Category: International Organizations

Organization of Islamic Cooperation

Why in News?

  • India has condemned the “motivated and misleading statement” made by the Organization of Islamic Cooperation (OIC), which expressed deep concerns over what it called “continued attacks on Muslims in India” and called upon the international community to take Necessary Measures.

What’s the Issue?

  • OIC had expresses deep concern over recent public calls for genocide of Muslims by the ‘Hindutva’ proponents in Haridwar in the state of Uttarakhand and reported incidents of harassment of Muslim women on social media sites as well as banning of Muslim girl students from wearing hijab in the state of Karnataka.

India’s Response:

  • Issues in India are considered and resolved in accordance with our constitutional framework and mechanisms, as well as democratic ethos and polity.

Concerns over these Remarks:

  • This is not the first time that the OIC has commented on India’s internal matters.
  • The OIC had asked India to reverse its decision of scrapping Article 370, which gave special status to the erstwhile state of Jammu and Kashmir, during the sidelines of 76th UN General Assembly.

About OIC:

  • It is an international organization founded in 1969, consisting of 57 member states.
  • It is the second largest inter-governmental organization after the United Nations.
  • The organisation states that it is “the Collective voice of the Muslim world” and works to “safeguard and protect the Interests of the Muslim world in the spirit of promoting International Peace and Harmony “.
  • The OIC has permanent delegations to the United Nations and the European Union.
  • Permanent Secretariat is in Jeddah, Saudi Arabia.

Significance of OIC for India:

  • OIC’s growing economic and energy interdependence with India has become important in recent times.
  • Individually, India has good relations with almost all member nations. Ties with the UAE and Saudi Arabia, especially, have improved Significantly in Recent Years.
  • The OIC includes two of India’s close Neighbours, Bangladesh and Maldives.

Quad Ministers set to Meet in Australia

Why in News?

  • External Affairs Minister S. Jaishankar will begin a visit to Australia and attend a meeting of the Foreign Ministers of the Quad (India, Australia, United States, Japan), which is expected to discuss Cooperation on vaccines, technology and regional security issues including related to China.

Focus Areas of the Meeting:

  • To further bolster ties between their countries at all levels of government while finding creative and holistic ways to manage national security risks.
  • To facilitate better Coordination on international engagement between national and Subnational officials throughout the four participating countries.

What is Quad Grouping?

  • The quadrilateral security dialogue includes Japan, India, United States and Australia.
  • All four nations find a common ground of being the democratic nations and common interests of unhindered maritime trade and security.

Historical Background of the Grouping:

  • The grouping traces its genesis to 2004 when the four countries came together to coordinate relief operations in the aftermath of the tsunami.
  • It then met for the first time in 2007 on the sidelines of the Association of South East Asian Nations (ASEAN) summit.
  • The intention was to Enhance Maritime cooperation between the Four Nations.

Significance of the Grouping:

  • Quad is an opportunity for like-minded countries to share notes and collaborate on Projects of Mutual Interest.
  • Members share a vision of an open and free Indo-Pacific. Each is involved in development and Economic Projects as well as in Promoting maritime domain awareness and maritime Security.
  • It is one of the many avenues for interaction among India, Australia, Japan and the US and should not be seen in an exclusive context.

What are China’s Views on the Quad?

  • There is a General understanding that the Quad would not take on a military dimension against any Country. The strategic community in China, nevertheless, had branded it an emerging “Asian NATO”.
  • Notably, Japanese former PM Shinzo Abe’s “Confluence of Two Seas” address to the Indian Parliament gave a fresh impetus to the Quad concept. This recognized the Economic rise of India.

ENERGY TRANSITION INDEX

Why in News?

  • The World Economic Forum (WEF) has recently released the annual rankings of the global Energy Transition Index.

