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**INTERNATIONAL EVENTS, ORGANIZATIONS ETC**

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APEC Asia Pacific Economic Cooperation

It is a forum of 21 Pacific Rim countries. US, Russia, most of ASEAN


India is not part of it.
Formed in response of growing dominance of an industrialized Japan in 1989.
In 1989 when APEC was established Indias policies were inward looking and inconsistent with
free and open trade and investment. But situation has changed now.

ARCTIC
There are 8 nations which are called Arctic Nations which are scrambling for the resources in
this area. Major players being Russia, Norway, US, Canada, Sweden and Finland. Except Russia
all other nations are part of NATO.
Currently Arctic Council is the grouping that represents the interests of Arctic nations.
ARCTIC vs ANTARCTIC

While Antarctica is protected by the Antarctica Treaty framed during the Cold War,
there is no such treaty to protect the resources and ecology of Arctic. Arctic is warming
twice as fast as rest of globe.
Antarctic is not touched by landmass from anywhere, while Arctic is touched by many
Antarctica is mainly for scientific and other purposes while arctic is coming under
commercial exploitation
NATURAL RESOURCES
Oil and Gas Reserves - The US Geological Survey estimates that 13 per cent of the
world's undiscovered oil and 30 per cent of its untapped natural gas is in the Arctic.

RARE EARTHS

Russia is exploring minerals in Barents and Kara Sea, its 1/3rd resources lie in
Arctic circle
US is exploring minerals in Chukchi Sea

Greenland is rich in rare earths which are used extensively in mobile phones and
electronics items manufacturing.
SHIPPING
Shipping lanes could be regularly open across the Arctic by 2030 as rising temperatures
continue to melt the sea ice, according to a National Research Council analysis
commissioned by the US Navy last year.
Opening up of shipping lanes will shorten trade routes for US and other countries.
ARCTIC and INDIA

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India has its research station named HIMADRI in Norway, Arctic (On Antarctica, India
has research stations called Maitri and Gangotri)

According to SVALBARD TREATY that India signed with Norway before Independence,
It has rights of commercial activities in the Arctic region. It was under this treaty that
India established its research station in Norway in 2007.

RECENT EVENTS
Russia and Norway recently agreed to improve their military relations in a strategic
move and have resolved their four decade old boundary dispute.
AUSTRALIA GROUP
The Australia Group is control regime and is an informal group of countries (now joined by the
European Commission) established in 1985 (after the use of chemical weapons by Iraq in 1984)
to help member countries to identify those of their exports which need to be controlled so as
not to contribute to the spread of chemical and biological weapons .
It now has 41 members. The name comes from Australia's initiative to create the group.
Australia manages the secretariat.
During visit of Obama in 2010, he promised to support India's membership to this group.
This is one of the four key multilateral groups on sensitive and restricted technologies. The four
groups being Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR),
Australia Group and the Wassenaar Arrangement.
BASEL CONVENTION
Basel Convention is an international treaty that was designed to reduce the movements of
hazardous waste between nations, and specifically to prevent transfer of hazardous waste from
developed to less developed countries (LDCs).
It does not, however, address the movement of radioactive waste.
India is a signatory to the treaty.
BOLSA FAMILIA
Bolsa Familia (Family Grant) is a direct cash transfer scheme of Brazil started in 2002. It provides
money to the 14 million poor families of Brazil. Conditions for getting this benefit are
compulsory vaccination of children and their attendance in schools. According to a recent report
by UN, Brazil has seen significant fall in the poverty numbers in the last decade, owing to this
scheme.
Bolsa Familia not enhances the incomes of poor, but also target menace of illiteracy and child
mortality.

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BUDAPEST CONVENTION, 2001 - The Convention on Cybercrime
It is the first and only international treaty seeking to address Internet and computer crime by
harmonizing national laws, improving investigative techniques, and increasing cooperation
among nations. The Convention is the first international treaty on crimes committed via the
Internet and other computer networks, dealing particularly with infringements of copyright,
computer-related fraud, child pornography, hate crimes, and violations of network security. Its
main objective, set out in the preamble, is to pursue a common criminal policy aimed at the
protection of society against cybercrime, especially by adopting appropriate legislation and
fostering international cooperation.
CARICOM or Caribbean Community and Common Market
CARTER DOCTRINE
Carter Doctrine is a policy introduced by US during Jimmy carter regime. Its main goal is to
safeguard the interests of US in the persian gulf. It states that if the situation warrents, the US
can use military in pursian gulf to protect it interests.
CEDAW
The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), also
known as an international bill of rights for women was adopted in 1979 by the UN General
Assembly
CHEMICAL WEAPON CONVENTION
The modern use of chemical weapons began with World War I, when both sides to the conflict
used poisonous gas to inflict agonizing suffering and to cause significant battlefield casualties.
Chlorine, phosgene (a choking agent) and mustard gas (which inflicts painful burns on the skin)
were among the chemicals used. The Cold War period saw significant development,
manufacture and stockpiling of chemical weapons.
The Chemical Weapons Convention (CWC) is an arms control treaty which outlaws the
production, stockpiling, and use of chemical weapons and their precursors. Most recently, Syria
deposited its instrument of accession to the CWC on 14 September 2013 and agreed to its
provisional application pending entry into force on 14 October 2013 and its membership is
almost universal.
It is administered by the Organisation for the Prohibition of Chemical Weapons (OPCW). The
2013 Nobel Peace Prize was awarded to the organization because it had, with the Chemical
Weapons Convention, defined the use of chemical weapons as a taboo under international
law.
As of January 2013, around 78% of the declared stockpile of chemical weapons has been
destroyed. India has destroyed all its weapons, US and Russia has not.

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COMMONWEALTH OF INDEPENDENT STATES
This is a loose group of former Soviet nations. Recently Russia signed an FTA with the former
Soviet states to promote closer cooperation.
DOING BUSINESS REPORT
The Doing Business Report (DB) is a study elaborated by the World Bank Group since 2003 every year
that is aimed to measure the costs to firms of business regulations in 189 countries. It has created an
index called The ease of doing business index which ranks all the 189 countries annually. A nation's
ranking on the index is based on the average of 10 subindices

Starting a business Procedures, time, cost and minimum capital to open a new business
Dealing with construction permits Procedures, time and cost to build a warehouse
Getting electricity procedures, time and cost required for a business to obtain a permanent
electricity connection for a newly constructed warehouse
Registering property Procedures, time and cost to register commercial real estate
Getting credit Strength of legal rights index, depth of credit information index
Protecting investors Indices on the extent of disclosure, extent of director liability and ease of
shareholder suits
Paying taxes Number of taxes paid, hours per year spent preparing tax returns and total tax
payable as share of gross profit
Trading across borders Number of documents, cost and time necessary to export and import
Enforcing contracts Procedures, time and cost to enforce a debt contract
Resolving insolvency The time, cost and recovery rate (%) under bankruptcy proceeding

In 2014 report, India ranked 142 among 189 countries.


However, one major criticism of this report is that it looks business from capitalists perspective only and
has ignore interest of trade unions and workers as it is apparent that not even a single sub-index out of
10 deals with it.
E7 Countries
The E7 countries are a group of seven emerging countries. They are major emerging economies
in the world. China, India, Brazil, Mexico, Russia, Indonesia and Turkey are in this group. The E7
are predicted to have larger economies than the G7 countries by 2050. The term was coined by
the PriceWaterhouseCoopers.
E9
The E9 is a forum of high-Populated nine countries, which formed to achieve EFA goals
(Education For All is a global movement led by UNESCO, aiming to meet the learning needs of all
children, youth and adults by 2015. The EFA goals also contribute to the global pursuit of the
eight Millennium Development Goals (MDGs), especially MDG 2 on universal primary education

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and MDG 3 on gender equality in education, by 2015.) through south-south cooperation. The E
stands for education and the 9 represents the nine highly populated countries: Bangladesh,
Brazil, China, Egypt, India, Indonesia, Mexico, Nigeria and Pakistan.
EU and ITS RELATED BODIES
The European Union (EU) is an economic and political union of 27 member states which are
located primarily in Europe. The Maastricht Treaty established the European Union under its
current name in 1993. It gave the EU its current shape. The treaty led to the creation of the
euro, and created what was commonly referred to as the pillar structure of the European Union.
EUROZONE - In 2002, euro notes and coins replaced national currencies in 12 of the member
states. Now 17 members are there April 2011. Estonia was the latest one.
Functioning It is administered by four main branches European Commission (Chief Executive
Body), European Council, European Parliament, European Court of Justice.
The European Union has evolved over time from an economic union to an increasingly political
one. The EU has started to act more as a nation state. While the attempts to have a Constitution
for the EU have failed, it has its own flag, anthem, founding date, and currency.
EU has a bicameral structure (consisting a Council and a Parliament). The Council of the
European Union represents the executive of member states. The strength depends upon the
type of issue.
The European Parliament is elected every five years by EU citizens. It is the only directly elected
body of the European Union, its members are directly elected by the citizens of the various
countries. The European Parliament (EP) forms one half of the EU's legislature - the other half is
the European Council. Together with the Council of the European Union (the Council) and the
European Commission, it exercises the legislative function of the EU. However, neither the
Parliament nor the Council have the power of legislative initiative. It is the European
Commission which wields the power.
The European Commission is the executive body of the European Union. The body is responsible
for proposing legislation, implementing
decisions, upholding the Union's treaties and
the general day-to-day running of the Union.
Members are bound to represent the
interests of the EU as a whole rather than
their home state neutral from the
influences of the governments they came
from. This is in contrast to the Council, which
represents governments. The Commission
operates as a cabinet government, with 27
members of the Commission. There is one

