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Today's Headlines - 19 July 2023
The Black Sea grain deal expired
GS Paper - 2 (International Relations)

The last ship carrying grain from Ukraine, under a UN-brokered deal that guarantees its safe passage, left the port of Odesa. This deal expired, and Russia has still not agreed to extend it.

What is the Black Sea grain deal?

Ukraine is among the world’s biggest exporter of foodgrains, such as wheat and corn, and a major contributor to the UN’s food aid programmes.
When Russia invaded the country and blockaded its ports, it sent food prices soaring and raised fears of food security in the poorer nations of the world. Pakistan, for instance, saw wheat prices skyrocket to crisis levels.
On 22 July 2022, the UN and Turkey got Russia to agree to the Black Sea Grain Initiative, under which cargo ships would be allowed to travel from and to three Ukrainian ports of Odesa, Chornomorsk and Pivdennyi (Yuzhny), after inspection that they weren’t carrying arms.
The safe passage in the Black Sea was 310 nautical miles long and three nautical miles wide. The deal has been extended twice, and expires.
According to a report from June, nearly 32 million tonnes of mostly corn and wheat have been exported by Ukraine under the deal.
Why has Russia not agreed to renew it?

Russia claims that the promises made to it under the deal have not been met, and it is still facing trouble exporting its own agricultural products and fertilisers because of the many sanctions the West has slapped on it.
While there is no direct restriction on Russia’s agricultural products, the country says barriers on payment platforms, insurance, shipping and other logistics are hampering its exports.
Russia has also said that it had agreed to the grain deal in order to help ensure global food security, but Ukraine has since exported mainly to high-and middle-income countries. The UN says while this is true, poorer countries have been helped by food prices cooling down.
The European Union (EU) is now considering connecting a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), from which it was cut off due to the war, to allow grain and fertiliser transactions.

#upsc #news #international #relations #ukraine #blacksea #grain #russia #foodgrain #milliontonnes #eu #swift #products #deal #agriculturalbank #financial #telecommunications #war #fertiliser #transactions

1.1K viewsKOL KSG India, 05:45

Today's Headlines - 25 August 2023
BRICS currency in BRICS Summit
GS Paper - 2 (International Relations)

Brazil's President called for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations. Luiz Inacio Lula da Silva made the proposal at a BRICS summit in Johannesburg. Officials and economists have pointed out the difficulties involved in such a project, given the economic, political and geographic disparities between Brazil, Russia, India, China and South Africa.

Why does Brazil want a BRICS currency?

Brazil's president doesn't believe nations that don't use the dollar should be forced to trade in the currency, and he has also advocated for a common currency in the Mercosur bloc of South American countries.
A BRICS currency "increases our payment options and reduces our vulnerabilities," he told the summit's opening plenary session.
What do other BRICS Leaders think?

South African officials had said a BRICS currency was not on the agenda for the summit.
In July, India's foreign minister said, "there is no idea of a BRICS currency". Its foreign secretary said before departing for the summit that boosting trade in national currencies would be discussed.
Russian President Vladimir Putin said the gathering, which he attended via videolink, would discuss switching trade between member countries away from the dollar to national currencies.
China has not commented on the idea. President Xi Jinping spoke at the summit of promoting "the reform of the international financial and monetary system".
Is the US Dollar in trouble?

BRICS leaders have said they want to use their national currencies more instead of the dollar, which strengthened sharply last year as the Federal Reserve raised interest rates and Russia invaded Ukraine, making dollar debt and many imports more expensive.
Russia's sanctions-imposed exile from global financial systems last year also fuelled speculation that non-western allies would shift away from the dollar.
The objective, irreversible process of de-dollarisation of our economic ties is gaining momentum, Putin told the summit.

