News In Short-27-09-2024

Indian Ocean Rim Association (IORA) 

Syllabus: GS2/ International Organization

In News

• The second edition of the Indian Ocean Rim Association (IORA) seminar on Illegal, Unreported and Unregulated (IUU) Fishing was conducted at Naval War College, Goa.

About Indian Ocean Rim Association (IORA) 

• Formation: Established in 1997, is a multilateral organization comprising 23 member countries from Africa, West Asia, South Asia, Southeast Asia, and Australia.
  • IORA was inspired by a speech by Nelson Mandela in 1995, where he emphasized the need for cooperation among Indian Ocean states.
• Aim: It focuses on fostering cooperation in the Indian Ocean region on issues like maritime safety, trade facilitation, fisheries management, disaster risk management, and climate change.
• Membership: Comprises 23 member countries from Africa, West Asia, South Asia, Southeast Asia, and Australia, all located around the Indian Ocean. These include countries like India, Australia, Indonesia, South Africa, Malaysia, UAE, and more.
• Dialogue Partners: The IORA has 11 dialogue partners, including China, U.S., Japan, Germany, Russia, and Saudi Arabia.
• Troika Leadership: The IORA’s apex body is the Council of Foreign Ministers, which meets annually. The Chair rotates every two years among members. Currently, Sri Lanka is the Chair, India is the Vice-Chair, and Bangladesh was the previous Chair.

Significance

• The Indian Ocean is of immense strategic importance, with 80% of global oil trade and 50% of containerized cargo passing through it. 
• IORA provides a platform for India to engage with regional partners, avoiding geopolitical rivalries, particularly with China.  IORA’s strategic focus includes keeping the Indian Ocean free and open for trade while emphasizing respect for sovereignty.
• India, currently the Vice-Chair of IORA, uses the organization to strengthen regional ties without the contention seen in other organizations like SAARC and BIMSTEC.

Some Flagship Projects of IORA

• IORA Working Group on Maritime Safety and Security: Aims to enhance maritime cooperation, ensure safe and secure sea lanes, combat piracy, and address maritime challenges across the Indian Ocean.
• Counter Piracy and Armed Robbery against Ships (ReCAAP-ISC): A collaboration to strengthen regional capacities and share intelligence to prevent piracy and armed robberies in the Indian Ocean.
• Indian Ocean Tsunami Warning and Mitigation System (IOTWMS): Works with member states to monitor and respond to natural disasters like tsunamis.
• IORA Blue Economy Initiatives: Promote sustainable use of ocean resources, focusing on industries like fisheries, maritime trade, tourism, and renewable energy.

Source: PIB

IMF Approves $7 Billion Bailout for Pakistan

Syllabus: GS3/ Economy

Context

• The International Monetary Fund’s board (IMF) approved a $7 billion Extended Fund Facility (EFF) for Pakistan, providing a critical boost to the country’s struggling economy.

About

• The International Monetary Fund (IMF) provides financial assistance to countries facing economic crises, primarily through different lending mechanisms. 
• In return, the recipient countries have to implement specific economic reforms. 

IMF Lending Mechanisms

• Stand-By Arrangements (SBA): This is intended to address short-term balance of payments problems.
  • Typically lasts 12 to 24 months and involves conditions such as fiscal consolidation, monetary tightening, and structural reforms.
• Extended Fund Facility (EFF): This is used for countries with prolonged structural imbalances or deeper economic problems, as in the case of Pakistan.
  • It typically covers a longer time horizon (up to four years) and focuses on medium- to long-term reforms. 
  • The conditions focus on structural reforms, fiscal policies, and debt sustainability.
• Rapid Financing Instrument (RFI): It is used for urgent balance of payments needs due to economic shocks, natural disasters, or conflict without the need for a fully-fledged economic program.
• Poverty Reduction and Growth Trust (PRGT): Concessional lending aimed at low-income countries to support poverty reduction and growth programs.
• Flexible Credit Line (FCL) and Precautionary Liquidity Line (PLL): These are aimed at countries with relatively strong economic fundamentals but in need of precautionary funding to guard against external shocks.

International Monetary Fund (IMF) – The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s. – The organization is currently composed of 190 member countries. 1. Each member has representation on the IMF’s executive board in proportion to its financial importance. – The primary goal of the IMF back then was to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports.  – Eventually, the IMF evolved to be a lender of last resort to governments of countries that had to deal with severe currency crises.

Source: BS

India is the World’s Third Largest Producer and Consumer of Ethanol

Syllabus: GS3/Economy

Context

• The Union Minister for Food and Public Distribution during the India Sugar & Bio Energy Conference said that India is now the world’s third largest producer and consumer of Ethanol.

About

• During 2014-24, the area of sugarcane cultivation increased by about 18% while the sugarcane production has increased by 40%. 
• Also India is the second largest producer of sugarcane after Brazil.

Steps taken to increase ethanol production 

• The Minimum Selling Price (MSP) of sugar was introduced in 2018 to protect the interests of farmers and the sugar industry by the Centre.
• Bio-Refineries: India is setting up multiple second-generation ethanol biorefineries to produce ethanol from agricultural waste.
  • For example, in 2022, Indian Oil Corporation Limited (IOCL) launched Asia’s first 2G Ethanol Biorefinery in Panipat, Haryana.
• Tax reduction: The Government has lowered the Goods and Services Tax rate to 5% from 18% on ethanol meant for blending under the Ethanol Blended Petrol (EBP) Programme.
• The National Policy on Biofuels-2018, as amended in 2022, has identified various feedstocks for ethanol production, like  C & B – Heavy Molasses, sugarcane juice, sugar containing materials, starch containing materials such as corn cassava, rotten potatoes etc.

Conclusion

• The farmers are evolving from being the Anna Dattas to becoming Urja Dattas, reflecting the vital role they play in India’s renewable energy landscape. 
• The synergy between agriculture and green energy is essential for building a sustainable and resilient future for India, aligning with the country’s global climate goals of Net Zero Emissions by 2070.

Source: PIB

ABHED

Syllabus: GS3/ Defence

In News

• The Defence Research & Development Organisation (DRDO), in collaboration with researchers from IIT Delhi, has developed the ABHED bulletproof jacket.

About ABHED

• These are the lightweight bulletproof jackets.
• The jacket uses a combination of polymers and boron carbide ceramic materials, known for their high strength-to-weight ratios.
• It is capable of withstanding high-velocity projectiles, enhancing soldier safety during combat.
• ABHED’s indigenous development strengthens India’s defence capabilities and positions the country as a potential competitor in the global defence market.

Source: FE