International Atomic Energy Agency (IAEA)

The IAEA is the international centre for cooperation in the nuclear/atomic field. It is a UN
agency.  It works with its member countries and many partners to promote peaceful uses of
nuclear technologies.

IAEA Functions
The functions of the IAEA are discussed below.

 Promoting and assisting the research, development and practical applications of peaceful
uses of nuclear technologies.
 Establishing and administering safety guards to ensure that such research/development,
etc., by the IAEA is not used for military purposes.
 Applying, under the Nuclear Non-Proliferation Treaty (NPT) and other international
treaties, mandatory comprehensive safeguards in non-nuclear-weapon states (NNWS)
parties to such treaties.
The IAEA’s three chief areas of work are:

1. Safety and security

2. Science and technology
3. Safeguards and verification

IAEA Governance
The IAEA has two policymaking bodies. They are:

1. General Conference
2. Board of Governors

General Conference

 It consists of all the member countries of the IAEA.

 It meets in a regular annual session.
 The annual general conference usually takes place in September.
Board of Governors

 Here, there are 35 members.

 The Board generally meets five times a year.
 It examines and makes recommendations to the IAEA’s General Conference on the
organisation’s programme, financial statements and budget. 
 The Board considers membership applications, approves safeguards agreements and
the publication of the safety standards of the IAEA. 
 It also appoints the Director-General of the IAEA, with the approval of the General
Conference. 
Secretariat 
The IAEA also has a Secretariat which comprises the organisation’s professional and general
service staff. It is headed by the Director-General.
Is the IAEA part of the United Nations?
The IAEA is an autonomous organisation within the United Nations system.

How is the IAEA funded?

The IAEA is funded by contributions from member states and donations from non-members.

Is IAEA a specialized agency of the UN?

No, it is considered to be a ‘related organization’ by the United Nations. It is not a specialised
agency because of the political nature of the work done by it.

Comprehensive Test Ban Treaty (CTBT)

The Comprehensive Nuclear-Test-Ban Treaty (CTBT) is a treaty banning all nuclear test
explosions anywhere in the world. The Treaty was negotiated at the Conference on Disarmament
in Geneva in 1994 and adopted by the United Nations General Assembly. It was opened for
signature in 1996. The Treat has been signed by 184 nations. India has not signed the treaty.
Given below are the objectives of the Comprehensive Test Ban Treaty:

1. The CTBT has been seen as an essential step toward nuclear disarmament for over four
decades. 
2. The Treaty is intended to stop the qualitative nuclear arms race. 
3. The CTBT aims to prevent further horrendous health and environmental damage caused
by nuclear test explosions once and for all.
4. It curbs the development of new nuclear weapons and the improvement of existing
nuclear weapon designs.

Question

What is the Comprehensive Nuclear-Test-Ban Treaty? Why has India been reluctant to join CTBT? Also,
mention what benefits India can accrue by joining CTBT?

Solution

Comprehensive Nuclear-Test-Ban Treaty Organisation (CTBTO)

It is a multilateral treaty that bans all nuclear explosions, for both civilian and military purposes, in all
environments.
It was adopted by the United Nations General Assembly in 1996 and opened for signature. So far, 184
countries have signed the treaty and 168 of them have also ratified it (most recently Ghana on 14 June
2011).
The CTBT will come into force when all the 44 countries which possess nuclear capability and
research reactors agree to sign and ratify it. It was opened for signature in 1996 but is yet to come into
force because eight countries have not signed or ratified it as yet. India, North Korea and Pakistan
have neither signed nor ratified the treaty whereas China, Egypt, Iran, Israel and the United States
have signed but have not ratified the treaty.
Why India has not joined CTBT?
Divides the world permanently into nuclear "haves and have-nots”, as it favors the nuclear power
states, who have already achieved sophistication in nuclear technology and have little utility in testing
further. Whereas other countries’ programs would be stopped at the nascent stage itself.
No time frame mentioned to dismantle existing nuclear weapons and is silent on complete nuclear
disarmament. India’s principled opposition drew from its emphasis on universal and complete nuclear
disarmament in a time-bound manner. India has traditionally believed this to be the end goal with the
test ban just being a path to get there. But CTBT did not insist on a complete disarmament clause,
acknowledging that it was a “complex issue.”
Does not address India’s security concerns- as India faces threats from hostile neighbourhood. E.g. as
a party to the CTBT, India would be waiving the possibility of testing and developing its own nuclear
weapons whereas China would be able to retain its arsenal as per the NPT. This was compounded by
the fear of nuclear collusion between China and Pakistan.
Hinder India’s strategic nuclear program development- for scientific development and energy needs
given its growing population and requirement of clean energy
Benefits India can accrue by joining CTBT
Strategic Interests- By joining CTBT, India can get easy entry to the Nuclear Suppliers Group as well
as strengthen its claim to the UN Security Council.
May help end the nuclear race in Asia- especially in India's neighbourhood, as it may lead to a follow
up by Pakistan too (Pakistan has already joined CTBT as an observer).
Gain access to data from the International Monitoring System- which uses advanced technologies like
hydro acoustics, infrasound and radionuclide and can help India in areas such as disaster management,
plane crash sites, mining and exploration.
Become a part of international scientific community- which comes together under the aegis of the
CTBTO and help India tap into numerous scientific cooperation with the world.
Conclusion
India believes its security would be enhanced, not diminished, in a world free of nuclear weapons.
With the changing geopolitics, India can reacquaint itself with today’s global nuclear test ban, while
making an important contribution to the multilateral verification regime under the CTBTO.

Terrorism
The term terrorism is very broad and there is no one definition of the term. Different people and
organisations have come up with their own definition of what constitutes terrorism. 

 Generally, the term terrorism indicates a criminal and violent activity performed by an
individual or group of individuals or an organisation in order to strike terror among the
general public and send messages to the public and governments, to fulfil a goal. 
 Although the victims of the terror act maybe a few people (depending upon the event),
the intended target is usually larger than the number of victims alone. 
 The terrorists’ purpose is to send a strong message to the larger public and the
government. They generally claim responsibility after conducting a violent act so as to let
people know of their power and capabilities and thus, inflict terror upon the people.
Terrorist Activities 
Terrorists indulge in a variety of activities for primarily three things:
 1. Generate fear among people.
2. Create publicity for their goals/causes.
3. Try to convince people that the government is powerless against them.

Terrorists and/or terror groups engage in random killings/assassinations, bomb blasts in public
places, suicide attacks, kidnappings, extortion, destroy public property/infrastructure, hijacking,
cyber-attacks, etc. They also indulge in chemical, biological, radiological and nuclear warfare.
Many terror groups also engage in an armed insurgency against governments.
The aim of political terror groups varies from toppling the established government of a country to
having better representation for a group of people, to seceding from a country and forming
another country, to acquiring a share in the government, etc. Many other groups of terror exist
solely for making illicit money and expanding their own illegal criminal empires. Many groups of
organised crime are also labelled terrorist groups.

