India’s largest Online Community for IAS, Civil Services Aspirants.
                                                      ...
INDEX
Editorial
• Challenge is yours, take it ...............................................................................
Challenge is yours, take it...
You have chosen to crack IAS examination… No doubt, it is diffi t. It is d ffi l t w n
      ...
Section -1 (Article : US-India Relationship)


                         US-India Relationship
                            ...
Section -1 (Article : US-India Relationship)



ling Islamic extremism to an Indian audience. In              both Governm...
Section -1 (Article : US-India Relationship)



Pursuing Sustainable Growth and Development:                in the knowled...
Section -1 (Article : US-India Relationship)



        India – United States Relations                       develop thei...
Section -1 (Article : US-India Relationship)




                                                             nuclear test...
Section -1 (Article : US-India Relationship)




ful nuclear cooperation, also known as the "123              telecommunic...
Section -1 (Article : US-India Relationship)



in developing industries and assigning jobs to those                      ...
Section -1 (Article : US-India Relationship)



Foreign Policy Issues: According to some ana-                at the world ...
Section -1 (Article : US-India Relationship)



treaty and has pressurized India to sign the agree-          the Pakistan ...
Section -1 (Article : US-India Relationship)



serving the interests of the United States. India             States in re...
Section -1 (Article : US-India Relationship)



the coast of India and joint air exercises both in            policymakers...
Section -1 (Article : US-India Relationship)



Considering the fact that both the nations at present have a vast pool of ...
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Section -1 (Article : 35th G-8 Annual Summit)

                      35th G-8 Annual Summit
        Insuring Global Food S...
Section -1 (Article : 35th G-8 Annual Summit)



eration, the G-8 nations also pushed other mem-              policies, in...
Section -1 (Article : 35th G-8 Annual Summit)



ria and with the establishment of supervisory bod-
ies and tools. One of ...
Section -1 (Article : 35th G-8 Annual Summit)



On the basis of the experience garnered in the               ening food p...
Section -1 (Article : 35th G-8 Annual Summit)



mate Change leading to the Copenhagen                        on the devel...
Aspirants Times Magazine Vol5 - August 2009
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Aspirants Times Magazine Vol5 - August 2009

