EU

TOPIC :: GENERAL STUDIES :: European Union (EU)

An European Union (EU) is a union of 27 democratic European nations, committed to working together for peace and prosperity. The member States of the EU have set common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at the European level. The idea of European integration was first proposed by the French Foreign Minister Robert Schuman on May 9, 1950. This day is celebrated annually as the Europe Day. France, Germany, Italy, Belgium, Netherlands, Luxembourg, Denmark, Ireland, Britain, Greece, Portugal, Spain, Austria, Finland, Sweden, Latvia, Lithuania, Estonia, Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Malta and Cyprus. And,  Bulgaria and Romania joined the EU on January 1, 2007.

Turkey, Croatia, Macedonia, Albania, Serbia & Montenegro and Bosnia & Herzegovina are also negotiating for the membership of EU. However, they have to fulfil certain criteria before they are eligible for EU's membership. EU Parliament is Elected directly by the citizens of the member states. EU is representing the Governments of member states. European Commission consists of Driving force, executive body and guardians of treaties. EU Ensures compliance with the law. It will control the sound and lawful management of the EU budget.

Five Other Important Bodies:  

- European Economic and Social Committee: Expresses opinions of organised civil society on socio-economic issues.

- Committee of the Regions: Expresses the opinions of regional and local authorities.

- European Central Bank: Responsible for the monetary policy and for managing the euro.

- European Ombudsman: Deals with citizen's complaints about maladministration by any EU institution or body.

- European Investment Bank: Helps achieve EU objectives by financing investment projects.

- President of European Commission: Jose Manuel Barroso

- President of European Parliament: Joseph Borrell Fontelles.

- Tasks Handled by the EU: Matters related to trade, economy, citizen's rights, security, regional development and   environmental protection.

- The EU's Clout: As a unit the EU has much more economic, social, technological, commercial and political clout than individual efforts of its members. The EU has built a single market and launched a single European currency, the Euro. It is seen as a leading trade power in the world. It has also done commendable work in environment and wildlife protection.

EU's Reform Treaty Signed (Lisbon, Portugal, December 13, 2007):

1. Landmark Treaty Aimed at Easing Decision-Making and Integration in an Enlarged EU: On December 13, 2007, the leaders of the 27-member European Union (EU) signed a landmark Reform Treaty to address the complexities of decision-making and integration of an enlarged EU.

2. Main Aspects of the EU Reform Treaty Will Replace the Aborted EU Constitution: The EU Reform Treaty would replace the aborted EU Constitution. It is a slimmed down version of the European Constitution, rejected by the French and Dutch voters in 2005.

3. Charter of Fundamental Human and Legal Rights: The Reform Treaty includes a 50-article Charter of fundamental human and legal rights. The Charter would be legally binding for 25 of the 27 EU members. Britain and Poland opted out as they were against making the Charter binding.

4. Elected President of the EU Council to Replace the Rotating Presidency System: Envisages an elected President of the EU Council -comprising all the Heads of State and Government - for a two-and-a-half-year term to replace the cumbersome six-month rotating presidency system.

5. More Powerful Foreign Policy Chief to Bolster Common Foreign and Security Policy: Revamped post of a more powerful Foreign Policy Chief to bolster common foreign and security policy. The Foreign Policy Chief would be answerable to EU Governments but is a member of the EU Commission.

6. Smaller European Commission: The European Commission, the executive body of the EU, would be cut from the current 27 members to 17. Commissioners would be selected on a rotation system among the States for a five-year term.

7. Voting System - Votes Allocated to Members According to the Population Size: The number of votes allocated to members would be according to the population size. The introduction of this voting system has been delayed until 2014 to accommodate Poland’s concerns that the system penalises smaller countries.

8. Drops All References to EU Flag or Anthem: In order to assuage eurosceptic fears of another step towards a federal Europe, the Reform Treaty drops all references to EU flag or anthem.

9. Entry into Force by 2009 After Ratification by Individual States: The EU Reform Treaty is set to enter into force by 2009 after ratification by individual States through Parliamentary adoption or a referendum. Ireland is the only State where a referendum is constitutionally mandated.

Significance of the EU Reform Treaty:

- Could End a Six-Year Uncertainty over Political and Institutional Future: The Reform Treaty signed by the EU leaders in December 2007 could end a six-year period of uncertainty over the political and institutional future of the World’s largest trading bloc, according to analysts. The Treaty was signed after long and acrimonious negotiations between supporters and opponents of closer integration.

- Treaty Not a Threat to National Sovereignty of Member States: The Portuguese Prime Minister Jose Socrates stressed that the Reform Treaty was not a threat to the national sovereignty of member States. The Treaty excludes issues of national autonomy and identity that could turn volatile.

- Provision for a More Coherent Foreign and Security Policies: Analysts point out that the EU Reform Treaty provides provision for a more coherent articulation of foreign and security policies with complete protection for the autonomy of member States.

- Greater Power to National Parliaments to Scrutinise Common Legislation: The EU Reform treaty provides greater power to national Parliaments to scrutinise common legislation.

- Provision Safeguarding the Right of Countries to Delay the Implementation of Majority Decisions: Another significant aspect of the Reform Treaty is giving up the principle of unanimity as the basis of decision-making in many areas. A provision safeguarding the right of countries to delay the implementation of majority decisions was included at the instance of Poland.

EU's Economy:

1. Economy May Surpass the US: The 27-member EU has a $11 trillion plus GDP economy which could soon surpass the US economy, according to analysts.