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member per member state proposed by respective governments.
European Council, not to be confused with the Council of the European Union which is a
legislative arm as discussed above, comprises the heads of state or government of the EU
member states, along with the President of the European Commission and the President of the
European Council, currently Herman Van Rompuy. European Council has no formal legislative
power, under the Treaty of Lisbon it defines the general political directions and priorities of the
Union. It is thus the Union's strategic and crisis solving body, acting as the collective presidency
of the EU.
The European Court of Justice is the highest court in the European Union in matters of
European Union law. The ECJ is the highest court of the European Union in matters of Union
law, but not national law i.e. it means that court has jurisdiction over the member states in
matters of the treaties etc which are applicable to whole EU and not national laws of individual
countries.
EURASIAN ECONOMIC COMMISSION
A resurgent Russia is planning to reestablish its economic and political power in a number of
ways. EEC is one of these steps. It was established in March 2012 and currently has three
members Russia,
Belarus and
Kazakhstan. It has
plans of expanding it
further and including
former USSR members
as well. The Eurasian
Economic Commission
(EEC) will provide an
economic shield to
protect its members
against Chinese
expansion. It is the
first time in 20 years that a new economic, not just political, entity has emerged in the former
Soviet space.
The member states have decided not to create a common currency, as this would mean the loss
of some national independence. But they are introducing common standards for the provision of
goods and services.
While Kazakhstan and Belarus will benefit from favorable gas tariffs, the Russian market will get
cheaper goods from Belarus and Kazakhstan.

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EURASIAN ECONOMIC COMMUNITY
The Eurasian Economic Community (EAEC or EurAsEC) originated from the Commonwealth of
Independent States (CIS) customs union between Belarus, Russia and Kazakhstan on 29 March
1996. Common Economic Space was launched on 1 January 2010.
EAEC was established for effective promotion of the creation by the Customs Union member
states of a Single Economic Space named Common Economic Space like that of EU and for
coordinating their approaches while integrating into the world economy and the international
trade system.

EURASIAN UNION
The Eurasian Union is a proposal for Belarus, Kazakhstan, Russia, Kyrgyzstan, and Tajikistan to
deepen economic and political integration for these countries into a supranational union of
erstwhile USSR. The idea, based on the European Union's integration, was brought to attention
in October 2011 by the Prime Minister of Russia, Vladimir Putin, but was first proposed as a
concept by Kazakhstan's president, Nursultan Nazarbayev, during a 1994 speech at a Moscow
university.
The Union will also act as a check against NATO in the region and its growing influence.
In 2014, Russia, Kazakastan and Belarus formed Eurasian Economic Commission as an economic
bloc for greater cooperation.
FINANCIAL ACTION TASK FORCE FATF
The purpose of the FATF is to develop policies to combat money laundering and terrorist
financing. The FATF Secretariat is housed at the headquarters of the OECD in Paris.
It has a mandate to establish international standards for combating money laundering and
terrorist financing.
It lays out 40+9 principles to combat money laundering and terrorist financing.
India is a member of FATF. India will now have access to information on suspicious financial
transactions in Switzerland, China, US and UK who are also a party to FATF. Other institutions

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like Enforcement Department, Revenue Intelligence, Economic Intelligence Bureau of India will
be able to exchange information on money laundering and terrorist financing.
FISSILE MATERIAL CUT OFF TREATY
It is a proposed treaty to prohibit further production of fissile material for nuclear weapons or
other explosive devices.
G-4
They include Germany, Japan, Brazil and India the aspiring four for permanent seat in UNSC.
G-20
The Group of Twenty Finance Ministers and Central Bank Governors (G-20, G20, Group of
Twenty) is a group of finance ministers and central bank governors from 20 major economies
19 countries plus the European Union, which is represented by the President of the European
Council and by the European Central Bank. Their heads of government or heads of state have
also periodically conferred at summits since their initial meeting in 2008.
The group will replace G-8 in a bid for a more equitable global representation.
The heads of the G-20 nations have met semi-annually at G-20 summits since 2008.
Although the initial focus of G20 was on issues related to international financial stability, it has
also examined a broad range of longer-term economic issues of interest to its members.
G20 is also trying to foster and adopt internationally recognized standards in areas such as
financial transparency, international tax cooperation and combating money laundering etc.
The G-20 operates without a permanent secretariat or staff. The chair rotates annually among
the members and is selected from a different regional grouping of countries. The chair is part of
a revolving three-member management group of past, present and future chairs referred to as
the Troika. The incumbent chair establishes a temporary secretariat for the duration of its term,
which coordinates the group's work and organizes its meetings.
In addition to 20 members, the following forums and institutions, as represented by their
respective chief executive officers, participate in meetings of the G-20 the Managing Director
of the International Monetary Fund, the Chairman of the International Monetary Fund, the
President of the World Bank, the International Monetary and Financial Committee, the
Chairman of the Development Committee.
GEOGRAPHICAL INDICATION (GI) STATUS
A geographical indication (GI) is a name or sign used on certain products which corresponds to a
specific geographical location or origin (e.g. a town, region, or country). The use of a GI may act

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as a certification that the product possesses certain qualities, is made according to traditional
methods, or enjoys a certain reputation, due to its geographical origin.
In many countries the protection afforded to geographical indications by law is similar to the
protection afforded to trademarks, and in particular, certification marks.
Geographical indications law restricts the use of the GIs for the purpose of identifying a
particular type of product, unless the product and/or its constituent materials and/or its
fabrication method originate from a particular area and/or meet certain standards. Sometimes
these laws also stipulate that the product must meet certain quality tests that are administered
by an association that owns the exclusive right to license or allow the use of the indication.
Like trademarks, geographical indications are regulated locally by each country because
conditions of registration such as differences in the generic use of terms vary from country to
country.
(The) GLOBAL FUND
It is the biggest fund to fight AIDS, Malaria and TB. Ten years back the fund was established to
fight the problems of AIDS, TB and Malaria in developing countries. The fund has been hugely
successful with almost universal access to the ARV in the African nations. It costs around $1 per
day to provide the medications against AIDS, the recent recession has also affected the funding
to this fund. At a time when considerable headway has been made in fighting with the AIDS, the
fund needs to be strengthened.
IAEA International Atomic Energy Association
It is a UN agency.
The International Atomic Energy Agency (IAEA) was established in 1957. It came into being to
implement US President Dwight Eisenhowers Atoms for Peace proposal. It seeks to promote
the peaceful use of nuclear energy and to prevent its use for military purposes. IAEA teams
regularly inspect nuclear facilities all over the world to ensure that civilian reactors are not being
used for military purposes.
The IAEA as an autonomous organization is not under direct control of the UN, but the IAEA
does report to both the UN General Assembly and Security Council. Unlike most other
specialized international agencies, the IAEA does much of its work with the Security Council, and
not with the United Nations Economic and Social Council.
It inspects the nuclear establishments, safeguards technology and standardizes the norms for
nuclear materials.
ICANN The Internet Corporation for Assigned Names and Numbers
In simple words it can be said that this is the organisation that governs the internet today.

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The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit private
organization based in United States that oversees a number of Internet-related tasks previously
performed directly on behalf of the US government by other organizations, major task being
assigning of High Level Domains.
Its work includes coordination of the Internet Protocol address spaces (IPv4 and IPv6) and
assignment of address blocks to regional Internet registries. It also looks after Domain Names
and their use. Much of its work has concerned the introduction of new generic top-level
domains (gTLDs) like - .bharat, .com etc.
ICRC International Committee of the Red Cross
The International Committee of the Red Cross (ICRC) is a private humanitarian institution based
in Geneva, Switzerland. States parties (signatories) to the four Geneva Conventions of 1949 and
their Additional Protocols of 1977 and 2005, have given the ICRC a mandate to protect victims of
international and internal armed conflicts. Such victims include war wounded, prisoners,
refugees, civilians, and other non-combatants. The ICRC is part of the International Red Cross
and Red Crescent Movement.
Henery Dunant was its founder.
IMF and WORLD BANK
The Bretton Woods conference established the International Monetary Fund (IMF) to deal with external
surpluses and deficits of its member nations. The International Bank for Reconstruction and
Development (popularly known as the World Bank) was set up to finance postwar reconstruction.
By so called Gentlemans Agreement, World Bank has always been headed by a person of US choice and
IMF of Europes choice and many countries including most developing countries have protested against
this hegemony.
IMF grants loans to only member countries and not to other organizations and private entities. The main
source of IMF resources is supposed to be IMF quota contributions, the money countries pay into the
Fund for their membership of the institution. The quota is used in three ways: to determine voting
rights, to determine contributions, and to set a guideline for the level of resources a country can borrow
i.e. access to financing. Quota reforms in wake of changing nature of economies is one of the prime
demands of developing countries like India which have grown significantly over the years. An important
step was taken in 2010 on quota reforms, but it has not been implemented till date. 2010 reforms
provides for 100% increase in total quotas. It also calls for shift 6% quota from over-represented to
under-represented member countries. China will become the 3rd largest member country in the IMF,
and there will be four EMDCs (Brazil, China, India, and Russia) among the 10 largest shareholders.
FUNCTIONS of IMF
I.

Helps Countries in Balance of Payment Difficulties When financial problems cause the price
of a member's currency and the price of its goods to fall out of line, balance of payments

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difficulties are sure to follow. IMF helps in case of Balance of Payment crisis situation.
II.
Exchange Rate Stabilization It oversees members' monetary and exchange rate policies and a
acts as a guardian of the code of conduct.
III.
Macroeconomic Policy Aid, Supervision and Advice It receives frequent reports on members'
economic policies and prospects, which it debates, comments on, and communicates to the
entire membership so that other members may respond in full knowledge of the facts and a
clear understanding of how their own domestic policies may affect other countries.
DIFFERENCE BETWEEN IMF and WORLD BANK
I.