Types of Terrorism
1. Dissent Terrorism: Groups that rebel against the government of a country. For example,
the LTTE in Sri Lanka.
2. Left-wing/right-wing terrorism: Terror groups that adhere to ideological leanings on the
extreme end of the left-right political spectrum. Read more on left-wing extremism in
India.
3. Religious terrorism: Terror groups based on religious ideologies. For example, ISIS.
4. Criminal terrorism: Terror groups engaged in terror acts for criminal profit.

Terrorism can also be classified on the basis of the mode of operation such as cyber-terrorism,
bioterrorism, etc.

Cross-border Terrorism
Cross-border terrorism is when the soil of one country is used to create terror or engage in
terrorism against its neighbouring countries across the border. India is a victim of cross-border
terrorism, whose source is Pakistan.
Factors favouring cross-border terrorism

 Porous borders: These indicate borders which are not highly protected. India’s borders
with most of her neighbours cannot be physically sealed or wired due to difficult terrain,
and other factors. Terror groups take advantage of such porous borders and infiltrate into
another country.

 Support from non-state actors: India’s troubled relationship with Pakistan fuels the
latter’s support for secessionist groups, which are provided financial support, weapons
and training by the establishment in Pakistan.
 Internal support: Many times, terrorists find support from the local population due to
varying reasons like ideological or ethnic affinity, fear, monetary lure, etc.
 Corrupt officials: Unfortunately, many officials in the establishment of a country can
abet terrorists and allow their illegal entry for terrorist activities purely for financial
benefits.

Terrorism in India
The current law in India enacted to tackle terrorism of all kinds is the Unlawful Activities
(Prevention) Amendment Act. Click on the linked article for a detailed description and also
watch a video lecture on the same.
  India faces terrorism from secessionists in Kashmir, the north-east and to an extent in
Punjab, from left-wing extremist groups in central, east-central and south-central India.
 India is one of the countries most affected by terrorism in the world. According to
the Institute for Economics and Peace, India was the seventh-most affected country in
2018.

 It reported that from 2001 till 2018, more than 8000 people have died in terror
attacks in India.
 Jammu & Kashmir is the region most affected by terrorist activities in the country.
 The Global Terrorism Index 2019 also places India on the 7th rank in terms of the
most-affected country by terrorism.
 It was after the 26/11 attacks on Mumbai by terrorist groups that the government formed
the National Investigation Agency (NIA).
 India is trying to push a global intergovernmental convention called the Comprehensive
Convention on International Terrorism (CCIT) to counter-terrorism since the late 90s.
 India is also a member of the FATF (Financial Action Task Force), an organisation that
works towards establishing global standards for combating money laundering and
terrorist financing.
 India has a network of intelligence agencies such as the Research and Analysis Wing
(RAW), the Intelligence Bureau (IB), etc. which are involved in fighting terrorism
emanating both inside and outside the country.
 There is also a National Intelligence Grid (NATGRID) that is an integrated intelligence
framework connecting the databases of security agencies of the Indian Government to
gather inclusive patterns of intelligence that can be accessed by intelligence agencies of
India.
 The National Security Guard (NSG) is a paramilitary force that is primarily responsible for
counterterrorism and anti-hijacking operations.

(OPTIONAL- READ)

 Non-state actors that pose challenges to India’s national security:

Non-state actors:

 Pakistan has been a major exporter of terrorism to

India . Non-state actors like terrorist groups for instance
Lashkar-e-Taiba, Jaish-e-Mohammad are a continuous
threat.
 Non state actor -sponsored terrorism, often motivated by
fundamentalist ideologies, backed by secretive but
efficient financial networks, use of IT, clandestine access to
chemical-biological and nuclear materials, and illicit drug
trafficking, has emerged as a major threat to international
stability.
 These groups aim to not only create instability in states
like J&K, they also have a larger aim of destabilising the
 country. This is done through sporadic terrorist strikes,
which spreads terror and panic. This could also adversely
affect the ability of the Indian state to pursue economic
modernisation.
 Growing vulnerability of the coastline and also of the
airspace, for example, Mumbai and Purulia incidents.
 Insurgency, illegal migration from Bangladesh and
smuggling activities reflect the porosity (concern
highlighted in Kargil Review Committee) of our borders.
 The deep-rooted nexus between drug mafias, arms dealers,
and money launderers for financing terrorism.
 The north-eastern states have been facing many
challenges such as
 organized Crime, the UWSA is the largest of the
organized criminal groups in the region and operates
freely along the China and Thailand borders,
 Ethnic Gangs
 Insurgent Groups which can encourage LWE, trans-
border terrorism and separatist tendencies.

Terror Funding

 Terrorism financing  is the provision of funds or providing financial

support to individual terrorists or non-state actors.
 Terrorists and terrorist organizations often use any resource of
money they can have access to in order to fund themselves. This can
range from the distribution of narcotics and black market
oil. ISIS is known to use black market oil distribution as a meTerror
Fundingans of funding their terrorist activity.
 The internet is a growing modern form of terrorist finance as it is
able to protect the anonymity that it can provide to the donor and
recipient.
 Terrorist organizations use propaganda in order to rally up
financial support from those who follow them. The funds may also
come from an illegal source but appear to come from a legal source,
through money laundering.
 Most countries have implemented measures to counter terrorism
financing (CTF) often as part of their money laundering laws.
  The Financial Action Task Force on Money Laundering (FATF) has
made recommendations to members relating to CTF. It has created
a Blacklist and Greylist of countries that have not taken adequate
CTF action.

Reasons for rise of Terrorism

 Terrorism has been a threat not only to India’s democracy but

countries worldwide affecting the enjoyment of rights of people.
Terrorism has slammed and affected almost every sphere of
human life, be it economic or political or social life.
 Broadly, terrorism is the antithesis of independence, development
and human rights. The frontier regions of India, especially regions
bordering Pakistan are the worst affected regions by terrorism.
 Terrorism, in all its form, is the greatest violator of human rights .
The ruthless, barbaric, inhuman killing of innocent people is carried
out by the terrorists with a view not only to challenge the authority
of the Government, but also to put the security and sovereignty of
the country in jeopardy.
 Terrorism in India is characterized by communist, Islamists and
separatist groups. Communist terrorist groups are by far the most
frequent perpetrators and the main cause of terrorism deaths in India.
 India continues to face a number of terror attacks from Islamic groups
in Kashmir, Sikh separatists in Punjab, and secessionist groups
in Assam.
 The most immediate and measurable impact of terrorism is
physical destruction. Terrorists destroy existing plants, machines,
transportation systems and other economic resources. On smaller
scales, acts of terrorism may blow up different public places, markets
or religious places. The impact of terrorism is always negative for
the economy.
 Productive resources that might have generated valuable goods and
services are destroyed, while other resources are almost invariably
diverted from other productive uses to bolster the military and
defense. None of these create wealth or adds to the standard of
living.
 The best strategy to isolate and defeat terrorism is by respecting
human rights, fostering social justice, enhancing democracy and
upholding the primacy of the rule of law.
 Cross-Border Terrorism

Indo-Pakistan Border:

 Indo-Pakistan Border runs along the states of Gujarat, Rajasthan,

Punjab and the UTs of J&K and Ladakh.
 Direct accessibility of the borders and some technological developments
enabling quick passage of information and transfer of funds has changed
the focus and tenor of border security.
 Cross-Border Terrorism from Pakistan has exacerbated due to non-
recognition of boundaries by its terrorist groups and their success in
acquiring legitimacy due to religious or ethnic identity.
 Inadequate Cooperation from Pakistan has made the management
of border further difficult for India.

