Sri Lanka had an agreement with the Fund on the second review of its four-year Extended Fund Facility (EFF) arrangement.

About Paris Club:

An informal group of officials from major creditor countries.
Find co-ordinated and sustainable solutions to the payment difficulties experienced by debtor countries.
Debtor countries undertake reforms to stabilize and restore macroeconomic and financial situations and therefore, Paris Club provides an appropriate debt treatment.
Provides debt treatments to debtor countries in the form of rescheduling:
- Debt relief by postponement or, in the case of concessional rescheduling, reduction in debt service obligations during a defined period (flow treatment) or as of a set date (stock treatment).
Created gradually from 1956: with first negotiation between Argentina and its public creditors in Paris.
Creditor delegations are generally led by a senior delegate from the Ministry of Finance.
Twenty-two Permanent Members of the Paris Club: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Israel, Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, United Kingdom and the United States.
Observer members:
- Invited to attend the negotiating sessions of the Paris Club but they cannot participate in the negotiation itself, nor sign the agreement that formalizes the result of negotiation.
- International Monetary Fund (IMF); World Bank; Organisation for Economic Co-operation and Development (OECD); United Nations Conference on Trade and Development (UNCTAD); European Commission; African Development Bank; Asian Development Bank; European Bank for Reconstruction and Development (EBRD); Inter-American Development Bank (IADB)
Conditionality: Only negotiates debt restructurings with debtor countries that:
- Are expected to provide a precise description of their economic and financial situation.
- Implemented and are committed to implementing reforms to restore their economic and financial situation.
- Demonstrated track record of implementing reforms under an IMF program.
  - Means country must have a current program supported by an appropriate arrangement with the IMF, example: Extended Fund Facility, Poverty Reduction and Growth Facility
  - Level of the debt treatment is based on the financing gap identified in the IMF program.
Negotiations:
- Debtor country signing an agreement with its Paris Club creditors should not accept from its non-Paris Club commercial and bilateral creditors terms of treatment of its debt less favourable to the debtor than those agreed with the Paris Club.

India’s constructive role in supporting Sri Lanka during the recent economic crisis:

Sri Lanka’s worst economic crisis is attributed to a mix of external shocks (such as the Covid-19 pandemic and the Russia-Ukraine conflict shock) and poor macroeconomic management by the ex- Government.

In January, 2024, India became the first country to have submitted its letter of support for financing and debt restructuring of Sri Lanka to the International Monetary Fund.
India’s financial and humanitarian support worth USD 4 billion to Sri Lanka is far in excess of the total anticipated Extended Fund Facility of the IMF.
India extended multi-pronged assistance through multiple credit lines, deferred loans and grants and currency support, in line with India’s ‘Neighbourhood First’ policy.
Use of Rupees for trade settlement is further helping Sri Lanka’s economy.
In 2023, India was the largest source of tourists for Sri Lanka with over 100,000 tourists.

International Monetary Fund (IMF):

Major financial agency of the United Nations, and an international financial institution.
Headquarters: Washington, D.C., United States.
Role:
- Lender of last resort to national governments; Leading supporter of exchange-rate stability.
- Management of balance of payments difficulties and international financial crises.
Mission:
- Foster global monetary cooperation; Secure financial stability; Facilitate international trade; Promote high employment and sustainable economic growth; Reduce poverty around the world.
Established in 1945 at the Bretton Woods Conference.
Special Drawing rights (SDR):
- The IMF created the SDR as a supplementary international reserve asset in 1969.
- SDR was defined as an equivalent to a fractional amount of gold that was equivalent to one US dollar.
- Fixed exchange rates ended in 1973: IMF redefined the SDR as equivalent to the value of a basket of world currencies.
- It is not a currency but an asset that holders can exchange for currency when needed.
- Individuals and private entities cannot hold SDRs; IMF members and the IMF itself hold SDRs.
Funding:
- Funding by 190 member countries.
- Two major sources: Quotas and Loans.
  - Quotas: pooled funds from member nations, generate most IMF funds.
  - Size of members' quota increases according to their economic and financial importance in the world.
  - Amount of financing a member can obtain from the IMF (called as access limit) thus depends upon its quota.

