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In what ways does the Indian Ocean Rim Association (IORA) promote economic cooperation and regional integration among its member states? What challenges does it face in achieving its goals? (Answer in 250 words)
Model Answer The Indian Ocean Rim Association (IORA) plays a crucial role in fostering economic cooperation and regional integration among its 23 member states through various initiatives: Trade and Investment Facilitation: IORA promotes trade liberalisation by reducing barriers to the free flow ofRead more
Model Answer
The Indian Ocean Rim Association (IORA) plays a crucial role in fostering economic cooperation and regional integration among its 23 member states through various initiatives:
Trade and Investment Facilitation:
IORA promotes trade liberalisation by reducing barriers to the free flow of goods, services, investment, and technology. The IORA Action Plan (2017-2021) set targets like promoting small and medium enterprises (SMEs) and creating an online trade repository for member businesses to enhance economic integration.
Fisheries Management:
Recognising the importance of the Blue Economy, IORA has prioritised fisheries cooperation. The IORA Fisheries Support Unit leads efforts to address critical issues related to fisheries, ensuring sustainable resource management among its members.
Tourism and Cultural Exchanges:
A dedicated Core Group on Tourism works to enhance tourism and cultural exchanges, setting policy directions and facilitating cooperation to strengthen regional ties and promote people-to-people contact.
Disaster Risk Management:
Given the region’s vulnerability to natural and man-made disasters, IORA emphasizes multi-stakeholder cooperation in disaster risk management, involving governments, NGOs, and the private sector to reduce regional vulnerabilities.
Maritime Security:
To safeguard the strategic maritime routes in the Indian Ocean, IORA members cooperate on issues like piracy, maritime terrorism, and illegal fishing through initiatives like the IORA Working Group on Maritime Safety and Security.
Challenges Faced by IORA
Despite its efforts, IORA faces several hurdles in achieving its objectives:
- Economic Disparities: The diverse economic status of IORA’s members, from wealthy nations like the UAE and Singapore to developing countries such as Mozambique and Seychelles, results in unequal participation and benefits, leading to potential tensions.
- Geopolitical Tensions: Conflicts between major powers, such as the US-Iran, China’s regional disputes, and India-Pakistan tensions, have hindered effective cooperation within IORA.
- Overlapping Regional Organisations: IORA competes with other regional bodies like SAARC, ASEAN, and GCC for resources and attention, which can dilute its influence.
- Secretariat Issues: Frequent staff changes at the IORA Secretariat and its limited monitoring powers hinder the association’s institutional memory and effectiveness in executing its projects.
See lessEvaluate how the expansion of BRICS signifies a new phase in its evolution. Analyze the strengths and weaknesses of BRICS in the current context. (Answer in 250 words)
Model Answer Introduction The expansion of BRICS with the inclusion of new members such as Egypt, Iran, Saudi Arabia, the UAE, and Ethiopia at the 15th BRICS Summit marks a significant phase in the group's evolution. This expansion is an attempt to enhance BRICS' global influence, but it also bringsRead more
Model Answer
Introduction
The expansion of BRICS with the inclusion of new members such as Egypt, Iran, Saudi Arabia, the UAE, and Ethiopia at the 15th BRICS Summit marks a significant phase in the group’s evolution. This expansion is an attempt to enhance BRICS’ global influence, but it also brings challenges related to differing national interests and governance systems.
Strengths of BRICS in the Present Scenario
1. Demographic and Economic Weight
BRICS now accounts for almost 46% of the global population, offering immense demographic leverage. Economically, its share of world GDP at purchasing power parity (PPP) has increased from 31.6% to over 35.6%, strengthening its global economic clout.
2. Strengthened Global Governance
With BRICS countries holding three consecutive G20 presidencies (India in 2023, Brazil in 2024, and South Africa in 2025), the bloc can push its agenda more effectively in global governance.
3. Voice of the Global South
The expansion is seen as a step towards promoting solidarity and strategic partnerships in the Global South, advancing multilateralism and inclusive global governance.
4. Reducing Dependence on the US Dollar
BRICS aims to reduce its reliance on the US dollar by encouraging the use of local currencies in international trade and financial transactions.