2. Growing Confidence in the Single Currency Euro: Steady Rise of Euro as the Second Global Currency after the US Dollar:
There has been a steady rise of the euro as the second global currency after the US dollar, with about 25 per cent share in the global foreign exchange reserves.

3. Fall in US Dollar Made Euro an Attractive Currency for Holding Foreign Exchange Reserves: The fall of the US dollar to a record eight-year low against the euro has led to a rethink among Asian and other countries on the dollar as the sole currency for holding foreign exchange reserves. Governments are looking at spreading the risk and hold an increasing proportion of their foreign exchange reserves in euro due to eurozone's global attraction as the world's biggest trading zone with a stable currency.

4. Eurozone Expanded to 15 Countries: On January 1, 2008, Cyprus and Malta adopted the euro increasing the number of countries using the currency to 15. The euro has risen more than 11 per cent against the US dollar during 2007. Nine eastern European countries are waiting to adopt the euro as the common currency.

Economic Challenges Facing EU:

Rate of Inflation touching 3.5 per cent against the 2.5 per cent parameter set by the European Central Bank. 20 million people unemployed in member States. Concerns that the economic prosperity cannot be sustained for long with Asian economic giants - India and China - fast capturing the European markets.

EU to Negotiate FTAs with India and Other Asian Countries: In April 2007, the EU Foreign Ministers approved mandates for the European Commission to negotiate Free Trade Agreements (FTAs) with India, South Korea and the ASEAN. The agreements could add more than 40 billion euro to EU exports annually and provide wide trade opportunities for all sides, according to the EU executives.

EU Energy Policy to Tackle Climate Change: The EU's broad new energy policy would tackle climate change by boosting renewable fuels, cutting consumption and curbing dependence on foreign suppliers of oil and gas.

Conclusion:

EU Completes 50 Years. In March 2007, nearly 500 million citizens of the European Union (EU) commemorated the 50th anniversary of the historic founding treaty of Rome of 1957. The pan-European vision was given a concrete shape through the inter-connected process of economic integration, geographical enlargement, rule of law, fundamental civic and political freedoms, and human rights. Analysts point out that the establishment of the European Union has been an enormous success. The EU has been an exemplary model of building peace, prosperity, stability and solidarity within a single entity. The 27 members, many of whom fought bloody wars or were separated by ideological divisions, have now joined in a single entity sending a message in the current unipolar world, according to analysts. A strong EU can be a voice of global peace and counterweight to the sole superpower, according to analysts. The international community has welcomed the consolidation of European unity and the global stability it promises. India, a multilingual and multicultural, country has shared attributes with EU. It is hoped that an enlarged EU will remain a voice of global peace and respond reasonably to the needs of the developing countries.

ASEAN

TOPIC :: GENERAL STUDIES :: ASEAN

An ASEAN, with 10 Member Group Formed in 1967. An association of South East Asian Nations (ASEAN) is an economic political and cultural organisation of the countries of South East Asia. Members include Thailand, Indonesia, the Philippines, Malaysia, Singapore, Brunei, Vietnam, Cambodia, Laos and Myanmar. China, Japan, South Korea and India are ASEAN's dialogue partners at the summit level. The ASEAN region has a population of 500 million and annual trade worth $720 billion. And, it's headquarters is located at Jakarta (Indonesia).

Treaty of Amity and Cooperation (TAC) is based on security concerns for the region. The Treaty of Amity and Cooperation (TAC) was adopted at the Bali Summit in 1976. A member has to accede to TAC to join the group. It lays down the country’s commitment to the principles of amity and cooperation, in consonance with the spirit of consensus practised by ASEAN. The main intention is to avoid conflict or confrontation.

In 1994, the ASEAN Regional Forum (ARF) was created by ASEAN as a larger platform to discuss security issues relating to the Asia-Pacific region. It became the security plank of the Asia Pacific Economic Cooperation (APEC) forum, which has 18 members. The ASEAN + 3 forum consists of all 10 members of ASEAN, and China, Japan and South Korea.

On November 29, 2004, the ASEAN nations signed an accord with India and China to create the world’s biggest free trade zone by removing tariffs for their 2 billion people by the decade’s end. This is seen as a significant step in ASEAN’s vision of a trade bloc to rival Europe and North America.

New Charter for a Rule-Based Organisation Adopted at the ASEAN Summit in Singapore in November 2007: Calls for free-trade economic bloc by 2015 Aims for a single Southeast Asian market and production base with free flow of goods, services, investment and capital Aims to promote rule of law, good governance, the principles of democracy and constitutional government. To maintain and enhance peace and security in the region, and to preserve Southeast Asia as a nuclear weapon-free zone. Accords a legal identity to ASEAN for international negotiations and transactions. Non-interference into the affairs of member States.

Significance of the New Charter:

1. ASEAN's First Document in 40 Years of Existence: The new rule-based Charter adopted by the ASEAN at its annual summit in Singapore in November 2007 was the group's first such document in 40 years of existence. The Charter is based on the same principles as its core.

2. Charter a Crucial Step in Making ASEAN Stronger and Relevant with Deeper Regional Integration: The new landmark Charter adopted by the ASEAN was a crucial step in making ASEAN stronger and relevant with accelerated deeper regional integration, according to the Singapore Prime Minister Lee Hsien Loong.

SEAN-INDIA SUMMIT

Introduction:

1. India's Look East Policy: India’s “look east” policy was initiated in 1991 by former Prime Minister, Mr. Narasimha Rao. It coincided with India’s economic reforms and stressed on engaging more with its East Asian neighbours. The aim was to get key countries of the region interested in India’s potential as an investment destination.

