International Relations This Week: Episode 62

International relations is a very important segment of the UPSC syllabus. In this series, we present an analysis of the most important international issues and developments that occurred over the past week relevant for the IAS exam. In this article, you can learn more about the Russia – Ukraine crisis, the latest developments in Nepal, Sri Lanka, Turkey and the 2022 Winter Olympics.

TABLE OF CONTENTS

1. Russia-Ukraine Crisis
2. Developments in Nepal
3. Winter Olympics 2022
4. Turkey in 21st Century
5. Sri Lanka

1. Russia-Ukraine Crisis

Russia-Ukraine Conflict:

• There had been tensions between Russia and Ukraine for a long time.
• The situation began getting out of control in early 2021 when Ukraine urged the US to let Ukraine join NATO.
• This angered Russia, which started sending troops near its Ukraine border for “training exercises”.
• Russia has demanded that the West give a legally binding guarantee that NATO will not hold any military activity in eastern Europe and Ukraine.
• Know more about the Russia-Ukraine Crisis in the link.

Russia Recognises Independence of Separatist Regions (2022)

• Russia recognized the independence of Moscow-backed rebel regions in eastern Ukraine.
• This move will further fuel tensions with the West.

Know more about Russia’s recognition of the Donbas region in CNA dated Feb 23, 2022.

2. Developments in Nepal

Background

• The Nepal parliament approved the Millennium Challenge Corporation Nepal Compact after five years of keeping it on hold.
• The declaration states that the U.S. grant is not part of the Indo-Pacific strategy and Nepal’s Constitution would be above the provisions of the grant agreement.
• It also mentions that the grant will solely be perceived as economic assistance.
• The grant agreement faced demonstrations against it, which turned violent, with riot police firing tear gas shells and using water cannons to disperse the protesters.

What is the Millennium Challenge Corporation?

• The Millennium Challenge Corporation (MCC) is an independent U.S. foreign aid agency.
• It was established in 2004 by the country’s Congress to offer time-limited grants promoting economic growth to low and lower-middle-income countries through a selection process.
• MCC was proposed by the George Bush administration post the 9/11 terrorist attack, as a tool to counter global poverty and international terrorism.
• MCC selects countries to award grants through a selection process, which involves evaluating the country’s performance on 20 policy indicators ranging from control on corruption to government effectiveness.

MCC Forms of Assistance:

• The MCC offers assistance in three forms.
  • In the form of compacts, meaning large, five-year grants;
  • concurrent compacts or “grants that promote cross-border economic integration”, and threshold programs, which are smaller grants aimed at policy reform. The aid being offered to Nepal is in the form of a compact;
  • the MCC has so far approved about 37 compacts for 29 countries, worth a total of over $13 billion.

What is the MCC Nepal Compact?

• In 2014, Nepal had qualified for a compact, the agreement for which it later signed in 2017.
• Under the compact, the U.S. government, through MCC, would provide a grant of $500 million to Nepal for energy transmission and road development projects.
• The power project was proposed along a power corridor starting from the northeast of Kathmandu and ending near Nepal’s border with India.
• The project also involves building three power substations along the line.
• It also states that it will facilitate cross-border electricity trade with India.

Controversy around MCC grant and impact on India

• The U.S. had been increasing its pressure on Nepal to ratify the agreement.
• The US had called on Nepal to ratify the MCC compact or the U.S. would have to “review its ties with Nepal.
• There have been instances in the past where the U.S. has terminated such compacts with countries for different reasons.
• Nepali political parties have been divided on the MCC agreement over fears it would undermine Nepal’s sovereignty by pulling it into the US’s Indo-Pacific Strategy (IPS).
• The compact is also seen by some observers as America’s answer to China’s Belt and Road Initiative, a road development program that the Nepal government signed in 2016.
• China opposes “coercive diplomacy and actions that pursue selfish agendas at the expense of Nepal’s sovereignty and interests.”
• The people of Nepal are also afraid that the MCC would make profits from the power project by exporting energy to India.
• This has led to scepticism that the MCC agreement would also benefit the Quad, which has often spoken about making infrastructure partnerships in India’s neighbourhood, including Nepal, Maldives and Sri Lanka.