Weaknesses of BRICS in the Present Scenario
1. Heterogeneous Group
The group is ideologically and economically diverse. While some members, like Russia and China, have current account surpluses, others like India and South Africa face deficits. Additionally, the political regimes within BRICS vary, with some members being democracies and others authoritarian.
2. Limited Trade Integration
Despite the bloc’s large share in global exports (25%), intra-BRICS trade is limited, accounting for only 3.7% of global trade in 2021.
3. Fragile Geopolitical Unity
Geopolitical tensions, such as the ongoing India-China territorial disputes, create divisions within the bloc, affecting its ability to act cohesively on global issues.
4. Dominance of China
China’s overwhelming economic influence, contributing to over 50% of BRICS’s GDP, risks overshadowing the goals of other members and may lead to prioritizing China’s geopolitical interests.
Conclusion
BRICS represents both a powerful collective force and a complex coalition. While it enhances global influence, the group must navigate internal divisions and differing interests to make a meaningful impact on global governance.
See lessWhile India and Bhutan have historically maintained strong ties, new challenges are beginning to surface in their relationship. Discuss. (Answer in 250 words)
Model Answer Introduction India and Bhutan share a robust and time-tested relationship rooted in the 1949 Treaty of Friendship, updated in 2007 to reflect evolving dynamics. This partnership has been underpinned by economic cooperation, hydropower development, and cultural ties. However, emerging chRead more
Model Answer
Introduction
India and Bhutan share a robust and time-tested relationship rooted in the 1949 Treaty of Friendship, updated in 2007 to reflect evolving dynamics. This partnership has been underpinned by economic cooperation, hydropower development, and cultural ties. However, emerging challenges now pose concerns for this historically strong relationship.
Strengths of the India-Bhutan Relationship
Trade and Economic Ties
Hydropower Cooperation
Development Partnership
Educational and Cultural Cooperation
Emerging Challenges
Border Security and Territorial Negotiations with China
Economic Diversification and Ties with China
BBIN Motor Vehicle Agreement
Sustainable Development Fee (SDF)
Conclusion and Way Forward
To address these challenges, India and Bhutan must reinforce their relationship through:
India’s ‘Neighbourhood First’ policy can guide efforts to ensure mutual growth, security, and prosperity.
See lessHow have transboundary river disputes impacted India's bilateral relations with its neighbors? Discuss with relevant examples. (Answer in 150 words)
Model Answer Transboundary river disputes have long influenced India's relations with its neighboring countries. These disputes arise from shared water resources, conflicting developmental priorities, and concerns over infrastructure projects. Below are the key impacts, illustrated with examples: 1.Read more
Model Answer
Transboundary river disputes have long influenced India’s relations with its neighboring countries. These disputes arise from shared water resources, conflicting developmental priorities, and concerns over infrastructure projects. Below are the key impacts, illustrated with examples:
1. India-China Relations
China’s construction of storage structures upstream of the Brahmaputra River has raised alarms in India over potential impacts on downstream water flows.
2. India-Pakistan Relations
Disputes over the Indus Water Treaty (1960), governing six rivers, have been a persistent issue.
3. India-Bangladesh Relations
India and Bangladesh share 54 rivers, but agreements exist for only one—the Ganga.
4. India-Nepal Relations
Historic treaties like the Kosi (1954) and Mahakali (1996) agreements have been sources of resentment in Nepal.
Geopolitical Implications
These disputes have allowed China to exploit tensions and strengthen its ties with India’s neighbors, intensifying regional challenges.
Conclusion
Resolving transboundary water disputes is essential for fostering regional stability. This requires sustained diplomacy, equitable agreements, and sustainable management of shared resources.
See lessDespite recent developments, India is likely to continue prioritizing its strategic ties with the Maldives due to the latter's significant role in India's broader Indian Ocean strategy. Discuss. (Answer in 150 words)
Model Answer Introduction Despite recent tensions between India and the Maldives, India is likely to continue prioritizing its strategic relationship with the Maldives due to the latter's significant role in the broader Indian Ocean strategy. These ties are crucial for India's security, economic intRead more
Model Answer
Introduction
Despite recent tensions between India and the Maldives, India is likely to continue prioritizing its strategic relationship with the Maldives due to the latter’s significant role in the broader Indian Ocean strategy. These ties are crucial for India’s security, economic interests, and regional stability.