About Energy Transition Index:

  • It is benchmarks 115 economies on the current performance of their energy systems across economic development and growth, environmental sustainability and energy security and access indicators and their readiness for transition to secure, sustainable, affordable and inclusive energy systems.
  • It shows that Sweden has topped the Index for the third consecutive year and is followed by Switzerland and Finland in the top three.
  • The only G20 countries are France (8th) and the UK (7th). Only 11 out of 115 countries have made steady improvements in ETI scores since 2015.
  • Argentina, China, India and Italy are among the major countries with consistent annual improvements.
  • The China which is ranked 78th, because of the problems of air pollution have resulted in policies to control emissions, electrify vehicles and develop the world’s largest capacity for solar photovoltaic (SPV) and onshore wind power plants.
  • The Scores for the US, Canada, Brazil and Australia were either stagnant or declining.
  • The US ranks outside the top 25% for the first time, primarily due to the uncertain regulatory outlook for energy transition.

About Performance Analysis of the Index:

  • It shows the results for 2020 that 75% of Countries have Improved their Environmental Sustainability.
  • It is a result of multifaceted, incremental approaches, including pricing carbon, retiring coal Plants ahead of Schedule and Redesigning Electricity Markets to Integrate Renewable Energy Sources.Its study measuring readiness for clean energy transition in 115 economies showed that 94 have made progress since 2015. The greatest overall progress is observed among emerging Economies.

About India and Index:

  • India has stepped up two positions to rank 74th with improvements in all three dimensions of the energy triangle. They are Economic development and growth, Energy access and security and Environmental sustainability.
  • The India has also made significant strides in energy efficiency through bulk procurement of LED bulbs, smart meters and programs for labelling of appliances. Similar measures are being experimented to drive down the costs of electric vehicles (EVs).
  • It indicates a strong positive trajectory, driven by strong political commitment and an enabling policy environment.
  • Various Impact of Covid-19: It risks cancelling out recent progress in transitioning to clean energy, with unprecedented falls in demand, price volatility and pressure to quickly mitigate socioeconomic costs placing the near-term trajectory of the transition in doubt.

About World Economic Forum:

  • It is a Swiss non-profit foundation established in 1971, based in Geneva, Switzerland.
  • It is recognized by the Swiss authorities as the international institution for public-private cooperation, its mission is cited as, “committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”.
  • The Major reports published by WEF are Global Competitiveness Report, Global IT Report, Global Gender Gap Report, Global Risk Report, Global Travel and Tourism Report

Way Ahead:

  • This pandemic offers an opportunity to consider unorthodox intervention in the energy markets and global collaboration to support a recovery that accelerates the energy transition once the crisis subsides.
  • The economic recovery packages like the announcement of the Pradhan Mantri Gareeb Kalyan Yojana by India, introduced by the governments can accelerate the transition to clean energy, by helping countries scale their efforts towards sustainable and inclusive energy systems, if implemented with long-term strategies.
  • The Policies, roadmaps and governance frameworks for energy transition at national, regional and global levels need to be more robust and resilient against external shocks.

1.6 BILLION RISK LOSING JOBS: ILO

Why in News?

  • Recently, the International Labour Organization (ILO) has warned that nearly half of the entire global workforce is in immediate danger of having their livelihoods destroyed by the coronavirus pandemic.

Highlights:

  • The global workforce is 3.3 billion people, of which more than two billion people work in the informal economy.
  • Due to Covid-19 lockdown, three-quarters of workers (some 1.6 billion people) engaged in the informal economy have suffered massive damage to their capacity to earn a living.
  • Hard-hit Sectors: The worst-affected sectors would be accommodation and food services, manufacturing, wholesale and retail trade, and real estate and business activities.
  • Further, without alternative income, these workers and their families would have no means to survive.

What is Informal Sector?

  • The informal sector, also known as the unorganised sector, is the part of any economy that is neither taxed nor monitored by any form of government.
  • The informal sector provides critical economic opportunities for the poor.
  • The informal sector is largely characterized by skills gained outside of a formal education, easy entry, a lack of stable employer-employee relationships, and a small scale of operations.
  • Unlike the formal economy, the informal sector’s components are not included in GDP computations.

Measures suggested by ILO:

  • The ILO calls for urgent, targeted and flexible measures to support workers and businesses those in the informal economy and others who are Vulnerable.
  • Measures for economic reactivation should follow a job-rich approach, backed by stronger employment policies and institutions, better-resourced and comprehensive social protection systems.
  • International coordination on stimulus packages and debt relief measures will also be critical to making recovery effective and sustainable.
  • International labour standards, which already enjoy tripartite consensus, can provide a framework.