  1. 1. India’s largest Online Community for IAS, Civil Services Aspirants. Vol.5 August 2009 | Free Http://www.upscportal.com Presents Aspirants Times India’s First Digital Magazine for IAS Aspirants around the world. HOT TOPICS - Arihant Class Submarine CSE Mains - Economy Special : 2009 Terminology and Concept GS Model Paper Solved PART-2 http://upscportal.com Copyright © 2009 | WWW.UPSCPORTAL.COM http://upscportal.com/store 1 http://upscportal.com/classifieds
  2. 2. INDEX Editorial • Challenge is yours, take it ......................................................................................03 SECTION - 1: Articles • US-India Relationship ...........................................................................................04 • 35th G-8 Annual Summit .......................................................................................18 • Carbon Emissions Trading .....................................................................................34 • Economic Survey:2008-09 .....................................................................................45 • Hindi Article ( VɱɴÉɪÉÖ {ɇ® ´ÉiÉÇxÉ ) ...............................................................................60 SECTION - 2: Hot Topics • Arihant Class Submarine ........................................................................................79 • Economy Special-Terminology and Concept .........................................................83 SECTION - 3: Current Affairs............................................................................101 SECTION -4: Sports.............................................................................................104 SECTION -5: Awards...........................................................................................106 SECTION - 6: IAS Mains, Model Paper cum Notes Part-2...........................111 Copyright © 2009 | WWW.UPSCPORTAL.COM 2
  3. 3. Challenge is yours, take it... You have chosen to crack IAS examination… No doubt, it is diffi t. It is d ffi l t w n cul i cu h e you begin preparation, then many more diffi ties in exam it is d ffi l t as a service. cul ; i cu First of all, you should take these diffi ties as a cha l lenge and if you det erm n d of cul i e becoming IAS, then be ready to face all challenges at every step of life. Make challenges your friend; it will help you to overcome from diffi ties . N w if y a g n to a cul o ou re oi g ppear IAS Mains-Exam this year, it is a big challenge. Take a fi step and go strai ght , d t rm on' think either side; surely you will fi d y n our d tin t io es a n. "UPSCPORTAL.COM" is always with you, but it cannot eradicate challenges; we can make you more capable, wise, knowledgeable and quicker to face the challenges. We feel that 'Aspirants Time' Magazine is going in the right direction to make you more capable to face challenges. In this fi v u e o "A pi rant T m s ", w a p ovi d n y fth ol m f s i e e re r i g ou suffi ent and im or tant m t erial for IA M i n E i n t io T re is a M del -cum ci p a S a s xam a n. he o - Study Notes for General Studies Second Paper. These are important notes for practice which are in detail and easy to understand. By reading these Notes, you will be able to answer those questions, which has not been asked directly in this model. You will fi dn the chapter Economy Special-Terminology and Concept, which is very useful for the examination point of view. Read it carefully and make the diffi t aspect o exam n - cul f i a tion, easy. Besides this, There are regular articles like 'US-India Relationship', '35th G-8 An- nual Summit', 'Carbon Emissions Trading', 'Economic Survey:2008-09', and 'Jalwayu Parivartan' (in Hindi). Under HOT-TOPICS, we have 'Arihant Class Submarine'. Last but not least regular columns - CURRENT AFFAIRS, SPORTS & AWARDS are also there. With this we wish All The Best; Enjoy the Challenges... Editor: R. K. Pandey Copyright © 2009 | WWW.UPSCPORTAL.COM 3
  4. 4. Section -1 (Article : US-India Relationship) US-India Relationship Hillary Clinton's Visit to India By: R. K. Pandey Hillary Clinton’s visit to India in july 2009, her ers in the global arms bazaar. Mrs Clinton also re- fi as S rst ecret ary o S at e, g f t ave p obabl y th b t r e es vealed that India had identifi tw sites w e re ed o h insight yet into how President Obama intends to American companies would be allowed to build carry forward that relationship, set to become one nuclear power stations. This was another lucra- of the most important and potentially trickiest tive arrangement for the US, one set up by Presi- among the major nations as the 21st century dent Bush who during his second term effectively progresses. After perhaps ended India’s status as an 50 years when the US all international nuclear pa- but ignored India it now riah by granting it access values the country as a to US civilian nuclear tech- trading partner of poten- nology, even though it has tially huge consequence not signed the Non-Prolif- (India is on course to be eration Treaty. among the world’s lead- ing fie e v conom es w th n i i i So far, so positive. But the two decades), an Asian visit also highlighted a counterweight to the couple of all-important ar- might of China and a key eas climate change and ter- player in the fi a n t ght gai s rorism, no less where the Islamist extremism. It US and India have substan- showed. The mood music tial differences. The Indian for Mrs Clinton’s trip was Environment Minister Jairam Ramesh dismissed almost unrelentingly upbeat. She also revealed that out of hand US suggestions that India should ac- Prime Minister Manmohan Singh had accepted cept worldwide legally binding caps on the pro- an invitation to make a state visit to Washington duction of greenhouse gases. He did so with an in November,2009. More concretely, the US and eye to a possible successor to the Kyoto Protocol India inaugurated a strategic dialogue on issues being drawn up at the Copenhagen Climate Con- ranging from education to climate change, an on- ference in December and in front of a barrage of going conversation into which both governments TV cameras in a way that seemed calculated to hope to draw participants from commerce, set up an on-screen confrontation with Mrs academia and the arts. Clinton perhaps because the Indian Government has recently been criticised at home for making That may sound a little flf fy, b th U h s typi - u ut e S a concessions at a global forum on green issues. cally reserved this kind of exchange for major countries such as China. Extending it to India ac- It’s diffi t to see a sim l e w y a cul p a round th s e i s- i m knowledged the country’s rising role and grow- sions impasse. Today, the idea of India a develop- ing say on matters that directly affect the US such ing country with a vast poor population effectively as the progress of the Doha Trade Round. More setting limits on industrial growth is about as cred- concretely still, the US announced an agreement ible as a US President making car-pooling manda- that will allow it to monitor the use of military tory for all Americans. equipment it sells to India. The deal paves the way for billions of dollars' worth of weapons contracts She also found herself in the unenviable position as the latter emerges as one of the biggest spend- of having to attest to Pakistan’s sincerity in tack- Copyright © 2009 | WWW.UPSCPORTAL.COM 4
  5. 5. Section -1 (Article : US-India Relationship) ling Islamic extremism to an Indian audience. In both Governments to build on recent increased staying at the Taj, Mrs Clinton made it clear that coordination in counter-terrorism. Secretary she wished to express her solidarity with India. Clinton invited Home Minister Chidambaram to But US support of the Zardari regime in Islamabad visit Washington in the near future. External Af- was also pronounced and she appears likely to fairs Minister Krishna and Secretary Clinton also travel to Pakistan before long. It is hard to over- reaffi e d th i r com tm nt to early adopt io rm e mi e n state just how much distrust and rancour exists of a UN Comprehensive Convention against In- between India and Pakistan from that felt by or- ternational Terrorism which would strengthen the dinary men on the street to that betrayed by offi - framework for global cooperation. cials on both sides when they lament and ridicule their opposite numbers’ words and actions. Keep- Defence Cooperation: Noting the enhanced co- ing both countries’ friendship will be a testing task operation in defence under the Defence Co-op- for Mrs Clinton. For her to become a hero to In- eration Framework Agreement of 2005, External dia is not impossible but will take some doing. Affairs Minister and Secretary Clinton reiterated the commitment of both Governments to pursue India - US Joint Statement: External Affairs Min- mutually benefi al cooperat io i n th field of ci n e ister S.M. Krishna and Secretary of State Hillary defence. External Affairs Minister Krishna an- Clinton committed to building an enhanced In- nounced that both sides had reached agreement dia- U.S. strategic partnership that seeks to ad- on End Use Monitoring for U.S. defense articles. vance solutions to the defi i n c l lenges o tim . n g ha f e Seeking a World Without Nuclear Weapons: In- India and US agreed to strengthen the existing dia and the United States share a vision of a world bilateral relationships and mechanisms for coop- free of nuclear weapons. With this goal in sight, eration between the Government of Republic of Minister Krishna and Secretary Clinton agreed to India and the Government of the United States of move ahead in the Conference on Disarmament America, while leveraging the strong foundation towards a non-discriminatory, internationally and of economic and social linkages between our re- effectively verifi e Fi ssi le M t eri al C t -of f abl a u spective people, private sectors, and institutions. Treaty. India and the United States will also co- Recognizing the new heights achieved in the In- operate to prevent nuclear terrorism and address dia - U.S. relationship over the last two Indian the challenges