Development vs Monetary Function The fundamental difference is this: the Bank is primarily a
development institution the poorer the country, the more favorable the conditions under which
it can borrow from the Bank; the IMF is a cooperative institution that seeks to maintain an
orderly system of payments and receipts between nations. i.e. World bank looks at development
aspect, IMF looks at monetary aspects - promotes exchange stability and orderly exchange
relations among its member countries.
II.
Lending vs Stabilizing Function To help nations abide by the code of conduct, the IMF
administers a pool of money from which members can borrow when they are in trouble. The
IMF is not, however, primarily a lending institution as is the Bank.
III.
Size and Complexity The IMF is small (about 2,300 staff members) and, unlike the World Bank,
has no affiliates or subsidiaries. Most of its staff members work at headquarters in Washington,
D.C. The structure of the Bank is somewhat more complex. The World Bank itself comprises two
major organizations: the International Bank for Reconstruction and Development and the
International Development Association (IDA).
IV.
Source of Funding While World Bank acts as an investment banker and raise funds via bonds
and partly by donations, IMF has its resources as pooled funds by members in different
proportions which determine their SDR share also.
V.
Recipient of Funding In case of World Bank, only developing countries can seek assistance In
contrast to World Bank, all member nations, both wealthy and poor, have the right to financial
assistance from the IMF.
SOURCE OF FUNDING: WORLD BANK ISSUING of BONDS, DONATIONS
The World Bank is an investment bank and acts as intermediary between investors and
recipients, borrowing from the one and lending to the other. Its owners are the governments of
its 180 member nations with equity shares in the Bank.
The IBRD obtains most of the funds it lends to finance development by market borrowing
through the issue of bonds (which carry an AAA rating because repayment is guaranteed by
member governments) to individuals and private institutions in more than 100 countries.
Its concessional loan associate, IDA, is largely financed by grants from donor nations. The Bank is
a major borrower in the world's capital markets and the largest nonresident borrower in
virtually all countries where its issues are sold. It also borrows money by selling bonds and notes
directly to governments, their agencies, and central banks.

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SOURCE OF FUNDING: IMF POOLED FUNDS
Unlike World Bank, IMF is not a bank and does not intermediate between investors and
recipients.
It has kind of a pool of funds and each member contributes to this pool of resources a certain
amount of money proportionate to its economic size and strength (richer countries pay more,
poorer less).
While the Bank borrows and lends, the IMF is more like a credit union whose members have
access to a common pool of resources (the sum total of their individual contributions) to assist
them in times of need like balance of Payment Crisis etc.
RECIPIENT of FUNDING: WORLD BANK
Neither wealthy countries nor private individuals borrow from the World Bank but instead it
lends only to credit worthy governments of developing nations.
The poorer the country, the more favorable the conditions under which it can borrow from the
Bank.
There are various categories of recipients depending upon their economy and per capita income
etc
a. IBRD LOANS Developing countries whose per capita gross national product (GNP) exceeds
$1,305 may borrow from the IBRD. These loans carry an interest rate slightly above the
market rate at which the Bank itself borrows and must generally be repaid within 12-15
years.
b. IDA LOANS The IDA, on the other hand, lends only to governments of very poor developing
nations whose per capita GNP is below $1,305, and in practice IDA loans go to countries with
annual per capita incomes below $865. IDA loans are interest free and have a longer
maturity of 35 or 40 years.
RECIPIENT of FUNDING: IMF
In contrast to World Bank, all member nations, both wealthy and poor, have the right to
financial assistance from the IMF (in case of World Bank, only developing countries can seek
assistance). As monetary and fiscal problems can be faced by any country, IMF assistance is
available to all members. Money received from the IMF must normally be repaid in
comparatively shorter periods within three to five years, and in no case later than ten years.
Interest rates are slightly below market rates, but are not so concessional as those assigned to
the World Bank's IDA loans. Through the use of IMF resources, countries have been able to buy
time to rectify economic policies and to restore growth without having to resort to actions
damaging to other members' economies.
CRITICISM

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The International Monetary Fund (IMF) is an international organization that oversees those
financial institutions and regulations that act at the international level. The IMF has 184 member
countries, but they do not enjoy an equal say. The top ten countries have 55 per cent of the
votes. They are the G-8 members (the US, Japan, Germany, France, the UK, Italy, Canada and
Russia), Saudi Arabia and China. The US alone has 17.4 per cent voting rights. Unequal
shareholding has led to perpetual western influence over key decisions of the Brettenwoods
institutions.
INTERNATIONAL COURT of JUSTICE ICJ
The International Court of Justice is the primary judicial organ of the United Nations. It is based
in the Peace Palace in The Hague, Netherlands.
It is one of the six principle organs of UN.
Apart from adjudicating between disputes of states, it also serves as advisory body of UN and its
organs in judicial matters.
JURISDICTION and ROLE
Court has generally refrained from hearing contentious cases that are political in nature,
due in part to its lack of enforcement mechanism and its lack of compulsory jurisdiction
(countries which agree in prior only are subjected to its judgments and no case can be
taken to the court when all parties are not in agreement over such a move).
Involvement of countries in taking its recourse varies. For example - After the court
ruled that the US's covert war against Nicaragua was in violation of international law
(Nicaragua v. United States), the United States withdrew from compulsory jurisdiction in
1986. Now, The United States accepts the court's jurisdiction only on a case-by-case
basis. Similarly developing countries also have apprehension over its working and they
often avoid taking this route. India Pakistan River Water Sharing has been resolved by
ICJ and Indus Water treaty is an aftermath of that. Non-UN members may also become
parties to the Court's statute
Its decisions are binding on nation states.
COMPOSITION
The ICJ is composed of 15 judges elected to nine year terms by the UN General
Assembly and the UN Security Council from a list of persons nominated by the national
groups in the Permanent Court of Arbitration. Generally, the Court sits as full bench,
but in the last fifteen years it has on occasion sat as a chamber consisting of usually 3 or
5 judges, to hear cases.
Dalbeer Bhandari from India was recently chosen its judge. (2012)
LIMITATIONS

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I.
II.

III.
IV.

Limited jurisdictionCompulsory jurisdiction is limited to cases where both parties


have agreed to submit to its decision
Access limited only to nation states Organizations, private enterprises, and individuals
cannot have their cases taken to the International Court, such as to appeal a national
supreme court's ruling. U.N. agencies likewise cannot bring up a case except in advisory
opinions (a process initiated by the court and non-binding).
Other existing international thematic courts, such as the ICC, are not under the umbrella
of the International Court.
Its decisions can be vetoed The International Court does not enjoy a full separation of
powers, with permanent members of the Security Council being able to veto
enforcement of even cases to which they consented in advance to be bound.

INTERNATIONAL CRIMINAL COURT ICC


Some of the most heinous crimes are committed during wars and armed conflicts. After 2nd World
War to facilitate justice, Nuremberg Tribunal (Germany) and Tokyo Tribunal were established, but
they were ad-hoc in nature. Idea of International Criminal Justice System reemerged after the end of
cold war in wake of killings in Rwanda and in Yugoslavia and separate tribunals were setup by UN
Security Council for the same and a plea to setup a permanent tribunal was also made.
As a result, an agreement was reached in Rome in 1998. The International Criminal Court is a
permanent tribunal to prosecute individuals (not states) for 4 serious crimes Genocide, Crimes
against humanity, War crimes and Crime
of aggression
It came into being on 1 July 2002 the
date its founding treaty, the Rome
Statute of the International Criminal
Court, entered into force and it can only
prosecute crimes committed on or after
that date. The Court's official seat is in The
Hague, Netherlands, but its proceedings
may take place anywhere.Guatemala is its
newest and 121st member as of July 2012.
In June 2010, an important amendment to the Rome Statute of the International Criminal Court was
adopted during the Review Conference in Kampala, Uganda. It criminalizes the use of certain kinds
of weapons in non-international conflicts whose use was already forbidden in international conflicts.
Kampala declaration further expands the scope of jurisdiction of ICC and has expanded definition of
War Crimes and Crimes of Aggression.
COMPOSITION
Its members are chosen by the state members and not by UN general Assembly and Security
Council members as in the case of ICJ.

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JURISDICTION
The Court can generally exercise jurisdiction only in three cases, viz.