 
Indo-Bangladesh Border:

 The Indo-Bangladesh Border passes through West Bengal, Assam,

Meghalaya, Tripura and Mizoram.
 The entire stretch consists of plains, riverine belts, hills & jungles which
make illegal migration very easy.
 Illegal Migration across this border poses serious security threats and
acts as a fertile ground for organisations like the Inter-Services
Intelligence of Pakistan to penetrate and expand their activities.
 Also, poor law and order situation at the border, has led to  smuggling
of arms and drugs. Supply of arms help in sustaining any conflict.

 
Indo-China Border:

 India shares a long land border with China in the Indian states of
Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh and UT
of Ladakh.
 Although this border remains relatively aloof from illegal migrations, this
border remains a cause of constant vigil for Indian forces. India has a
longstanding border dispute with China running back to British era in
Aksai Chin and Arunachal Pradesh.

 
Indo-Nepal Border:

 India-Nepal Border is an open border in the sense that people of both

the countries can cross it from any point, despite the existence of border
check posts at several locations.
 Anti-India organizations use this border to plant their people in the
territory of India.
 Also, smuggling of gold, small arms, drugs and fake currency helps
terrorists in executing an attack.

 
Indo-Bhutan Border:

 This border passes through states of Assam, Arunachal Pradesh, West

Bengal and Sikkim.
 Illicit establishment of camps by militant outfits in the dense jungles of
south-east Bhutan helps insurgents from India in executing anti-India
activities.

 
Indo-Myanmar Border:

 The northeast states of Arunachal Pradesh, Nagaland, Manipur and

Mizoram share the border with Myanmar.
 Some of the insurgent groups like the National Socialist Council of
Nagaland (NSCN) and ULFA operate from Myanmar, which threatens
the security of India as well as Myanmar.

Solutions for addressing cross border terrorism:

 Infrastructure along with border has to be improved – rail

connectivity along with road connectivity has to be provided for quick
mobilization.
 Building of additional checkpoints and Border posts along major and
minor trade routes connected with borders
 The advances in surveillance technology, particularly satellite and aerial
imagery, can help to maintain a constant vigil along the LAC and make it
possible to reduce physical deployment.
 Taking up of joint Border management with Countries like Myanmar,
Bhutan and Nepal.
  Improving healthcare, physical infrastructure and digital connectivity in
villages around borders thus making them stakeholder in Border
Management.

Bioterrorism

 Bioterrorism or Biological Attack is the intentional release of

viruses, bacteria, or other germs that can sicken or kill people,
livestock or crops. They use microorganisms and natural toxins to
produce disease in humans, animals, or plants.
 The Covid-19 pandemic has exposed the vulnerability of several
world powers in the event of use of biological weapons against
them by rogue states and terrorist groups

Bio-Weapons:

o
 Biological weapons  can be derived from: bacteria,
viruses, rickettsia, biological toxins and fungi.
 These agents can be deployed as biological
weapons when paired with a delivery system such
as a missile or aerosol.
 The most destructive bioterrorism scenario is the airborne dispersion
of pathogens over a majorpopulation region.
 Tropical agricultural pathogens or pests can be used as anticrop
agents to hamper the food security worldwide.
 It can impact and expose military and civilian susceptibilities to
biological weapons and to the complexity of offering ample safeguards.

Combating Bioterrorism:

Intelligence Sharing & Rapid Detection

Strengthening the Biological and Toxin Weapons Convention

Biodefense Systems

Terrorism and challenge to Human Rights

 South Asia has been impacted by the activities of terrorist

organizations such as Al-Qaida and Lashkar-e-Taiba. The growing
 interlinkages between terrorist groups, cross-border operations,
including financing networks, and the exploitation of modern
technologies — means that no country can stay aloof from the
effects of terrorism.
o Loss of civilian life and uncertainty on the security of life is a
gross human rights violation.
 Terrorist attacks are more lethal on average in countries with
a greater intensity of conflict.
 Global Counter - Terrorism Strategy  has witnessed little practical
impact on the ground. A comprehensive convention will provide a
strong legal basis for tackling terrorism.
o Non-agreement on counter-terror strategy is a collective
failure of nations in the realm of human rights.
 There was no change in the five countries most impacted by
terrorism, which include Iraq, Afghanistan, Nigeria, Syria and
Pakistan. All of these countries have been ranked in the worst five
every year since 2013.
 Conflict continued to be the primary driver of terrorist activity for the
countries most impacted by terrorism.
 There are numerous possible reasons for this difference. Countries in
conflict have a greater availability of more military-grade small arms
and bomb-making capabilities.

 Countries that are not in conflict tend to be more economically-

developed and spend more on intelligence gathering, policing and
counter-terrorism. This shows the importance of human rights in
governance.

Terrorism Measures- Institutional and Legal Framework

 Terrorism is a complex, non-static phenomenon. Its associated

motivations, financing and support mechanisms, methods of attack and
choice of targets are often evolving, thereby compounding the
challenges of ensuring the existence of an effective strategy to counter
it. In this situation global cooperation is of paramount importance.
  India should play a proactive role to neutralize any threat of
terrorism. There is a need for the world to join hands and take concrete
multilateral initiatives to ensure that terror groups are dealt with a heavy
hand. Accepting and ratifying the Comprehensive Convention on
International Terrorism (CCIT) proposed by India would be good first
step.
 At national level, India has formulated and implemented many laws.
Some of them are Unlawful Activities (Prevention) Act, 1967
Prevention of Terrorism Act, 2002 etc.
 National Security Guard was raised in 1984, following Operation Blue Star and the
assassination of Indira Gandhi, “for combating terrorist activities with a view to
protect States against internal disturbances”.
 Combating the Financing of Terrorism (CFT)  policies largely originate
and are modeled upon the report Forty Recommendations, which was
published by the Financial Action Task Force (FATF).
 FATF works to combat money laundering and the financing of terrorism
through creating standardized processes to stop threats to the
international financial system. It seeks to increase acceptance of anti-
money laundering regulations across the globe. Eg: Pakistan is on
greylist for two years.