International Labour Organization (ILO):

  • Established in 1919 by the Treaty of Versailles as an affiliated agency of the League of Nations.
  • League of Nations was disbanded in 1946 and powers and functions of ILO transferred to United Nations. Became the first affiliated specialized agency of the United Nations in 1946.
  • It is the only tripartite U.N. agency. It brings together governments, employers and workers of 187 member States, to set labour standards, develop policies and devise programmes promoting decent work for all women and men
  • Headquarters: Geneva, Switzerland
  • Received the Nobel Peace Prize in 1969.

UNGA PASSES RESOLUTION ON COVID-19

Why in News?

  • The United Nations General Assembly has recently adopted a resolution, calling for global cooperation to ensure ‘equitable and fair’ access to medicines, vaccines and medical equipment for all nations to battle the Covid-19.
  • The UNGA resolution which was drafted by Mexico was adopted Through Consensus.

Highlights of the Resolution:

  • International Co-operation: Recognised the importance of international cooperation and effective multilateralism to ensure that all States have in place effective national protective measures, access to and flow of vital medical supplies, medicines and vaccines.
  • Prevention of Stockpiling: Prevent any undue stockpiling of essential medical supplies.
  • Increased R&D: Encourages member states to work in partnership with all relevant stakeholders to increase research and development funding for vaccines and medicines.
  • Involve Private Sector: Called to bolster coordination with the private sector towards rapid development, manufacturing and distribution of diagnostics, antiviral medicines, personal protective equipment and vaccines, adhering to the objectives of efficacy, safety, equity, accessibility, and affordability.

United Nations General Assembly:

  • The General Assembly is the main deliberative, policymaking and representative organ of the UN. All 193 Member States of the UN are represented in the General Assembly, making it the only UN body with universal representation.
  • Each year, in September, the full UN membership meets in the General Assembly Hall in New York for the annual General Assembly session, and general debate, which many heads of state attend and address.
  • Decisions on important questions, such as those on peace and security, admission of new members and budgetary matters, require a two-thirds majority of the General Assembly.
  • Decisions on other questions are by Simple Majority.
  • The President of the General Assembly is elected each year by assembly to serve a one-year term of office.

IRAN TO PULL OUT OF NPT

Why in News?

  • Iran has warned to withdraw from the Non-Proliferation Treaty (NPT) if the state parties to JCPOA refer the dispute over its atomic programme to the United Nation Security Council.

Background Info:

  • Iran had signed the Joint Comprehensive Plan of Action (JCPoA) in 2015 with US, UK, France, Germany, Russia and China that had offered it access to global trade in return for accepting curbs to its atomic program.
  • S.A has been complaining that the treaty was too lenient towards Iran and unilaterally pulled out the pact in 2018 and re-imposed sanctions on Iran.
  • The recent assassination of Iranian general Qassem Soleimani by U.S has escalated tensions in the international arena. Later Iran claimed that it restarted its process of enriching uranium beyond the limits of JCPOA.
  • Amid this rising tensions, Britain, France and Germany declared that Iran was violating the 2015 pact and have launched a dispute mechanism that could eventually see the matter referred back to the Security Council and the re-imposition of U.N. sanctions.

About Non-Proliferation Treaty (NPT):

  • The NPT is an international treaty whose objective is to prevent the spread of nuclear weapons and weapons technology, to foster the peaceful uses of nuclear energy, and to further the goal of disarmament.
  • The treaty was signed in 1968 and entered into force in 1970. Presently, it has 190 member states.
  • It requires the member countries to give up any present or future plans to build nuclear weapons in return for access to peaceful uses of nuclear energy.
  • It represents the only binding commitment in a multilateral treaty to the goal of disarmament by the nuclear-weapon States.
  • Nuclear-weapon states under the NPT are defined as those that manufactured and exploded a nuclear weapon or other nuclear explosive devices before January 1, 1967.

GLOBAL INVESTMENT TREND MONITOR REPORT: UNCTAD

Why in News?

  • “Global Investment Trend Monitor Report” was recently released by the United Nations Conference on Trade and Development (UNCTAD).
  • As per the report, India was among the top 10 recipients of Foreign Direct Investments (FDI) in 2019.