2. Redefining Neighbourhood: India is now conceptually redefining its neighbourhood. It now sees South-east Asia as a core part of its neighbourhood.

India’s Relations with ASEAN:

1. Relations suffered during the Cold-War period: Indo-ASEAN relations suffered during the Cold-War period due to differing perceptions on different issues. India was always inclined towards the former Soviet Union whereas the ASEAN was pro - US and China.

2. 1991 - Improvement in Relations after Economic Liberalisation by India: In 1991, when India adopted the economic liberalisation programme, trade with individual ASEAN countries increased manifold.

3. 1992 - Sectoral Dialogue Partner: In 1992, India was allotted the sectoral dialogue partner status by the ASEAN. The dialogue focussed on structuring economic and technological cooperation between India and the ASEAN.

4. 1995 - Dialogue Partner: In 1995, India was allotted the status of full-fledged dialogue partner. This allowed India to be a regular participant in the annual dialogue sessions and the ARF that discusses security issues.

5. 2002 - ASEAN-India Summits: From 2002, India-ASEAN annual summit meetings have been institutionalised as a formal structure of the ASEAN’s annual process.

The Importance of ASEAN to India:

a. Strategic and Economic Importance: The Association of South East Asian Nations (ASEAN) is important to India for security and strategic reasons as well as for commercial, economic and cultural reasons. ASEAN is pivotal to India’s “look east” policy, according to the former Prime Minister, Mr. Vajpayee. The air land and trade routes pass through this region which is of vital importance to India. Brunei, Indonesia, Malaysia and Myanmar are endowed with energy resources. India and the ASEAN nations are rich in agriculture, raw materials and natural resources. Thus broadbased economic cooperation can have a positive impact.

b. Emerging Economic Bloc: ASEAN which links 10 Southeast Asian countries is seen by India as an emerging economic bloc for expanding trade ties.

c. India Shares Land and Maritime Boundaries with ASEAN: Since the entry of Myanmar, India shares land and maritime boundaries with the ASEAN region. India has a stake in the peace and stability of the region.

d. Security of Sealanes: The security of sealanes in the Indian Ocean that would facilitate India’s greater commercial activities with the ASEAN countries had assumed an added importance. India was keenly looking forward to close cooperation from the ASEAN nations in this regard.

e. Engagement with ASEAN Based on Stability and Collective Security: India’s engagement with ASEAN must grow steadily. There is an obvious growth potential within the economic arena but concern about China in this region provides the impetus, according to analysts. However, engagement with ASEAN must be based on larger considerations about stability in Asia and the common military and non-military threats.

India’s Importance to ASEAN:

a. India’s Advantage in IT and Pharma Technologies: India can offer ASEAN investments and IT (Information Technology) and pharma technologies among others. India has comparative advantage in services, software and in knowledge-based manufacturing.

b. Access to India’s Large Consumer Market: The ASEAN economies will benefit by access to vast Indian consumer market.

c. Mutuality of Strategic Interest:

- Vulnerable to Terrorism: Some of the ASEAN countries like Indonesia, Philippines, Thailand and Singapore have become vulnerable to terrorism, many aspects of which have a bearing on the terrorist scourge facing India. Hence, there is mutuality of strategic interest between India and the ASEAN. Common threats faced by India and the ASEAN include drug trafficking, piracy at sea and smuggling.

- Strategic Importance Reason Behind Major Powers Interest in the Stability of the Region: Analysts point out that the strategic importance of India and the ASEAN results in the major powers of the world being interested in the stability of the region.

Sixth India-ASEAN Summit (Singapore, November 21, 2007):

India's Proposals:

- Enhancement of Trade with ASEAN: Addressing the sixth India-ASEAN summit in Singapore in November 2007, Prime Minister Manmohan Singh stressed on increasing trade which could become a key element in the search for a robust institutional architecture for regional cooperation and action.

- Bilateral Trade Target of $50 billion by 2010: Dr. Singh proposed to enhance bilateral trade with the ASEAN countries from the current $30 billion to $50 billion by 2010.

- Simpler Visa Regime: A simpler visa regime for businessmen to travel, whereby bona fide businessmen could get visa the same day was proposed.

- India Flexible and Determined to Achieve the Objective of an India-ASEAN Free Trade Agreement (FTA): The Prime Minister assured the ASEAN members that India has shown and will continue to show flexibility and determination to achieve the objective of an India-ASEAN Free Trade Agreement (FTA). Trade between India and ASEAN would increase by 30 per cent annually with the FTA in place.

Significance of the India-ASEAN Summits:

1. Recognition of India as an Emerging Global Player: Analysts point out that ASEAN’s willingness to engage India at this time reflects the recognition of India as an emerging global player - both in terms of economic interests as well as regional security considerations.

2. Institutionalising the Dialogue Process in Significant for Development of Ties: The ASEAN-India annual summit is a significant step in institutionalisation of dialogue as formal structure of the ASEAN’s annual processes. The process of institutionalisation is a significant step in the development of ASEAN’s ties with its summit partners.

3. Strengthening Geo-Political Ties Through Economic Endeavour: The focus is on fine-tuning the network of economic linkages between India and the ASEAN, which together account for a GDP of the order of $1.5 trillion.Indo-ASEAN trade is set to grow from $30 billion to $50 billion in 2010.

4. Mutually Beneficial Cooperation on Countering Terrorism: India’s exchanges with the ASEAN on global and regional terrorist threats will be relevant to both sides. After September, 11, 2001, southeast Asia has emerged as a hub of terrorism. The governments of ASEAN nations have been concerned at the reported linkages between the local terrorist groups with Al-Qaeda.