3. Winter Olympics 2022

Beijing Olympics 2022 Controversy:

• Covid-19 pandemic: The outbreak of the pandemic was a significant factor that hindered the participation of some countries. North Korea stated they would not send their athletes citing Covid-19 as a reason.
• Diplomatic boycott: In protest at China’s rights record, the United States (US) and many of its allies, including Britain, Canada, Australia, Japan and Denmark, had said that they will not send an official diplomatic delegation to the Winter Olympics.
• Defending the bubble: In a bid to keep the Games Covid-free, Chinese authorities have constructed a vast network of bubbles, known officially as the “closed loop,” that separates the Games from the host city. Inside the bubble, Covid protocol dominates every aspect of life, from daily testing to travelling between venues.
• Political controversy: The Winter Games has served to spotlight the growing chasm between China and the West. Rights groups called for a boycott of the Games in protest of China’s human rights record, from its treatment of Uyghurs and other Muslim minorities in Xinjiang and its crackdown on freedoms in Hong Kong.

What are the allegations against China?

• China is accused of committing atrocities against the Uyghur Muslim population in the northwest province of Xinjiang.
• Human rights groups believe more than one million Uyghurs have been detained over the past few years in a large network of what the state calls “re-education camps”.
• They say there is evidence that Uyghurs are being used as forced labour, and women are being forcibly sterilized.
• China is also accused of restricting the freedom of people in Hong Kong through new legislation including the Hong Kong National Security Law.

What are the warnings about mobile phones?

• Athletes and others attending the Games are being warned about security weaknesses in the app they have to use for daily Covid monitoring.
• Cybersecurity group Citizen Lab said the app has weak encryption systems and that data loaded on it such as medical and travel histories could be exploited by hackers.
• Several countries have reportedly told athletes to leave their main devices at home and use burner phones at the Games.

Taiwan-China Tussle:

• Pressure between China and Taiwan has been building, with the past year seeing a record number of Chinese warplane incursions sent into Taiwan’s air defence zone.
• China sees self-ruled Taiwan as a breakaway province that will eventually be part of the country again.
• However, Taiwan sees itself as an independent country, with its own constitution and democratically-elected leaders.

Also read: South China Sea Dispute

Source: BBC

4. Turkey in 21st Century

Recent Developments:

• The Turkish President has declared a four-day tour to three African countries upon the invitation of his counterparts.
• The Turkish President is set to visit the Democratic Republic of the Congo (DRC), Senegal and Guinea-Bissau.
• The visit will focus on all aspects of bilateral relations and opportunities for improving cooperation between Turkey and these countries in all fields.

Significance of the Turkish President’s Visit:

• Turkey-Africa relations gained new acceleration with the country’s policy of “Strategic Africa,” launched by Turkish President Erdoğan in 2003.
• Turkey’s engagement with the African continent has been gaining pace over the years.
• Turkey’s African policy, which encompasses political, humanitarian, economic and cultural spheres, is part of its multidimensional foreign policy.
• The visit is expected to offer opportunities for the increase of bilateral trade volumes in line with the determined targets and expansion of the investments of Turkish businesspeople in the region.
• These diplomatic developments between Turkey and the African continent were also reflected in economic and commercial relations.
• Turkey builds its economic relations with African countries on the basis of equal partnership and win-win negotiations.

Know more about India-Turkey Relations.

5. Sri Lanka

Background:

• With inflation record high, food prices skyrocketing, and its coffers running dry, Sri Lanka’s economic crises are deepening, and the country appears to be staring at a “humanitarian crisis”.
• Supermarkets have been rationing milk powder, sugar, lentils and other essentials for months with a top official warning of more restrictions to feed those most in need.
• Unemployment is also very high in the country as COVID-19 has eaten into the tourism industry, leaving thousands without a job.
• The situation has gotten so bad that long queues have formed at the passport office as one in four Sri Lankans, mostly the young and educated are looking to leave the country.

What has caused the problem?

• The coronavirus pandemic is one of the main reasons for the country’s debilitating economic situation.
• The pandemic has caused several tourism-related businesses to shut down, leading to a massive loss in revenue.
• Many experts state that high government spending and tax cuts eroding state revenues have compounded the issue.
• Disastrous planning and policymaking have also hurt Sri Lanka’s economy.
• Heavy debts to China and other nations:
  • One of the most pressing problems for Sri Lanka is its huge foreign debt and debt service burden, in particular to China.
  • It owes China more than $5 billion in debt and in 2021, it took an additional $1 billion loan from Beijing to wean off its acute financial crisis, which is being paid in instalments.

Economic relief

• The Sri Lankan government has said that they have a plan in place for the economic crisis.
• The Sri Lankan authorities are also contemplating a bailout package from the International Monetary Fund.
• India confirmed a $400 million currency swap with Sri Lanka while deferring another $500 million due for settlement to the Asian Clearing Union (ACU), in a move aimed at helping the island nation witnessing an unprecedented economic crisis.

Read more International Relations This Week articles in the link.