Militancy in Jammu and Kashmir

 The violent secessionist outbreak in 1989, and since then, the

government’s anti-militancy and counterinsurgency operations, have
embedded strong ‘Us vs Them’ narratives amongst the Kashmiris and
alienated them from the Indian polity.
 These state actions have included crackdowns, arrests, killings
of local militants, and heavy enforcement of laws such as the
Public Safety Act (PSA) and the Armed Forces Special Powers
Act (AFSPA).
 Consequently, a negative perception of India and its policies has
been nurtured; there is popular perception amongst the Kashmiri
people of the Indian state being a “coloniser” or an “occupier”.
 Between 2014 and 2020, there was a significant increase in local militancy
and stone-pelting incidents in the region. In 2017 the Indian armed forces
launched ‘Operation All Out ’ to eliminate the militant networks, their
overground workers (OGW), and top militant commanders. However, as the
 militants’ ranks were dominated by the locals, these operations only
reinforced the ‘us vs. them’ line.
 The abrogation of the special status of J&K on August 5, 2019 led
many to speculate that there would be a substantial increase in
terrorism-induced violence in the region following the
decision. However, the security scenario has continued to improve.

NON-STATE ACTORS

Definition
Non-state actors are individuals or organizations that have powerful economic, political or
social power and are able to influence at a national and sometimes international level but do
not belong to or allied themselves to any particular country or state. Non-state actors are
define as “an organized political actor not directly connected to the state but pursing aims that
affect vital state interests”. Other than having characteristics such as having power and the
ability to influence, non-state actors have a base or headquarter in a certain state but their
activities will not only be operating in the state itself but will also be operating beyond the
borders of the state. A non - state actors is defined as any organized group with a basic
structure of command operating outside state control that uses force to achieve its political or
allegedly political objectives. Such factors include 'rebel groups and governments of entities
which are not (or not widely) recognized as states.
Role and Functions
Non state actors focus on human welfare and development. They also strives for regional and
global peace and stability. Most of the non-state actors work for economic development for a
particular region or country. They play vital role in flourishing democracy. Non state actors
provide loans and other fiscal opportunities to developing countries. They try to cooperate
and coordinate with sovereign state, international law and international organization for
smooth running of international system.
Some of the major role of non-state actors in international relations are that a non-state
actors have forced a change in the concepts of sovereignty and nationalism. The policies,
decisions and actions of the nation-states now bear the increasing influence of the presence
and activities of the non-state actors. The latter have emerged as powerful non-political,
commercial, economic, cultural, or trading actors in the international environment. At the
same time non-state actors are pursuing their interests largely outside the direct control of
nation-states. However these frequently involve governments in particular problems as a
result of their activities. The non-state actors have produced several big changes in the
nation-states system as well as in the role of the nation-state in international relations. These
have been instrumental in increasing international interdependence and relations, as well as in
ordering and expanding relations in this age of interdependence.
However, in themselves non-state actors are the products of the nuclear age, space age, age of
communication revolution, transportation revolution, welfarism, internationalism, and
globalisation, which have in turn been the products of the nation-state system. Most of these
non-state actors have emerged and are working because of the acceptance of their utility by
the nation-states. The inter-governmental organisations, and the international organisations
like the United Nations and a host of other international agencies, have their existence in
accordance with the wishes of the nation-states. The nation state still holds (near) monopoly
on the use of coercive power in the international system. It still moulds the activities of non-
state actors more than its behaviour is moulded by them.
Non-state Actors have made international relations more complex and problematic. These
have been in the main responsible for a reduced importance of political relations in the
international system. Some of these have been acting as harbingers of international peace and
security while some others have been acting as agents of neo-colonialism and dependency for
the under-developed countries. These have contributed towards the growth of
internationalism, and dilution of nationalism in favour of internationalism. These have also
been instrumental in the emergence of several strong peaceful, developmental and ecological
movements.
Types of Non-state Actors
 Sub-state Actors:
Sub-state actors are groups of people or individuals with similar interests not beyond the
states that are able to effect the state’s foreign policy. They are also known as domestic
actors. An example of sub-state actors is the automobile industry and the tobacco industry in
America. These industries have unmistakable interests in the American foreign economic
policy so that these industries are able to sell cars or cigarettes abroad and reduce imports of
competing products made abroad. They are politically assembled to influence policies
through interest groups, lobbying, donating to political candidates or parties, swaying public
opinion on certain issues, and other means.
Some examples of sub-state actors are the trade union. Trade union is an organization of
workers who have banded together to achieve common goals such as protecting the integrity
of its trade, achieving higher pay, increasing the number of employees an employer hires, and
better working conditions. They are able to influence the decisions made regarding their
state’s laws in order to protect the rights of employees
 Intergovernmental Organizations (IGOs):
Intergovernmental Organizations (IGOs) are one of the International Organizations (IOs).
IGOs are organizations whose members consist of three or more nations-states. IGOs are
created and joined by states to solve shared problems which give them authority to make
collective decisions to manage problems on the global agenda. In these organizations, the
states’ representatives gather to discuss issues that are of mutual interests to the member
states.
There are two main types of IGOs, the global IGOs and the regional IGOs. Global IGOs are
organizations having universal or nearly universal membership which means every state is a
member like the United Nations (UN), World Trade Organization (WTO), International
Monetary Fund (IMF) and many more. Regional IGOs are a subset of states as members
based on a particular interest or region, such as the Association of Southeast Asian Nations
(ASEAN), European Union (EU) and many others.
 Transnational Actors:
Transnational actors are actors that function below the state level but functioning across the
state borders. There are two types of transnational actors which are the transnational
corporations (TNCs) or multinational corporations (MNCs) and the nongovernmental
organizations (NGOs)
MNC is a large corporation operating on a worldwide basis in many countries at the same
time, with fixed facilities and employees in each. The types of MNCs are industrial
corporations’ makes goods in factories in many countries and sell them to business and
consumers in various countries. Financial corporations such as banks. Services such
as McDonald’s fast food chain, international airlines like MAS, Asiana Airlines and more,
Hilton Hotels & Resorts and many others. MNCs are increasingly powerful as independent
actors. 
NGOs are private international actors whose members are not states, but are volunteers
from populations of two or more states who have formed organizations to promote their
shared interests and ideals in order to influence the policies of state governments and
intergovernmental organizations (IGOs). NGOs tackle many global problems and seek
changes in the world for causes such as disarmament, environmental protection, human rights
and many more. Most pursue objectives that are highly respected and constructive, and
therefore do not provoke any controversy or arouse much opposition. Example, one of the
NGOs that fight for human rights is Amnesty International. Amnesty International is a
worldwide movement of people who campaign for internationally recognized human rights
for all.
 Political Groups that Advocate Violence (Terrorists):
Terrorist or rather political groups that advocate violence might not call themselves NGOs,
but they operate in the same manner which are by interacting both with states and with
relevant populations and institutions through violence and planning attacks. These groups
held great power and are able to influence the international relations between states. A group
that is currently active now is the Al-Qaeda. The incidence of the spectacularly
destructive attack of September 11, 2001 by members of Al Qaeda, has demonstrated the
increasing power that technology gives terrorists as non-state actors. Other than that, the Al
Qaeda also placed suicide bombers in U.S. cities, coordinate their operations and finances
through Internet and global banking system, and reach a global audience with the videotaped
exhortations of Osama bin Laden.
 International Criminal Groups:
These actors are considered as transnational actors but they act in an illegitimate manner.
Most of these groups have a great capacity of financial resources and thus, are able to
influence the state’s policies. Some of them are even capable to threaten the state’s security.
Most operated secretly which makes it hard for the authorities to track them down. Most of
these groups are involved in drugs, prostitution, human trafficking, firearms and many other
crimes. Some examples of international criminal groups would be the Yakuza in Japan, the
Sicilian Mafia in Italy and also Triads in Hong Kong, Macau, Taiwan and also in countries
with significant Chinese population.
Non state actors however have played their nefarious role too in creating
problems for India
 Insurgency: North-East suffers from violent movements based upon ethnic
identities leading to clashes. China is alleged to support such acts for instance.
United Liberation Front of Asom (ULFA) members of Assam were given
shelter by China.