of global nuclear proliferation. A and U.S. Administrations, they committed to pur- high-level bilateral dialogue will be established to suing a third and transformative phase of the re- enhance cooperation on these issues. lationship that will enhance global prosperity and stability in the 21st century. Minister Krishna and Civil Nuclear Cooperation: Building on the suc- Secretary Clinton will chair an “India-U.S. Stra- cess of the India –U.S. Civil Nuclear Initiative, on tegic Dialogue” that meets once annually in alter- July 21, India and the United States will begin nate capitals. This dialogue will focus on a wide consultations on reprocessing arrangements and range of bilateral, global, and regional issues of procedures, as provided in Article 6 (iii) of the 123 shared interest and common concern, continuing Agreement for Peaceful Nuclear Cooperation be- programmes currently under implementation and tween India and the United States. taking mutually benefi al in tiativ th t c p l e- ci i es a om ment Indian and U.S. development, security and Global Institutions: Secretary Clinton affi e d rm economic interests. that multilateral organizations and groupings should refl th w r ld of th 21s t cent u y in ect e o e r Advancing Common Security Interests: Recog- order to maintain long-term credibility, relevance nizing the shared common desire to increase mu- and effectiveness, and both Minister Krishna and tual security against the common threats posed Secretary Clinton expressed their interest in ex- by international terrorism, Minister Krishna and changing views on new confi at io o th U gur ns f e N Secretary Clinton reaffi e d th com tm nt o rm e mi e f Security Council, the G-8, and the G-20. Copyright © 2009 | WWW.UPSCPORTAL.COM 5
  6. 6. Section -1 (Article : US-India Relationship) Pursuing Sustainable Growth and Development: in the knowledge and innovation-based economies As members of the G-20, India and the United of the two countries, it was agreed that the agenda States have pledged to work together with other and the initiatives in the bilateral High Technol- major economies to foster a sustainable recovery ogy Cooperation Dialogue should continue, with from the global economic crisis through a com- the objective of facilitating smoother trade in high mitment to open trade and investment policies. technology between the two economies refl - ect Minister Krishna and Secretary Clinton reaffi e d rm ing the present strategic nature of the India-U.S. the commitment of both Governments to facili- relationship. It was also agreed that working tating a pathway forward on the WTO Doha groups would be formed to focus on new areas of Round. They pledged to co-operate to not only common interest in nano-technology, civil nuclear preserve the economic synergies between the two technology, civil aviation and licensing issues in countries that have grown over the years, but also defence, strategic and civil nuclear trade. to increase and diversify bilateral economic rela- tions and expand trade and investment fl w . T o s he Energy Security, Environment and Climate two sides noted that negotiations for a Bilateral Change: Minister Krishna and Secretary Clinton Investment Treaty would be scheduled in New pledged to intensify collaboration on energy se- Delhi in August 2009. They resolved to harness curity and climate change. Efforts will focus on the ingenuity and entrepreneurship of the private increasing energy effi enc y, rene w bl e ene rgy, ci a sectors of both countries with a newly-confi ed gur and clean energy technologies through the India- CEO Forum that will meet later this year. U.S. Energy Dialogue and a Global Climate Change Dialogue. Both sides also agreed to launch a pro- Education: External Affairs Minister Krishna and cess of bilateral scientifi and technol o cal col - c gi Secretary of State Clinton affi e d th im ortance rm e p laboration to support the development, deploy- of expanding educational cooperation through ex- ment and transfer of transformative and innova- changes and institutional collaboration, and agreed tive technologies in areas of mutual interest in- on the need to expand the role of the private sec- cluding solar and other renewable energy, clean tor in strengthening this collaboration. coal and energy effi enc y, a o h r rel evant a ci nd t e r- eas. India and the U.S. affi e d th i r c mi tm nt rm e om e Space, Science and Technology and Innovation: to work together with other countries, including Recognizing the great potential in India-U.S. sci- through the Major Economies Forum, for posi- ence and technology collaboration, the two sides tive results in the UNFCCC Conference on Cli- have concluded a Science and Technology Endow- mate Change in Copenhagen in December 2009. ment Agreement, and signed a Technology Safe- Global Issues: The two sides noted the valuable guards Agreement that will permit the launch of engagement between both Governments on glo- civil or non-commercial satellites containing U.S. bal issues of common concern such as strength- components on Indian space launch vehicles. Both ening democracy and capacity building in demo- sides welcomed India’s participation in the cratic institutions as co-founders of the UN De- FutureGen Project for the construction of the fi rst mocracy Fund. The two sides agreed to develop a commercial scale fully integrated carbon capture Women’s Empowerment Forum (WEF) to ex- and sequestration project and India’s participation change lessons and best practices on women’s em- in the Integrated Ocean Development Project, an powerment and development and consider ways international endeavour for enhancing the under- to empower women in the region and beyond. standing of Earth and Ocean dynamics and ad- dressing the challenges of climate change. High Technology Cooperation: Noting the high potential that exists due to the complementarities Copyright © 2009 | WWW.UPSCPORTAL.COM 6
  7. 7. Section -1 (Article : US-India Relationship) India – United States Relations develop their resources is through the Commu- nist system." From 1961 to 1963 there was a prom- Despite being one of ise to help set up a large steel mill in Bokaro that the pioneers and was withdrawn by the U.S. The 1965 and 1971 founding members of Indo-Pakistan wars did not help their relations. the Non Aligned During the Cold War, the US asked for Pakistan's Movement, India de- help because India was seen to lean towards the veloped a closer rela- Soviet Union. Later, when India would not agree tionship with the So- to support the anti-Soviet operation in Afghani- viet Union during stan, it was left with few allies. Not until 1997 the cold war. India's strategic and military rela- was there any effort to improve relations with the tions with Moscow and strong socialist policies United States. had an adverse impact on its relations with the United States. After the collapse of Soviet Union, Soon after Atal Bihari Vajpayee became Indian India began to review its foreign policy in a uni- Prime Minister, he authorized a nuclear weapons polar world following which, it took steps to de- test in Pokhran, which got the immediate atten- velop closer ties with the European Union and the tion of the US. The Clinton administration and United States. Today, India and the U.S. share an Vajpayee exchanged representatives to help build extensive cultural, strategic, military and economic relations. In March 2000, President Bill Clinton relationship. During the tenure of the Clinton and visited India. He had bilateral and economic dis- Bush administration, relations between India and cussions with Prime Minster Atal Bihari Vajpayee. the United States blossomed primarily over com- Over the course of improved diplomatic relations mon concerns regarding growing Islamic extrem- with the Bush administration, India has agreed to ism, energy security and climate change. allow close international monitoring of its nuclear weapons development while refusing to give up According to some foreign policy experts, there its current nuclear arsenal. India and the US have was a slight downturn in India-U.S. relations fol- also greatly enhanced their economic ties. lowing the appointment of Barack Obama as the U.S. President in 2009. This was primarily due to During the 9/11 terrorist attacks on the U.S., Presi- Obama administration’s desire to increase relations dent George W. Bush chose India as the country with China, and Barack Obama's protectionist to control and police the Indian Ocean sea-lanes views on dealing with the economic crisis. How- from the Suez to Singapore. The tsunami that oc- ever, the leaders of the two countries have repeat- curred in December 2004 saw the U.S. and Indian edly dismissed these concerns. navies to work together in search and rescue op- erations and to reconstruct the damaged lives and After Indian independence until the end of the land. An Open Skies Agreement was made in April cold war, the relationship between the two na- 2005. This helped enhance trade, tourism, and tions has often been thorny. Dwight Eisenhower business by the increased number of fl s. A r ight i was the fi U P es id rst S r ent to v sit In a in 1 i di 959. India purchased 68 US Boeing aircraft, which cost During John F. Kennedy’s period as President, he $8 billion.Former U.S. Secretary of Defense saw India as a strategic partner against the rise of Donald Rumsfeld and U.S. Secretary of State communist China. He said "Chinese Communists Condoleezza Rice have made recent visits to In- have been moving ahead the last 10 years. India dia as well. After Hurricane Katrina, India donated has been making some progress, but if India does $5 million to the American Red Cross and sent 2 not succeed with her 450 million people, if she plane loads of relief supplies and materials to help. can't make freedom work, then people around the And on March 1,2006, President Bush made an- world are going to determine, particularly in the other diplomatic visit to expand relations between underdeveloped world, that the only way they can India and the United States. Copyright © 2009 | WWW.UPSCPORTAL.COM 7