Key Highlights of the Report:

1. Investment Trend at Global Level:

  • The FDI at the global level has marked a decline by 1% from revised $1.41 trillion (in 2018) to $1.39 trillion (in 2019).
  • This was against the backdrop of weaker macroeconomic performance and policy uncertainty for investors in the midst of ongoing trade tensions.
  • Developing economies continued to attract more than half of global FDI flows, whereas, the FDI flows to developed countries decreased further.
  • The largest recipient of FDI worldwide is the United States followed by China and Singapore.

2.  South Asia & India:

  • South Asia recorded a 10% increase in FDI and this growth was driven by India marking a 16% increase in FDI inflows.
  • India attracted $49 billion FDI inflows in 2019 as compared to $42 billion (in 2018). The majority of this went into services industries, including Information Technology.
  • India was also among the top 10 recipients of FDI in 2019.

3. Future Projections:

  • UNCTAD expects FDI flows to rise moderately in 2020, according to current projections, the global economy is set to improve from its weakest performance since the global financial crisis in 2009.
  • The GDP growth, gross fixed capital formation and trade are projected to rise, at the global level (especially in many large emerging markets.
  • Such an improvement in macroeconomic conditions could prompt Multinational Enterprises (MNEs) to resume investments in productive assets (provided their easy access to cheap money).
  • However, significant risks persist, including high debt accumulation among emerging and developing economies, geopolitical risks and concerns about a further shift towards protectionist policies.

WTO’S DISPUTE SETTLEMENT MECHANISM

Why in News?

  • The World Trade Organization’s (WTO’s) dispute settlement mechanism is on the verge of collapse due to the non-appointment of requisite members in the appellate body of the WTO.

Recent Issue:

  • Over the last two years, the membership of the body has dwindled to just three persons instead of the required seven.
  • The dispute settlement mechanism requires at least three members to function out of the total seven member strength. Currently there are only three members and term of two members out of those three also came to an end recently.
  • So, world trade is about to enter a phase in which there will be no official resolution for many international disputes — potentially creating the circumstances for a free-for-all.

Reason behind the Issue:

  • The United States has blocked the appointments of new members, and the reappointments of members who had completed their four-year tenures in the appellate tribunal for the last two years which made the membership of the body to dwindle to (the present) three persons (instead of the required seven).
  • The US believes the WTO is biased against it, and has criticised it for being “unfair”. The administration of American President has, therefore, taken the decision to starve the body of personnel.
  • With complete disregard to its authority — U.S.A has also been imposing new tariffs on not just China, but also American allies such as Canada, Europe, and Japan.

About WTO’s Appellate Body:

  • The Appellate Body, set up in 1995, is a standing committee of seven members that presides over appeals against judgments of WTO panel passed in trade-related disputes brought by WTO members.

Who Can Approach?

  • Countries involved in a dispute over measures purported to break a WTO agreement or obligation can approach the Appellate Body if they feel the report of the panel set up to examine the issue needs to be reviewed on points of law.
  • The Appellate Body can uphold, modify, or reverse the legal findings of the panel that heard the dispute. Countries on either or both sides of the dispute can appeal.

Significance:

  • The WTO’s dispute settlement procedure is seen as being vital to ensuring smooth international trade flows. The Appellate Body has so far issued 152 reports. The reports, once adopted by the WTO’s disputes settlement body, are final and binding on the parties.

After Effects of the Issue:

  • With the Appellate Body unable to review new applications, there is already great uncertainty over the WTO’s dispute settlement process .
  • The understaffed appeals body has been unable to stick to its 2-3 month deadline for appeals filed in the last few years, and the backlog of cases has prevented it from initiating proceedings in appeals that have been filed in the last year.
  • If the body is declared non-functional, countries may be compelled to implement rulings by the panel even if they feel that gross errors have been committed.
  • Should such a country refuse to comply with the order of the panel on the ground that it has no avenue for appeal, it will run the risk of facing arbitration proceedings initiated by the other party in the dispute.

SCOJTEX-2019

Why in News?

