MP2-IR-19-02

INTERNATIONALRELATIONS

PART-2

Unit - 1: India’s Strategic Partners

India-U SA RelationsIndia-China Relations India-Russia Bilateral RelationshipISRAEL Indo-Japan Bilateral RelationshipFrance Germany India-UK Relations India-Brazil Relations

Unit - 2: Multilateral Bodies & Treaties

The World Trade Organization International Monetary Fund Nuclear Security Summit ASEAN BRICS BIMSTEC Asian Infrastructure Investment BankIBSA Multilateral Negotiations for a Nuclear Weapons BanIndia Admitted to Australia GroupIAEA

Wassenaar Arrangement & IndiaThe Ukrain Issue Changes under trump administrationBlack Money Terrorist Organisations Syrian Civil War Migration Crisis in Europe Rohingya issues BREXIT Rising Protectionism & Currency WarsGreek Crisis Iran Nuclear Deal Yemen War & Implications

TOPICS

UNIT - 1 INDIA’S STRATEGIC PARTNERS

INDIA-USA1. RELATIONS 9

History of India-USA Relations 1. .................................................................9Area of Co-operation: Strategic Consultations 2. ..........................................10Area of Co-operation: Counter3. Terrorism & Internal Security .......................10Area of Co-operation: Trade & Economic 4. .................................................10Area of Co-operation :Energy & Climate Change 5. .......................................11Area of Co-operation: Science & Technology(S&T) and Space6. ......................11Area of Co-operation : People to People Ties 7. ...........................................11Area of Co-operation: Defence Cooperation 8. .............................................12Intellectual Property Issues 9. ...................................................................12Other Issues 10. .......................................................................................13The Obama Legacy 11. ...............................................................................13Recent Developments 12. ...........................................................................13

INDIA-CHIN2. A RELATIONS 16

Background of the Relationship 1. .............................................................16Economic Relation 2. ...............................................................................17China India Water Related Issue3. ..............................................................18“String of Pearls Strategy” 4. ....................................................................19APPENDIX-I: CHINA’S MARITIME SILK ROUTE Implications for India5. .............21APPENDIX-II: SOUTH CHINA SEA DISPUTE6. ...............................................23APPENDIX-III: 7. .....................................................................................27APPENDIX-IV: WATER DIPLOMACY 8. .........................................................30APPENDIX-V: CHUMBHI VALLEY & DOKLAM PLATEAU9. ...............................32APPENDIX-VI: WHY CHINA IS WINNING OVER INDIA’S NEIGHBORS10. ...............35

Contents

INDIA-RUSSIA BILATERAL RELATIONSHIP 3. 38

Shanghai Co-operation Organization 1. ......................................................39

Warming Relationship betweenPakistan and Russia 2. ..................................39

Decline in Indo-Russia Relations 3. ............................................................40

Conclusion 4. .........................................................................................41

I4. SRAEL 42

Israel and Palestine: The History 1. ............................................................42

India and Israel Relations 2. ......................................................................43

I5. NDO-JAPAN BILATERAL RELATIONSHIP 46

Historical Background 1. ..........................................................................46

Economy Centric Relationship2. ............................................................... 47

Contemporary Perspective 3. ....................................................................47

Indian Diaspora 4. ...................................................................................48

Implications of the recent visits 5. ............................................................48

Recent Developments 6. ...........................................................................48

Conclusion 7. .........................................................................................50

FRANCE6. 51

Recent Developments 1. ...........................................................................51

About Rafale Deal 2. ................................................................................51

GERMANY 7. 53

Germany-India ties 1. ..............................................................................53

Cooperation in G-4 2. ...............................................................................54

Other Cooperation 3. ...............................................................................54

INDIA-UK RELATIONS 8. 55

Conclusion 1. .........................................................................................56

INDIA-BRAZIL RELATIONS 9. 57

Conclusion 1. .........................................................................................58

