International Relations This Week: Episode 66

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 Iran Nuclear Deal, developments in France and Latin America.

TABLE OF CONTENTS

1. Developments in France
2. Developments in Latin America
3. Development in the Iran Nuclear Deal

1. Developments in France

• There has been an announcement by Emmanuel Macron who proclaimed to hold the second term as the President of France pledging to spearhead a unique French and European response to the challenges of the century. 
• Macron has served as the youngest President of France and stood by the promise of promoting liberal-centrist and pro-business reforms and policies. 
• During the discussions surrounding Macron’s term as the President, enormous emphasis is given on the assessment of the economic reforms under his administration. 
• Macron has been successful in his interventions in tackling the economic situation since Brexit in the areas of fisheries, shared waters with the United Kingdom and mitigating unemployment.
• Despite many efforts that have been made to reduce unemployment, deficits, bring more investments in hospitals and research as well as armed forces, modernising agriculture and cutting down dependence on fossil fuels, there are challenges posed by the pandemic and the ongoing crises due to the Russia-Ukraine Conflict. 
• On the other side, in the midst of arguments against Macron’s diplomatic interventions to avert war in Europe, western support lies in favour of Macron for his attempts to deter Russia and resolve the conflict. This is perhaps the fundamental basis that some experts say that war in Ukraine can be a boon for Macron’s re-election as the President. 
• Keeping in pace with the current scenario, it is evident that France has been polarised into two groups involving a pro-Putin group (rivals of Macron like Zemmour and the rightist authoritarian group) and the other group that aspires for a peaceful security network in the European Union. 

Economic challenges under Macron:

• A sharp rise in inflation and energy prices as a result of the war has led to a significant rise in diesel and petrol prices. This rise in the price of fuels has been more than when a green fuel tax prompted motorists to don their yellow vests and protest in 2018. 
• This is a major concern for Macron’s administration to deal with even though he has spent more than 15 billion Euros on subsidising energy for homes and easing the cost burden for drivers. 
• It has been pointed out that there are dangers of soaring public sector deficits and debts under Macron. 
• Most of the voters in France are alleged to be indifferent to the state of public finances which is under crisis and are attached to the free public services and generous social security benefits. 

Areas of Focus:

• The incumbent President assured to focus on the further reduction of taxes calling it a “ revolution of prevention” in healthcare policy.
• Work towards the preservation of democratic doctrines and the French age-old art of living. 
• Fight against inequalities. 

Read about India-France Relations in the linked article.

2. Developments in Latin America

Change in Chile:

• The recent months have seen a rapid transformation in the political scenario of Latin America that includes events of significance in terms of international relations.
• Such a transformation is exemplified through the electoral victory of Gabriel Boric as the new President of Chile which has been perceived as the defeat of fascism and the right-wing that were predominant in the times of Gen. Augusto Pinochet.
•  As a young enthusiastic leader who espoused leftist ideology, Boric stands firm on the causes of social justice, climate change, commitment to inclusive politics, equality, extending support to the LGBTQ community and so on. 
• The victory of Boric in Chile has conveyed a clear message that the country is no more devoted to the execution of a dictatorial regime of Pinochet variety merely on the grounds of restoration of law and order and establishment of rule of law. With this, the ideological baggage that acted as a barrier for youth to participate in the government machinery came to an end.
• Boric’s model of governance has been a transition from the traditional practice of Marxist socialistic ideology of leftist governments that have existed in Latin America. 
• For now, this model of Chile has been perceived as an experiment by the experts and will be subjected to the test of time in identifying the avenues of socio-economic development especially in churning the benefits of Chile’s long coastline by collaborating with the countries of Latin America sharing mutual areas of interests. 
• This experiment will also be a valid case study for the world in understanding the sustainability of a more liberal, democratic and decentralised model of governance that values inclusion.