  • Union Minister of Home Affairs will inaugurate the Shanghai Cooperation Organization Joint Exercise on Urban Earthquake Search & Rescue (SCOJtEx-2019).
  • SCO Urban Earthquake Search & Rescue Exercise (SCOJtEx.)-2019:
  • The National Disaster Response Force (NDRF) is hosting the exercise.
  • The main aim to rehearse the disaster response mechanism, share knowledge, experience, technology & also for mutual coordination, etc.
  • This exercise shall also provide an opportunity to enhance the coordination & co-operation involving multi-agency operations in an earthquake scenario.
  • The participants of all 08 member countries namely China, India, Kazakhastan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan shall be participating in this exercise.
  • The four day long simulation exercise shall be conducted as per the International Search & Rescue Advisory Group (INSARAG) methodology & guidelines.
  • There will be a Joint Urban Earthquake Search & Rescue Exercise for Shanghai Cooperation Organization member states followed by the Shanghai Cooperation Organization experts meeting of Ministries responsible for Prevention and Elimination of Emergency Situation.
  • The main focus of Shanghai Cooperation Organization Joint Exercise on Urban Earthquake Search & Rescue (SCOJtEx-2019) shall be to test the region’s preparedness and resilience towards effective activation of Inter- governmental interaction for immediate response.

INSARAG:

  • The International Search and Rescue Advisory Group (INSARAG) was established in 1991.
  • This establishment followed the initiatives of the specialised international Urban Search and Rescue (USAR) teams who operated together in the Mexican earthquake of 1985 and the Armenian earthquake of 1988.
  • The INSARAG’s primary purpose is to facilitate coordination between the various international USAR teams who make themselves available for deployment to countries experiencing devastating events of structural collapse due primarily to earthquakes.
  • The group achieves such coordination through facilitating opportunities for communication between these groups ahead of such events.
  • These meetings of teams have resulted in many practical agreements between them that have streamlined working together during actual disasters.

India-BLEU

Why in news?

  • The 16th session of the Joint Economic Commission (JEC) between India and Belgium Luxembourg Economic Union (BLEU) was convened in New Delhi on 17th September 2019.

Highlights:

  • The three countries (India – Belgium – Luxembourg) reiterated the importance of the JEC towards the development of bilateral economic and trade relations through facilitating dialogue and enhancing cooperation on a wide range of issues of mutual interest, such as, transportation and logistics, renewable energy, aerospace and satellites, audio and visual industry, agro and food processing industry, life sciences, ICT, traditional medicine, Ayurveda and yoga, and tourism.
  • JEC sessions are convened based on an agreement signed in 1990 in New Delhi.
  •  It is a biennial event (happens once in two years).
  • It is held in the capital cities of the three countries alternatively.
  • It is the main vehicle for discussing economic and commercial issues between India and BLEU.
  • The JEC was set up in 1997.

Trade between India and Belgium – Luxembourg:

  • The bilateral trade between India and Belgium grew 41% in 2018 – 19 compared to 2017 – 18.
  • The bilateral trade between India and Luxembourg grew 150% for the same time period.
  •  India is Belgium’s second-largest export destination and fourth-largest trade partner outside the European Union with a significant contribution from the Indian diaspora.

Leading exports from Belgium to India:

  • Gem and jewellery (rough diamonds)
  • Chemical and chemical products
  • Machinery and mechanical products

Major exports from India to Belgium:

  • Gem and jewellery (finished products)
  • Base metals and articles
  • Chemicals and chemical products
  • There are around 160 Belgian companies in India.
  • Many Indian software companies have established base in Belgium to cater to the Belgian and European markets.

INDIA JOINS THE GLOBAL AMR R&D

Why in News?

  • India has joined the Global Antimicrobial Resistance (AMR) Research and Development (R&D) Hub as a new member.

Global AMR R&D:

  • The Global AMR R&D Hub was launched in May 2018 in the margins of the 71st session of the World Health Assembly, following a call from G20 Leaders in 2017.
  • The Global AMR R&D Hub supports global priority setting and evidence-based decision-making on the allocation of resources for AMR R&D through the identification of gaps, overlaps and potential for cross-sectoral collaboration and leveraging in AMR R&D.
  • The operation of the Global AMR R&D Hub is supported through a Secretariat, established in Berlin and currently financed through grants from the German Federal Ministry of Education and Research (BMBF) and the Federal Ministry of Health (BMG).