Protecting Maritime Trade
The Maldives lies along critical maritime trade routes connecting the Persian Gulf, the Red Sea, and the Arabian Sea. These sea lanes are vital for the transportation of goods, including oil and natural gas, between the Middle East and India. Maintaining a stable relationship with the Maldives ensures the security of these trade routes, which are crucial for India’s energy security and economic growth.
Countering China’s Influence
China’s growing influence in the Maldives has raised concerns in India about the shifting geopolitical balance in the region. If the Maldives becomes more closely aligned with China, it could challenge India’s traditional influence in the Indian Ocean. Therefore, India is likely to prioritize maintaining its strategic ties with the Maldives to counterbalance China’s presence in the region.
Protecting the Indian Diaspora
The Indian diaspora in the Maldives, numbering approximately 33,000, plays an important role in fostering goodwill between the two nations. This people-to-people connection acts as a stabilizing factor during political tensions and strengthens diplomatic ties, making it a key consideration in India’s strategy.
Ensuring Maritime Security
The Maldives’ strategic location contributes to regional maritime security. India, the Maldives, and Sri Lanka collaborate to address threats such as piracy, illegal fishing, and other transnational issues. This cooperation is vital for ensuring regional stability in the Indian Ocean.
Securing Indian Investments
India has made significant investments in infrastructure projects in the Maldives, including the Greater Male Connectivity Project, which is funded by a $100 million grant and a $400 million line of credit. These investments are essential for India’s economic interests and regional influence.
Conclusion
Despite recent strains, India’s broader strategic interests in the Indian Ocean region will likely drive it to maintain a close relationship with the Maldives. The need to protect maritime trade, counter China’s influence, safeguard its diaspora, and secure investments will continue to guide India’s diplomatic efforts in the region.
See lessAssess the implications of the rising debt crisis in developing countries worldwide. (Answer in 150 words)
Model Answer The growing debt crisis in developing countries has significant implications for their economic stability and development. As of 2022, global public debt reached a record USD 92 trillion, with developing countries owing nearly 30% of this total. From 2010 to 2021, their public debt incrRead more
Model Answer
The growing debt crisis in developing countries has significant implications for their economic stability and development. As of 2022, global public debt reached a record USD 92 trillion, with developing countries owing nearly 30% of this total. From 2010 to 2021, their public debt increased from 35% to 60% of GDP. The consequences of this rising debt burden are profound.
Impact on Welfare Policies
The increasing debt burden limits investments in essential welfare services, such as education and healthcare, affecting billions of people. In 48 countries, the lives of 3.3 billion people are directly impacted by underinvestment in these sectors due to the large portion of national budgets allocated to servicing debt. For instance, the debt servicing costs are consuming resources that could otherwise be used for public welfare.
Reduced Investment in Sustainable Development
Developing countries face much higher interest rates on their loans compared to developed nations. For example, African countries pay rates that are four times higher than the United States. This reduces their ability to invest in long-term sustainable development projects, hindering progress towards achieving the UN’s Sustainable Development Goals.
Widening the Rich-Poor Gap
The debt crisis exacerbates inequality between rich and poor countries. In 2021, one-third of the public spending of the poorest countries went toward debt service payments, while only 21% of the richest countries’ budgets were allocated for this purpose. This economic strain stifles growth and deepens global inequalities.
Social Unrest and Political Instability
In response to high debt levels, countries often implement austerity measures such as spending cuts and tax hikes. These measures increase poverty and unemployment, fueling social unrest and political instability. For example, Sri Lanka’s debt crisis triggered widespread protests against its President, highlighting the social costs of austerity.
Spillover Effects and Reversal of Socio-Economic Development
The debt crisis in one country can have regional consequences, as seen in the Latin American debt crisis (1970-89) and the Asian Financial Crisis (1990-2001). Additionally, sovereign defaults can lead to catastrophic economic costs, with affected countries losing up to 8% of GDP within three years and a significant rise in poverty rates. These defaults can reverse decades of socio-economic progress.
Conclusion
In light of these challenges, debt transparency and better management practices are essential for ensuring that developing countries can borrow sustainably and maintain long-term economic stability.