5. Benefits of Cooperation with ASEAN: Cooperation with ASEAN will help in stabilising relations with China.Overcoming limitations of the lack of progress in the SAARC. Accords signed with ASEAN may contribute to possibilities of cooperation not only between India and the ASEAN but also between ASEAN and India’s neighbours like Bangladesh, Sri Lanka, Nepal and Bhutan.

6. Reinforcing Sub-Regional Cooperation: Finally, ASEAN-India dialogue will also help in reinforcing India’s efforts in sub-regional economic cooperation like the BIMST-EC (Bangladesh-India-Myanmar-Sri Lanka-Thailand Economic Cooperation) and Mekong Ganga Cooperation in which India and five ASEAN nations namely Cambodia, Laos, Myanmar, Vietnam and Thailand are associated.

BRIC

TOPIC :: GENERAL STUDIES :: BRIC - (Brazil, Russia, India & China)

Introduction: Concept of BRIC (Brazil, Russia, India and China) was first articulated by Goldman Sachs in 2003. Analysts point out that the concept of BRIC was adopted by the four countries - Brazil, Russia, India and China - as part of their foreign diplomacy, particularly with reference to their reservations towards some of the policies defended by the US at international fora. If any Economic crises arises, the four countries compliment each other

Goldman Sachs report "Dreaming with BRICs : The Path to 2050", which focused on the economic potential of BRIC points out that the four countries fully complement with each other. India and China are strong in manufacturing, while Brazil and Russia could become the major raw material suppliers to the first two. Russia is one of the largest producer of hydrocarbons and Brazil of bio-fuel, while India and China are major importers of energy resources for their growing economies. Brazil, like Russia is politically closer to Venezuela, a major oil producer. Russia, India and China are more acceptable to the Central Asian, raw material, tigers with immense energy resources. By 2050, the economies of the four BRIC countries could disturb the pecking order of the rich countries, according to the Goldman Sach report. Collectively, the wealth of the BRIC countries would outstrip that of the G-6 countries (the US, the UK, France, Germany, Japan and Italy).

The first standalone meeting of the Foreign Ministers of BRIC  was held at Yekaterinburg, Russia in May 16, 2008. And the agenda for the Meeting - Economics and Cooperation at the Multilateral Fora

Joint Communique:

1. Need for Building a More Democratic International System: The Joint Communique on the BRIC meeting emphasised on the need for building a more democratic international system founded on the rule of law and multilateral diplomacy with the UN playing the central role.

2. Problems of Poverty, Hunger and Diseases could be solved within a Just Global Economic System: The Communique stressed that the acute problems of poverty, hunger and diseases could be solved only if due account is taken of the interests of all nations and within a just global economic system.

3. Call for Resolving Disputes through Political and Diplomatic Efforts: The Communique also called for resolving disputes through political and diplomatic efforts.

4. Call for Adopting a Cooperative Approach to International Security: The Communique called for adopting a cooperative approach to international security that would factor in the concerns of all and address them in a spirit of dialogue and understanding.

5. Agreement on the Need for Multilateral Efforts to Prevent Arms Race in Outer Space: The BRIC meeting also agreed on the need for multilateral efforts to prevent an arms race in outer space. Russia proposed that India and Brazil co-sponsor a draft treaty banning weapons in outer space which Russia and China tabled at the UN in 2007.

Significance of the First Standalone BRIC Foreign Ministers Meeting:

1.Institutionalised BRIC along the Lines of RIC: The first standalone meeting of the BRIC Foreign Ministers on May 16, 2008 at Yekaterinburg in Russia, institutionalised the BRIC forum on the lines of RIC (Russia, India and China). The Foreign Ministers of BRIC agreed to hold regular meetings.

2.Call to Transform BRIC into a Powerful Instrument for Changing the World: The BRIC nations - Brazil, Russia, India and China - vowed to transform their group into a powerful instrument for changing the world. Russia called on BRIC to provide collective leadership to the world to promote the establishment of informal mechanism for collective leadership by the leading countries of the world.

3.BRIC a Unique Combination of Mutually Complementary Economies and Platform to Promote Energy and Food Security: India’s External Affairs Minister Pranab Mukherjee described BRIC as a unique combination of mutually complementary economies and platform to promote energy and food security, fight terrorism and reform global political and financial bodies.

4.BRIC to Support Global Stability and Development: Russia’s Foreign Minister Sergei Lavrov pointed out that BRIC would work to support global stability and ensure uninterrupted and manageable global development.

5.BRIC Countries - Fastest Growing Economies and Common Interests: Mr. Lavrov also pointed out that BRIC group had taken shape as the four countries were the world’s fastest growing economies, had many common interests in a globalised world and shared many view on how to build a more democratic, fair and stable world.

6.BRIC and RIC could Eventually Merge: Russian Foreign Minister Sergei Lavrov said that in view of the BRIC and RIC meetings he could assert with confidence that the groups’ evolution in the natural course of things would be reflected in the forms of their organisation. Analysts feel that BRIC and RIC could possibly merge into a single group.

SAARC

TOPIC :: GENERAL STUDIES :: SAARC

The member countries of the South Asian Association for Regional Cooperation (SAARC) are called the Seven Sisters of South Asia, because of their geographical proximity and relations based on culture, ethnicity and economics. SAARC came into existence in December 1985, at Dhaka, Bangladesh.It has 8 countries as members, they are India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives and Afghanistan. Secretariat was located at Kathmandu.

Main Objectives of SAARC Charter:

To improve quality of life and promote welfare of the peoples of South Asia.

