The document discusses International Literacy Day which is celebrated annually on September 8th. It aims to promote literacy for building peaceful societies. The 2023 theme focuses on promoting literacy in a changing world. It also discusses India-South Korea relations and their growing strategic partnership. The recent Camp David summit provided an opportunity to further enhance cooperation in areas like trade, defense, and regional security issues. The document further explains the concept of the "impossible trinity" that India is facing in maintaining an independent monetary policy along with a fixed exchange rate and free capital flows. It highlights some of the challenges and strategies to address this situation.

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International Literacy Day - 8 September
Context: -
International Literacy Day is celebrated
every year on 8 September.
An Overview of the News
 The day aims to highlight the
importance of literacy for human
rights, dignity, and the
development of sustainable
societies.
 The United Nations Educational, Scientific and Cultural Organization
(UNESCO) is responsible for overseeing and promoting International Literacy
Day.
The theme of 2023:
 The theme for International Literacy Day 2023 is ‘Promoting literacy for a
world in transition: Building the foundation for sustainable and peaceful
societies’.
 Literacy Day is celebrated at various levels including global, regional,
national and local.
Global Programme:
 A conference, both in person and online, will be held in Paris, France on
September 8, 2023, as part of the global celebration.
UNESCO International Literacy Award:
 During the global event, outstanding literacy promotion programs will be
recognized by conferring UNESCO International Literacy Awards.
History of International Literacy Day:-
 UNESCO introduced International Literacy Day in 1966 at its 14th General
Conference.
 The first International Literacy Day was celebrated in 1967.
 The official date of International Literacy Day is 26 October, which was
established during the 1966 UNESCO conference.
 The primary goal of this day is to highlight the importance of literacy for
individuals, communities and society.
 Literacy is seen as the foundation of a well-educated and productive society.

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India- South Korea Relations
Context: -
The historic Camp David Summit held in August 2023 gives India and South Korea
a unique opportunity to enhance their strategic partnership.
What is the history of India-South Korea relations?
 Historical relation- According to the 13th century Korean historical text
"SamgukYusa" or “Heritage History of the Three Kingdoms", Princess
Suriratna from Ayodhya (India) came to Korea in the year 48 AD.
 She married King Kim-Suro of the erstwhile Gaya Confederacy in ancient
Korea and became Queen Heo Hwang-ok. Many Koreans trace their ancestry
to this lineage.
 Buddhism- Some scholars believe that Buddhism reached Korea via the
maritime route with the arrival of Princess Suriratna and her brother Monk
Jangyu.
 Literature- Nobel Laureate Rabindranath Tagore composed a short but
evocative poem titled 'Lamp of the East’ in 1929 about Korea's glorious past
and its promising bright future.
 Political relations- India played an important role in the Korean peninsula
after Korea's independence in 1945.
 Former Indian diplomat Shri K P S Menon was the Chairman of the 9-
member UN Commission set up in 1947 to hold elections in Korea.
 In 2018, both countries issued a statement outlining a “Vision for People,
Prosperity, Peace and our Future”
 Diplomatic relations- Consular relations were established in 1962. Both
established diplomatic relations on 1973.
 Economic relations- They both formed a “Strategic Partnership” in 2010,
which was elevated to “Special Strategic Partnership” in 2015.
 Korea plus- This initiative aims to facilitate Korean investments in India.
 Bilateral trade- In 2022, it reached record levels of 27.8 billion dollars.
 India’s import volume stands 18.8 billion dollars, while the export volume is
9 billion dollars.
 Defence- In 2020, India and South Korea signed a Roadmap for Defence
Industries Cooperation.
 Cultural relations- In 2011, the Indian Cultural Centre was established in
Seoul to showcase India’s rich cultural heritage and promote cultural
exchanges between both countries.
What is the significance of Camp David meet?

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 Regional security- It indicates a much-needed repair in South Korea and
Japan relations.
 Strengthen US alliance structure- The summit reflect the multipolar urges
of the contemporary international system in East Asia along with groupings
such as
o AUKUS- U.S, United Kingdom, Australia
o Quad -India, Japan, Australia, U.S
o CHIP 4 Alliance- U.S., Japan, Taiwan, and South Korea
 New strategic direction- It has the potential to set South Korea on strategic
direction in Indo-Pacific with
o Improved relations with Japan
o More synergy with the American view on China
o Enhance the engagement of Indo- Pacific
 China challenge- It marks a strategic shift in Seoul’s traditional approach of
not offending China at any cost.
 QUAD grouping- This summit mooted the South Korea’s keen desire to join
the group, it might apply for a membership in Quad Plus in 2024.
 New foreign policy- The main goal is to make South Korea a “global pivotal
state”.
How the summit would strengthen India-Korea relations?
 Natural partner- Korea is a natural partner for India in Indo-Pacific. It is due
to number of reasons.
o South Korea’s location in the Indo-Pacific, close to China.
o It is a U.S. ally provides India with a like-minded strategic partner.
o For both, the rise of China and its unilateral attempts at reordering the
Asian security architecture are of great concern.
 Regional partner- For India, Seoul can be an important regional partner at a
time when India is closer to the U.S. and is concerned about Chinese
intentions and power like never before in history.
 Enhance the relation - It provides a unique opportunity for India and ROK to
enhance their strategic partnership in the 50th year of their diplomatic
relationship.
 Diplomatic relations- The partnership could also benefit from reciprocal
visits by Prime Minister Narendra Modi and Mr. Yoon to each other’s country.
What lies ahead?
 Political cooperation- The two sides should consider establishing an annual
summit at the level of
o Foreign Ministers Meet
o 2+2 format dialogue

