19 August 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – Quad Grouping: GS II – International Relations

About:

• A “free, open, and prosperous” Indo-Pacific area is what the Quadrilateral Security Dialogue (Quad) between India, the United States, Japan, and Australia seeks to ensure and encourage.
• Japanese Prime Minister Shinzo Abe introduced the concept of Quad for the first time in 2007. However, the plan was unable to proceed since Australia withdrew, ostensibly under Chinese pressure.
• In order to protect the maritime commons from the Indian Ocean to the western Pacific, Shinzo Abe once more proposed the idea of Asia’s “Democratic Security Diamond” with participation from Australia, India, Japan, and the US.
• The long-awaited “Quad” Coalition to create a new strategy to maintain the independence of the vital sea routes in the Indo-Pacific was formed in November 2017 by India, the US, Australia, and Japan (especially China).

China and the Quad Nations:

• USA: The USA had a strategy in place to limit China’s expanding influence in East Asia. The coalition is therefore seen by the USA as a chance to reclaim its influence in the Indo-Pacific region.
• In its National Security Strategy, National Defense Strategy, and the Pentagon’s report on the Indo-Pacific Strategy, the US has referred to China and Russia as strategic rivals.
• Australia: Australia is worried about China’s increasing influence over its universities, infrastructure, and politics.
• Australia has maintained its commitment to a Comprehensive Strategic Partnership with China in light of its overwhelming economic dependency on China for development.
• Japan: Over the past ten years, Japan has voiced its concerns over China’s territorial intrusion in the area.
• Japan’s economy still depends heavily on trade with China; since the start of 2017, net exports have accounted for precisely one-third of Japan’s economic growth.
• Japan is balancing its economic demands and territorial concerns with China in light of its significance.
• Japan has also promised to take part in infrastructure projects in other nations as part of the Belt and Road Initiative. By doing this, Japan can lessen Chinese influence in those nations while fostering better ties with China.
• India is faced with a strategic dilemma as a result of China’s violations of international law, particularly its building of military installations on reclaimed islands in the South China Sea, as well as its rising military and economic strength.
• Given the strategic significance of China, India is carefully balancing China and the US by keeping loyal to China’s strategic autonomy, which has traditionally been comforting to China.
• As China is cautious of the drill, India has also refused to allow Australia to take part in the Malabar Trilateral Maritime exercises between India, the US, and Japan.
• The recent summit between President Xi Jinping and Prime Minister Modi at Mamallapuram is a positive development, and both parties see it as essential to providing strategic direction to stakeholders on both sides.

Challenges:

• China’s territorial claims: According to China, it has always had historical possession of almost the entire South China Sea region, giving it the right to create islands. However, the suit was denied by the International Court of Arbitration in 2016.
• ASEAN’s Closeness to China: China enjoys a close relationship with the ASEAN nations. China’s growing influence over ASEAN countries is demonstrated by the Regional Cooperation Economic Partnership (RCEP), which was recently established.
• China’s Economic Power: The Quad states cannot afford to have strained relations with China given its economic power and the reliance of countries like Japan and Australia on it.
• Convergence of the Quad Nations: Each country in the Quad grouping has a different aspiration and balance of interests that it seeks to achieve. As a result, there is no cohesion in the Quad Nation’s collective vision.

Steps to Take:

• The Quad will require a more precise self-image. Members of the Quad must resist acting on impulse. Additionally, it is crucial to show openness and make sure that the phrase “Free and Open Indo-Pacific” is more than just a catchphrase.
• While the US also needs to adopt a more proactive approach to advancing the concept of connectedness, countries like India, Japan, and Australia may lead the way in infrastructure initiatives.
• The Quad should concentrate on establishing a strong regional dialogue process and work with ASEAN countries on matters of regional significance.
• India’s participation in the Quad framework gives it geopolitical legitimacy and gives India a rare chance to actively shape a regional security architecture with global implications.

Source The Indian Express

2 – Blockchain Technology: GS III – Indian Economy related issues

• Blockchain technology creates a chain of blocks that each contain digital data that is kept in a public database. It is a distributed database that exists on several computers simultaneously and expands as fresh blocks or sets of recordings are added to it. Blockchain technology has several benefits, especially in terms of processing and security. It is one of the technological advancements of the twenty-first century because it has numerous potential applications in numerous fields.