Significance of joining Global AMR R&D:

  • By partnering with the Global AMR R&D Hub, India looks forward to working with all partners to leverage their existing capabilities, resources and collectively focus on new R&D intervention to address drug-resistant infections
  • AMR is the ability of a microbe to resist the effects of medication that once could successfully treat the microbe.
  • Today, the emergence and spread of antimicrobial resistance continue unabated around the world.
  • Given the important and interdependent human, animal, and environmental dimensions of antimicrobial resistance, India considers it reasonable to explore issues of antimicrobial resistance.

 

16TH AEM-INDIA CONSULTATIONS

Why in News?

  • Economic Ministers from ten ASEAN Member States and the Minister of Commerce and Industry of the Republic of India (“the Ministers”) met at Bangkok in Thailand for the sixteenth AEM-India Consultations.

Important Takeaways:

  • Two-way merchandise trade between ASEAN and India grew by 9.8 per cent in 2018
  • The Ministers were also pleased to note the recovery of Foreign Direct Investment (FDI) inflows from India in 2018
  • This placed India as ASEAN’s sixth-largest trading partner and sixth largest source of FDI among ASEAN Dialogue Partners.
  • According to India’s preliminary data, FDI inflows into India from ASEAN in 2018 was approximately 36.98 per cent of total FDI flow into India.
  • The Ministers agreed to initiate the review of the ASEAN-India Trade in Goods Agreement (AITIGA) to make the AIFTA more user-friendly, simple, and trade facilitative for businesses.

ASEAN-India Trade in Goods Agreement (AITIGA):

  • The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and India.
  • The ASEAN–India Free Area emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region.
  • India’s Look East policy was reciprocated by similar interests of many ASEAN countries to expand their interactions westward.
  • After India became a sectoral dialogue partner of ASEAN in 1992, India saw its trade with ASEAN increase relative to its trade with the rest of the world. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%.
  • Acknowledging this trend and recognising the economic potential of closer linkages, both sides recognised the opportunities for deepening trade and investment ties and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN–India Free Trade Area (FTA).
  • The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs.
  • The ASEAN-India FTA will see tariff liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products,” such as palm oil (crude and refined), coffee, black tea and pepper.

Osaka Declaration

Context–  India refused to become a signatory to the Osaka declaration on digital economy.

About

  • It was signed by 24 countries and groupings.
  • It was a sign of resistance against developed countries led by the US and Japan, which are pushing for free flow of data across borders.
  • It is an overarching framework promoting cross-border data flow with enhanced protections.
  • Apart from India, South Africa and Indonesia also stayed away from signing the Osaka declaration.
  • The declaration is aimed for the creation of international rules enabling free movement of data across borders.
  • India believes that discussions and negotiations pertaining to data should be held within the context of the World Trade Organisation (WTO).

World Bank Chief Urges Reforms To Attract Investment Amid Trade Uncertainty

  • The World Bank in its annual Global Economic Prospects report earlier this month forecast that slowing trade and investment flows would cut global growth this year to 2.6 percent, down 0.3 percentage point from previous forecasts.
  • Uncertainty from trade tensions and slowing global growth is increasing the need for developing countries to pursue reforms that make them more attractive to private investment.
  • The Bank will urge countries to take bolder steps to improve their business climates to allow private firms to compete better with state-owned companies and generate more profitable growth, innovation and jobs.
  • The International Monetary Fund has forecast a similar slowdown, driven primarily by increased tariffs, primarily between the United States and China.
  • The bank’s private-sector arm, the International Finance Corp, is doing a deep diagnostics dive into obstacles to private-sector firms in various countries on issues like customs facilitation, stronger bankruptcy regimes and legal changes to bring more women into workforces.

IMF TO LOAN FOR PAKISTAN

why in news:

  • Pakistan will get loan of $6 billion for 3 years-IMF.

Background: / How strained is Pakistan’s economy?

  • Pakistan’s economy has been ruined in the last 8 months, and almost every indicator has deteriorated substantially.
  • It is marked since Imran Khan became Prime Minister and his party, the Pakistan Tehreek- e-Insaf (PTI), formed the government.