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India currently has 2+2 dialogues with the U.S., Japan, Australia and Russia.
 Foster technology- Both could explore the possibility of negotiating a South
Korea-Japan-India-U.S. initiative on Critical and Emerging Technology (iCET),
along the lines of the recently-concluded India-U.S. iCET.
 Defence -South Korea’s willingness and ability to cater to India’s defence
needs within the ambit of India’s ‘Make in India’ programme must be utilised.
o Example-The K9 Vajra, a 155 mm self-propelled howitzer, built by
L&T with technology from South Korea’s Hanwha Defense
o South Korean-built K2 Black Panther tanks could also be co-produced
in India for the Indian Army or third countries.
 Nuclear energy- Given Seoul’s remarkable track record in supplying cheaper
and faster nuclear reactors India could consider purchasing Korean-built
reactors so as to expand the share of nuclear energy in the country’s energy
basket.
Indian Economy and Impossible Trinity
Context: -
The Reserve Bank of India(RBI) and
Indian investors are facing a challenge in
overcoming the "impossible trinity".
What is the Impossible Trinity?
o The impossible trinity, or the
trilemma, refers to the idea that
an economy cannot pursue independent monetary policy, maintain a fixed
exchange rate, and allow the free flow of capital across its borders all at
the same time.
o An able policymaker can, at best, achieve two of these three objectives at
any given time.
o The idea was proposed independently by Canadian economist Robert
Mundell and British economist Marcus Fleming in the early 1960s.
o The Impossible Trinity is a fundamental concept in international
economics and monetary policy.
o It describes the inherent challenges countries face when trying to
simultaneously achieve three specific policy objectives related to their
exchange rate and capital flows.
Challenges Involved:
o When a country prioritizes free capital flow and a fixed exchange rate, it

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loses control over its monetary policy, making it susceptible to external
economic pressures.
o If a country chooses to maintain a fixed exchange rate and independent
monetary policy, it must impose capital controls to limit the flow of funds
across its borders.
o Opting for independent monetary policy and free capital flow requires
accepting exchange rate fluctuations, potentially leading to volatility.
Examples of the Impossible Trinity in Action:
o Various countries have faced the challenges of the Impossible Trinity, with
some notable examples being the Asian Financial Crisis in 1997 and
the European Exchange Rate Mechanism crisis in 1992.
How is India Struggling with the Impossible Trinity?
 Strategies and Actions to Address the Impossible Trinity:
o Managing Interest Rates
o Composition of Foreign Exchange Reserves
o Implementing Capital Controls
 Influence of China on India's Economic Situation:
o China's deflation and rate cuts aim to stimulate economic growth. The
Chinese consumer price index fell by 0.3% in July year-on-year.
Additionally, the INR has appreciated by 4% against the Chinese yuan.
o A stronger Indian rupee can lead to increased imports from
China, affecting India's trade balance and currency dynamics.
o The depreciating Chinese yuan can make India's exports less
competitive in global markets.
 Foreign Institutional Investors (FIIs) and Indian Debt:
o FIIs are selling holdings of Indian debt securities and seeking more
profitable investments abroad, increasing the demand for foreign
currency and weakening the Indian rupee in the foreign exchange
market.
What are the Implications of the Impossible Trinity for Indian Investors?
 Shielding Against Rupee Depreciation:
o Investing in sectors like IT and Pharma that primarily earn in dollars
can shield against rupee depreciation.
 Diversifying Investments Abroad:
o Investors must acknowledge the challenges posed by the 'Impossible
Trinity' and adapt accordingly.
Way Forward

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 India should focus on effectively implementing capital control measures.
These measures should strike a balance between maintaining a stable
currency and encouraging foreign investment.
 The country should actively diversify its foreign exchange reserves and aim
to earn money through trade rather than relying heavily on 'hot money'
from foreign investors.
 The RBI should adopt a balanced approach to interest rates,
considering inflation control and attracting foreign investment. Gradual
interest rate adjustments can help achieve this balance.
India Drone Shakti 2023
Context: -
The Indian Air Force (IAF) is co-hosting
'Bharat Drone Shakti 2023' with the
Drone Federation of India at IAF's Hindon
Airbase in Ghaziabad on September 25
and 26, 2023.
An Overview of the News
 The event serves as a platform to showcase the significant impact of drone
technology in both civil and defense applications, revolutionizing
efficiency, reducing risks, and enhancing capabilities.
 India is experiencing a rise in the adoption of drones across various sectors,
including military and civilian applications, highlighting the country's growing
interest in unmanned aerial platforms.
About Bharat Drone Shakti 2023:
 The event will include live aerial demonstrations organized by the Indian
drone industry.
 These aerial demonstrations will showcase a diverse range of drone
applications, including survey drones, agricultural drones, firefighting drones,
tactical surveillance drones, heavy-duty logistics drones, rotating munition
systems, drone swarms, and anti-drone solutions.
 More than 75 drone startups and corporate entities participated in the event.
 The primary goal of the event is to highlight and showcase the capabilities
of Indian-made drones.
 Additionally, the event serves as a platform for networking, knowledge
exchange, and collaboration among industry leaders, innovators, and
drone enthusiasts.