If the accused is a national of a state party,


If the alleged crime took place on the territory of a state party
If a situation is referred to the Court by the United Nations Security Council. When a
case is referred to the ICC by the UN Security Council all UN member states are
obliged to co-operate, since its decisions are binding for all of them.
It is designed to complement existing national judicial systems: it can exercise its jurisdiction only
when national courts are unwilling or unable to investigate or prosecute such crimes. Primary
responsibility to investigate and punish crimes is therefore left to individual states.
Till date, all the major cases handled by the court pertain to violence in African continent.
DIFFERENCE BETWEEN ICJ AND ICC

While all the UN members are default members of International Court of Justice,
membership to ICC is a functions of Individual Nations will to join by signing and ratifying
the Rome Statute of the International Criminal Court treaty. India and China are both not
member of ICC.
While ICC prosecutes individuals, ICJ deals more with inter-state disputes
ICC deal with criminal cases, ICJ deals more or less with territorial and other sovereign
disputes like water sharing etc.
Its members are chosen by the state members who has ratified the treaty and not by UN
general Assembly and Security Council members as in the case of ICJ.
Unlike the International Court of Justice whose decisions can be vetoed by Security Council,
the ICC is legally and functionally independent from the United Nations.
ICJ is funded by UN, while ICC is funded by contribution of member states.
Recently, a major verdict came in Sierra Leonean Blood Diamonds Case in which former Liberian
president Charles Taylor was convicted. It was the first time when the head of state was
convicted by an international tribunal.
LIMITATIONS of ICC, ICJ and AD-HOC TRIBUNALS

They dont have coercive penal power and for police support and conviction, they depend
upon support from the respective states.
Long time taken Often trials are delayed so much that the perpetrators are either dead or
on verge of natural death. The crimes committed in Cambodia (Khmer Rogue) are at least
30 years old; those committed in Bosnia (former Yugoslavia) are already 15 years old.
Impartial Judgments No Western politician that has ever been indicted. No indictments
for NATO officials - even though the ICTY indicted and convicted individuals from every
nation involved in the Yugoslav Wars
Expensive Judgments Yugoslavia tribunal till date has cost more than $2 billion and similar

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amount has been spent for Rwandan tribunal.
INTERNATIONAL DEVELOPMENT ASSOCIATION
World Bank is a banker and hence it acts as a banker/intermediary between investors and
creditors. Apart from donations it also raises funds via bonds which are considered safe as they
are under guarantee of member states.
It has three arms I.

IDA The International Development Association (IDA) is the part of the World Bank
that helps the world's poorest countries.
It supports anti-poverty programs in the poorest developing countries with long-term
(30-40 years maturity), no interest loans. IDA loans address primary education, basic
health services, clean water supply and sanitation, environmental safeguards, businessclimate improvements, infrastructure and institutional reforms. Approximately half of
the IDA's resources come from the 45 donating countries (developed ones), rest are
raised by issuance of Bonds.

II.

IBRD It is the World Bank's other lending arm the International Bank for
Reconstruction and Development (IBRD) which serves middle-income countries with
capital investment and advisory services for development activities. In Asia, its parallel
can be drawn with ADB.
IFC The International Finance Corporation (IFC) promotes sustainable private sector
investment in developing countries. Within the World Bank Group, the World Bank
finances projects with sovereign guarantees, while the IFC finances projects without
sovereign guarantees. Private sector financing is IFC's main activity, and in this respect is
a profit-oriented financial institution. IFC's activities, however, must meet a second test
of contributing to a reduction in poverty in line with its mandate.

III.

WORLD BANK

IDA Poorest
Countries, No
Interest

IBRD
Middle
Income

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INTERNAATIONAL SPACE STATION ISS
In 1993 the partially built components for a Soviet/Russian space station Mir-2, the proposed
American Freedom, and the proposed European Columbus merged into a single multinational
programme, mainly due to budget constraints. The ISS serves as a microgravity and space
environment research laboratory in which crew members conduct experiments in biology,
human biology, physics, astronomy, meteorology and other fields. The station is suited for the
testing of spacecraft systems and equipment required for missions to the Moon and Mars. The
station has been continuously occupied for almost 13 years now.
The ISS programme is a joint project among five participating space agencies NASA, the
Russian Federal Space Agency, JAXA, ESA, and CSA. The ownership and use of the space station
is established by intergovernmental treaties and agreements. The station is divided into two
sections, the Russian orbital segment (ROS) and the United States orbital segment (USOS), which
is shared by many nations. The ISS is maintained at an orbital altitude of between 330 km (205
mi) and 435 km (270 mi). It completes 15.7 orbits per day.
INTERPOLE and RED CORNER NOTICE
Interpol can be considered as International Police. It is not part of UN and has 188 members
with headquarters in Lyon France. It is second biggest organisation after UN.
It issues 7 types of notices, Red Corner Notice is one of them. Red Corner Notice requests arrest
of wanted persons and is like an international arrest warrant.
ITER International Thermonuclear Experimental Reactor
ITER (originally an acronym of International Thermonuclear Experimental Reactor) is an
international nuclear fusion research and engineering project, which is currently building the
world's largest and most advanced experimental nuclear fusion reactor at the Cadarache facility
in the south of France.
The project is funded and run by seven member entities the European Union (EU), India,
Japan, China, Russia, South Korea and the United States. The ITER fusion reactor itself has been
designed to produce 500 megawatts of output power for 50 megawatts of input power, or ten
times the amount of energy put in. Construction of the facility began in 2007, and the first
plasma is expected to be produced in 2019. If successful it will be a major step in solving energy
problem.
MAASTRICHT CRITERIA or EURO CONVERGENCE CRITERIA
The euro convergence criteria (also known as the Maastricht criteria) are the criteria for
European Union member states to enter the third stage of European Economic and Monetary
Union (EMU) and adopt the euro as their currency.
Its main criteria are

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Inflation level It should be higher than the three best performing countries.
Annual government deficit The ratio of the annual government deficit to gross
domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year.
Government debt The ratio of gross government debt to GDP must not exceed 60% at
the end of the preceding fiscal year.
It also lays down guidelines about the exchange rate and long term debt.

MAARAKESH TREATY
This is a new treaty that aims to make access of books to disabled easier. It will allow copyright
waiver to facilitate publication of books in disability friendly manner like audio, Braille etc.
MINAMATA CONVENTION
It is a convention which is sponsored by UN to contain mercury poisoning and mercury trade
and use. Its draft was signed in Minamata, Japan where inhabitants have suffered for decades
due to mercury contaminated fish and the consequent mercury poisoning after more than 140
countries agreed on it in Geneva. It aims to phase out use of mercury by 2020. Hazards of
mercury are increased through process of Bio Accumulation and Bio Magnification. It also
provides certain concessions where there is no alternative, but to use mercury. For example in
certain vaccines, mercury is used as a preservative. India is one of the largest mercury emitting
countries as it uses coal fired plants which also emit mercury.
MISSILE TECHNOLOGY CONTROL REGIME (MTCR)
It is an informal and voluntary partnership between 34 countries to prevent the proliferation of
missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload at least
300 km.
This is one of the four key multilateral groups on sensitive and restricted technologies. The four
groups being Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR),
Australia Group and the Wassenaar Arrangement.
Impact on India It can be assessed in various terms for example - India received first NERPA
(akula class) submarines in January 2012, renamed INS Chakra from Russia, however didnt
get the long range missile system because of the restriction by treaties like MTCR. This delayed
Nuclear Triad capabilities of India, which will be achieved only after induction of INS Arihant
the indigenous nuclear submarine with long range missile carrying capacity (which can carry
nuclear warheads).
MULTIDIMENSIONAL POVERTY INDEX

Developed by Oxford Poverty and Human Development Initiative supported by UNDP


It was featured in HDR-2010 and replaces Human Poverty Index (HPI) which had been included
in HDR since 1997
The method can show the incidence, intensity and depth of poverty, as well as inequality among

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the poor, depending on the type of data available to create the measure
NON ALIGNMENT MOVEMENT
Last summit happened in Tehran in August 2012. It has 120 members. It was founded in 1961 an
was largely a brainchild of Yugoslavia president Josip Tito, Egypt president Nasser, Indonesian
president Sukarno and Nehru.
NSG NUCLEAR SUPPLIER GRPUP
It is a multinational body concerned with reducing nuclear proliferation by controlling the export
and re-transfer of materials that may be applicable to nuclear weapon development and by
improving safeguards and protection on existing materials. It was founded in 1974 in response to
the Indian nuclear test earlier in that year. The test demonstrated that certain non-weapons
specific nuclear technology could be readily turned to weapons development. It works to stop
nuclear technology proliferation. At present it has around 46 members.
This is one of the four key multilateral groups on sensitive and restricted technologies. The four
groups being - Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR),
Australia Group and the Wassenaar Arrangement.
India has a strong case for membership as it has an impeccable record of non-proliferation. It
has already put 12 out of 14 nuclear reactors under IAEA Safeguards. Only two more reactors
are required to be notified by 2014. India also has civil nuclear cooperation agreement with
many countries.
OUTER SPACE TREATY
The Outer Space Treaty is a treaty that forms the basis of international space law. Among its
principles

It bars States Parties to the Treaty from placing nuclear weapons or any other weapons
of mass destruction in orbit of Earth, installing them on the Moon or any other celestial
body
It exclusively limits the use of the Moon and other celestial bodies to peaceful purposes
and expressly prohibits their use for testing weapons of any kind
The treaty also states that the exploration of outer space shall be done to benefit all
countries and shall be free for exploration and use by all the States.
The treaty explicitly forbids any government from claiming a celestial resource such as
the Moon or a planet, claiming that they are the Common heritage of mankind.
However, the State that launches a space object retains jurisdiction and control over
that object.

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P5+1 Group
This is an informal group consisting of 5 permanent members of Security council and Germany
formed to primarily address the issue of Iranian Nuclear Impasse. The group was formed in 2005
after a series of proposals by West and Iran failed to find a common ground and make any
headway about Iranian Nuclear Program.
EU 3 + 3 (also referred to as the E3+3, or P5+1 referring to the five permanent members of the
UN Security Council plus Germany) refers to France, Germany, Russia, United Kingdom, United
States, and People's Republic of China. It was coined when these states joined the diplomatic
efforts with Iran in regards to its nuclear program. Task of P5+1 is to focus on 2 key issues
I.
II.

Stop Iran from becoming a nuclear weapon state


Restrict Iranian nuclear program for civilian purpose only

PARIS PRINCIPLES
The Paris Principles were defined at the first International Workshop on National Institutions for
the Promotion and Protection of Human Rights held in Paris in 1991. They were later adopted by
the United Nations Human Rights Commission. The Paris Principles relate to the status and
functioning of national institutions for the protection and promotion of human rights.
The Paris Principles list a number of responsibilities for national institutions, which fall under
five headings. It includes details the role of National Institutions over keeping a watch on
human rights violation, advising the governments and coordinating with the international
agencies.
Evaluation of the national institutions is done by a peer review system.
PULITZER PRIZES
The prizes were established by Hungarian-American publisher Joseph Pulitzer and are
administered by Columbia University in New York City.
These are given for the following
I.
II.
III.