Changes in Peru:

• A dramatic twist has embarked upon Peru’s Presidential election that led to the victory of left-wing candidate Pedro Castillo who overtook his right-wing rival, Keiko Fujimori.
• This has been viewed as a step of relief as Peru has been thriving in the midst of political crises with high rates of inequalities between the urban and rural areas accompanied by extensive poverty.  

Where lies the Challenge in Latin America?

• It is evident that there have been prominent changes in countries like Peru and Chile. However, the policy reforms are seemingly obstructed by America’s intervention in the region through the deployment of the army, organisation of a coup or by multinational corporations that have a stronghold on the economic resources of the Latin American countries. 

India’s Interests:

• The political developments in the region of Latin America hold extensive influence on international trade and play an important role in deciding the fate of bilateral and multilateral relationships between its countries and the rest of the world. For instance, India shares a significant bilateral trade with Brazil which is estimated at $ 8.2 billion. 

Read about India Brazil South Africa Forum in the linked article.

• The India-MERCOSUR Preferential Trade Agreement was signed in 2004 and comprised Argentina, Brazil, Paraguay and Uruguay for the free movement of goods and services, capital and people. 
• In 2020, India-MERCOSUR PTA has been agreed upon by the members to undergo an expansion with the objective of strengthening trade ties. 

What is suggested?

• The transformative events in Peru and Chile have sustained all sorts of hostile conditions and if they continue to persist then the US will have no other option but to reconcile with such a change. 
• For example, the Biden government has taken an attempt to negotiate terms with Venezuela to exempt some of the sanctions so that the country can revive its economic activity and reduce its dependence on imports of fuels as Venezuela is blessed with bountiful petroleum resources. This is an indication that America is willing to adapt to the changes keeping into consideration the emerging geopolitical trends. 
• Therefore, if America aspires to prevent Chinese influence over the countries like Bolivia, Venezuela and other countries of Latin America with an abundance of resources, it has to express tolerance towards the autonomy and ambitions of the Latin American countries.

3. Development in the Iran Nuclear Deal

• Iran was all set to redefine its nuclear policy with the revival of the JCPOA and it also sought the withdrawal of the economic sanctions imposed by the US. This was just before Putin’s intervention in Ukraine that impacted international trade and led to the resurgence of ideological clashes. 
• The process of revival of the Iran Nuclear Deal has been stalled in the wake of harsh economic sanctions put forth by the US on Russia. 
• Russia has put forth a condition according to which no sanctions shall be imposed for its transaction with Iran after the commencement of the Nuclear Deal. 
• The Russian side has demanded the incorporation of the condition in the framework agreement of the Iran Nuclear Deal. 
• It is precisely observed that the Americans are keen at the moment to refurbish their ties with Iran as they do not want Iran to join the Russian-Chinese bloc. 
• This puts enormous perplexities on the progress of the much-awaited Nuclear Deal even though there hasn’t been any official confirmation on America’s response to the condition specified by Russia. 

Impact on India’s interests:

• In the wake of the ongoing geopolitical changes and sanctions imposed on Iran for a long span of time, India is confronted with the challenge of determining the viability of denying the oil supply it receives from Iran and the Gulf region and finding an alternative to meet its energy demands. 
• Exempting the sanctions from Iran and America’s revisit to improve its relationship with Iran will be in favour of India’s trade interests. 

To read more about the Iran Nuclear Deal: Attempt to revive in Perspective, Sansad TV.

Walking Ahead:

• When the context revolves around Iran, one must not ignore the domestic challenges faced within the country and the long-lasting effect of the sanctions on the country’s economy. 
• It is time that the international community look at Iran beyond its Nuclear Deal with the US. 
• The aspirations of countries like Turkey, Saudi Arabia, UAE, Iran to develop as an individual trade bloc that is detached from the practice of following Russia or the US can be considered advantageous for Iran as its traditional enemies are rethinking their future outside the American defence umbrella.

Read more International Relations This Week articles in the link.

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