Extended Fund Facility (EFF) of the IMF:

Lending facility, established in 1974.
Provides financial assistance to countries so as to address medium and longer-term balance of payments (BOP) problems because of structural weaknesses that require time to address.
Help countries implement medium-term structural reforms and offer longer program engagement and a longer repayment period.
Eligibility:
- All member countries facing actual or potential external financing needs.
- Most often used by advanced and emerging market countries
- Low-income countries sometimes use the EFF together with the Extended Credit Facility (ECF).
  - ECF: medium-term financial assistance to low-income countries (LICs) with protracted balance of payments problems.
  - It is one of the facilities under the Poverty Reduction and Growth Trust (PRGT).
Conditionality:
- Countries’ policy commitments are expected to focus on structural reforms to address institutional or economic weaknesses.
- Disbursements conditional on the observance of quantitative performance criteria.
Approved for periods of 3 years, but can be extended to 4 years to implement deep and sustained structural reforms.

Trends in International Arms Transfers, 2023 Report by SIPRI

Context: During 2019-23, India emerged as the world's foremost purchaser of arms, according to the most recent findings from SIPRI (Swedish think tank Stockholm International Peace Research Institute).

Key findings of SIPRI’s report:

India’s arms imports have increased by 4.7% as compared to 2014-18.
Arms imports by European countries increased by 94% between 2014-18 and 2019-23 (in the backdrop of the Russia Ukraine war).
Russia remained India’s largest arms supplier (36% of the total).
Top three importers: India, Saudi Arabia and Qatar.
Ukraine became the fourth largest arms importer.
Pakistan, the fifth largest arms importer, received 82% of its arms from China.
France emerged as the world's second largest arms supplier after the United States.
The largest single recipient of French arms exports was India.

About Stockholm International Peace Research Institute (SIPRI):

It is an international institute based in Stockholm, Sweden.
It was founded in 1966 and provides data, analysis and recommendations for armed conflict, military expenditure and arms trade as well as disarmament and arms control.
The research is based on open sources.

Conflict in Eastern Congo

Context: The recent clashes in eastern Democratic Republic of Congo between Congolese army and Rwandan backed M23 group have sparked global concern.

Key Facts for Prelims:

Tutsis and Hutus: The Rwandan genocide, also known as the genocide against the Tutsi, occurred in 1994 during the Rwandan Civil War. During this, members of the Tutsi minority ethnic group were killed by armed Hutu militias.
Zaire: It was the name of the Democratic Republic of the Congo from 1971 to 1997.
North Kivu and South Kivu: These provinces in the eastern Democratic Republic of Congo were embroiled in the Kivu armed conflict over natural resources. #UPSC Prelims 2023
M23 or March 23 movement (also known as the Congolese Revolutionary Army): It was formed by Tutsis to defend their interests against Hutu militias in 2012.

About Democratic Republic of Congo (DRC):

Democratic Republic of the Congo, country located in central Africa.
Officially known as the Democratic Republic of the Congo, the country has a 25-mile (40-km) coastline on the Atlantic Ocean, hence not landlocked.
It is the second largest country on the continent; only Algeria is larger.
The capital, Kinshasa, is located on the Congo River.

Eurasian Economic Union (EAEU)

Context: India is exploring the possibility to forge a free trade agreement with Eurasian Economic Union (EAEU).

About Eurasian Economic Union (EAEU):

It is an international organization for regional economic integration.
It has international legal personality and is established by the Treaty on the Eurasian Economic Union.
It provides for free movement of goods, services, capital and labor, pursues coordinated, harmonized and single policy in the sectors determined by the Treaty and international agreements within the Union.
Member-States: Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia.

The Union is being created to comprehensively upgrade, raise the competitiveness of and cooperation between the national economies, and to promote stable development in order to raise the living standards of the nations of the Member-States.
Each year, a Member State is elected chairman to head the Union. Chairmanship is passed from country to country in alphabetical order in the Russian language.

Geneva Convention on Refugees

Context: Indira Jaising, the former Additional Solicitor General of India, suggested that instead of the Citizenship Amendment Act (CAA), India could have chosen to sign the Geneva Convention on Refugees to demonstrate its commitment to safeguard the persecuted minorities.