  - To accelerate economic growth, social and cultural development in the region.
  - To promote self-reliance among the countries of South Asian Region.
  - To generate mutual trust and understanding of each others problems.
  - To strengthen cooperation with other developing countries.
  - To cooperate on matters of common interest in international fora.
  - To strengthen cooperation with regional and global organisations.

Population and Economic Potential: 1.4 billion people, one-fifth of the World’s population. Home to one-fifth of the World’s consumers with an average yearly income of $ 450. The SAARC region with a total market size of one and quarter billion people offers enormous potential for intra-regional trade and cross-border investment. Intra-SAARC trade is less than 5 per cent.

The SAARC region is among the poorest regions of the world. The region has 44 per cent of the World’s poor. According to a World Bank report, more than 500 million people in South Asian region live below poverty line. The South Asian region has more than 50 per cent of the total world population of child workers.

Analysts argue that in today’s world of compulsive global integration of national economies. The SAARC countries continue to drift without showing any pragmatic endeavour in regional cooperation. Regional economic integration has been successful in many parts of the world including the European Union (EU), regional economic organisations in South-East Asia, Latin America and North America. The regional economic organisations around the world have been successful in promoting intra-regional trade and external competitiveness. So far, SAARC has not achieved much success in regional cooperation. For SAARC to prosper the political animosities and suspicions of motivation should be kept aside and a process of mutual trade cooperation should be started. The SAARC Preferential Trading Agreement (SAPTA), which came into force in 1995 has been replaced by the South Asian Free Trade Area (SAFTA) from January 1, 2006.

On July 1, 2006, the South Asian Free Trade Agreement (SAFTA) came into effect for the South Asian Association for Regional Cooperation (SAARC) member countries. SAFTA is aimed at providing free trade in goods among SAARC member countries. It is expected to integrate the entire South Asian market paving the way for an eventual single market in the region.

Significance of SAFTA Agreement:

 - Analysts feel that the SAFTA agreement can be regarded as a landmark in the evolution of SAARC. The agreement represents
   a movement away from tinkering with tariffs under SAPTA to establishing a Free Trade Area in the region.

 - Can Make South Asia a Competitive Economic Bloc: The SAFTA agreement has the potential to attract foreign investments to
   South Asia leading to a restructuring of the economies and making the region a competitive economic bloc.

 - Will Double Intra-Regional Trade: The SAFTA will double intra-regional trade every five years from the current level of $7
   billion. The agreement would help in drastically reducing tariff barriers, which are still high in South Asia compared to
   other regions.

 - Major Confidence Building Measure: The SAFTA is seen as a major confidence building measure to ease tensions in the
   region, particularly between India and Pakistan. The treaty would enable South Asia to emerge as a global player in trade,
   according to the Indian trade and industry.

 - Enables Optimal Utilisation of Economic Potential of Member States: Analysts point out that SAFTA can lead to industrial
   restructuring and help in evolving the special economic potential of member states for their mutual advantage. Thus, Sri
   Lanka could emerge as the rubber hub of the region, Bangladesh for energy-intensive industries and Bhutan for forest-based
   industries.

Limitations of SAFTA:

 - Makes no mention of the customs union or an economic union.
 - Leaves out trade in services.
 - Leaves unnegotiated far too many things critical for the success of SAFTA. These include the formulation of rules of
   origin, the preparation of sensitive or the negative list, the creation of a fund for compensating the LDCs for the loss
   of revenue from the elimination of customs duties.
 - Does not subscribe categorically to phasing out the negative list or eliminating non-tariff barriers.

Impediments to SAARC’s Growth:

1. SAARC Summits- Mere Talking Shops: Analysts point out that the record of SAARC in promoting regional integration has been dismal. The SAARC Summits have become merely talk shops with little effect on the lives of the people of the region.

2. Indo-Pak Tensions: One the main reasons for SAARC being a non-starter is the strained relations between India and Pakistan. The effectiveness of this forum to further regional cooperation has come under serious scrutiny because of the disputes existing between India and Pakistan.

3. Pakistan Holding Back Economic Cooperation: Pakistan has been more interested in bringing its bilateral dispute with India over Kashmir into the SAARC ambit than in trade liberalisation. Pakistan insists that there can be no economic progress unless political issues are resolved. This is the opposite of what the other regional organisations have successfully adopted- expanding economic cooperation despite political differences. Thus, Pakistan should no longer be allowed to hold back the rest of the region.

4. Fears of India’s Dominance: India’s size and strength of its economy only served to compound mistrust. Some members of SAARC fear that the organisation could be used by India to dominate the South Asian market.

5. Fear of Trade Under Liberalised Conditions: Analysts point out that all the larger economies in SAARC have survived on a diet of high import tariffs and therefore fear trade under liberalised conditions.

6. South Asian Economies Share Similarities: Another reason offered for the slow growth of SAARC is that the South Asian economies share too many similarities to benefit from trading with each other. Although this is true, more open borders may encourage greater diversification and specialisation, according to analysts.

G8

TOPIC :: GENERAL STUDIES :: Group of Eight (G-8)

The Group of Eight (G-7), the world’s eight most economically powerful countries, was conceived of as a forum for leaders of the world|s largest economies and major industrial countries to come together and discuss global issues in an informal and co-operative environment. The G-8 does not have a trans-national administration unlike the UN or the World Bank and hence there it has no headquarters, budget or permanent staff. The origin of G-7 can be traced to the 1973 oil crisis and subsequent global recession. The first meeting of the G-7 countries took place at France in 1975.