Journalism
Literature
Musical composition

SANITARY and PHYTOSANITARY MEASURES


Sanitary and phytosanitary measures and agreements are measures to protect humans, animals,
and plants from diseases, pests, or contaminants. The Agreement on the Application of Sanitary
and Phytosanitary Measures is one of the final documents approved at the conclusion of the
Uruguay Round of the Multilateral Trade Negotiations of WTO. It applies to all sanitary (relating
to animals) and phytosanitary (relating to plants) (SPS) measures that may have a direct or

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indirect impact on international trade. The SPS agreement includes a series of understandings
(trade disciplines) on how SPS measures will be established and used by countries when they
establish, revise, or apply their domestic laws and regulations.
These measures ensures that
I.
II.

An importer gets food that is safe


Countries dont use strict health and safety regulations as excuse for protecting
domestic producers.
It has been argued that the SPS agreement has been used by the developed countries to
selectively ward off imports from developing nations. For instance, EU's regulation on fish
products and ban on the use of pesticides in production of mangoes, bananas etc has affected
Indian agricultural exports. Recent ban on Mango import by EU countries is another such
example.
SCHENGEN AGREEMENT
The Schengen Agreement is a treaty signed on 14 June 1985
near the town of Schengen in Luxembourg, between five of
the ten member states of the European Economic
Community. The Schengen Agreements were in a sense a
precursor to the EU in terms of free movement. The
borderless zone created by the Schengen Agreements, the
Schengen Area, currently consists of 25 European countries. A
Schengen Visa allows one to get Visa from one of the
member EU country and travel to other nations without any
separate visa.
SOUTH CHINA SEA DISPUTE
The area's importance largely results from one-third of the world's shipping transiting through
its waters, and that it is believed to hold huge oil and gas reserves beneath its seabed.
China has extended claims much beyond the
UN 200 miles Exclusive Economic Zone area
citing reasons like Historical Claims. A large
volume of the world's merchandise pass
through the sea-lanes. Relations between
China and other countries like Vietnam,
Philippines etc have been strained recently
over a long-standing dispute relating to the
sovereignty of the resource-rich archipelago
and the Spratly islands in the South China
Sea.

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China claim almost the entire body as their own, demarcating their claims within what is known
as the Nine-Dotted Line, which claims overlap with virtually every other country in the region.
The Philippines, China, and Taiwan over Scarborough Shoal. Recently in April 2012, naval ships
of both China and Philippines got locked in near the island. It falls under Philippines EEZ as per
international laws, but was not a part of its territory originally. The Philippines claims to have
exercised effective jurisdiction and effective occupation of the shoal since its independence. In
international law this is a well recognized practice. And therefore it is no surprise that China is
loath to test its case before the ICJ. Vietnam, China, and Taiwan over waters west of the Spratly
Islands. The Paracel Islands are disputed between the China and Vietnam.
Conflicts are tried to resolve with negotiations, Joint Development Authorities have been setup.
While china has focused on bilateral talks, many countries and ASEAN in general has pushed
for multilateral talks
Resolution of dispute is very difficult as there has been no precise definition of disputed areas.
The areas are not demarcated and many of the countries have legislated recently to stake their
claims on various grounds such as UNCLOS, historical claims etc.
However, the most logical resolution can be in form of accepting UNCLOS and Maritime Laws,
but China has claimed almost the entire region which will mean that it has to lose much ground
which it wont be willing.
For the first time in 40 years, the annual ASEAN talks ended without issuing a joint statement as
controversy over the South China Sea dominated the meet. (Chinas key Southeast Asian ally
Cambodia, the 2012 ASEAN chair, decided against issuing a joint statement after the Philippines
and Vietnam, which have territorial disputes with Beijing, insisted that the communiqu include
a specific reference to Beijings alleged encroachment in their respective exclusive economic
zones and continental shelves.
Significance of UNCLOS and South China Dispute
I.

II.

III.

First, it establishes a detailed legal framework setting out the rights and obligations of
States with respect to uses of the oceans. All the nations involved in the dispute are part
of UNCLOS
Second, UNCLOS sets out the maritime zones which coastal States can claim from land
territory over which they have sovereignty. For example, coastal States have a right to
establish a 12 nautical mile (nm) territorial sea adjacent to their coast in which they
have sovereignty, subject to the right of all States to innocent passage. UNCLOS also
provides that coastal States have the right to an exclusive economic zone (EEZ)
extending out to 200 nm from their coasts in which they have sovereign rights for the
purpose of exploring and exploiting the living and non-living resources of the waters and
of the seabed and subsoil. Under the EEZ regime, coastal States have sovereign rights to
exploit the fisheries resources in their EEZ
Third, UNCLOS sets out the maritime zones that can be claimed by coastal States from

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offshore geographic features.
SOUTH-SOUTH COOPERATION
South-South Cooperation is a term historically used by policymakers and academics to describe
the exchange of resources, technology, and knowledge between developing countries, also
known as countries of the global South. This was also a bid to oppose the existing international
economic order and establish a New International Economic Order. Formation of G77 and
groups like NAM was a step in this direction.
India And South-South Cooperation IBSA is one of the important pillars of Indias South South
Cooperation bid and BRICS is another pillar.
TRIPS TRADE RELATED ASPECTS of INTELLECTUAL PROPERTY RIGHTS and other IP issues
The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an
international agreement administered by the World Trade Organization (WTO) that sets down
minimum standards for many forms of intellectual property (IP) regulation as applied to
nationals of other WTO Members. It was negotiated at the end of the Uruguay Round of the
General Agreement on Tariffs and Trade (GATT) in 1994.
In 2001, developing countries, concerned that developed countries were insisting on an overly
narrow reading of TRIPS, initiated a round of talks that resulted in the Doha Declaration. The
Doha declaration is a WTO statement that clarifies the scope of TRIPS.
TRIPS contains requirements that nations laws must meet for copyright rights, including the
rights of performers, producers of sound recordings and broadcasting organizations;
geographical indications, including appellations of origin; industrial designs; integrated circuit
layout-designs; patents; monopolies for the developers of new plant varieties; trademarks;
trade dress; and undisclosed or confidential information. TRIPS also specifies enforcement
procedures, remedies, and dispute resolution procedures.
TRIPS requires member states to provide strong protection for intellectual property rights. For
example, under TRIPS

Copyright terms must extend to 50 years after the death of the author.
Copyright must be granted automatically, and not based upon any "formality," such as
registrations or systems of renewal.
The obligations under TRIPS apply equally to all member states, however developing countries
were allowed extra time to implement the applicable changes to their national laws, in two tiers
of transition according to their level of development. It has therefore been argued that the
TRIPS standard of requiring all countries to create strict intellectual property systems will be
detrimental to poorer countries' development.
Flexibilities under TRIPS

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Compulsory licensing
Flexibility to define invention by the member countries (however, a constant pressure
from developed nations is maintained against the implementation of these provisions.
For example US wants other countries like India to make strict provisions related to
IPR with less scope of flexibilities)
Parallel importation: Process of importing affordable medicines from cheaper markets.
TRIPS does not cover a number of areas of IP subject matter like traditional knowledge,
handicrafts which are of particular interest to LDCs

UNCLOS United Nations Convention on the Law of the Sea


The Law of the Sea Convention defines the rights and responsibilities of nations in their use of
the world's oceans, establishing guidelines for businesses, the environment, and the
management of marine natural resources. UNCLOS came into force in 1994 after a series of UN
Conferences on the law of Sea. It defines 6 major zones.

Among other things it defines EEZs The EEZs 200 nautical miles from the baseline
were introduced to halt the increasingly heated clashes over fishing rights, although oil
was also becoming important.
It also defines jurisdiction powers of a state in International waters. A coastal state is
free to set laws, regulate use, and use any resource within 12 nautical miles.
Although India do not have major maritime conflicts with her neighbors relating to demarcation
of boundaries, one particular issue is with Bangladesh in Bay of Bengal.
Another significant law that deals with jurisdiction over international waters is SUA
Convention (Convention for the Suppression of Unlawful Acts of Violence against Safety of
Maritime Navigation).
India is signatory to both and these were the two conventions that were often evoked when
India held the Italian Ship Enrica Elixia for many days which raised the issue of jurisdiction over
the Ship. Italy claimed that it has the jurisdiction since it was travelling under Italys flag and
under UNCLOS it was the one who has to decide about it. India on the other hand argued that it
was under its territory and UNCLOS has provision to that effect, further SUA Convention has
precedents and ICJ has also given similar rulings in past.
UNIVERSAL DECLARATION OF HUMAN RIGHTS 1948

All human beings are born free and equal in dignity and rights.

They are endowed with reason and conscience and should act towards one another in a spirit of
brotherhood,

Everyone has the right to life, liberty and security of person,

No one shall be held in slavery or servitude;

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slavery and the slave trade shall be prohibited in all their forms,

No one shall be subjected to torture or to cruel, inhuman or degrading treatment or


punishment,

Everyone has the right to recognition everywhere as a person before the law,

Everyone has the right to an effective remedy by the competent national tribunals for acts
violating the fundamental rights granted him by the constitution or by law,

No one shall be subjected to arbitrary arrest, detention or exile,

Everyone has the right to rest and leisure, including reasonable limitation of working hours and
periodic holidays with pay,

Everyone is entitled to a social and international order in which the rights and freedoms set
forth in this Declaration can be fully realized,

Everyone has the right to freedom of peaceful assembly and association and No one may be
compelled to belong to an association.