UNIT - 2 MULTILATERAL BODIES & TREATIES

THE WORLD TRADE ORGANIZATION1. 60

Representation in the WTO and Economic Groupings 1. .................................61How the WTO takes decisions 2. ................................................................61The WTO’s Part in Global Economic Policy-making 3. ....................................61Nairobi Package adopted at 4. ...................................................................62105. th WTO Ministerial Conference ............................................................62Positive Outcomes 6. ...............................................................................63WTO Report on Rise of Protectionism 7. .....................................................64

INTERNATIONAL MONETARY FUND 2. 65

India gets more Voting Rightsin IMF Reforms 1. ...........................................66

NUCLEAR SECURITY SUMMIT 3. 68

What is Nuclear Security Summit? 1. ..........................................................68The fourth Nuclear Security Summit: 2016 2. ..............................................68India’s Concerns 3. ..................................................................................69Threats of Nuclear Terrorism 4. .................................................................69

ASEAN4. 70

ASEAN’s Progress Since Inception 1. ..........................................................70

BRICS 5. 74

Economic Environment in BRICS Countries 1. ..............................................74Important Developments 2. .......................................................................75Last BRICS Summit in Goa, India 3. ............................................................75BRICS-BIMSTEC Outreach Summit 4. .........................................................76

BIMSTEC 6. 77

What is BIMSTEC? 1. ...............................................................................77What are the objectives of BIMSTEC? 2. ......................................................77Prospects and Achievements 3. .................................................................77

ASIAN INFRASTRUCTURE INVESTMENT BANK 7. 79

Why AIIB has been Set up? 1. ....................................................................79

AIIB vs WB, IMF and ADB 2. ......................................................................80

AIIB’s Flipside 3. .....................................................................................80

India and AIIB 4. .....................................................................................80

IBSA8. 82

IBSA Potential 1. .....................................................................................82

Need for Revitalizing IBSA 2. ....................................................................83

India’s Policy Options 3. ...........................................................................83

Technological Collaboration 4. ..................................................................84

MULTILATERAL NEGOTIATIONS FOR A NUCLEAR WEAPONS BAN9. 85

Present Multilateral Disarmament Treaty 1. .................................................85

Salient Features of the Treaty 2. ................................................................86

INDIA ADMITTED TO AUSTRALIA GROUP 10. 88

What is Australia Group (AG)? 1. ................................................................88

When was it Established? 2. ......................................................................88

India and Australia Group (AG) 3. ...............................................................89

IAEA11. 90

About IAEA 1. .........................................................................................90

Nuclear Safety at Various Stages 2. ...........................................................90

Contributions of IAEA in Other Areas 3. ......................................................91

WASSENAAR ARRANGEMENT & INDIA12. 93

What is Wassenaar Arrangement? 1. ..........................................................93

India and Wassenaar Arrangement 2. ..........................................................94

Conclusion3. ..........................................................................................95

THE UKRAINE ISSUE 13. 96

CHANGES UNDER TRUMP ADMINISTRATION 14. 98

US withdraws from UNHRC 1. ....................................................................98What is the UN Human Rights Council? 2. ....................................................98U.S. Pulls Out of UNESCO 3. .....................................................................98USA out of Paris Pact 4. ...........................................................................99

BLACK MONEY15. 103

TERRORIST ORGANISATIONS 116. 06

SYRIAN CIVIL WAR 117. 09

MIGRATION CRISIS IN EUROPE 18. 112

ROHINGYA ISSUES 19. 115

Rohingya Repatriation Deal Signed1. ........................................................ 117

BREXIT 20. 120

RISING PROTECTIONISM &CURRENCY WARS 21. 123

GREEK CRISIS 122. 26

IRAN NUCLEAR DEAL 123. 28

YEMEN WAR & IMPLICATIONS 24. 131

INDIA’S STRATEGIC PARTNERS

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History of India-USA Relations There were many events and issues that ensured the ties never took off between India and the USA for several years after India gained Independence.