The G-7 was converted to G-8 by the entry of Russia into the group in June 1997. Russia was rewarded for its role in defusing the Bosnia crisis and the eastward expansion of NATO. Analysts point out that currently the G8 nations are more concerned about the stability of oil prices and security of supply. The G8 nations have cut their dependence on the Organisation of Petroleum Exporting Countries (OPEC) for supply of oil. The G8 members rely heavily on Russia to meet their energy needs. A third of Russia's crude oil is exported to G8 nations. Russia's economy has transformed due to the revenue earned from export of oil and gas to the G8 nations. In this, US, UK, France, Germany, Italy, Japan, Canada and Russia are acting as members.

India, China, Brazil, South Africa and Mexico were invited to G-8 annual summits as outreach partners to deepen dialogue with the industrialised nations on priority issues of international agenda. The G8+5, known as Outreach Five (O5) or the Plus Five; was formed in 2005, when Britain hosted the G8 Summit at Gleneagles and Scotland.

The Heiligendamm Process through which the institutionalisation of permanent dialogues between G-8 and O5 would be implemented was established at the Heligendamm Summit in Germany in 2007. French President Nicolas Sarkozy proposed the O5, which are emerging economies, should become members of the G-8. However the G8 countries have different opinions about it with the US and Japan against enlargement of G8 and France and the UK favouring it. The aim of G-8 is to have consensus among the G-8 leaders in generating greater economic co-ordination and stability on the international scene. The initial focus of the G-8 Summits was on economic issues alone, but after the Summit in the US in 1983, a political declaration was also added.

The Presidency of the G-8 rotates among the member States on an annual basis, with the new President assuming responsibility on January 1. The country holding the presidency hosts a series of meetings leading to a mid-year three-day summit with the Heads of State.

CRITICISM OF THE G-8 SUMMITS:

Focus of Anti-Globalisation Protests: The G-8 Summits are often the focus of anti-globalisation protests. Critics feel that the G-8 are responsible for global problems like global warming due to carbon-dioxide emission, poverty in Africa and other developing countries due to debt crisis and unfair trading policy.

Lesser Foreign Aid: The G-8 members are criticised for providing lesser than expected foreign aid. Critics demand that the G-8 nations should allow at least 0.7% of their GDP to go towards foreign aid as outlined in Agenda 21 of the Earth Summit in 1992.

Mere Media Hypes: The G-8 Summits in recent years have been criticised for becoming mere media hypes and achieving nothing on the political/economic fronts.

G-8 Annual Summit (Hokkaido Toyako Japan, July 2008):

1. Agenda of the Summit: Main Theme - Climate Change, Environment Rising oil prices, stablising financial markets, protection of intellectual property rights World energy situationDevelopment of African nations and achieving the Millennium Development Goals (MDGs) by 2015 Global food security, strengthening of Non-Proliferation Treaty (With reference to North Korea and Iran) Peace building measures in Afghanistan, West Asia and Sudan.

2. Meeting of the Outreach Countries - O5 or G5: Call for Shared Responsibility to Address the World Food Security. Leaders of the outreach countries, also known as O5 or G5, meeting on the sidelines of the G8 Summit, called for a shared responsibility to address the global food security. The joint declaration called upon the international community to devise better ways and means of producing and distributing food. It also pointed out that multi-billion agricultural trade-distorting support in developed countries have hampered the development of food production capacity in developing countries, critically reducing their possibilities of reaction to the present crisis.

3. Stress on Establishing a Just and Reasonable International Trade Regime: The joint declaration of the G-5 countries stressed on creating an enabling international environment for agro-produce related trade, establishing a just and reasonable international trade regime for agricultural products and concluding the Doha Round of WTO talks with meaningful commitments to agricultural subsidies reductions.

4. Food Security Crisis Demanded a Rapid and Substantial Increase in Allocation of Resources: The leaders of the Outreach countries noted that the food security crisis demanded a rapid and substantial increase in allocation of resources to support rural development and combat hunger and poverty. They also stressed on encouraging collaborative action for better seeds and farm outputs that are sustainable and environmentally sound as well as a comprehensive approach in all fields, including finance, trade, aid, environment, intellectual property rights and technology transfer, so as to create a conducive international environment for food security.

5. Essential to Address the Challenges and Opportunities Posed by Biofuels: The joint declaration said that it was essential to address the challenges and opportunities posed by biofuels and the current food security crisis had multiple causes whose assessment required objectiveness. It also pointed out that biofuels, if developed substantially could effectively contribute to generating opportunities and achieving food and energy security altogether.

6. Public Policies for Production of Biofuels Should Contribute to Sustainable Development and Not Threaten Food Security:
The G-5 leaders emphasised that it was important that public policies for production of biofuels contribute to sustainable development and the well-being of the most vulnerable people and do not threaten food security.

7. Energy Security - Emphasis on Renewable Energy and Energy Efficiency: On energy security, which was essential to ensure the steady growth of the global economy, the joint declaration by the G-5 said that the international community should emphasise on renewable energy and energy efficiency and give adequate consideration to solar, wind and hydro-electrical power, and biofuels such as ethanol and bio-diesel without adversely affecting food security.
Call for an integrated approach to energy cooperation, ensuring access to energy by developing countries on an equitable and sustainable manner.