  8. 8. Section -1 (Article : US-India Relationship) nuclear tests in May 1998. The nonproliferation Military Relations dialogue initiated after the 1998 nuclear tests has bridged many of the gaps in understanding be- The U.S.-India defense relationship derives from tween the countries. In a meeting between Presi- a common belief in freedom, democracy, and the dent Bush and Prime Minister Vajpayee in No- rule of law, and seeks to advance shared security vember 2001, the two leaders expressed a strong interests. These interests include maintaining se- interest in transforming the U.S.-India bilateral curity and stability, defeating terrorism and vio- relationship. High-level meetings and concrete lent religious extremism, preventing the spread cooperation between the two countries increased of weapons of mass destruction and associated ma- during 2002 and 2003. terials, data, and technologies and protecting the free fl w o c me rce v a land, a r a sea lane s . o f om i i nd In January 2004, the U.S. and India launched the In recent years India has conducted joint military Next Steps in Strategic Partnership (NSSP), which exercises with the U.S. in the Indian Ocean. De- was both a milestone in the transformation of the spite this the Indian government sees the sole U.S. bilateral relationship and a blueprint for its fur- base in the Indian Ocean, Diego Garcia, and the ther progress.In July 2005, President Bush hosted permanent presence of the U.S. military there, as Prime Minister Singh in Washington, DC. The two a potential escalation point in a future war, espe- leaders announced the successful completion of cially because of the current U.S. operations in the NSSP, as well as other agreements which fur- Iraq and Afghanistan.Recognizing India as a key ther enhance cooperation in the areas of civil to strategic U.S. interests, the United States has nuclear, civil space, and high-technology com- sought to strengthen its relationship with India. merce. Other initiatives announced at this meet- ing include: an U.S.-India Economic Dialogue, The two countries are the world's largest democ- Fight Against HIV/AIDS, Disaster Relief, Tech- racies, both committed to political freedom pro- nology Cooperation, Democracy Initiative, an tected by representative government. India is also Agriculture Knowledge Initiative, a Trade Policy moving gradually toward greater economic free- Forum, Energy Dialogue and CEO Forum. Presi- dom. The U.S. and India have a common interest dent Bush made a reciprocal visit to India in March in the free fl w of com rce and res our ces , in o me - 2006, during which the progress of these initia- cluding through the vital sea lanes of the Indian tives were reviewed, and new initiatives were Ocean. They also share an interest in fi in ter- ght g launched. rorism and in creating a strategically stable Asia. In December 2006, Congress passed the historic There were some differences, however, including Henry J. Hyde United States-India Peaceful over India's nuclear weapons programs and the Atomic Cooperation Act, which allows direct ci- pace of India's economic reforms. In the past, these vilian nuclear commerce with India for the fi rst concerns may have dominated U.S. thinking about time in 30 years. U.S. policy had opposed nuclear India, but today the U.S. views India as a growing cooperation with India because the country had world power with which it shares common stra- developed nuclear weapons in contravention of tegic interests. A strong partnership between the international conventions and never signed the two countries will continue to address differences Nuclear Non-Proliferation Treaty. The legislation and shape a dynamic and collaborative future. clears the way for India to buy U.S. nuclear reac- tors and fuel for civilian use. In July 2007, the In late September 2001, President Bush lifted sanc- United States and India reached a historic mile- tions imposed under the terms of the 1994 Nuclear stone in their strategic partnership by completing Proliferation Prevention Act following India's negotiations on the bilateral agreement for peace- Copyright © 2009 | WWW.UPSCPORTAL.COM 8
  9. 9. Section -1 (Article : US-India Relationship) ful nuclear cooperation, also known as the "123 telecommunications, ports, roads, petroleum ex- agreement." This agreement, signed by Secretary ploration/processing, and mining industries. of State Rice and External Affairs Minister Mukherjee on October 10, 2008, governs civil In july 2005, President George W. Bush and In- nuclear trade between the two countries and opens dian Prime Minister Dr. Manmohan Singh cre- the door for American and Indian fi s to par- rm ated a new program called the Trade Policy Fo- ticipate in each other's civil nuclear energy sec- rum. It is run by a representative from each na- tor. The U.S. and India seek to elevate the strate- tion. The United States Trade Representative is gic partnership further to include cooperation in Rob Portman and the Indian Commerce Secre- counter-terrorism, defense cooperation, educa- tary is minister of commerce Kamal Nath. The goal tion, and joint democracy promotion. of the program is to increase bilateral trade which is a two-way trade deal and the fl w of in t- o ves Economic Relations ments. The United States is also one of India's largest di- There are fi e m i n sub- di v sio of th Tr ade v a i ns e rect investors. From the year 1991 to 2004, the Policy Forum which include: Agricultural trade stock of FDI infl w h s in reased from U D $ 3 o a c S 11. group- This group has three main objectives: million to $344.4 million, totaling $4.13 billion. agreeing on terms that will allow India to export This is a compound rate increase of 57.5% annu- mangoes to the United States, permitting India's ally. Indian direct investments abroad were started APEDA (Agricultural and Process Food Products in 1992. Indian corporations and registered part- Export Development Authority) to certify Indian nership fi s are al lo e d to in t in b in s ses rm w ves us e products to the standards of the USDA, and ex- up to 100% of their net worth. India's largest out- ecuting regulation procedures for approving ed- going investments are manufacturing, which ac- ible wax on fruit. Tariff and Non-Tariff Barriers count for 54.8% of the country's foreign invest- group- Goals of the group include: agreeing that ments. The second largest are non-fi a nc i al ser- n insecticides that are manufactures by United States vices (software development), which accounts for companies can be sold throughout India. India had 35.4% of investments. agreed to cut special regulations on trading car- bonated drinks, many medicinal drugs, and low- Trade Relations: The United States is India's larg- ering regulations on many imports that are not of est trading partner. In 2007, the United States agricultural nature. Both nations have agreed to exported $17.24 billion worth goods to India and discuss improved facets on the trade of Indian imported $24.02 billion worth of Indian goods. regulation requirements, jewelry, computer parts, Major items exported by India to the U.S. include motorcycles, fertilizer, and those tariffs that af- information technology Services, textiles, machin- fect the American process of exporting boric acid. ery, ITeS, gems and diamonds, chemicals, iron and steel products, coffee, tea, and other edible food The two nations have discussed matters such as products. Major American items imported by In- those who wish to break into the accounting mar- dia include aircraft, fertilizers, computer hard- ket, Indian companies gaining licenses for the tele- ware, scrap metal and medical equipment. communications industry, and setting polices by the interaction of companies from both countries The United States is also India's largest investment regarding new policies related to Indian media and partner, with American direct investment of $9 broadcasting. This group has strived to exchange billion accounting for 9% of total foreign invest- valuable information on recognizing different pro- ment into India. Americans have made notable fessional services offered by the two countries, dis- foreign investment in India's power generation, cussing the movement and positioning of people Copyright © 2009 | WWW.UPSCPORTAL.COM 9
  10. 10. Section -1 (Article : US-India Relationship) in developing industries and assigning jobs to those Obama Administration and people, continuation of talks in how India's citi- Bilateral Relations zens can gain access into the market for fi a nc i al n servicing, and discussing the limitation of equi- Despite much gains in Indo-American relations ties. during the tenure of the Bush administration, In- dia was not one of the Asian countries U.S. Secre- The two countries have had talks about the re- tary of State Hillary Clinton visited in February striction of investments in industries such as fi - 2009. The Foreign Policy magazine reported that nancial services, insurance, and retail. Also, to take even though Foreign Policy Staff of the previous advantage of any initiatives in joint investments administration had recommended India as a "key such as agricultural processing and the transpor- stop" during any such offi al tour o A ia, H llary ci f s i tation industries. Both countries have decided to Clinton will not be making a visit to New Delhi. promote small business initiatives in both coun- The exclusion of India from the Asian tour was tries by allowing trade between them. regarded as a "mistake" by some analysts. India was not even mentioned once in the Obama The Majority of Exports from the United States to administration's offi al forei gn p icy a ci ol genda. T he India Include: aviation equipment, engineering Forbes magazine alerted U.S. President Barack materials and machinery, instruments used in Obama on the need to prevent United States' new- optical and medical sectors, fertilizers, and stones found alliance with India from erosion. and metals.Below are the percentages of traded items India to US increased by 21.12% to $6.94 The initial approach of the Obama administration billion. towards