India had rejected American mediation in resolving the Kashmir dispute India refused to follow American diktat not to recognise the ‘Communist China’. India’s tilt towards Soviet Russia and USA’s tilt towards Pakistan and East Pakistan’s breakdown with the help of India.

Though, US assisted India with loans and free food immediately after Independence, to cope with an economy exploited for decades by the British Raj.Dwight D Eisenhower became the fi rst US President to visit India, in 1959, to take bilateral ties forward. In 1962 war, USA helped India with arms and ammunition. According to the recent declassifi ed account, the Kennedy administration even mulled using nuclear weapons against China in the event of another war. The US dubbed China’s action as “blatant Chinese Communist aggression against India”President Kennedy was killed in 1963. With it the direction of India US ties reversed. The Nixon administration had been helping Pakistan by aiding it militarily and economically, and during the 1971 war indirectly threatened India by deploying aircraft carrier USS Enterprise in the Bay of Bengal. India’s decision to test a nuclear weapon at Pokhran in 1974 further worsened relations. Also, India signifi cantly shifted from its stance of non-alignment and inked a Treaty of Friendship and Cooperation with the USSR, irritating the US government.President James Earl Carter, Jr. made a state visit to India under the Prime Ministership of Morarji Desai. However, the USA later banned export of nuclear material to India due to the India’s proliferation record.Though in 1980s, India placed orders for F-5 aircraft, super computers etc, and the US, in 1984, agreed to share technology to help India build naval frigates and an indigenous light combat aircraft. Much of the technology transfer did not take place. The assassination of Indira Gandhi and Bhopal Gas tragedy further strained the ties.Post 1991, Disintegrations of the USSR also broke ice, India unleashed sweeping economic reforms (Rao- Manmohan Legacy). The reforms also helped strengthen the economic cooperation with the US and the rest of the world. Till 1998, both the countries made mutual efforts to improve bilateral relationship.When the decision of government to conduct nuclear tests at Pokhran again strained the ties. USA imposed sanctions on India and even recalled their Ambassador.

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The sanctions, mostly economic, however failed to hurt India in the wake of a surging domestic economy. President Clinton made a visit to India in March, 2000. The visit saw many agreements being signed, including on the establishment of an Indo-US Science & Technology Forum. Post September 11, 2001 attacks in the US changed the US perception of terror and South Asia forever.India and the US inked an Agreement in April 2005 to boost trade, tourism and business. In 2005 itself, the two countries inked the New Framework for the US-India Defence Relationship identifying priorities for cooperation in maritime security, humanitarian assistance and counter-terrorism. In 2005, India and the US signed the Civil Nuclear Cooperation Initiative - a deal which lifted the US moratorium on nuclear trade with India and ended the nuclear apartheid against the rising India. The role of Indian Diaspora in lobbying power corridors of USA was noteworthy. India agreed to separate its civil and military nuclear facilities, while allowing IAEA inspection of the power-generation facilities. Though President Obama visited India, he supported India’s bid for a seat on the UN Security Council and signed trade deals but his administration’s move to curb US H1B visas and outsourcing of jobs to the developing world, particularly India, did not go down well with the IT industry and the government in India.A successful trip by Indian Prime Minister Narendra Modi to USA has generated Euphoria and promise of Investments.

Area of Co-operation: Strategic Consultations There have been regular contacts at political and offi cial levels on bilateral, regional and global issues. India and U.S. have in recent years instituted structured dialogues covering East Asia, Central Asia and West Asia, and have agreed on strategic consultations covering Latin America, Africa and the Indian Ocean Region. India and the U.S. also have a trilateral with Japan and a trilateral with Afghanistan.Matters relating to international security and disarmament, multilateral export control regimes are reviewed under the Strategic Security Dialogue, while issues relating to high-technology trade are discussed in the India-U.S. High Technology Cooperation Group (HTCG); The two have agreed to work closely for India’s phased entry into the global export control regimes to strengthen global non-proliferation, arms control, as well as nuclear security.