The Convention Relating to the Status of Refugees (1951 Refugee Convention or the Geneva Convention of 28 July 1951)

It is a United Nations multilateral treaty that defines who a refugee is and sets out the rights of individuals who are granted asylum and the responsibilities of nations that grant asylum.
It sets out which people do not qualify as refugees, such as war criminals.
It provides for some visa-free travel for holders of refugee travel documents issued under the convention.
The 1951 Refugee Convention and its 1967 Protocol are the key legal documents which defines the term 'refugee' and outline their rights and the international standards of treatment for their protection. UNHCR serves as the ‘guardian’ of these documents.
The core principle of the 1951 Convention is non-refoulement, which asserts that a refugee should not be returned to a country where they face serious threats to their life or freedom.

Rights contained in the 1951 Convention include:

The right not to be expelled, except under certain, strictly defined conditions
The right not to be punished for irregular entry into the territory of a contracting State
The right to non-discrimination
The right to decent work
The right to housing, land and property, including intellectual property
The right to education
The right to freedom of religion
The right to access to justice
The right to freedom of movement within the territory
The right to be issued civil, identity and travel documents
The right to social protection

Exceptions: The 1951 Convention only protects persons who meet the criteria for refugee status. Certain categories of people are considered not to deserve refugee protection and should be excluded from such protection.

This includes persons for whom there are serious reasons to suspect that: they have committed a crime against peace, a war crime, or a crime against humanity; they have committed a serious non-political crime outside their country of refuge prior to the admission to that country as a refugee; orthey are guilty of acts contrary to the purposes and principles of the United Nations.

NATO’s expansion

Context: Sweden became NATO’s 32nd Ally upon depositing its instrument of accession to the North Atlantic Treaty with the United States government.

Steps to Accession Process

North Atlantic Treaty Organization (NATO) members decide to invite a country to become a member of NATO and they officially invite the country to begin accession talks with the NATO.
Accession talks place between individual invitees and NATO experts at NATO headquarters in Brussels.
Invitees send letters of intent to NATO, along with timetables for completion of reforms.
Accession protocols are signed by NATO countries.
Accession protocols are ratified by NATO countries.
Once Accession Protocols are ratified the invitee countries become eligible to participate in NATO meetings as non-members.
NATO Secretary General invites potential new members.

Is NATO membership open to all?

Ans. NATO membership is open to any other European country which adheres to the principles of NATO and contributes to the security of the North Atlantic area. A NATO decision is the expression of the collective will of all 30 member countries since all decisions are taken by consensus.

Note: Finland became the 31^st member of NATO in April 2023.

Pancheshwar Multipurpose Project (PMP)

Context: India and Nepal signed an agreement on long term power sharing without making any forward movement on Pancheshwar Multipurpose project.

About Pancheshwar Multipurpose project (PMP):

It is a bi-national hydropower project to be developed on Mahakali River bordering Nepal and India.
Development of PMP is covered under integrated Mahakali Treaty signed between Nepal and India according to which, equal sizes of underground power house i.e. of 3240MV will be constructed on each side of Mahakali river in India and Nepal.
It offers the benefit of regulated water for irrigation to a vast area of agricultural land both in Nepal and India along with the benefit of flood control downstream.

About Mahakali Treaty:

It is an agreement signed in 1996 between the Government of Nepal and the Government of India regarding the development of the watershed of Mahakali River.
It calls for an integrated development of barrage, dams and hydropower for mutual cooperation of the two countries by managing the water resources.
It recognizes the Mahakali River as a boundary river between the two countries.

About Mahakali or Sharda River:

The Sharda River, also called Kali River and Mahakali River, originates at Kalapani in the Himalayas in the Pithoragarh district in Uttarakhand, India.
It flows along Nepal's western border with India.
It joins the Ghaghra River, a tributary of the Ganges.
It takes the name Kali River from the union of the two streams at Gunji as it flows through the hills. After Brahmadev Mandi near Tanakpur, it enters the Terai plains, where it is called the Sharda River.