ties with India raised concerns of a down- turn in Indo-American relations. In an editorial, » Diamonds and precious stones(25%) the National Interest suggested that the Obama administration could possibly damage "the foun- » Textiles (29.01%) dations underlying the geostrategic partnership" » Iron and Steel (5.81%) between India and the United States. Another editorial published by the Taipei Times high- » Organic chemicals (4.3%) lighted the importance of India-U.S. relations and » Machinery (4.6%) urged Barack Obama to give India the attention it deserves.Terming India to be United States' in- » Electrical Machinery (4.28%) dispensable ally, the Christian Science Monitor argued that the Obama administration needs Major Items of Export from U.S. to India: For India's cooperation on several issues, including the year 2006, fiur es a a labl e u to th m nt h g re vai p e o climate change, Afghanistan war and energy se- of April. Merchandise exports from US to India curity and therefore, Obama cannot risk putting increased by 20.09.26% to US $2.95 billion. Se- ties with India on back-burner. lect major items with their percentage shares are given below Engineering goods and machinery (in- In an attempt to bolster relations between the two cluding electrical) (31.2%) countries, U.S. Secretary of State Hillary Clinton » Precious stones and metals (8.01%) will be making a visit to India in the second half of July 2009. Calling India a key partner of the » Organic chemicals (4.98%) United States, Clinton said that the United States » Optical instruments and equipment (7.33%) wants India to succeed as an anchor for regional and global security. She also mentioned four plat- » Aviation and aircraft ( 16.8%) forms for building future U.S.-India relationship global security, human development, economic activity, science and technology. Copyright © 2009 | WWW.UPSCPORTAL.COM 10
  11. 11. Section -1 (Article : US-India Relationship) Foreign Policy Issues: According to some ana- at the world trade organization. However, the lysts, India-U.S. relations have strained over outsourcing advisory head of KPMG said that In- Obama administration's approach in handling the dia had no reason to worry since Obama's state- Tiliban Insurgency in Afghanistan and Pakistan. ments were directed against "outsourcing being India's national security adviser, M.K. Narayanan, carried out by manufacturing companies" and not , criticized the Obama administration for linking outsourcing of IT-related services. the Kashmir dispute to the instability in Pakistan and Afghanistan and said that by doing so, Presi- In May 2009, U.S. President Barack Obama reit- dent Obama was "barking up the wrong tree".The erated his anti-outsourcing views and criticized Foreign Policy too criticized Obama's approach the current U.S. tax policy "that says you should towards South Asia saying that "India can be a pay lower taxes if you create a job in Bangalore, part of the solution rather than part of the prob- India, than if you create one in Buffalo, New York." lem" in South Asia and suggested India to take a However, during the U.S.-India Business Council more proactive role in rebuilding Afghanistan ir- meet in June 2009, U.S. secretary of state Hillary respective of the attitude of the Obama adminis- Clinton advocated for stronger economic ties be- tration. In a clear indication of growing rift be- tween India and the United States. She also re- tween India and the U.S., the former decided not buked protectionist policies saying that "[United to accept a U.S. invitation to attend a conference States] will not use the global fi a nc i al c n risis a a s n on Afghanistan. Bloomberg reported that since excuse to fall back on protectionism. We hope 2008 Mumbai attacks, the public mood in India India will work with us to create a more open, has been to pressure Pakistan more aggressively equitable set of opportunities for trade between to take actions against the culprits behind the ter- our nations." In June 2009, United States provided rorist attack and this might refl o th u ect n e pcom - diplomatic help in successfully pushing through a ing general elections in May 2009. Consequently, US$2.9 billion loan sponsored by the Asian De- the Obama administration may fi d itsel f a o n t dds velopment Bank, despite considerable opposition with India's rigid stance against terrorism. Robert from the People’s Republic of China. Blake, assistant secretary of United States' Bureau of South and Central Asian Affairs, dismissed any Strategic and Military Relations: In March 2009, concerns over a rift with India regarding United the Obama administration cleared the US$2.1 bil- States' AfPak policy. Calling India and the United lion sale of eight P-8 Poseidons to India, the larg- States "natural allies", Blake said that the United est military deal between the two countries. In- States cannot afford to meet the strategic priori- dia expressed its concerns that Obama ties in Pakistan and Afghanistan at "the expense administration's non-military aid to Pakistan will of India". not be used for counter-insurgency, but for build- ing up its military against India. However, Robert Economic Relations: India strongly criticized Blake, assistant secretary of Bureau of South and Obama administration's decision to limit H-1B Central Asian Affairs, said that the Pakistani Gov- visas and India's External Affairs Minister, Pranab ernment was increasingly focused at fi in th ght g e Mukherjee, said that his country would argue Taliban insurgency and expressed hope that the against U.S. "protectionism" at various interna- people of India would "support and agree with tional forums. The Vishwa Hindu Parishad, a close what we are trying to do". aide of India's main opposition party the BJP, said that if the United States continues with its anti- Concerns were raised in India that the Obama outsourcing policies, then India will "have to take administration was delaying the full implemen- steps to hurt American companies in India." India's tation of the Indo-U.S. Nuclear Deal. The Obama Commerce Minister, Kamal Nath, said that India administration has also strongly advocated for the may move against Obama's outsourcing policies strengthening of the comprehensive test ban Copyright © 2009 | WWW.UPSCPORTAL.COM 11
  12. 12. Section -1 (Article : US-India Relationship) treaty and has pressurized India to sign the agree- the Pakistan army. Kissinger was particularly con- ment. India's special envoy, Shyam Saran, cerned about Soviet expansion into South Asia as "warned" the United States that India would con- a result of a treaty of friendship that had recently tinue to oppose any such treaty as it was been signed between India and the Soviet Union, "discriminatory".In June 2009, U.S. Secretary of and sought to demonstrate to the People’s Repub- State Hillary Clinton said that the Obama admin- lic of China the value of a tacit alliance with the istration was "fully committed" to the Indo-U.S. United States. civil nuclear agreement. During the Indo-Pakistan war of 1971,Indian U.S. chairman of the joint chiefs of staff Mike Armed Forces, along with the Mukti Bahini, suc- Mullen encouraged stronger military ties between ceeded in liberating East Pakistan which soon de- India and the United States and said that "India clared independence. Richard Nixon, then US has emerged as an increasingly important strate- President, feared that an Indian invasion of West gic partner. Pakistan would mean total Soviet domination of the region, and that it would seriously undermine Background the global position of the United States and the regional position of America's new tacit ally, India played a key role in establishing the Non- China. In order to demonstrate to China the bona Aligned Movement in 1961. Though India pur- fi es o th U i ted S at es a an a ly and in d rect d f e n t s l , i sued close relations with both US and USSR, it violation of the US Congress-imposed sanctions decided not to join any major power bloc and re- on Pakistan, Nixon sent military supplies to Paki- frained from joining military alliances. India, how- stan, routing them through Jordan and Iran, while ever began establishing close military relationship also encouraging China to increase its arms sup- with the Soviet Union. plies to Pakistan. After the Sino-Indian war and the Indo-Pakistan When Pakistan's defeat in the eastern sector war of 1965, India made considerable changes to seemed certain, Nixon sent the USS Enterprise to its foreign policy. It developed a close relation- the Bay of Bengal, a move deemed by the Indians ship with the Soviet Union and started receiving as a nuclear threat. The Enterprise arrived on sta- massive military equipment and fi a nc i al assis- n tion on December 11, 1971. On 6 December and tance from the USSR. This had an adverse effect 13 December, the Soviet Navy dispatched two on the Indo-US relationship. The United States groups of ships, armed with nuclear missiles, from saw Pakistan as a counter-weight to pro-Soviet Vladivostok; they trailed U.S. Task Force 74 into India and started giving the former military assis- the Indian Ocean from 18 December 1971 until 7 tance. This created an atmosphere of suspicion be- January 1972. The Soviets also sent a nuclear sub- tween India and US. The US-India relationship marine to ward off the threat posed by USS En- suffered a considerable setback during the Soviet terprise in the Indian Ocean. Invasion of Afghanistan when India openly sup- ported the Soviet Union. Relations between India Though American efforts had no effect in turning and the United States came to an all-time low the tide of the war, the incident involving USS during the early 1970s. Enterprise is viewed as the trigger for India's sub- sequent nuclear program. American policy to- Despite reports of atrocities in East Pakistan, and wards the end of the war was dictated primarily being told, most notably in the Blood telegram, of by a need to restrict the escalation of war on the genocidal activities being perpetrated by Pakistani western sector to prevent the 'dismemberment' forces, U.S. Secretary of State Henry Kissinger and of West Pakistan. Years after the war, many U.S. President Richard Nixon did nothing to dis- American writers criticized the White House poli- courage then Pakistani President Yahya Khan and cies during the war as being badly fl e d a ill- aw nd Copyright © 2009 | WWW.UPSCPORTAL.COM 12