Area of Co-operation: Counter Terrorism & Internal Security

A new I ndia-US Counter-Terrorism Cooperation Initiative was signed in 2010 to expand collaboration on counter-terrorism, information sharing and capacity building. Functional level cooperation on counter-terrorism is being pursued through a Joint Working Group (JWG) on Counter Terrorism that was established in January 2000. A Homeland Security Dialogue was announced during President Obama’s visit to India in November 2010 to further deepen. India was allowed to quiz David Hadley in relation to Mumbai Terror attack.

Area of Co-operation: Trade & Economic From a modest $ 5.6 billion in 1990, the bilateral trade in merchandise goods has increased to $ 66.9 billion in 2014 to $ 126. 2 billion in 2018. India and U.S. are negotiating a Bilateral Investment Treaty (BIT). Both countries have committed to work through Trade Policy Forum to promote mutually attractive business/investment environment. A high-level IP Working Group has been established as part of Trade Policy Forum to foster innovation

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led economic growth. There exists a Commercial Dialogue (with tenure until March 2016) which provides the framework for both Governments and the private sector to collaborate on trade and commercial issues of mutual interest with a view to facilitating trade and investment opportunities across various sectors. During Prime Minister Modi’s visit in September 2014, it was decided to establish an India-US Investment initiative, with a special focus on facilitating FDI, portfolio investment, capital market development and fi nancing of infrastructure. The newly established US-India Infrastructure Collaboration Platform seeks to deploy cutting edge U.S technologies to meet India’s infrastructure needs. USAID will serve as knowledge partner for the Urban India Water, Sanitation and Hygiene (WASH) alliance with to help leverage business and civil society (Gates Foundation) to facilitate access to clean water, hygiene and sanitation in 500 Indian cities.

Area of Co-operation: Energy & Climate Change The U.S.-India Energy Dialogue was launched in May 2005 to promote trade and investment in the energy sector. Investment by Indian companies like Reliance, Essar and GAIL in the U.S. natural gas market is ushering in a new era of India-U.S. energy partnership. As a priority initiative designed to promote clean energy innovations by teams of scientists from India and the United States. The Center has funded three research projects, in the areas of solar energy, second generation bio-fuels and energy effi ciency of buildings.India and the US are advancing cooperation and dialogue on climate change through a high-level Climate Change Working Group, which had its fi rst meeting in July 2014. It has been concluded to provide US$ 1 billion in fi nancing for India’s transition to a low-carbon economy. A new U.S.-India Partnership for Climate Resilience has been agreed to, in order to advance capacity for climate adaptation planning, as also a new U.S.-India Climate Fellowship Program to build long-term capacity to address climate change-related issues.During Prime Minister Modi’s visit to the US in September 2014, the two sides set up a Contact Group for advancing the full and timely implementation of the India-US Civil Nuclear Cooperation Agreement, and to resolve pending issues.

Area of Co-operation: Science & Technology(S&T) and Space

In 2000, both the governments endowed the India-U.S. Science & Technology Forum (IUSSTF) to facilitate mutually benefi cial bilateral cooperation in science, engineering, and health. The U.S.-India Science &Technology Endowment Fund, established in 2009, under the Science and Technology Endowment Board promote commercialization of jointly developed innovative technologies with the potential for positive societal impact.The India-U.S. S&T cooperation has been steadily growing under the framework of U.S.-India Science and Technology Cooperation Agreement signed in October 2005. Collaboration between the Ministry of Earth Sciences and US National Oceanographic and Atmospheric Administration has been strengthened under the 2008 MOU on Earth Observations and Earth Sciences. A “Monsoon Desk” has been established at the U.S. National Centres for Environmental Prediction. NASA and ISRO signed an agreement for activities related to India’s Mars Orbiter Mission and the Charter for ISRO-NASA Mars Working Group. In September 2014, the Implementing Agreement for Cooperation on the NASA-ISRO Synthetic Aperture Radar (NISAR) Mission was also signed

Area of Co-operation: People to People Ties The 3-million-plus strong Indian American community is an important ethnic group in the U.S., accounting for about 1% of the total population in the country which Includes a large number of professionals, business entrepreneurs and educationalists.