See lessWhat are the potential benefits for India by engaging in the Indo-Pacific Economic Framework for Prosperity (IPEF)? (Answer in 150 words)
Model Answer India's participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) brings numerous strategic and economic advantages across various sectors. The IPEF, launched by the United States, aims to promote sustainable growth, peace, and prosperity in the Indo-Pacific region throRead more
Model Answer
India’s participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) brings numerous strategic and economic advantages across various sectors. The IPEF, launched by the United States, aims to promote sustainable growth, peace, and prosperity in the Indo-Pacific region through its four key pillars: trade, supply chains, clean economy, and fair economy. Although India has observer status in the trade pillar, it is actively involved in the other three.
Diversification from China
One of the significant benefits for India is the diversification away from China. The Supply Chain Resilience Agreement aims to reduce dependency on China, mitigating risks of disruptions from supply chain shocks. India, with its growing manufacturing sector, can position itself as an alternative global sourcing hub. In 2022, India’s trade deficit with China exceeded $100 billion, underscoring the need for this shift in trade dynamics .
Manufacturing and Infrastructure Growth
India stands to gain from the potential relocation of production centers in critical sectors. This shift will bolster domestic manufacturing capacities and attract investments, supporting India’s Aatmanirbhar Bharat (Self-Reliant India) initiative. Enhanced infrastructure and industrial growth would create job opportunities and strengthen India’s economic position.
Innovation in Clean Technologies
The Clean Economy Agreement under IPEF presents an opportunity for India to attract inward investments in clean technologies. This could lead to the development of low-cost climate technologies, new export avenues, and additional employment. The IPEF partners have pledged $33 million in initial funding for the Clean Economy Agreement, supporting sustainable growth.
Strengthened Anti-Corruption Measures
India also benefits from the Fair Economy Agreement, which aims to enhance cooperation on anti-corruption measures, tax reforms, and cross-border investigations. This will aid in tackling issues like corruption, money laundering, and terror financing, improving the transparency and security of India’s economic environment.
Enhancing Economic and Security Resilience
Finally, increased cooperation under IPEF helps India collaborate on addressing shared challenges such as natural disasters and cybersecurity threats, enhancing both economic and security resilience in the region.
See lessWhat are the opportunities and challenges in enhancing trade, connectivity, and investment integration among South Asian countries? (Answer in 150 words)
Model Answer 1. Economic Gains Enhancing trade and investment integration in South Asia can lead to significant economic benefits. By allowing the free movement of goods and services, the region can achieve efficient capital and labor usage. For example, the ASEAN Free Trade Area (AFTA) saw its tariRead more
Model Answer
1. Economic Gains
Enhancing trade and investment integration in South Asia can lead to significant economic benefits. By allowing the free movement of goods and services, the region can achieve efficient capital and labor usage. For example, the ASEAN Free Trade Area (AFTA) saw its tariff rates drop from 7% to zero after its formation in 1992, boosting regional trade and economic growth.
2. IncreasedInvestment
Greater regional integration can enhance the investment climate by providing access to larger markets. This attracts more foreign direct investment (FDI), as investors see a unified regional market as a more accessible and profitable opportunity.
3. Voice in Global Forums
A unified approach to trade, connectivity, and investment can provide South Asian countries with stronger bargaining power in multilateral forums like the World Trade Organization (WTO). This would allow the region to negotiate more favorable terms and shape global trade policies.
4. Energy Security
Energy integration is another important driver. South Asian countries are heavily dependent on energy imports, and closer economic ties could enhance energy security by fostering shared infrastructure and regional energy markets.
Challenges in Enhancing Integration
1. High Cost of Intra-Regional Trade
Intra-regional trade in South Asia is costly, accounting for 114% of the value of the goods exported. This high cost discourages the formation of regional value chains, even though the countries are geographically close.
2. Poor Trade Facilitation
Non-physical barriers such as excessive delays, high costs, and complex procedures at borders hinder trade. Inconsistent documentation and customs procedures further complicate integration.
3. Political Conflicts
Political tensions, such as those between India and Pakistan, remain a major barrier. For instance, bilateral trade between these countries dropped significantly from $830.58 million in 2019-20 to $329.26 million in 2020-21 due to political unrest.
4. Non-Tariff Barriers
Non-tariff measures like quotas, standards, and labeling requirements also impede regional integration. These barriers are often poorly defined, adding to the complexity of trade within the region.