  13. 13. Section -1 (Article : US-India Relationship) serving the interests of the United States. India States in response to India's nuclear tests in May carried out nuclear tests a few years later result- 1998 appeared, at least initially, to seriously dam- ing in sanctions being imposed by United States, age Indo-American relations. President Bill further drifting the two countries apart. In recent Clinton imposed wide-ranging sanctions pursuant years, Kissinger came under fi for com nt s re me to the 1994 nuclear proliferation prevention act. made during the Indo-Pakistan War in which he U.S. sanctions on Indian entities involved in the described Indians as "bastards." Kissinger has since nuclear industry and opposition to international expressed his regret over the comments. fi a nc i al in titu io lo n s t n ans for n hum ni tarian on- a assistance projects in India. The United States en- Since the end of the cold war , India-US relations couraged India to sign the comprehensive test ban have improved dramatically. This has largely been treaty (CTBT) immediately and without condition. fostered by the fact that the US and India are both The U.S. also called for restraint in missile and democracies and have a large and growing trade nuclear testing and deployment by both India and relationship. During the gulf war, the economy Pakistan. The non-proliferation dialogue initiated of India went through an extremely diffi t cul after the 1998 nuclear tests has bridged many of phase. The Government of India liberalized the the gaps in understanding between the countries. Indian economy. After the break up of the Soviet Union, India started looking for new allies and After the September 11,2001 attacks, Indian in- tried improving diplomatic relations with the telligence agencies provided the U.S. with signifi- members of the NATO particularly the United cant information on Al-Qaeda and related groups' States, Canada, France and Germany. In 1992, activities in Pakistan and Afghanistan. India's ex- India established formal diplomatic relations with tensive contribution to the war on terrorism has Israel. helped India's diplomatic relations with several countries. Over the past few years, India has held In the mid-1990s, India tried to attract world at- numerous joint military exercises with U.S. and tention towards the Pakistan backed terrorism in European nations that have resulted in a strength- Kashmir. The Kargil war resulted in a major dip- ened U.S.-India and E.U.-India bilateral relation- lomatic victory for India. The United States and ship. India's bilateral trade with Europe and U.S. European Union recognized the fact that Pakistani has more than doubled in the last fi e y v ears. military had illegally infi ed in o In an terri- ltrat t di tory and pressurized Pakistan to withdraw from However, India has yet to sign the CTBT, or the Kargil. Several anti-India terrorist groups based nuclear non proliferation treaty, claiming the dis- in Pakistan were labelled as terrorist groups by criminatory nature of the treaty that allows the the United States and European Union. fi e decl ared nucl ear count ries of th w r ld to v e o keep their nuclear arsenal and develop it using In 1998, India tested nuclear weapons which re- computer simulation testing. Prior to its nuclear sulted in several U.S., Japanese and European sanc- testing, India had pressed for a comprehensive de- tions on India. India's then defence minister, struction of nuclear weapons by all countries of George Fernandes, said that India's nuclear pro- the world in a time-bound frame. This was not gram was necessary as it provided a deterrence to acceptable to the US and other countries. Pres- some potential nuclear threat. Most of the sanc- ently, India has declared its policy of "no-fi u e rst s tions imposed on India were removed by 2001. of nuclear weapons" and the maintenance of a India has categorically stated that it will never use "credible nuclear deterrence". The US, under weapons fi b w ll d end if at tacked. In fact rst ut i ef President George W. Bush has also lifted most of Pakistan is the fi count ry th t In a in or m if rst a di f s its sanctions on India and has resumed military any nuclear tests are on the agenda. co-operation. Relations with US have consider- ably improved in the recent years, with the two The economic sanctions imposed by the United countries taking part in joint naval exercises off Copyright © 2009 | WWW.UPSCPORTAL.COM 13
  14. 14. Section -1 (Article : US-India Relationship) the coast of India and joint air exercises both in policymakers by the late sixties, this unidimen- India as well as in the United States. sional alliance disappeared into thin air. India has been pushing for reforms in the UN and The end of the Cold War necessitated as well as WTO with mixed results. India's candidature for facilitated the infusion of strategic content to Indo- a permanent seat at the UN security council is US relations–this time multidimensional.In the currently backed by several countries including post Cold War era, the strategic objectives of In- United Kingdom, France, Germany, Japan, Bra- dia and the US converges on a number of issues zil, African Union nations and recently People’s and not just one–as well as the case earlier. These Republic of China. In 2005, the United States issues include, inter alia, containment of terror- signed a nuclear co-operation agreement with ism, promotion of democracy, counter prolifera- India even though the latter is not a part of the tion, freedom of navigation in the Indian Ocean, NPT. The US argued that India's strong nuclear Asian balance of power, etc. non-proliferation record made it an exception and persuaded other NSG members to sign similar deals One of the very interesting feature of Indo-US with India. relations of recent times is the changes on the terms of engagement between the two countries On March 2, 2006 India and the US signed the on the issue of nuclear proliferation.While ear- Indo-U.S. nuclear pact on co-operation in civilian lier, in the US strategic thinking on nuclear pro- nuclear fi d T s w s signe d d in th four d el . hi a ur g e ays liferation, India fi ed m i n y b gur a l ecaus e o A ri- f me state visit of US president George Bush in India. can concern about latter’s nuclear and missile On its part, India would separate its civilian and programmes, in the twenti-fi c u y, h e ver, rst ent r ow military nuclear programs, and the civilian pro- American strategic thinking on the issue of nuclear grams would be brought under the safeguards of proliferation has undergone radical International Atomic Energy Agency (IAEA). The reorientation.Now, the Americans are increasingly United States would sell India the reactor tech- realising the futility of insisting on a rollback of nologies and the nuclear fuel for setting up and India’s nuclear programme. They, rather, want to upgrading its civilian nuclear program. The U.S. leverage India’s growing power and infl enc e in u Congress needs to ratify this pact since U.S. fed- favour of their broader nonproliferation and eral law prohibits the trading of nuclear technolo- counter proliferation objectives. gies and materials outside the framework of the Nuclear Suppliers Group (NSG). As promotion of democracy around the world is one of the most important foreign policy objec- Indo-US Strategic Partnership tive of the USA, India- as the largest democracy of the world-can hardly be ignored by the US. Indo-US relations got strategic content way back This is the reason, cooperation in promotion of in early sixties. The rise of China worried the democracy in the world has become one of the policymakers in Washington. Chinese annexation most important facets of Indo-US relations in re- of Tibet, its role in Korean war and other such cent times.India is a founding member of the acts convinced Washington about the expansion- ‘Community of Democracies’ – a prominent en- ist designs of the Chinese. As the relations between deavour of the US on promotion of India and China deteriorated during late fi , fties democracy.However,India rejected the suggestion the Americans found a golden opportunity to take of the US about setting up a Centre for Asian De- advantage of this situation to promote India as a mocracy. counterweight to China But any unidimensional alliance is bound to be short-lived and this alli- Agriculture is another important area of coopera- ance was no exception to this general rule. As tion between India and the USA in present times. China ceased to be a headache for the American Copyright © 2009 | WWW.UPSCPORTAL.COM 14
  15. 15. Section -1 (Article : US-India Relationship) Considering the fact that both the nations at present have a vast pool of human resources adept at knowl- edge economy, it is only natural that the most optimal course such partnership can aim at is harnessing these human resources by concentrating on development and dissemination of agricultural knowledge through research, education and training etc.An initiative to forge such a partnership is the 'India-US Knowledge Initiative on Agriculture' (KIA). (IMP) Get UPSCPORTAL , Jobs, Re- sults, Notification Alerts on Email. Step-1: Fill Your Email address in form be- low. you will get a confirmation email within 10 min. Step-2: Varify your email by clicking on the link in the email. (check Inbox and Spam fold- ers) Step-3: Done! Now you will regular Alerts on your email. Advertise your Business Here Contact Us Online: http://upscportal.com/store/contact Copyright © 2009 | WWW.UPSCPORTAL.COM 15