UN PRINICPLE ORGANS
There are six principle organs
I.

General Assembly

II.

Security Council

III.

Economic and Social Council The Economic and Social Council (ECOSOC) of UN
consists of 54 members state. It is elected by a 2/3rd majority of the general assembly
for a three year term

IV.

Secretariat

V.

International Court of Justice

VI.

Trusteeship Council

UN SECURITY COUNCIL UNSC


It has 5 permanent members and ten Non permanent members are elected for 2 years.
It imposes sanction, sends peace keeping force and authorizes military action. It consists of five
permanent members with veto power and ten non-permanent members, elected on a regional
basis for two years. Its the only UN organ with authority to enforce binding resolution.
Its peace keepers have received the Nobel Peace Prize in 1988. It has successfully operated in
Namibia, Congo, Sudan, Rwanda etc. But its activeness related to small countries is absent in
case of powerful contries.

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It was mostly paralysed during the cold war era. Its permanent members with veto powers, have
largely used it to pretect their own strategic interest.
Western intervention in Iraq, Afghanistan, Libya (without UNSC approval) speaks volume about
intransigence of some members.
US Secretary of state in the recent developments when China and Russia vetoed the Syrian
resolution appropriately described that UNSC has been neutered. After Soviet disintegration,
Russia didnt take a very strong position against US on various matters. Similarly China was also
growing but refrained from taking similar stand. However, in recent times both these countries
have started taking independent lines which are at times different from that of US. This breaks
the Western hegemony in the UNSC.
REFORMS at SECURITY COUNCIL
I.
Expanding UNSC
II.
Increasing representation of developing countries
III.
There should be alternative mechanism to Veto which is undemocratic
INDIAs CASE for UNSC
I.
II.
III.
IV.
V.
VI.

G-4 group is currently promoting the cause of four nations for membership of UNSC.
One out of every six humans is an Indian
India is worlds biggest and most vibrant democracy
It is responsible and peace loving country
Times have changed and it is now 4th biggest economy.
It contributes significantly to UN peacekeeping operations

UN UNIVERSAL DECLARATION of HUMAN RIGHTS


The Universal Declaration of Human Rights (UDHR) is a declaration adopted by the United
Nations General Assembly, 1948 after the Second World War in wake of need for universal
rights. It consists of 30 articles which have been elaborated in subsequent international treaties,
regional human rights instruments, national constitutions and laws.
They are similar to Bill of Rights of Us and Fundamental Rights in India. Some of them are

Everyone has the right to life, liberty and security of person.


No one shall be held in slavery or servitude; slavery and the slave trade shall be
prohibited in all their forms.
No one shall be subjected to torture or to cruel, inhuman or degrading treatment or
punishment.
All are equal before the law and are entitled without any discrimination to equal
protection of the law. No one shall be subjected to arbitrary arrest, detention or exile.
Everyone has the right to seek and to enjoy in other countries asylum from persecution.
Everyone has the right to a nationality.

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Everyone has the right to freedom of thought, conscience and religion.

UN WOMAN
It was a new entity created in 2010 to accelerate woman empowerment and gender equality.
Four existing UN Bodies dealing with the womens issues will now come under a single umbrella

Division for the advancement of woman


United Nations Fund for Woman
International Research and Training Institute for the Advancement of Women (INSTRAW)
Office of the Special Adviser on Gender Issues and Advancement of Women
Functions

To help international bodies in formulation of policies that are favorable to women.


To help member countries establish standards
To hold the UN system accountable in upholding its own standards of gender equality
Help in promoting gender discrimination

WASHINGTON CONSENSUS
In late 1980s the economic growth of the of the Latin American countries like Bolivia, Brazil, Argentina
etc. had slowed down abysmally and was not even matching the rate of population growth. At that time
English Economist John Williamson had proposed the Washinton Consensus to help these developing
countries come out of the grip of recession. It had proposed set of 10 policy changes like trade
liberalization, Government expenditure cut, Government debt reduction, tax reforms, market
determined foreign exchange, liberalization for FDI, Privatization of debt enterprises etc.

WASSENAAR ARRANGEMENT
The Wassenaar Arrangement The Wassenaar Arrangement on Export Controls for
Conventional Arms and Dual-Use Goods and Technologies is a multilateral export control
regime.
Every six months member countries exchange information on deliveries of conventional arms to
non Wassenaar members. List of restricted technologies is broken into two parts, the List of
Dual-Use Goods and Technologies (also known as the Basic List) and the Munitions List.
WIPO INTELECTUAL PROPERTY RIGHTS
The World Intellectual Property Organization (WIPO) is one of the 16 specialized agencies of the
United Nations. WIPO was created in 1967 to encourage creative activity, to promote the
protection of intellectual property throughout the world.

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WIPO currently has 184 member states, administers 24 international treaties, and is
headquartered in Geneva, Switzerland. The current Director-General of WIPO is Francis Gurry.
WORLD HERITAGE STATUS
Conferring the World Heritage status is a three-step process Countries first create an inventory
of potential monuments and natural sites and include them in the Tentative List. From this, they
select a few sites and nominate them for final inscription, every year. UNESCO appoints advisory
committees to evaluate the nominations.
WTO
A successor of GATT (General Agreement on Trade and Tariffs), established in 1995. WTO
members meet at least once in 2 years which is called ministerial meeting. Between this time
General Council performs the functions of WTO and it also acts as Dispute Settlement Body. It
is assisted by 3 councils Council for trade in goods; Council for trade in services; Council for
TRIPS i.e. structure of WTO has following elements
I.

II.

III.

IV.

Council for Trade in Goods There are 11 committees under the jurisdiction of the
Goods Council each with a specific task. All members of the WTO participate in the
committees.
Council for Trade-Related Aspects of Intellectual Property Rights Information on
intellectual property in the WTO, news and official records of the activities of the TRIPS
Council, and details of the WTO's work with other international organizations in the
field.
Council for Trade in Services The Council for Trade in Services operates under the
guidance of the General Council and is responsible for overseeing the functioning of the
General Agreement on Trade in Services (GATS). It is open to all WTO members, and can
create subsidiary bodies as required.
Trade Negotiations Committee The Trade Negotiations Committee (TNC) is the
committee that deals with the current trade talks round. The chair is WTO's directorgeneral.

Every other member provides MFN status which simply means that there will not be
discrimination among trading partners. Nearly 150 countries are members of the WTO. It always
strives to make the movement of goods and services freely across the nations. Which is however
unacceptable for many countries like India.
Uruguay Rounds lead to its formation. Uruguay rounds started in 1986 as 8th round of GATT
negotiation and they focused on not only on goods and tariffs, but also on intellectual property
rights and services also. In these rounds for the first time apart from tariff and non-tariff
barriers, TRIPS and Trade in Services were discussed for the first time. The main objectives of
the Uruguay Round were

To reduce agricultural subsidies

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To put restrictions on foreign investment, and
To begin the process of opening trade in services like banking and insurance.
The round was criticized for ignoring the needs of developing countries especially on the front of
agriculture. To breach the deadlock between the developed and developing countries, the
Director General of GATT came up with a comprehensive documentation known as Dunkel
Proposals and presented it before the member countries which was ultimately signed by 123
countries including India. The Doha Development Round was the next trade round to commence
in 2001.
GATT
It was an Ad-Hoc body, just a multilaterally agreed
treaty
Its dispute redressal mechanism was not binding

WTO

Its dispute redressal mechanism is binding

The WTOs rules the agreements are the result of negotiations between the members.
The WTO oversees about 60 different agreements which have the status of international legal
texts. Member countries must sign and ratify all WTO agreements on accession. The current set
were the outcome of the 198694 Uruguay Round negotiations which included a major revision
of the original General Agreement on Tariffs and Trade (GATT). Major agreements of the WTO
are
I.
II.

III.

General Agreement on Tariffs and Trade (GATT) or Agreement in Goods GATT is now
the WTOs principal rule-book for trade in goods.
General Agreement on Trade in Services (GATS) or Agreement in Services Applicable
to banks, insurance firms, telecommunications companies, tour operators, hotel chains
and transport companies and so on. It divides all tradable services into 4 modes of
supply
Mode 1: It includes services which can be provided across the border without
the provider or consumer crossing borders. For example, financial trading, BPO,
IT etc. These are not covered in GATS.
Mode 2: It includes services for which consumers have to travel abroad. For
example, education, tourism.
Mode 3: It includes services where commercial presence of service provider in
the foreign country is essential. For example, banking, insurance, telecom etc.
Developed countries have expertise in this and their opening up has harmed
India.
Mode 4: It includes services that require physical presence of a natural person in
the foreign country. For example, skilled professionals like engineers doctors
etc. These are not covered in GATS. India prefers this mode as it has expertise in
this.
Sanaitary and Phyto-Sanitary Agreement The SPS Agreement was signed as a part of
the Final Act of the Uruguay Round and came into effect in 1995. The Agreement took
effect with the establishment of the WTO. The objective of the SPS Agreement is

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IV.

V.
VI.

VII.

VIII.