 Terrorism: Pakistan has been a major exporter of terrorism to India. Non-state

actors like terrorist groups for instance Lashkar-e-Taiba, Jaish-e-Mohammad
 are a continuous threat. Non state actor -sponsored terrorism, often motivated
by fundamentalist ideologies, backed by secretive but efficient financial
networks, use of IT, clandestine access to chemical-biological and nuclear
materials, and illicit drug trafficking, has emerged as a major threat to
international stability. These groups aim to not only create instability in states
like J&K, they also have a larger aim of destabilising the country. This is done
through sporadic terrorist strikes, which spreads terror and panic. This could
also adversely affect the ability of the Indian state to pursue economic
modernisation.

 Nasalism: Left wing extremism affects states like Chhattisgarh, Jharkhand and
West Bengal.

 Drug trafficking: Inter and Intra state trafficking takes place, through golden
crescent and golden triangle routes. Drugs from Golden Crescent (Pakistan,
Afghanistan and Iran) have affected Punjab and Golden Triangle (Laos,
Myanmar and Thailand) has affected North Eastern states.

 Human-trafficking: Children and women trafficking takes place via

Bangladesh and Nepal.

 Counterfeit currency: It corrodes economy from inside, by facilitating black

money and money laundering activities as well as funding terrorism, which
itself creates a demand for fake currency, thereby creating a positive feedback
loop. This is the issue arising especially from Pakistan.

 Communalism: Propagandas are run and funded by enemy country and other
non-state actors (NGOs and CSOs) to destabilize India by damaging the socio-
religious fabric and ensure riots.

 Cyber Security: Recent cyber-attacks by Legion, ATM skimming are examples.

Pakistani hackers often hack government websites. They can also incite people
for regionalism thus demanding their separate state which further increases
secessionist tendency.
Hence, we need to check the various non state actors who come in hidden forms. There is a
need for a national internal security doctrine to deal with various challenges.
IMF
IMF was conceived at the Bretton Woods conference held in 1944 and set-up in 1946. The main
objective of setting up of such an organisation was to administer a code of good conduct in
international liquidity of its member countries and to grant short-term loans to economies,
experiencing a temporary deficit in Balance of Payments (BoP). IMF started to function from March
1947.
Its headquarters is located in Washington DC. There are 189 member countries including India. The
highest authority of the IMF is the Board of Governors, which consists of the most part of Ministers
of Finance or Central Bank Governors of the member countries. Each member country appoints one
Governor. The board generally meets only once in a year.
Question
What is IMF? Discuss its various objectives and functions.

Solution

The IMF, or the International Monetary Fund, came into existence in 1945 with the objective of
establishing a healthy and orderly monetary system. It aimed at facilitating a system of international
payments and taking care of the adjustments in exchange rates among national currencies. It is one of
the three international institutions—the other two being the World Bank and the International Trade
Organization—that were created for facilitating and monitoring the economic development of the
world .
Objectives of the IMF
(a) To aid the balanced growth of international trade and market, thereby promoting the growth of
employment and income
(b) To promote international monetary cooperation among the member countries
(c) To facilitate the orderly exchange of goods between the member countries
(d) To facilitate international payments with respect to the exchange transactions between the member
countries
Functions of the IMF
(a) Providing short-term credit to member countries
(b) Maintaining stability in the exchange rate of the member countries
(c) Fixing and altering the value of a country’s currency whenever required, to facilitate the
adjustment of exchange rate of member countries
(d) Collecting the currencies of member countries so as to allow them to borrow the currency of other
nations
(e) Lending foreign currency to member nations and facilitating international payments with respect
to the exchange transactions between member countries.

IMF and India

 International regulation by IMF in the field of money has certainly
contributed towards expansion of international trade. India has, to
that extent, benefitted from these fruitful results.
 Post-partition period, India had serious balance of payments
deficits, particularly with the dollar and other hard currency
countries. It was the IMF that came to her rescue.
 The Fund granted India loans to meet the financial difficulties
arising out of the Indo–Pak conflict of 1965 and 1971.
 India had to borrow from the Fund in the wake of the steep rise
in the prices of its imports, food, fuel and fertilizers.
  India wanted large foreign capital for her various river projects,
land reclamation schemes and for the development of
communications. Since private foreign capital was not
forthcoming, the only practicable method of obtaining the
necessary capital was to borrow from the International Bank for
Reconstruction and Development (i.e. World Bank).
 India has availed of the services of specialists of the IMF for
the purpose of assessing the state of the Indian economy. In
this way India has had the benefit of independent scrutiny and
advice.
 India has occupied a special place in the Board of
Directors of the Fund. Thus, India had played a creditable
role in determining the policies of the Fund. This
has increased the India’s prestige in the international circles.
IMF‘s Criticism
 IMF’s governance is an area of contention. For decades, Europe
and the United States have guaranteed the helm of the IMF to a
European and that of the World Bank to an American. The
situation leaves little hope for ascendant emerging economies
that, despite modest changes in 2015, do not have as large an
IMF voting share as the United States and Europe.
 Conditions placed on loans are too intrusive and compromise
the economic and political sovereignty of the receiving countries.
'Conditionality' refers to more forceful conditions, ones that often
turn the loan into a policy tool. These include fiscal and monetary
policies, including such issues as banking regulations,
government deficits, and pension policy. Many of these changes
are simply politically impossible to achieve because they would
cause too much domestic opposition.
 IMF imposed the policies on countries without understanding the
distinct characteristics of the countries that made those policies
difficult to carry out, unnecessary, or even counter-productive.
 Policies were imposed all at once, rather than in an
appropriate sequence. IMF demands that countries it lends to
privatize government services rapidly. It results in a blind faith in
the free market that ignores the fact that the ground must be
prepared for privatization.
Significance

 The International Monetary Fund, or IMF, supports international

monetary cooperation and financial stability.
 It also helps to eliminate global poverty by facilitating
international trade, promoting employment, and long-term
economic progress.