In conclusion, while South Asia has significant potential for trade and investment integration, overcoming political, economic, and logistical challenges is crucial for realizing this potential.
See lessExplain some of the syncretic traditions practiced in India ?
Totally spot on! For example in India synthesis is running through every fibres of our society. Few examples of some syncretism traditions practiced there are: * Sufism and Bhakti Movements: From the mystical departments of Islam has greatly influenced a Bhakti movement in Hindus with the emphasis dRead more
Totally spot on! For example in India synthesis is running through every fibres of our society. Few examples of some syncretism traditions practiced there are:
* Sufism and Bhakti Movements: From the mystical departments of Islam has greatly influenced a Bhakti movement in Hindus with the emphasis devoted love affair with the supernatural and intimacy with God while passing through religious experiences:.
-Folk Music and Dance: A syncretism factor is recognizable in many folk music and dance traditions in India. For example, Qawwali is Sufi devotional music and is accepted today in the region by people of all religions.
Festivals: Some fests of India are celebrated by people of all casts and creed and faiths also. For example Diwali festival is actually a festival of lights celebrated by the Hindus, the Sikhs, and Jains while Eid is actually known to be enjoyed with all happiness by all.
-Cuisine: Indian food is that rich medley of tastes and motivations. Foods including but not limited to biryani-the Persian dish—has been modified over time and enjoyed by various religions of people.
-Architecture: Indian architecture has rather eclectic style of architecture. Mughal architecture for example can be described as the extraordinary manner in which Persian and Indian constructions were incorporated.
This is not a list of how syncretic traditions have actually been enriching the Indian ethos; it has shown the possibility, character and openness of an Indian society, as syncretic as it has always been throughout history since time immemorial.
See lessHow has India's "Neighbourhood First" policy impacted its diplomatic and economic relations with its neighboring countries in South Asia?
The ‘Neighbourhood First’ policy that started in India from 2014 has had a bipolar impact on its diplomatic and economic relations with the South Asian neighbors. Positive Impacts: -Increased Engagement: It brought more interaction of both nations on many matters and encouraged improvement of relatiRead more
The ‘Neighbourhood First’ policy that started in India from 2014 has had a bipolar impact on its diplomatic and economic relations with the South Asian neighbors.
Positive Impacts:
-Increased Engagement: It brought more interaction of both nations on many matters and encouraged improvement of relations and communication between nearby states.
-Development Cooperation: India has significantly ramped up its levels of development cooperation with neighbourhood countries through a Line of Credit (LOC) facility that supports infrastructure development and funds humanitarian interventions. This enhanced the economic relation as well as peoples’ friendly relations between adjacent countries.
Connectivity Projects: Attraction is enhanced by integration processes that enhance trade and people contact such as the Bangladesh Bhutan India Nepal (BBIN) Motor Vehicles Agreement and Kaladan Multi-Modal Transit Transport Project.
Challenges and Limitations:
This of course throws huge challenges and competition on the geopolitically crucial front in that with China, a regional actor especially emerging powers now in South Asia. Beijing has brought development options of their BRI to neighbors in contrary to those that Delhi wants.
-Internal Issues: The other issues are the domestic political issues and another unresolved regional dispute such us the issue of kashmir with Pakistan and the teesta river sharing with bangladesh hampers bilateral relations.
-Varying Success: The degree of success of the policy is different for each state. Nevertheless, some countries such as Bhutan and Nepal have had good relations in recent past, but there issues regarding some other nations like Pakistan and Bangladesh exist.
-Concerns about Hegemony: Some of the neighboring countries have perceived India to be over-powering them and has tried to control them hence they are making negative remarks.
Overall Assessment:
A major feature on Foreign Policy has been the adoption of the “Neighbourhood First” policy which has seen India take positive steps towards a better working relation with its neighbors. But they are not very effective due to political rivalry the internal issues of countries individual bilateral relations and so on.
– A policy such needs to be context-specific and adaptable to the assorted exigencies and opportunities of each bilateral relationship.
See less– Trust and confidence among neighbour states are essential for the long-term success of the policy.
– Collaborative addressing of regional issues is inescapable as will be finding joint compelling solutions that can result in sustainable cooperation.