G-8 Summit Declaration:

1. Climate Change: All countries recognise that deep cuts in global emissions would be necessary to achieve the UN Framework Convention on Climate Change (UNFCCC) objective, and that adaptation would play a correspondingly vital role, according to the G-8 Summit declaration. A long-term global goal for reducing global emissions needed to be set, but keeping in view the sentiments of the emerging economies like India, the declaration noted that the size of the cuts would take into account the principle of equity. The G-8 agreed on the need for a global emissions cut of at least 50 per cent by 2050.The emissions cut would be taken against a 1990 baseline. The developed major economies would attempt to stop the growth of emissions as soon as possible. The also agreed to implement economy-wide mid-term goals and take corresponding actions in order to achieve absolute emission cuts.

2. Developing Economies would Pursue Nationally Appropriate Mitigation Actions: The declaration confirmed that the developing economies in this group, on their part would pursue, in the context of sustainable development, nationally appropriate mitigation actions, supported and enabled by technology, financing and capacity-building, with a view to achieving a deviation from business as usual emissions. The Ability of Developing Countries to Achieve a Long-term Goal of Reducing Global Emissions would Depend on Affordable Technologies: The G-8 meeting recognised that the ability of the developing countries to achieve a long-term goal of reducing global emissions would depend on affordable, new, more advanced and innovative technologies, infrastructure, and practices that transform the way people live, produce and use energy, and manage land. The G-8 agreed to work constructively together to promote the success of the Copenhagen climate change conference in 2009.

3. Increasing Oil and Food Prices: The G-8 called for efforts to bring down the oil prices,which had increased five-fold since 2003. There was a need to improve transparency on the oil market, according to the Japanese Prime Minister Yasuo Fakuda. The G-8 leaders called on all countries to end export restrictions on food to allow supplies to be sent to countries that most needed them.

4. Global Economic Growth Moderated, the G-8 Remained Positive on the Future: The global economy has been under threat from soaring oil and food prices as well as the sub-prime mortgage crisis in the US that has affected the financial markets. The G-8 which account for two-thirds of the Worlds Gross Domestic Product (GDP) said that while the global economic growth had moderated, they remained positive on the future.

5. G-8 Backs the Indo-US Nuclear Deal: The G-8 looked forward to working with India, the International Atomic Energy Agency (IAEA), the Nuclear Suppliers Group (NSG) and other partners to advance India|s non-proliferation commitments and progress so as to facilitate a more robust approach to civil nuclear cooperation with India to help it meet its growing energy needs in a manner that enhances and reinforces the global non-proliferation regime, according to the Chair|s summary released at the end of the G-8 summit.

India's Role at the G-8 Summit:

1. India's Stand on Issues Related to Climate Change: Sustained and Accelerated Economic Growth Critical for all Developing Countries - Quantitative Restrictions on Emissions cannot be considered. Prime Minister Manmohan Singh reiterated his stand on the obligations thrust on developing countries such as India by emphasising that sustained and accelerated economic growth was critical for all developing countries who cannot for the present even consider quantitative restrictions on their emissions. No Demonstrable Progress on Agreed GHG Reductions from Developed Countries:
Dr. Singh told the G-8 meeting that no demonstrable progress on even the low levels of agreed Greenhouse gases (GHG) reductions was seen from the developed countries. He pointed out that the prognosis was that their emissions as a whole would continue to rise even in the years to come.

The G-8 Must Show Leadership by Delivering Significant GHG Reductions: Prime Minister Manmohan Singh stressed that the G-8 must show the leadership by taking and then delivering truly significant GHG reductions.

2. India's Climate Change Views Not Fully Incorporated in the G-8 Declaration: Dr. Singh told the G-8 leaders that even if some India|s views were not incorporated in the G-8 summit declaration, India would adopt the text as it was. He pointed out that the text of the declaration had been agreed to after protracted negotiations. This had been done in the spirit of compromise and willingness to accept each others| views.

3. Prime Minister Holds Bilateral Meetings with World Leaders: India|s Prime Minster Manmohan Singh also held bilateral meetings with the Presidents of the US, Russia, China and others. Dr. Singh held useful discussions with the US President George W. Bush on the Indo-US civil nuclear cooperation deal.

4. G-8's Backing of the Indo-US Nuclear Deal Significant for India: Analysts point out that in a major breakthrough the G-8 summit backed the Indo-US nuclear calling for a more robust approach to civil nuclear cooperation with India. This was a complete reversal of its earlier position of slamming India for its alleged nuclear adventurism. Thus, India|s emergence as a rising power was evident at the G-8 summit.

5. G-8 Taking Account of India|s Concerns: Analysts point out that the G-8 meetings are a significant part of exchanging ideas and concerns and with India becoming a regular member of these meetings; it is more likely that policies of major developed countries would take account of India|s concerns. Such concerns would become part of the record of each country and this could be reflected in their policies.

6. Greater Role for India and China at the Next G-8 Summit in Italy: French President Nicolas Sarkozy said that emerging economies, including India and China, would play bigger role at the next G-8 summit in Italy in 2009. The leaders of the Outreach countries, including India and China, would join the G-8 leaders for a day-long meet in the next summit. In 2008 leaders of the Outreach countries spend only half a day with G-8 leaders.

CONCLUTION:

1. G-8 Falls Short on GHG Emission Cuts: Analysts point out that the goal of 50 per cent reduction of greenhouse gas (GHG) emissions by 2050 outlined by the G-8 countries at the Hokkaido Toyako summit in Japan in July 2008 falls short of the climate change challenge faced by the world. The fourth report of the Intergovernmental Panel on Climate Change (IPCC) pointed out that to avoid sudden shifts in climate, there is an urgent need for the major GHG emitters to engage in concrete action to reduce emissions, and to fund mitigation and adaptation actions in vulnerable countries.