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1.3K viewsKOL KSG India, 05:00

KSG IAS - KSG India (Official Telegram Channel)

Today's Headlines - 26 August 2023
BRICS gets six new members
GS Paper - 2 (International Relations)

The five-member BRICS invited six more countries to join the alliance, in a move which can strengthen its claim of being a ‘voice of the Global South’ on one hand, while raising concerns about China’s increasing dominance on the other. BRICS consists of Brazil, Russia, India, China, and South Africa. In its ongoing summit at Johannesburg, South Africa, it has invited Iran, the United Arab Emirates, Saudi Arabia, Argentina, Egypt, and Ethiopia. Their membership will begin in January.

Why New Members

Adding new members strengthens the group’s heft as a spokesperson of the developing world. BRICS currently represents around 40% of the world’s population and more than a quarter of the world’s GDP.
With the additions, it will represent almost half the world’s population, and will include three of the world’s biggest oil producers, Saudi Arabia, the UAE and Iran.
The rush towards BRICS is driven by two basic impulses: “First, there is considerable anti-US sentiment in the world, and all these countries are looking for a grouping where they can use that sentiment to gather together.
Second, there is a lot of appetite for multipolarity, for a platform where countries of the Global South can express their solidarity.”
The formation of BRICS in 2009 was driven by the idea that the four emerging markets of Brazil, Russia, India, and China would be the future economic powerhouses of the world. South Africa was added a year later.
While the economic performance of BRICS has been mixed, the war in Ukraine — which has brought the West together on the one hand and strengthened the China-Russia partnership on the other — has turned it into an aspiring bloc that can challenge the western geopolitical view, and emerge as a counterweight to Western-led fora like the Group of 7 and the World Bank.
What this means for India

If India’s presence at the recent G7 summit in Hiroshima, where Prime Minister Narendra Modi also participated in an informal Quad summit, was seen as a sign of New Delhi’s US tilt, it continues to attach importance to the “anti-West” BRICS.
India is also part of the Shanghai Cooperation Organisation (SCO), and despite problems, it has relations with Russia, with China.
While China does want BRICS to be an anti-western group, the Indian view is that it is a “non-western” group and should stay that way.
Among the new members, while India looks at all of them as partnerships worth developing, concerns have been raised that the group could become more pro-China and sideline New Delhi’s voice and interests.

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1.3K viewsKOL KSG India, 04:30

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Today's Headlines - 04 September 2023
G20 agree to boost information flow to small business
GS Paper - 2 (International Relations)

Trade ministers from G20 nations agreed to a ‘Jaipur Call for Action’ to boost information flow to small businesses to increase their participation, while seeking to build a ‘generic framework’ for mapping global value chains, cautioning against concentration of suppliers and markets.

More about the agreement

In addition, 10 high level principles on digitisation of trade documents were also agreed upon as countries seek to reduce the cost of trading across borders.
Although a communique could not be issued given the divergent position on Ukraine with Russia and China sticking to their stands, and the G7 seeking to highlight the conflict, commerce and industry minister Piyush Goyal told reporters that the contents of the outcome document and the chairs summary were decided unanimously.
Every country has agreed to all the issues… only paragraph 32, which is less than a quarter of a page out of a 17-page document, is an area where we could not get consensus for obvious reasons.
Since the first G20 ministerial meeting under India’s presidency, a meeting of finance ministers and central bank governors in Bengaluru, the Ukraine conflict has driven a wedge between the members of the all-powerful alliance.
In the coming years, various agencies will work on putting together the framework to implement the decisions.
The move on global value chains will help all developing countries and cited the example of mobile manufacturing in India, arguing that it will help create a production eco-system and also generate jobs and investment.
The minister underlined the importance of MSMEs, an issue that was flagged by PM Narendra Modi.
There are concerns over Big Tech and its dominance. Equal and affordable access for all has to be ensured.
The push is in line with the government’s initiatives such as ONDC and UPI, which are open source frameworks offering ease to consumers as well as a level playing field to businesses.
The outcome document took note of theuncertain near-term outlook for global trade and investments and underlined the need for “rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent multilateral system, with WTO at its core”.
It also called for apredictable and transparent regime for services trade, with easier rules for movement of professionals across borders —an issue which is of particular interest to India.

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1.3K viewsKOL KSG India, 06:01

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