Benefits of blockchain technology include:

• Integrity across the board: Blockchain technology guarantees overall process integrity. As a result, a very high level of security is provided because no block or even transaction that joins the chain may be altered. They offer a permanent record of each transaction’s history.
• Traceability: With a blockchain ledger, every time a transaction involving the exchange of products is noted, an audit trail is available to show where the items originated. By doing this, exchange-related businesses’ security is enhanced and fraud is prevented. Additionally, it can be used to confirm the legitimacy of the exchanged assets. It can be used to follow the supply chain from producer to distributor in sectors like medicine, or it can be used to establish ownership in the art sector.
• Security: Because of its digital signature and encryption, the blockchain is thought to be a very secure system. This guarantees that the account owner is handling all transactions personally. It is more difficult for any hacker to disrupt the chain’s established configuration thanks to the block encryption in the chain.
• Faster processing: Prior to the development of the blockchain, it took a typical financial organisation a long time to process and initiate a transaction. However, with the advent of blockchain technology, transaction speed significantly increased. Prior to the introduction of Blockchain, the entire banking process took about 3 days to settle, but it now just takes minutes or seconds.
• Fraud avoidance: A system that relies on data kept in multiple locations is impervious to hackers. It is difficult to access, and even if you do, any information can be easily recovered.
• In financial systems and businesses, this adds a layer of accountability, holding each sector of the business responsible to act with integrity towards the company’s growth, its community, and its customers. Conveniently, banks are immediately informed about the completion of transactions, as are the clients.

Potential uses for blockchain technology include:

• Blockchain technology has the potential to promote good governance. Through the use of a digital form platform, it ensures transparency of the public records and permits auditing of government records. Additionally, it keeps the document’s legitimacy intact and noticeably speeds up processing.
• Banking: By using a secure distributed ledger platform, blockchain can assist in reducing the risk of payment losses associated with banking transactions. It lowers cross-border transaction fees as well as fees for corporate payments and remittances.
• Food & Supply Chain: It develops a tamper-proof record to verify the accuracy of information regarding the expiration date and the route taken by the product from the farm to the store. Real product information can aid in enhancing the supply chain system’s dependability and effectiveness.
• Insurance: Blockchain technology has the potential to transform the processes used to handle fraud, settle claims, and create insurance papers. It enables the development of an insurance network that is open, secure, decentralised, and unchangeable.
• Healthcare: It is beneficial to put patients’ health first at all costs while maintaining the standard of care. Blockchain can assist in managing patient records, permission forms, billing, and public health monitoring by constructing a secure chain of networks.
• Automotive: Blockchain can address issues with vehicle deliveries, billing, and production. Keeping track of owners’ maintenance history can aid in the development of an ecosystem for after-sale support.
• Tourism: Blockchain can decrease the processing time for passenger documents, build a decentralised hotel booking environment with the lowest transaction costs, and protect the privacy of passengers.
• Blockchain technology has demonstrated that it is reliable and safe. It guarantees data integrity and lowers fraud instances. Many businesses can use blockchain technology applications to conduct secure commercial transactions thanks to its decentralised nature. By using blockchain technology properly, we can decrease reception time, eliminate fake proof, and do away with the need for partner platforms or middlemen in peer-to-peer networks.

Source à The Hindu

3 – Indian Olympic Association: Prelims Specific Topic

About:

• The Indian Olympic Association is in charge of overseeing both the Commonwealth Games and the Olympic Movement in India.
• It belongs to the Association of National Olympic Committees (ANOC), the Olympic Council of Asia (OCA), the Commonwealth Games Federation (CGF), and the International Olympic Committee (IOC) (ANOC).
• The Ministry of Youth Affairs and Sports has recognised it.

Functions:

• Oversees several facets of the nation’s sports government and the welfare of its players.
• Oversees the representation of athletes or teams competing at international multi-sport events hosted by the IOC, CGF, OCA, and ANOC, including the Olympic Games, Commonwealth Games, Asian Games, and others.

Foundation:

• Sir Dorabji Tata and Dr. A.G. Noehren served as the IOA’s founding president and secretary general, respectively, in 1927, the year the organisation was founded. In accordance with the Societies Registration Act of 1860, it is registered as a non-profit organisation.

Composition:

• National Sports Federations, State Olympic Associations, IOC Members, and other exclusive multi-sport organisations are among the IOA’s members.

Governance:

• A 32-member Executive Council now oversees the Indian Olympic Association. Once every four years, the Executive Council is elected.

Source The Indian Express

4 – Belt and Road Initiative: Prelims Specific Topic

About:

• In order to work together on BRI projects including trains, ports, motorways, and other infrastructure, more than 100 nations have inked agreements with China.
• In 2013, the government of China, headed by President Xi Jinping, made the announcement.

It covered five different types of activities:

• Policy coherence
• trade enticement
• Physical proximity
• Internationalization of the renminbi
• Person to person interactions.

BRI’s routes:

• The New Silk Road Economic Belt connects hubs for commerce and investment in the north of China with Eurasia and India via Myanmar.
• The Maritime Silk Road (MSR) travels from the South China Sea to South-East Asia, Indo-China, and then circles the Indian Ocean to reach Africa and Europe.