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  18. 18. Section -1 (Article : 35th G-8 Annual Summit) 35th G-8 Annual Summit Insuring Global Food Security with Economic Stability By Dr. Nageshwar Nath Mishra The Author is Professor and Head of the Department for History 35th G8 Summit was held in L’Aquila, Italy the ments, old and new mindful that some in the G8 country that currently holds the G8 Presidency had fallen well short of their 2005 promise to in- from 8 to 10 July,2009. G8 leaders pledged $20 crease annual aid by $50 billion by 2010, half of billion in aid to help poor na- which was meant for tions feed themselves, surpass- Africa.South African President ing expectations of a summit Jacob Zuma said the new fund- that made little ground on cli- ing will "go a long way" to help- mate change and may spell the ing Africa, adding: "We can't say end of the G8 itself. U.S. Presi- it's enough, but at least it begins dent Barack Obama and the to do very concrete things." summit's Italian host Silvio Berlusconi refl ed gr ow n ect i g Nigerian Agriculture Minister consensus that the Group of Abba Ruma said the new pledge Eight industrial powers, long was "very commendable in view criticized as an elite club, does of the current global recession. not refl th sh ftin p terns ect e i g at "But he cautioned that it must of global economic be "disbursed expeditiously. It is power.Tackling global chal- only then we will know that the lenges "in the absence of major G8 is living up to its commitment powers like China, India and Brazil seems to be and not just making a pledge and going to sleep." wrongheaded," Obama said, adding that he looked forward to "fewer summit meetings." The United Nations said the number of malnour- ished people has risen in the past two years and is Begun in 1975 with six members, the G8 now expected to top 1.02 billion this year, reversing groups the United States, Japan, Germany, France, decades of declines. The global recession is ex- Britain, Italy, Russia and Canada. That enabled pected to make 103 million more go hungry. Aid Obama, traveling to Ghana on his fi trip to sub- rst bodies like the World Food Program said a Saharan Africa as president, to use the summit to last-minute surge of generosity at the summit in push for a shift toward agricultural investment L'Aquila resulting in the $20 billion pledge was from food aid. Washington will make $3.5 billion "greeted with great happiness. "That amount over available to the 3-year program. "There is no rea- three years may compare unfavorably with the son Africa should not be self-suffi ent w e n it ci h $13.4 billion the G8 says it disbursed between comes to food," said Obama, recalling that his rela- January 2008 and July 2009, but aid groups said tives in Kenya live "in villages where hunger is the new pledge in Italy was more clearly focused. real," though they themselves are not going hun- Japan and the European Union were also champi- gry. oning a code of conduct for responsible invest- ment after growing farmland acquisition or "land Obama said Africa had enough arable land but grabs" in emerging nations. The group of eight de- lacked seeds, irrigation and mechanisms for farm- veloped countries have vowed to curb transfer ers to get a fair price for their produce issues that enrichment and reprocessing (ENR) technology the summit promised to tackle.Africa told the and equipment, surprising India as it goes against wealthy powers they must honor their commit- the spirit of Nuclear Suppliers Group's "clean" waiver to it. In a joint statement on non-prolif- Copyright © 2009 | WWW.UPSCPORTAL.COM 18
  19. 19. Section -1 (Article : 35th G-8 Annual Summit) eration, the G-8 nations also pushed other mem- policies, including safety nets, health and educa- bers of the 45-nation NSG to reach a consensus tion. within this year to disallow transfer of ENR to countries which are not signatories to NPT. The The declaration committed the G8 and the G5 to statement was issued after the Summit that was “facilitating the development, dissemination and attended by Prime Minister Manmohan Singh in mutually agreed transfer of clean, low-carbon L'Aquila. technologies, reducing carbon emissions and in- creasing energy effi enc y. ” T l eaders recon- ci he The move, which would have an impact on India, fi e d th i r p itical w ll to reach a “com r ehe n- rm e ol i p comes even though the NSG had last September sive, fair, effective, agreed outcome, following the given New Delhi "clean" and "full" waiver for civil principles of common but differentiated respon- nuclear cooperation with the world despite it be- sibilities and respective capabilities” at the United ing a non-signatory to NPT. "To reduce the pro- Nations climate change conference in Copenhagen liferation risks associated with the spread of en- in December. richment and reprocessing facilities, equipment and technology, we welcome the progress that This is the fi tim in a G p u G sum t th t rst e 8 l s 5 mi a continues to be made by the NSG on mechanisms a joint declaration has been issued. The G8 and to strengthen controls on transfers of such enrich- G5 nations decided to continue the dialogue pro- ment and reprocessing items and technology," said cess started in 2007 in Heiligendamm, Germany, the statement issued yesterday. While noting that and now renamed the Heiligendamm-L’Aquila the NSG has not yet reached consensus on this Process (HAP). This dialogue process has been issue, the G-8 nations said "we agree that NSG described as a partnership on an equal footing and discussions have yielded useful and constructive a steering committee will prepare a report for the proposals contained in the NSG's “clean text” de- next G8 plus G5 summit in Muskoka. The joint veloped at the November 20,2008 Consultative declaration said the G8 and the G5 countries were Group meeting. committed to advancing the reform process in in- ternational organizations, including the United The leaders stressed that the standstill commit- Nations, “to refl c em orary real ity a c l - ect ont p nd ha ments made at the London G20 summit must be lenges thus enhancing their relevance, legitimacy adhered to and to refrain from introducing barri- and effi enc y. ” ci ers to trade and investment. They asked the World Trade Organisation and other international bod- Debatable Issues ies to monitor the situation and report publicly on adherence on a quarterly basis. They also com- Prime Minister Silvio Berlusconi, spoke in his ca- mitted themselves to refraining from competitive pacity as President of the G8, summed up the main devaluations of the currencies and to a stable and points on the agenda for debate at the Summit well functioning international monetary system. Economic Crisis and a Boost to Growth: Posi- The declaration expressed the joint commitment tive pointers to improvement in the economy are of the G8 and G5 to implement rapidly the deci- starting to emerge and it is important to support sions taken at the Washington and London G20 families' and businesses' confi enc e i n or der to d summits, including those on providing additional rapidly trigger economic recovery. The current resources to the international fi a nc i al i n titu n s - economic and fi a nc i al c n risis h s h ghl ight ed c a i er- tions. Noting the high social costs of the current tain crucial weaknesses in the global economy, economic crisis, the countries committed them- which have helped to trigger and to spread the selves to tackling the social dimensions, putting crisis itself. Hence the need to thrash out a code people fi T y w re m derni sin rei n or ci n rst. he e o g, f g of shared ground rules for the world of the and increasing the effi enc y o soci al p ot ect io ci f r n economy and of fi a nc e w th speci fi clear cri te- n i c, Copyright © 2009 | WWW.UPSCPORTAL.COM 19
  20. 20. Section -1 (Article : 35th G-8 Annual Summit) ria and with the establishment of supervisory bod- ies and tools. One of the issues on the agenda at Development in the Poorer Countries and in the G8 Summit in L'Aquila was the strategy de- Africa: The Summit broadcasted a strong message signed to put together a series of common prin- designed to attenuate the impact of the crisis on ciples governing the rules of propriety, integrity developing countries, an impact that is jeopardiz- and transparency in international fi a nc e and n ing the progress made to date in the struggle business. against poverty. It planed to do this by putting together a "rescue package" entailing: confi a - rm Imparting a Fresh Boost to International Trade: tion of the G8's commitment to development aid; Another crucial factor in combating the economic the use of innovative fi a nc i al tool s; h l v n th n a i g e crisis and in imparting a fresh boost to growth is cost of emigrants' remittance transactions; and international trade: the aim of the Summit in imparting a fresh boost to international trade; not L'Aquila was to impart a new thrust to the Doha to mention the debt issue. The G8 is promoting a talks on world trade, in order to help ensure that new approach to backing development in the the talks are successfully completed as rapidly as poorer countries based on the involvement of the possible. Achieving an ambitious and balanced "country system" as a whole. This, in order to agreement would make it possible to boost global make the most of the role played by all of the exports and to support development in the poorer actors (governments, local authorities, private in- countries by offering them improved access to dividuals and civil society) and all of the available markets in the wealthy countries. resources and policies in both donor and destina- tion countries in boosting growth and develop- People First: People fi rst: th t is th 2009 G a e 8 ment in the poorer countries. The issue of devel- Summit's message. The international community opment has addressed, with differing nuances, is living through one of its most serious economic both at the G8 sessions and at the sessions with and fi a nc i al c n rises sin e W r ld W r II. If w a c o a e re the emerging and African countries. to make it through this crisis, we have to consider its social aspect and to place people in the centre Food Safety and Security, and Access to Water: of government action by pursuing policies de- Over 1 billion