IX.

twofold. First, it aims to reduce the arbitrary nature of sovereign governments using SPS
measures as trade restricting devices. Second, it seeks to promote the harmonization of
national SPS measures to the international standards while protecting member
governments' rights to regulate their own food safety, animal and plant health issues.
Codex Alimentarious Commission is one of the premier body which sets SPS standards.
TRIPS The rules state how copyrights, patents, trademarks, geographical names used
to identify products, industrial designs, integrated circuit layout-designs and undisclosed
information such as trade secrets. It was negotiated in Uruguay round and was a result
of intense lobbying by USA supported by other developed nations. Important aspects of
the TRIPs were as follows (a) product patents, and (b) the scope of IPRs was widened
to cover patents, copyrights and related rights, geographic information (GI), industrial
designs, layout design of ICs, and trade secrets.
Dispute Settlement Agreement
Agreement on Agriculture (AoA) The Agreement on Agriculture came into effect with
the establishment of the WTO at the beginning of 1995. It includes relevant guidelines
on subsidies, special and differential treatment and so on. The AoA has three central
concepts, or pillars: domestic support, market access and export subsidies. Under
Domestic Support clause Agreement on Agriculture, there are 3 types of subsidies
Red (prohibited as these are export subsidies), Green (permissible and non-actionable.
For example subsidies on pest control, agriculture research), Amber (permissible, but
actionable. They are mainly domestic support subsidies). Limit to domestic support
subsidies is fixed at 10 % of agriculture output fixed at 1987-89 prices
Agreement on Technical Barriers to Trade It prohibits technical requirements created
solely for the purpose of limiting trade. It ensures that technical negotiations and
standards, as well as testing and certification procedures, do not create unnecessary
obstacles to trade. It allows such requirements for legitimate purposes like consumer
and environment protection.
TRIMS or Agreement on Trade Related Investement Measures Trade Related
Investment Measures In general any measure taken by government that may affect
trade is TRIMS. According to WTO, some TRIMS might cause trade distortion and violate
WTO principles. Therefore a multilateral agreement was signed during Uruguay rounds
in 1994. It requires phasing out of those TRIMS that are distorting. Policies such as local
content requirements and trade balancing rules that have traditionally been used to
both promote the interests of domestic industries and combat restrictive business
practices are now banned. US sought to drag India to WTO under provision of this
agreement in case of solar panel issues as a part of Jawahar Lal Nehru National Solar
Mission phase 1 biddings.
Information Technology Agreement The aim of the treaty is to lower all taxes and
tariffs on information technology products by signatories to zero.

Doha Rounds are an attempt to set the framework for global trade and it commenced in 2001.
Its major objective is to lower the trade barriers to facilitate free flow of goods and services. Key

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areas of negotiation include agriculture, non-agricultural market access (NAMA), services,
intellectual property rights, trade and environment, trade facilitation, WTO rules and dispute
settlement and so on. Discussions so far has concentrated mainly on agriculture, NAMA and
sometimes on services. WTO round talks have stalled after deadlock between developing and
developed countries over the conditions like tariffs, agricultural subsidies and so on. Major
issues of confrontation between the developed and the developing countries are Biggest issue
is regarding agriculture many developing countries like US are pouring enormous subsidies for
their farmers which make their agriculture produce cheaper. Another issue was that of
Compulsory Licensing this has been resolved after amendments were made in TRIPS. Another
issue is Differential Treatment. Under this there are clauses relating to Special and
Differentiated treatment for the developing countries which are under non-agreement and
contention. Regarding NAMA, developing countries seek protection of their vulnerable
industries. Further there are implementation issues, developing countries say that they have
technical problems in implementing even the Uruguay Round declaration. As a result, talks have
stalled since 2008 and no significant progress has been made since.
Scope of Doha round

Agriculture Many of the Uruguay commitments were to be implemented by 2000 but


were not (implementation issues). So it aimed at reviewing these, improving market
access, phasing out export subsidies and reductions in trade distorting domestic
support.
NAMA: Issue of trade facilitation and improving market access.
Services: Expanding the scope of GATS.
TRIPS: Expanding the scope of TRIPS.

Principles of Doha round are


I.

II.

III.
IV.

V.
VI.

Single undertaking: Every item of the negotiation is part of a whole and indivisible
package and cannot be agreed separately. Some developed countries on the other hand
demand that separate agreements should be put into effect to make some progress on
Doha round.
Participation: The negotiations are open to all WTO members and to observer
governments negotiating or intending to negotiate membership. But decisions on the
outcomes are only taken by members.
Transparency: The negotiations have to be transparent.
Special and differential treatment: The negotiations have to take fully into account the
principle of special and differential treatment for developing and least-developed
countries.
Sustainable development.
Subjects not negotiated: Non trade issues like labor, environment etc.

Criticism of WTO/Doha Development round

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WTO, it seems, is slowly moving away from being a multilateral institution to a


plurilateral (covering only a select few members) institution and only a few countries
call the shots.
It is also argued that it will open up the world trade to the disadvantage of the
developing countries and will cripple the fledgling industries of the developing countries
by flooding the markets with subsidized cheap goods.
Criteria for De-Minimus as 10% of agri production is also spurious as the value can vary
greatly for developed and developing countries and is also not set realistically and is
currently set at 1980s price levels.
WTO norms are likely to lead to a new economic colonialism where only a few big multinationals will call the shot putting developing country economies at poor second place
in global supply chain.
Developing countries claim that they have had problems with the implementation of the
agreements reached in the earlier Uruguay Round because of limited capacity or lack of
technical assistance. They also claim that they have not realized certain benefits that
they expected from the Round, such as increased access for their textiles and apparel in
developed-country markets. They seek a clarification of language relating to their
interests in existing agreements.
WTO rounds focus excessively on some issues and ignore others. For example, there are
strikingly few rules governing trade in oil which is a major component of trade basket of
countries like India and is one of the most valued commodity trade in global trade.
Developed countries like US have been adamant on the domestic subsidies. Subsidies on
items like Cotton are of concern for countries of cotton producing African countries. So,
countries likeIndia demand substantial cuts (75 - 80%) by US and EU on their overall
trade distorting domestic support (subsidies).
It has been argued that the SPS agreement has been used by the developed countries to
selectively ward off imports from developing nations.
It is often criticized for being a biased one in favor of developed countries. A developing
country like India still does not have the access to developed countries markets because
of high non-tariff barriers. For example, although all quota restrictions on exports of
textiles and clothing have been removed in India, U.S.A. has not removed their quota
restriction on import of textiles from India and China.

Impact of Doha round (and WTO agreements) on India

Agriculture India have to curtail subsidies in many areas to comply with WTO rules and
as a result its products may become less competitive on the one hand and on the other
hand, its farmers and fledgling industry may face adverse effect in form of loss of
income of poor farmers and loss to domestic industries.
Services India is also unhappy over non-opening of mode-IV services in which it has
expertise. On the other hand opening of mode-III services has impacted its domestic
service industry as developed nations have expertise in it.

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TRIPS In TRIPS, Indian pharma industry has faced huge challenges in European and
American markets due to stringent provisions. It has also resulted in poor access to
medicines in developing countries like India as they are not able to develop cheaper
generic drugs due to tight TRIPS norms.
Sanitary and Phyto Sanitary Measures Developed countries have also used SPS to
erect non-tarrif barriers which have harmed Indian farm export. Ban on mango import is
the most recent example.
However, WTO rules have benefitted India as well in terms of lower tariffs in other
markets which are more easily accessible for India and domestic consumers have also
benefitted from cheaper imports and have more choice now. Trade has also increased
many a times and there has also been technology transfer which has benefitted Indian
industry.

Indias stand on Doha development round

India strongly supports Special and Differential treatment for the developing countries.
As a result of efforts of countries like India, several clauses and flexibilities have been
introduced in the agreements, like, compulsory licensing clause in TRIPS, higher subsidy
clauses, peace clause extension and so on.
As a part of special and differential clause, India also supports Duty-Free and QuotaFree (DFQF) market access for the least developed countries. India became the first
developing country to extend this facility to LDCs when it announced a Duty Free Tariff
Preference (DFTP) Scheme for LDCs in 2008 on about 85 per cent of India's total tariff
lines and preferential access (Positive List) on about 9 per cent of tariff lines. Only 6 per
cent tariff lines were under the Exclusion List.
In agriculture, India wants substantial and effective reductions in overall tradedistorting domestic support (OTDS) of the US and EU; An operational and effective
Special Safeguard Mechanism (SSM); Simplification and capping of developed country
tariffs and along term permanent solution to the problem of food security in developing
countries.
In Non-Agricultural Market Access (NAMA), India wants adequate and appropriate
flexibilities for protecting economically vulnerable industries.
In case of rules/agreements, India wants tightening of disciplines on anti-dumping
(deletion of zeroing clause and reiteration of the lesser duty rule).
In case of TRIPS, India wants certain flexibilities to alleviate hunger, poverty and
disease. It also wants enhanced protection for geographical indications (GIs) other than
wines and spirits and enhanced safeguards to check bio-piracy and access and benefit
sharing.
Safeguard mechanisms To protect domestic vulnerable industries and economy, WTO
provides for three measures
I.
II.

Safeguard Mechanism.
Anti-dumping.