Concerns Related to BRI:

• Chinese monopoly on the Projects: The majority of the BRI investments are made by Chinese state-owned companies and institutions.
• Additionally, the majority of the contracts (93%) went to China’s state-owned businesses.
• The host nations or other businesses barely have any responsibility.
• Chinese monopoly in financing and infrastructure construction has furthered corruption and decreased competition.
• Since the private sector is not involved, the programme lacks a competitive component.
• Lack of Transparency and Environmental Issues: The scheme is incredibly controversial because of the debt trap diplomacy, the absence of transparency, and the onerous loan requirements.
• The debt-related issue has affected at least 236 BRI projects.
• Environmental concerns have been raised due to the dumping of steel and cement as a result of this.
• BRI—A Formula For Complete Failure: China sold the majority of its connectivity projects to nations who looked to China for the success of its economic model in infrastructure projects and sought to follow in its footsteps, even if it was not economically feasible for the nations.
• Additionally, China overcommitted itself and is no longer able to support the aid programme.
• Projects that were started but not completed are still in the dark about their future.
• Over 35% of the portfolio of projects are still in the implementation phase.
• Response of Recipient-Countries: A increasing number of nations in Africa, Asia, Latin America, and Central and Eastern Europe are now opposing China’s BRI.
• High-profile BRI projects have been cancelled in several countries by policymakers, while many other nations have chosen to reevaluate whether the advantages of BRI participation outweigh the dangers.

Responses to BRI globally:

• At the 47th G7 summit, the G7 countries put forth the “Build Back Better World (B3W) project” as a response to China’s BRI.
• It attempts to fill the infrastructure investment gap in low-income and emerging nations, a market that China has been encroaching on more and more.
• The US, Japan, and Australia founded the Blue Dot Network (BDN), a multi-stakeholder project, to bring together governments, the commercial sector, and civil society to support reliable, high-quality standards for international infrastructure development.
• At the 2019 Indo-Pacific Business Forum in Bangkok, Thailand, BDN was formally introduced.
• Global Gateway: The European Union has unveiled the Global Gateway, a new infrastructure development plan, in an effort to compete with BRI.

India’s worries:

• India’s strategic interests are jeopardized by the China-Pakistan Economic Corridor (CPEC), which runs through Pakistan-occupied Kashmir (PoK) and Baluchistan, two regions with long-standing insurgencies and high-security hazards.
• India’s strategic interests in the South Asian region would be harmed by CPEC, which might also support Pakistan’s legitimacy in the Kashmir conflict.
• Additionally, efforts to expand CPEC into Afghanistan may damage India’s standing as Afghanistan’s economic, security, and strategic partner.
• China’s Strategic Rise in the Subcontinent: In addition to the CPEC and the China-Myanmar Economic Corridor (CMEC), China is also building the CNEC, which will connect Tibet and Nepal.
• The Gangetic plain’s borders will be touched by the project’s endpoints.
• Three corridors thus represent China’s ascent in the Indian subcontinent both strategically and economically.

Steps to Take:

• Alternative projects that are likewise participatory must be started by more developed nations while taking the host/recipient countries’ interests into consideration.
• The project’s success is not guaranteed if there is no relationship with the host nation.
• Alternative Funding Sources: It is important to consider alternative funding sources for these connectivity projects. The bigger countries will have to step up.
• Additionally, more reputable financial institutions will be requested to offer support in these matters.
• India’s Role: To provide its neighbours with other connectivity options, India will need to coordinate with its regional allies.
• Connectivity is becoming more and more recognised as a tool for influencing foreign policy.
• With India taking the initiative to improve connectivity, China will have a new arena in which to compete geopolitically in South Asia and the Indian Ocean.
• India has a chance to reclaim the top spot in the area thanks to connectivity.
• Collaboration with Like-Minded Nations: In South Asia and the greater Indian Ocean, India’s ability to act alone is constrained.
• To build and modernise its infrastructure and develop an alternative to connectivity corridors and infrastructure projects led by China, it must occasionally ask for assistance from partners like Japan.
• Technically advanced nations with some presence in the region include Australia, France, Germany, the UK, and the United States.
• India must recognise the benefits that each of these countries has to offer and make use of them in order to cooperate in areas of shared interest and achieve its goals for strategic connectivity.

Conclusion:

• China has established a network of investments in order to advance and preserve its own interests, and as a result, several low- and middle-income countries are now heavily indebted.
• There are methods to handle it, but no single nation can go ahead and offer a BRI substitute. However, the larger and stronger economies can band together to find a solution.

Source The Hindu