2. India Needs to Adopt Cleaner Technologies and Assess the National and Sector-specific Options to Reduce Emissions:
India has reiterated that as a developing country, there was no question of being equated with the G-8 in meeting emission cuts targets. However, analysts suggest that as a leader of the developing countries, India can adopt cleaner technologies and methods. Priority must be given to assess the national and sector-specific options to reduce emissions, and to achieve sustainable growth.

3. Threats to World Economy did not get Priority at the G-8 Summit: Analysts point out that in the build-up to the G-8 summit, the global financial and oil food prices crisis were expected to get priority as every country in the world is experiencing the adverse impact of high oil and food prices. However, these aspects did not get the attention they deserved during the G-8 summit in Japan. India pointed out that climate change was linked to food and energy security. To address these problems in a meaningful way, forums like the G-8 need to come out with action plans as the different challenges facing the world need to be viewed within a common global framework.

4. G-8 Needs to Expanded to Reflect the Current Realities: Analysts opine that the scope and nature of issues that the G-8 would have to deal in the time to come are bound to be varied and expansive. Thus, the G-8 needs to expand and include influential members of the international community like India, China and Brazil to reflect the current global realities.

EARTHQUAKES

TOPIC :: GENERAL SCIENCE :: EARTHQUAKES

This is one of the Natural Disasters. These are uncontrollable events that cause sudden and massive destruction. For example, Earthquake in Gujarat. The extent of damage to life and property is so extensive that normal socio-economic mechanisms of relief are rendered inadequate. Special efforts are required to handle the situation. Analysts point out that natural disaster affecting the survival of citizens is as much an internal security concern as external aggression, internal subversion or centrifugal violence which affect our country.

The ultimate benchmark for security in any civil society, in any country, is human survival, particularly when faced with natural disasters, according to analysts. The climatic, territorial and environmental diversity of a large country like India are bound to be subject to some kind of natural calamity. In recent times, India has suffered from cyclones, earthquakes, floods and tidals.

A Earthquake is "A series of shock waves in the earth's crust/upper mantle." They are the earth's natural means of releasing stress.

There are several cause of Earthquakes, and they are:

1. Presence of Fault Planes and other Stressful Environments: Geological studies have revealed that earthquakes are caused by stresses within the earth. These stresses develop because of instability in the geological formations below the earth due to the presence of fault planes and other stressful environments like the internal heat of the earth. Under these conditions the rock bodies shift releasing energy in the form of shock waves which can cause earthquakes.

2. Plate Movements: Earthquakes are also caused by the movement of earth's plates - large, relatively rigid segments of the lithosphere (the solid i.e., rocky outer part of the earth's crust). When this stress is increased beyond a point, the earth's crust is forced to break. The stress is released as energy which moves through the earth in the form of waves.

The shock waves which cause the earthquakes can be classified into two categories. They are:

Surface Waves: Travel through the surface of the earth.

Body Waves: Travel through the body of the earth getting reflected and refracted in the process. The body waves can be further divided into the P (primary) and S (secondary) waves.

1. Different Velocities of Propagation in Different Mediums: The velocities of propagation differ from one medium to another as the earth is non-homogenous and layered medium. Thus, P waves can travel through a solid as well as a liquid where as the S waves can travel only through a liquid medium.

2. Different Velocities of Propagation within the Same Medium: The propagation velocities of P and S waves are also different within a given medium, with P waves travelling faster than S waves. This difference in velocities is made use of by the earth scientists in locating the epicentre of the earthquakes.

EARTHQUAKE TERMINOLOGY

1. Plate-Tectonics: According to this theory, the upper most 60-90 km thick layer of the earth called lithosphere, and is divided into several large and small plates. These plates, which are floating on the lower layer of the earth called mantle, are constantly in motion and interact with each other. The interacting margins of these plates are regions of severe deformation causing structural dislocation and earthquakes.

2. Focus: The centre of the earthquake, which is the source of seismic waves produced during an earthquake.

3. Epicentre: The point on the earth's surface situated directly above the focus of an earthquake.

4. Intensity: The measure of the ground shaking and damage to the surface and the effects on humans.

5. Magnitude: The quantity to measure the size of an earthquake in terms of its energy.

6.Seismograph & Seismogram: The instrument used for recording ground motions as a function of time is called a "Seismograph" and the records are known as "Seismograms". Using these Seismograms, scientists estimate the magnitude, epicentre and focal depth of the earthquake.

7. Richter Scale: A logarithmic scale used for comparing the magnitude of earthquakes. It was invented by an American Seismologist, Charles Richter in 1935.

Magnitude represents the amount of energy released by an earthquake as determined by measurements on standardised instruments. The scale ranges from 0 to 10. On this scale, an earthquake of magnitude 8 represents seismograph amplitudes ten times larger than those of Magnitude 7. The largest earthquakes recorded were of magnitude of 8.9 (Lisbon, 1755) on the Richter scale and the smallest about minus three.

Mercalli Scale: It is more subjective in assessing the effect of earthquakes. An earthquake registering 5 on the Mercalli scale is defined as having made furniture to shake and church bells ring, but triggering little or no damage. But an earthquake measuring 12 on the Mercalli scale would have destroyed all man-made objects; and created new topography by forming new lakes, huge falls of rock and major earth faults. Russia has a 12 point scale and Japan a seven-point system.

I. Aftershocks: Earthquakes triggered either on the mainshock fault- a fracture in the rock- or near it. Bigger earthquakes have more and larger aftershocks.

In 1993, in India (Latur), 9,748 people are affected. And, in 2001, in India ( Gujarat), 13,800 are affected.