people are currently suffering from signed to restore people's confi enc e. C unt ries d o starvation or malnutrition. The situation had been must continue to implement strategies capable of aggravated by insuffi ent in tm nt in farm n ci ves e i g reducing the impact of the crisis on employment, over the past few decades, and by the economic and of ensuring that welfare and social safeguard crisis. All of the leaders attended the L'Aquila systems are both effective and sustainable. summit signed a joint declaration with the inter- national organizations and launched an important Climate Changes: The struggle against climate initiative on food safety and security, to fund farm- changes is one of the Italian Presidency's priori- ing and to support the struggle against starvation. ties on the G8 Agenda. It is necessary to defi e a n Moreover, the G8 under Italy's presidency was global response in which the leadership and com- committed to laying the groundwork for launch- mitment of the industrially advanced countries is ing a G8-Africa Partnership designed to improve paralleled by an active contribution from the access to water and to basic sanitary facilities, be- emerging and developing countries on the basis fore the end of the year. of a balanced sharing of responsibilities. In that sense, the L'Aquila G8 Summit, which will also Health: World health has traditionally been one be hosting the fi ever m et in of th M j o rst e g e a r of the central issues on the G8 group's agenda, Economies Forum on Energy and Climate (MEF) and the Italian Presidency planed to continue de- at leadership level, is going to be a vital step in voting particular attention to it. The key topics paving the way for the success of the United Na- included strengthening health systems and cut- tions Conference in Copenhagen next December. ting infant mortality and death during childbirth. Copyright © 2009 | WWW.UPSCPORTAL.COM 20
  21. 21. Section -1 (Article : 35th G-8 Annual Summit) On the basis of the experience garnered in the ening food poverty. launch of the Global Fund at the G8 Summit in The G5 declared its commitment to engage with Genoa in 2001, there is to be ongoing support for all World Trade Organisation members to com- programmes designed to combat AIDS, tubercu- plete the Doha round of negotiations. It wanted losis and malaria, also through the exploration of the negotiations to deliver real and improved mar- innovative forms of funding. ket access to the developing countries. On the contentious issues of agriculture and non-agricul- International Political Issues: The G8 Summit ture market access, the G5 leaders wanted the addressed the most important political issues on mandates already negotiated to be upheld and not the international agenda: the commitment to reopened selectively in a way that will upset the making progress on the nuclear non-proliferation overall balance. front, the situation in Iran and in the Middle East, the struggle against terrorism, the stabilization of The leaders wanted the negotiations on climate the Afghanistan and Pakistan region, and the situ- change to move forward to a successful conclu- ation in North Korea. sion at Copenhagen on the basis of joint but dif- ferentiated responsibility. They urged the devel- Strengthening The Reform Process oped countries to commit themselves to reducing their emissions by at least 40 per cent below the Leaders of the developing countries meeting at 1990 levels by 2020. They also wanted the con- their parallel G5 summit at the venue of the G8 ference to consider the funding arrangements for summit urged the industrial nations to deliver on the developing countries to cut emissions and an the commitments they had made on fia nc i al a n nd international mechanism for developing and trans- credit flw a o a d n p ot ect io sm A th o s nd n voi i g r ni . t e ferring climate-friendly technologies. The G5 dec- end of meetings, which the chairman, President laration also stressed the need for the strongest Felipe Calderon of Mexico, described as “quite collective action by the international community interesting and very productive,” the G5 came out to prevent terror attacks and punish the perpe- with a declaration that it was important to com- trators. To provide an effective international le- ply with the agreements reached at the earlier G8 gal framework against terrorism, it called upon and G5 meetings and particularly at the London the United Nations members to conclude and G20 summit in April. These related to the steps to adopt as early as possible a comprehensive con- address the economic crisis jointly and in particu- vention on international terrorism. lar the commitment to provide the resources to restart credit fl w to th d os e evel o n count ries . pi g Climate Change The sudden departure of Chinese President Hu India considered the declaration on climate change Jintao to deal with the ethnic violence in the in the agreed draft at the Major Economies Fo- Xinjiang region cast a shadow over the delibera- rum a “very strong political message” that would tions of the G5, but the Chinese delegation re- provide impetus to the negotiations on climate mained as an active participant. The G5 came out change before the Copenhagen summit in Decem- with a political declaration and another on trade ber. that were presented at a joint press appearance where the leaders made opening statements. The Prime Minister’s special envoy on climate change, Shyam Saran, said at a briefig o th sid n n e e- Prime Minister Manmohan Singh stressed in his lines of the G8 and G5 meetings that the declara- remarks that the developing countries had been tion was positive and forward looking and would the worse hit by the economic crisis, and a collec- send the right kind of message, though the spe- tive approach to recovery should address their cifi w ul d ha ve to be ne got iat ed under th cs o e problems of drying up of credit fl w and w r s- os o United Nations Framework Convention on Cli- Copyright © 2009 | WWW.UPSCPORTAL.COM 21
  22. 22. Section -1 (Article : 35th G-8 Annual Summit) mate Change leading to the Copenhagen on the development and transfer of technology summit.Outlining the perspectives of the G5 de- for climate change. veloping countries, including India, he said that The Green Fund proposed by Mexico and endorsed while climate change was a global challenge, there by both the G5 and the G8, involved contribu- was an aspect of historical responsibility of the tions by all nations assessed on the basis of their industrial countries for the accumulated emissions historical responsibility, current level of develop- in the atmosphere. On the principle of “polluter ment and weighted per capita emissions. From the pays,” the major responsibility lay with the in- Indian viewpoint, the principle of assessed con- dustrial nations, and this was a responsibility that tribution would be welcome as it would provide they had acknowledged and undertaken under the stable resources. UNFCCC. As regards the binding reduction targets for India The developing countries wanted the industrial and the other developing countries that have so nations to commit themselves to sharp and sig- far been exempt from such commitments, India nificant reduct io in em ssio by 40 per cent ns i ns was already committed to the goal of sustainable below the 1990 (the date of the Kyoto protocol) development, and there has to be a deviation from levels by 2020. This could form the basis for a more the business as usual path of growth. However, ambitious target over the longer term. without clarity on capacity building, funding and technology transfer for climate friendly technolo- The developing nations were faced with the prob- gies, India and the other developing countries were lem of adaptation to climate change and India it- unable to give binding commitments on emission self was spending 2 to 2.5 per cent of its Gross reduction targets. However, they were commit- Domestic Product on adaptation, including to ex- ted to the overall goal of keeping the rise in aver- treme climatic events and disasters and the im- age global temperature to below 2 degrees over pact on agriculture. Even if emissions were re- the pre-industrialisation levels. duced to zero, the accumulated emissions would continue to impose a long term burden on the Proposals and Understandings developing countries. » The Leaders of the Group of Eight meeting in Based on this perspective, the developing coun- L’Aquila, expressed their heartfelt solidarity to the tries have been emphasising the two pillars of fi - people of Abruzzo affected by the tragic earth- nancing mitigation and adaptation actions and the quake which struck the region on 6th April 2009, transfer of technology. The position of the G5 was and to all those around the world who have been that there should be predictable, stable and ad- touched by natural disasters. equate resources available for a credible response from the developing countries and the industrial nations could provide 0.5 per cent to 1 per cent of » G8 determined to ensure sustainable growth their GDP for the purpose. The G5 also wanted and to tackle the interlinked challenges of the the existing climate-friendly technologies to be economic crisis, poverty and climate change. diffused rapidly and widely. In addition, they These challenges require immediate action and wanted a global programme for capacity building long term vision. to combat climate change put in place. Transfor- mational technologies, including on clean energy » Guided by their common values, G8 addressed and new and renewable sources, needed to be de- global issues and promote a world economy that veloped and provided. It was with these goals that is open, innovative, sustainable and fair. To this India, in association with the United Nations, was end, effective and responsible leadership is re- organising a conference in New Delhi in October quired. G8 determined to fully take on their re- sponsibilities, and are committed to implement- Copyright © 2009 | WWW.UPSCPORTAL.COM 22

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