IMF:

 

  • Inflation, at 9.4%, is at its highest level in five-and-a-half years and is likely to rise to double digits for the months ahead.
  • The rupee continues to lose value every other day, which adds to further inflation especially with the oil price on the way up.
  • The fiscal deficit is about to hit more than 6% of GDP.
  • Even a cut in development expenditure will not stop this trend, as defence spending and interest payments continue to rise. Pakistan’s exports, stuck at around $26 bn for years, despite the 35% devaluation of the rupee over one year, have barely recovered.
  • Besides, the government owes power producing companies huge amounts of money and the debt continues to accumulate. Interest rates are also going up making the cost of business even more uncompetitive. The GDP grew by 5.8% in the last fiscal year, the highest in 13 years.
  • But the State Bank of Pakistan recently lowered the expectations of GDP growth for the current fiscal year to an 8-year low, to around 3.5%.
  • This was reduced further by the IMF and the World Bank to a dismal 2.9% for the current fiscal year. It is expected to fall further over the next 3 years. By all accounts, Pakistan’s economy is in a dismal state.

 

HQ – Washington

  • Official language – Chinese, English, French, Russian, Spanish, Arabic Formally created in 1945 by 29 member countries
  • Stated goal was to assist in the reconstruction of world’s international payment system post World War II. Countries contribute funds to a pool through a quota system from which countries with payment imbalances temporarily can borrow money and other resources.

 

Organization’s objectives as stated in the Articles of Agreement:

  • To promote international economic co-operation,
  • To promote international trade,
  • To promote employment and exchange-rate stability,
  • Make financial  resources  available  to  member countries to meet balance of payments needs.

Upon initial IMF formation, its two primary functions were:

  • To oversee the fixed exchange rate arrangements between countries To provide short-term capital to aid balance of payments

Taiwan’s Unification with china is inevitable says XI

Context:

  • Taiwan’s unification with the mainland is “inevitable”, President Xi Jinping said on Wednesday, warning against any efforts to promote the island’s independence and saying China would not renounce the option of using military force to bring it into the fold.

Details:

  • Taiwan replied that their people would never willingly give up the democratic freedom’s unseen on the mainland.
  • Taiwan considers itself a sovereign state, with its own currency, political and judicial systems, but has never declared formal independence from the mainland.
  • China still sees democratic Taiwan as part of its territory to be reunified, despite the two sides being ruled separately since the end of a civil war in 1949. China further said that even military options could be taken if necessary, against Taiwanese separatise activities and outside forces that interfere with reunification.
  • China described that unification under a “one country, two systems” approach would safeguard the interests and well-being of Taiwanese compatriots
  • Relations have been strained since the 2016 election of President Tsai, who has refused to acknowledge Beijing’s stance that the island is part of “one China”.

China Building ‘Advanced’ Warships for Pak. Report

Context:

  • China is building the first of four “most advanced” naval warships for Pakistan as part of a major bilateral arms deal to ensure among other things “balance of power” in the strategic Indian Ocean, the state media reported.

Details:

  • These advanced warships will be equipped with modern detection and weapon systems, it will be capable of anti-ship, anti-submarine and air-defence operations
  • It is a version of the Chinese Navy’s most advanced guided missile frigate.
  • Once constructed, the warship will be one It will also support the Pakistan Navy’s initiative of securing sea lanes for international shipping by patrolling distant waters
  • It will also support the Pakistan Navy’s initiative of securing sea lanes for international shipping by patrolling distant waters
  • China is the largest supplier of weapon system to Pakistan.
  • Both countries also jointly manufacturing the JF-Thunder, a single engine multi-role combat aircraft.

White Helmet

  • The White Helmets comprise an unarmed, neutral organization of more than 3,000 volunteer rescue workers operating in opposition-held areas of Syria.
  • The White Helmets carry out search-and-rescue operations to save as many lives as possible.
  • In addition to lifesaving, White Helmets deliver public services such as securing damaged buildings, reconnecting electrical cables and offering safety information to children.
  • The group, also known as the Syria Civil Defence, takes its nickname from the colour of its personnel’s protective hard hats.

Categories

Current Affairs Calendar

M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

Quick Navigate

Social Connect