IMF Reforms
 IMF Quota, it simply means more voting rights and borrowing
permissions under IMF. But it is unfortunate that IMF Quota’s
formula is designed in such a way that USA itself has 17.7%
quota which is higher than cumulative of several countries. The
G7 group contains more than 40% quota whereas countries like
India & Russia have only 2.5% quota in IMF.
 Due to discontent with IMF, BRICS countries established a new
organization called BRICS bank to reduce the dominance of IMF
or World Bank and to consolidate their position in the world.
 More representative Executive Board: 2010 reforms also
included an amendment to the Articles of
Agreement established an all-elected Executive
Board, which facilitates a move to a more representative
Executive Board.
EU
(Refer IR notes)

Q. In the present geo-political scenario, the EU and India appear to be natural partners and they
need to leverage existing opportunities. Discuss.

Introduction

Recently, a virtual India-EU leaders meeting was held between Indian Prime Minister and 27
EU leaders. The most significant outcome of the summit was that after eight years, India and
the EU have decided to resume negotiations for a comprehensive trade agreement.
However, it was not only the trade that paved the way for reinvigoration of relations, the
changing geo-political circumstances is prompting both India & Europe to strategically
converge.
Body

Need for Strategic Convergence between India & EU

EU’s Need to Pivot Away from China: EU recently signed a Comprehensive Agreement on
Investment with China, which has drawn a lot of criticism and its ratification has now been
suspended because of diplomatic tensions.
Economic Logic: With the EU being India’s largest trading partner and the second-largest
export destination, the economic logic of strong India-EU economic relations is self-evident.
Convergence in Indo-Pacific Theatre: The EU is being forced to reckon with the geopolitical
implications of rising China and India is looking for substantive partnerships with like-
minded nations to bring stability to the Indo-Pacific theatre.
Multi-Polar World Order: Further, India is looking beyond the bipolar geopolitical
competition between the US and China and works towards the establishment of a Multi-
polar world.
Combating Climate Change: India can learn from a new industrial strategy called the Green
Deal of EU to render its carbon-emission neutral by 2050.

The EU and India could endeavour transforming into carbon-neutral economies by 2050 by
investing in clean energies.
In India’s efforts to increase the use of renewable energy in India, the investment and
technology of Europe is of paramount importance.
Conclusion

As strategic realities evolve rapidly in an era defined by Covid-19 and its aftermath, India
and the EU have a new opening to re-evaluate the fundamentals of their engagement.
Whether the two “natural partners” can make the most of this unique synergy remains to
be seen.

SAARC
South Asian Association for Regional Cooperation
(SAARC)
The South Asian Association for Regional Cooperation (SAARC) was established with
the signing of the SAARC Charter in Dhaka on 8 December 1985.

 The idea of regional cooperation in South Asia was first raised in

November 1980. After consultations, the foreign secretaries of the
seven founding countries—Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan, and Sri Lanka—met for the first time in Colombo
in April 1981.

 Afghanistan became the newest member of SAARC at the

13th annual summit in 2005.
  The Headquarters and Secretariat of the Association are
at Kathmandu, Nepal.
Principles
 Cooperation within the framework of the SAARC shall be based
on:

o Respect for the principles of sovereign equality, territorial

integrity, political independence, non-interference in the
internal affairs of other States and mutual benefit.
o Such cooperation shall not be a substitute for bilateral and
multilateral cooperation but shall complement them.
o Such cooperation shall not be inconsistent with bilateral and
multilateral obligations.
Members of SAARC
SAARC Member States SAARC Observer States

1. Afghanistan 1. Australia
2. Bangladesh 2. China
3. Bhutan 3. European union
4. India 4. Iran
5. Maldives 5. Japan
6. Nepal 6. Mauritius
7. Pakistan 7. United States
8. Sri Lanka 8. Myanmar
9. Republic of Korea

Areas of Cooperation among SAARC Nations

 Agriculture and Rural Development
 Human Resource Development and Tourism
 Economic, Trade and Finance
 Social Affairs
 Environment, Natural Disasters and Biotechnology
 Education, Security and Culture and Others
 Information and Poverty Alleviation
 Energy, Transport, Science and Technology

The Objectives of the SAARC

 To promote the welfare of the people of South Asia and to
improve their quality of life.
 To accelerate economic growth, social progress and cultural
development in the region and to provide all individuals the
opportunity to live in dignity and to realize their full potentials.
 To promote and strengthen collective self-reliance among the
countries of South Asia.
 To contribute to mutual trust, understanding and appreciation of
one another’s problems.
 To promote active collaboration and mutual assistance in the
economic, social, cultural, technical and scientific fields.
 To strengthen cooperation with other developing countries.
 To strengthen cooperation among themselves in
international forums on matters of common interests; and
 To cooperate with international and regional organizations with
similar aims and purposes.

SAARC – Structure
SAARC has the following structure:

1. Council – It is the apex policy-making body. The council is represented by government

heads of the respective member countries.
2. Council of Ministers – The Council of Ministers comprises the foreign ministers and they
meet generally two times annually.

Council of Ministers – Functions

1. Policy formulation
2. Reviewing the progress of regional cooperation
3. Identifying newer areas of cooperation, and
4. Setting up additional mechanisms as required

Standing Committee of Foreign Secretaries

The Committee provides overall monitoring and coordination, determines priorities, mobilizes
resources, and approves projects and financing.
Secretariat
It is headed by the Secretary-general appointed by the Council of Ministers. The main functions
of the Secretariat are as follows:

1. Coordination and execution of activities conducted by SAARC

2. Monitoring the SAARC meetings
3. Work as a communication link between SAARC and other international summits and
forums.
SAARC and its Importance
 Creating synergies: It is the world’s most densely populated
region and one of the most fertile areas. SAARC countries have
common tradition, dress, food and culture and political aspects
thereby synergizing their actions.
 Common solutions: All the SAARC countries have common
problems and issues like poverty, illiteracy, malnutrition, natural
disasters, internal conflicts, industrial and technological
backwardness, low GDP and poor socio-economic condition and
uplift their living standards thereby creating common areas of
development and progress having common solutions.
SAARC Achievements
 Free Trade Area (FTA): SAARC is comparatively a new
organization in the global arena. The member countries have
established a Free Trade Area (FTA) which will increase their
internal trade and lessen the trade gap of some states
considerably.
 SAPTA: South Asia Preferential Trading Agreement for
promoting trade amongst the member countries came into effect
in 1995.
 SAFTA: A Free Trade Agreement confined to goods, but
excluding all services like information technology. Agreement was
signed to reduce customs duties of all traded goods to zero by the
year 2016.
 SAARC Agreement on Trade in Services (SATIS): SATIS is
following the GATS-plus 'positive list' approach for trade in
services liberalization.
 SAARC University: Establish a SAARC university in India, a food
bank and also an energy reserve in Pakistan.
Significance for India
 Neighbourhood first: Primacy to the country’s immediate
neighbours.
 Geostrategic significance: Can counter China (OBOR initiative)
through engaging Nepal, Bhutan, the Maldives and Sri Lanka in
development process and economic cooperation.
 Regional stability: SAARC can help in creation of mutual trust
and peace within the region.
 Global leadership role: It offers India a platform to showcase its
leadership in the region by taking up extra responsibilities.
 Game changer for India’s Act East Policy: by linking South
Asian economies with South East Asian will bring further
economic integration and prosperity to India mainly in the
Services Sector.
Challenges
 Low frequency of meetings: More engagement is required by
the member states and instead of meeting biennial meetings
should be held annually.
 Broad area of cooperation leads to diversion of energy and
resources.
 Limitation in SAFTA: The implementation of SAFTA has not
been satisfactory a Free Trade Agreement confined to goods,
excluding all services like information technology.
 Indo-Pak Relations: Escalated tension and conflict between
India and Pakistan have severely hampered the prospects of
SAARC.
Future SAARC
 In a region increasingly targeted by Chinese investment and
loans, SAARC could be a common platform to demand more
sustainable alternatives for development, or to oppose trade tariffs
together, or to demand better terms for South Asian labour around
the world.
 A lot is needed to be done in the future to strengthen SAARC. Member countries need to
put joint efforts towards agricultural research as food security is a common problem with all
countries. The higher degree of cooperation is needed in the fields of infrastructure
development, higher education, energy cooperation etc.

What are the problems of SAARC?

 SAARC has faced problems in the past, mostly attributed to India-Pakistan hostilities.
India’s problems with Pakistan over Kashmir, terrorism, and nuclear issues have affected
the working of SAARC since its inception.

ASEAN
What is ASEAN?
 The Association of Southeast Asian Nations is a regional
organization which was established to promote political and social
stability amid rising tensions among the Asia-Pacific’s post-
colonial states.
 The motto of ASEAN is “One Vision, One Identity, One
Community”.
 8th August is observed as ASEAN Day.
 ASEAN Secretariat – Indonesia, Jakarta.
Member Nations
 Indonesia
 Malaysia
 Philippines
 Singapore
 Thailand
 Brunei
 Vietnam
 Laos
 Myanmar
 Cambodia

Genesis of ASEAN
1967 – ASEAN was established with the signing of the ASEAN
Declaration (Bangkok Declaration) by its founding fathers.
Founding Fathers of ASEAN are: Indonesia, Malaysia,
Philippines, Singapore and Thailand.
 2015 – Launch of ASEAN Community.
 ASEAN Community is comprised of three pillars:
1. ASEAN Political-Security Community
2. ASEAN Economic Community
3. ASEAN Socio-Cultural Community
Objectives
 To accelerate economic growth, social progress and cultural
development for a prosperous and peaceful community of
Southeast Asian Nations.
 To promote regional peace and stability through abiding respect
for justice and the rule of law and adherence to the principles of
the United Nations Charter.
 To promote active collaboration and mutual assistance on matters
of common interest in the economic, social, cultural, technical,
scientific and administrative fields.
 To collaborate more effectively for the greater utilisation of
agriculture and industries, the expansion of their trade, the
improvement of transportation and communications facilities and
the raising of the living standards of peoples.
 To promote Southeast Asian studies.
 To maintain close and beneficial cooperation with existing
international and regional organisations.

ASEAN Fundamental Principles

1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and
national identity of all nations;
2. The right of every State to lead its national existence free from external interference,
subversion or coercion;
3. Non-interference in the internal affairs of one another;
4. Settlement of differences or disputes by peaceful manner;
5. Renunciation of the threat or use of force; and
6. Effective cooperation among themselves.

ASEAN Headquarters
 The body is headquartered in Jakarta, Indonesia.
 Secretary-General: Dato Lim Jock Hoi
 Official Languages: Burmese, Filipino, Indonesian, Khmer, Lao, Malay, Mandarin, Tamil,
Thai and Vietnamese
 Working Language: English

Institution Mechanism
 Chairmanship of ASEAN rotates annually, based on the
alphabetical order of the English names of Member States.
 ASEAN Summit: The supreme policy making body of ASEAN. As
the highest level of authority in ASEAN, the Summit sets the
direction for ASEAN policies and objectives. Under the Charter,
the Summit meets twice a year.
 ASEAN Ministerial Councils: The Charter established four
important new Ministerial bodies to support the Summit.
o ASEAN Coordinating Council (ACC)
o ASEAN Political-Security Community Council
o ASEAN Economic Community Council
o ASEAN Socio-Cultural Community Council
 Decision Making: The primary mode of decision-making in
ASEAN is consultation and consensus.
Strengths & Opportunities
 ASEAN commands far greater influence on Asia-Pacific trade,
political, and security issues than its members could achieve
individually.
 Demographic dividend – It constitutes 3rd largest population in
the world, of which more than half is below thirty years of age.
 Economic:
o 3rd largest market in the world - larger than EU and North
American markets.
o 6th largest economy in the world, 3rd in Asia.
o Free-trade agreements (FTAs) with China, Japan, South
Korea, India, Australia and New Zealand.
o Fourth most popular investment destination globally.
o ASEAN’s share of global exports has also risen, from only 2
percent in 1967 to 7 percent by 2016, indicating the rising
importance of trade to ASEAN’s economic prospects.
o The ASEAN Single Aviation Market and Open Skies policies
have increased its transport and connectivity potential.
 ASEAN has contributed to regional stability by building much-
needed norms and fostering a neutral environment to address
shared challenges.
Challenges
 Regional imbalances in the economic and social status of its
individual markets.
 Gap between rich and poor ASEAN member states remains
very large and they have a mixed record on income
inequality.
 The members’ political systems are equally mixed with
democracies, communist, and authoritarian states.
 While the South China Sea is the main issue exposing the
organization’s rifts.
 ASEAN has been divided over major issues of human rights.
For example, crackdowns in Myanmar against the Rohingyas.
 Inability to negotiate a unified approach with regards to China,
particularly in response to its widespread maritime claims in the
South China Sea.
 There is no central mechanism to enforce compliance.
 Inefficient dispute-settlement mechanism, whether it be in the
economic or political spheres.
India and ASEAN
 India's relationship with ASEAN is a key pillar of her foreign policy
and the foundation of Act East Policy.
 India has a separate Mission to ASEAN and the EAS (East Asia
Summit) in Jakarta.
 India and ASEAN already has 25 years of Dialogue Partnership,
15 years of Summit Level interaction and 5 years of Strategic
Partnership with ASEAN.
 Economic Cooperation:
 ASEAN is India's fourth largest trading partner.
 India's trade with ASEAN stands at approx. 10.6% of
India's overall trade.
 India's export to ASEAN stands at 11.28% of our total
exports. The ASEAN-India Free Trade Area has been
completed.
  ASEAN India-Business Council (AIBC) was set up in
2003 to bring key private sector players from India and
the ASEAN countries on a single platform.
 Socio-Cultural Cooperation: Programmes to boost People-to-
People Interaction with ASEAN, such as inviting ASEAN
students to India, Special Training Course for ASEAN
diplomats, Exchange of Parliamentarians, etc.
 Funds: Financial assistance has been provided to ASEAN
countries from the following Funds:
 ASEAN-India Cooperation Fund
 ASEAN-India S&T Development Fund
 ASEAN-India Green Fund
 Delhi Declaration: To identify Cooperation in the Maritime
Domain as the key area of cooperation under the ASEAN-India
strategic partnership.
 Delhi Dialogue: Annual Track 1.5 event for discussing politico-
security and economic issues between ASEAN and India.
 ASEAN-India Centre (AIC): To undertake policy research,
advocacy and networking activities with organizations and
think-tanks in India and ASEAN.
 Political Security Cooperation: India places ASEAN at the
centre of its Indo-Pacific vision of Security and Growth for All in
the Region.
BRICS
 BRICS is an acronym for the grouping of the world’s leading
emerging economies, namely Brazil, Russia, India, China and
South Africa.
 The BRICS Leaders’ Summit is convened annually.
Structure
 BRICS does not exist in form of organization, but it is an annual
summit between the supreme leaders of five nations.
 The Chairmanship of the forum is rotated annually among the
members, in accordance with the acronym B-R-I-C-S.
Objectives of BRICS
 • One of the major objectives of the grouping is broadening, deepening and intensifying
cooperation among the member countries for mutually beneficial, sustainable and equitable
development.
• Every member’s growth and development are considered to ensure that relations are built
on the economic strengths of individual countries and eliminate competition wherever
possible.
• Such diverse objectives allow BRICS to emerge as an innovative and encouraging Political
Diplomatic entity which was earlier formed just to resolve the global financial issues and
reform institutions.
Features of BRICS
Accounts for 30% of GDP, making it a critical economic engine.
Represents more than 40% of the world population.
Any countries from the EU or USA are not a part of it.