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III.
Countervailing duties.
BARRIERS to TRADE
Non-Tariff Barriers All the restrictions on imports by a government in the form other
than taxes. They mainly include restrictions on quantity and quality of goods imported.
Technical Barriers to Trade Include Product standards, product characteristics,
processes, packaging and labeling. They should not cause unnecessary obstacles,
PEACE CALUSE
Peace clause in WTO parlance gives legal security to member countries and protects
them from being challenged under other WTO agreements. Domestic support measures
and export subsidies of a WTO Member that are legal under the provisions of the AoA
cannot be challenged by other WTO Members on grounds of being illegal under the
provisions of another WTO agreement. The Peace Clause has expired on January 1,
2004. It is now possible, therefore, for developing countries to use the WTO dispute
settlement mechanism in order to challenge, in particular, U.S. and EU export subsidies
on agricultural products.
NAMA
Non Agriculture Market Access - It refers to all those products that are not covered by
the AoA or GATS constituting bulk of world's merchandise exports. Doha called for
reduction in tariff and non-tariff barriers on these products by May 2003 but this
deadline was missed.
BALI PACKAGE, DECEMBER 2013
The Ninth Ministerial Conference of the WTO held in Bali, Indonesia, from 3 to 7
December 2013 lead to Bali Package. A trade facilitation agreement known as the Bali
Package was reached by all members on 7 December 2013, the first comprehensive
agreement in the organization's history. Its three basic pillars were Trade facilitation,
Agriculture and Development. The accord includes provisions for lowering import tariffs
and agricultural subsidies, with the intention of making it easier for developing countries
to trade with the developed world in global markets. Developed countries would abolish
hard import quotas on agricultural products from the developing world and instead
would only be allowed to charge tariffs on amount of agricultural imports exceeding
specific limits. Another important target is reforming customs bureaucracies and
formalities to facilitate trade. It has following highlights

Among the two most important outcomes of the Bali package were the
decisions on the Agreement on Trade Facilitation (TF) which relates to the
reduction of administrative barriers to trade like dealing with custom
barriers, documentation and transparency

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Second important agrrement was on Public Stockholding for Food Security


Purposes. It concerns the procurement and storage of food grains by state
agencies for the public distribution of food. The G-33 (a group of 46 developing
countries in the WTO including India) decided to bring the issue of procurement
of food grains from subsistence farmers for public stockholding for food security
into the agenda for the Bali Ministerial Conference. India's consistent position in
the WTO has been that matters pertaining to livelihood, food security, and rural
development are of vital importance.
Preferential Rules of Origin for least developed countries simplifying rules
for identifying and qualifying for preferential treatment with importing
countries and operationalisation of preferential treatment for Least Developed
Countries in services
Duty Free and Quota Free market access to least developed countries
Monitoring Mechanism on Special and Differential Treatment
Peace Clause to be applicable till 2017
Before the agreement, the negotiations repeatedly came close to collapsing. India's
demand that it should be allowed to extend its domestic agricultural subsidies
indefinitely was met by opposition from the U.S., while Cuba, Bolivia, Nicaragua, and
Venezuela objected to the removal of a text relating to the U.S. embargo against Cuba.
Issues and Analysis of Bali Package

It was made amply clear that while being fully prepared to engage, India will
never compromise on fundamental issues pertaining to food security, livelihood
security, and the welfare of its poor.
Special and differential treatment is a must for developing countries as
provided under the provisions of the WTO. It is also in complete conformity with
the commitment of member states in other multilateral fora like the United
Nations (UN) and the Food and Agriculture Organization (FAO) where the fight
against poverty and hunger is accorded highest priority.
India emphasized that an interim solution cannot be a temporary solution nor
can it be terminated until a negotiated permanent solution is in place.
It was made clear that without a satisfactory decision on food security, India
considered the Bali Package as lacking in horizontal balance and would,
therefore, not be able to support it. The outcome on the food security proposal
provides an opportunity to begin correcting some of the imbalances in the trade
rules which are part of the historical legacy of imbalance in the WTO.
Industry in India supports a trade facilitation agreement at Bali. The industry is
of the view that such an agreement could go a long way in bringing down
transaction costs that is critical to tap markets in the current global economic
environment.
But there is a word of caution emerging from the industry. It is clear that the

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burden of financing these obligations should not fall on the private sector. Any
such additional cost burden on the private sector would then take away the
benefit of an agreement, which is aimed at cutting costs of exports and imports.
Developing countries also think the proposal on table at present on trade
facilitation only increases the burden on developing countries by forcing them
to upgrade their export infrastructure without any reciprocal commitment on
the part of developed countries for financial assistance or technology transfer.
TRADE FACILITATION AGREEMENT NEGOTIATIONS, 2014
Background India raised the red flag over domestic support (by developed countries) to
farmers in Bali meet. Since then, developed countries have been on a watch to pick holes
in India farm and export policies. In December 2013 last year in Bali, Indonesia, the WTO
members agreed on a package including decisions on public stockholding for food
security purposes; export competition; government support for agriculture-related
services and cotton.
TFA aims at lowering the trade barriers (custom duties, custom mechanisms etc) and
make the trade smoother across the borders. It is argued that if TFA is signed, there
would be a big gain of $1 trillion for the world economy and 21 million jobs would be
created
Current impasse is due to the fact that developed countries allege India of providing
disproportionate subsidies to its farmers on the name of MSP and other subsidies and
this distorts the international markets as India dumps the excess food grains at cheaper
prices. India on the other hand argues that MSP and other measures are necessary to
make agriculture meaningful for its millions of marginal farmers and to also provide
subsidized food grain to millions of its population.
Developed countries are projected the trade facilitation as a sure thing at the Bali
ministerial meeting, developing countries want a deal to allow them to increase their
ceiling on food subsidies above what is permissible at present.
Key highlights of the recent talks are
I.

New Delhi had decided not to ratify WTO's Trade Facilitation Agreement (TFA).
India raised its voice in the current round of the talks saying that it will not back
TFA till concerns over domestic support for public stockholding are sorted out.
A permanent solution to the domestic stockholdings of food grains is important
regarding the issue of food security. India argued that the adoption of the
protocol on trade facilitation should be postponed till a permanent solution to
public stockholding for food security had been worked out. Despite intense
pressure from the developed countries, including the United States, India stuck
to its stand even as the deadline for adopting the protocol on TF passed on July
31.

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II.

III.

IV.

V.

VI.

VII.

If TFA is implemented, India is also likely to see huge import of goods in a


scenario when its export are not growing proportionally and this will further
widen its trade deficit.
It is also argued that if TFA is not signed, the world will be filled with
exclusionary regional FTAs which are discriminatory in nature and promote
parochialism in a globalized economy.
Even though the developing countries have generally backed measures to
enhance food security, support for Indias stand was not easy to come by this
time round. Only Cuba, Bolivia and Venezuela stood with India at the WTO.
Later the U.N. International Fund for Agricultural Development came out in
support of Indias position.
Several countries have blocked India's attempts to push through the plan to
allow limitless minimum support price (MSP), arguing that it will help it export
subsidized grains into the world market, and distort the price. The government
has been exporting excess stock of wheat to reduce the burden on overflowing
silos, raising fears that subsidized grains are being sold in the international
markets. India countered it by saying that the policies were in line with the WTO
agreement on agriculture, the US and Pakistan have sought detailed data,
arguing that India is the largest rice exporter in the world and it has huge stocks
of food grains (procured through MSP driven procurements) which if released
into markets, can lead to crash of food grain prices in global markets.
India has asked WTO to amend the norms for calculating agriculture subsidies so
that the country could continue to procure food grains from farmers at
minimum support price and sell them to poor at cheaper rates without violating
the norms. The current WTO norms limit De-Minimus the value of food
subsidies at 10 per cent of the total value of food grain production. However,
the quantum of subsidy is computed after taking into consideration prices that
prevailed more than two decades ago in 1980s. India has argued that the
reference price used in the calculation should be moved forward on a rolling
basis, but this suggestion of India at Bali was not taken very seriously by
developed countries. There are apprehensions that India may breach the 10 per
cent after the full implementation of its food security programme. According to
India, going ahead with signing of TFA without addressing the issue of public
stock holding amounts to ignoring hunger and malnutrition prevalent in favor of
greed of the developed nations.
One possible solution to the impasse from Indian point of view is that replacing
the existing in-kind PDS with a cash transfer system. This would do away with
procurement and public stockholding, and automatically solve the WTO issue of
subsidy to farmers. Moreover, dismantling the existing in-kind PDS and
replacing it with a cash transfer system is also a more efficient way of
distributing subsidies and India can manage to stick to 10% cap as well.
However, such arguments ignore the fact that over the years functioning of PDS

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has improved and states like Karnataka, Tamil Nadu and Himachal are doing
fairly well and such a move of opening up the food economy to big, private
capital can have deleterious effects on the livelihood of peasants and
agricultural labourers.
Further, plugging in the leakages of Indian PDS system can also help India in not
shooting up its food subsidy bill.
Knowing that procurement of wheat and rice under the National Food Security
bill will rise manifold, India wants that the enhanced subsidy outgo for food
procurement from small farmers as not being seen as a trade-distorting subsidy
support. These subsidies, required to meet the food security needs of the
hungry population, should be outside the maximum limit of Aggregate
Measurement of Support (AMS) that each country has to adhere to. The food
the developing countries buy at a minimum support price from low-income,
resource poor farmers should not be computed in the AMS limit.
In a recent development in November 2014, US representing the developed countries
has agreed to concerns of India over food security and decided to sideline public holding
of food grains till a permanent solution is found out. According to USA, India will be
allowed to use the peace clause (earlier, provision was made for extension of peace
clause till 2017 only) which disallows other members from going for challenging the
provisions made by India till a final solution to its food security problems. It means
that, India can continue to provide MSP to its farmers i.e. agricultural subsidies and they
will not be included in the mandatory 10% cap. US has agreed that agricultural subsidies
are not trade distorting and are necessary for food security. This crucial development has
paved the way for execution of TFA which is the single most important development
under the Doha Talks.
Potential benefits of TFA for India

Organisation for Economic Cooperation and Development estimates that, for


countries like India, the TFA could help reduce international trade costs by 14.5
percent, which would inevitably lead to growth in trade, and the generation of
jobs.
Larger share in the markets of other developing countries
More jobs
Push to manufacturing sector in India and entrepreneurship as India has cheap
labor advantage and hence is likely to get benefitted due to lower costs of
production