 The British Economist Jim O’Neill, Goldman Sachs came up with the idea
of BRICS after the 2008 Global Recession.

Impacts of BRICS on global institutional reforms

 The main reason for co-operation to start among the BRICs nation
was the financial crises of 2008. The crises raised doubts over
sustainability of the dollar-dominated monetary system.
 The BRICs called for the “the reform of multilateral
institutions in order that they reflect the structural changes in the
world economy and the increasingly central role that emerging
markets now play”.
 BRICs managed to push for institutional reform which led
to International Monetary Fund (IMF) quota reform in 2010.
Thus the financial crises had momentarily reduced western
legitimacy and briefly let the BRICs countries become “agenda
setters” in multilateral institutions.
New Development Bank
 The New Development Bank (NDB), one of the multilateral development institutions
created by the BRICS has been working successfully and is headquartered in Shanghai,
China.
 It was discussed in the 2012 Summit and established in 2015.
 The major idea behind NDB was to mobilize funds and resources which the sustainable
development and infrastructure projects demanded. NDB not only proved helpful for
BRICS countries but also helped other emerging economies and developing countries.
 Key Areas of operation of the NDB are:
o Clean Energy
o Sustainable Urban Development
o Economic development among BRICS member countries
 o Agriculture development and irrigation
o Transport infrastructure
 All the BRICS Member countries hold an equal stake in the bank and the NDB works on
their consultative mechanism.

Timeline
 The first BRIC Summit took place in 2009 in the Russian
Federation and focused on issues such as reform of the global
financial architecture.
 South Africa was invited to join BRIC in December 2010, after
which the group adopted the acronym BRICS. South Africa
subsequently attended the Third BRICS Summit in Sanya, China,
in March 2011.
Challenges
 The marked dominance of big three Russia-China-India is
challenge for the BRICS as it moves ahead. To become a true
representative of large emerging markets across the world,
BRICS must become pan-continental. Its membership must
include more countries from other regions and continents.
 The BRICS will need to expand its agenda for increasing its
relevance in the global order. As of now, climate change and
development finance, aimed at building infrastructure dominate
agenda.
 As BRICS moves forward foundational principles of BRICS i.e.
respect for sovereign equality and pluralism in global governance
are liable to be tested as the five member countries pursue their
own national agendas.
 The military standoff between India and China on the Doklam
plateau, which has effectively brought to an end the naive notion
that a comfortable political relationship is always possible
amongst the BRICS members.
 China’s efforts to co-opt nation states, which are integral to its Belt
and Road Initiative, into a broader political arrangement has
potential to cause conflict among BRICS members especially
China and India.
Importance for India
 India can benefit from collective strength of BRICS by way of
consultation and cooperation on economic issues of mutual
interests, as well as topical global issues, such as, international
terrorism, climate change, food and energy security, reforms of
global governance institutions, etc.
 India remains engaged with the other BRICS countries on its NSG
membership.
 The NDB will help India to raise and avail resources for
their infrastructure and sustainable development projects.
The NDB has approved its first set of loans, which included a loan
of US$ 250 million in respect of India for Multitranche Financing
Facility for Renewable Energy Financing Scheme’.
Areas of Cooperation (OPTIONAL-READ)
1. Economic Cooperation

 There are rapidly growing trade and investment flows between

BRICS countries as well as economic cooperation activities
across a range of sectors.
 Agreements have been concluded in the areas of Economic and
Trade Cooperation; Innovation Cooperation, Customs
Cooperation; strategic cooperation between the BRICS Business
Council , Contingent Reserve Agreement and the New
Development Bank.
 These agreements contribute to realisation of the shared
objectives of deepening economic cooperation and fostering
integrated trade and investment markets.
2. People-to-People exchange

 BRICS members have recognised the need for strengthening

People-to-People exchanges and to foster closer cooperation in
the areas of culture, sport, education, film and youth.
 People-to-People exchanges seek to forge new friendships;
deepen relations and mutual understanding between BRICS
peoples in the spirit of openness, inclusiveness, diversity and
mutual learning.
 Such People to people exchanges include the Young Diplomats
Forum, Parliamentarian Forum, Trade Union Forum, Civil
BRICS as well as the Media Forum.
3. Political and Security Cooperation

 BRICS member political and security cooperation is aimed at

achieving peace, security, development and cooperation for a
more equitable and fair world.
 BRICS provides opportunities for sharing policy advice and
exchanges of best practices in terms of domestic and regional
challenges as well as advancing the restructuring of the global
political architecture so that it is more balanced, resting on the
pillar of multilateralism.
 BRICS is utilised as a driver for South Africa’s foreign policy
priorities including the pursuit of the African Agenda and South-
South Cooperation.
4. Cooperation Mechanism

Cooperation among members is achieved through:

 Track I: Formal diplomatic engagement between the national

governments.
 Track II: Engagement through government-affiliated institutions,
e.g. state-owned enterprises and business councils.
 Track III: Civil society and People-to-People engagement.