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With two Indian Americans occupying high level posts of Governor and several representatives of the people, the Indian Diaspora has assimilated into their adopted country and is acting as a catalyst to forge closer and stronger ties between India and USA. Boby Jindal is even there in the race of the president of the USA.Indian talent holds top post of Tech companies like Microsoft, Google, Adobe.

Area of Co-operation: Defence Cooperation Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with the signing of ‘New Framework for India-U.S. Defence Relations’ in 2005 and the resulting intensifi cation in defence trade, joint exercises, personnel exchanges, collaboration and cooperation in maritime security and counter-piracy, and exchanges between each of the three services. An Indian Navy ship took part in Rim of the Pacifi c (RIMPAC) exercise in 2014 for the fi rst time. Aggregate worth of defence acquisition from U.S. Defence has crossed over US$ 10 billion. India and the United States have established a Defence Trade and Technology Initiative (DTTI) aimed at simplifying technology transfer policies and exploring possibilities of co-development and co-production to invest the defence relationship with strategic value. Today, India conducts more joint military exercises with the US than any other country in the world. At present, India is the world’s top arms importer, and around 75% of its arms come from Russia.Over the past decade, India has sought to diversify its supplier base, and the US is now its second- largest arms supplier - accounting for just 7% of its purchases. But in the last three years, American defence giants such as Lockheed Martin and Boeing have made signifi cant inroads into the Indian defence market and now top India’s arms supplier list.India’s push to buy arms is driven by its perception of the security threats it faces - notably China’s growing military presence and the China-Pakistan “all weather friendship” - as well as its own expanding strategic interests and big power ambitions manifested in project mausam, being a net security provider in IOR.The US-India defence agreement fi ts well into the “Make in India” campaign. But the defence collaboration between the two countries goes beyond economic considerations.The strategic implications of the India-US Defence Pact are far-reaching and should be seen against the backdrop of great power politics of the 21st century.To ensure the transformation of Afghanistan from terror torn country to stable and democratic Afghanistan, India needs strong foothold in Afghanistan.To ensure the peaceful navigation in seas including south China and East China Sea, India needs military strength.

Intellectual Property Issues International Intellectual Property (IP) index

The U.S. Chamber of Commerce’s Global Intellectual Property Center (GIPC) has released its third annual international intellectual property (IP) index list. In this list India is placed at 29th rank among the 30 countries. While, US has been placed at the top in the list and Thailand at last position. GIPC’s Intellectual property (IP) index was started in 2012 and the fi rst edition compared national IP environment in 11 economies. Now, this index is represented by 30 countries around the world which represents 80 per cent of the world’s gross domestic product (GDP). It is based upon 30 measurable criteria which includes patent, copyright and trademark protections, enforcement, and engagement in international treaties.

Current IP Scenario in India In recent years, industry has become discouraged by India’s IPR environment, and US authorities have called IPr issues a major roadblock in bilateral relations. Specifi cally, weak IP laws are holding back three major sectors - pharmaceutical, technology, and entertainment.

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One example is the recent patent revocation of Roche’s osteoporosis drug, Boniva, which occurred after a post-grant opposition fi led by Cipla. This is concerning, and indicates momentum within the bureaucracy to continue to disregard fundamental patent rights.Another example of the impact of a weak IPr environment comes from the IT and entertainment industries.Over the last 10 years, the entertainment industry has claimed that pervasive copyright infringement has resulted in a signifi cant decline in earnings for conventional record labels. Companies cannot be expected to contribute to the country’s growth if they face serious upfront issues that have such a direct impact on revenue.In order to send a signal to investors that India is ready to get serious about intellectual property protection, political leadership is needed. Companies need assurances that their IPR will be protected. The continued use of patent revocations and denials may cause investors to lose confi dence in the Indian market, despite the country having huge technological, technical and creative potential.

Corrective Measures A strong IP system is directly proportionate to creating more jobs, providing better growth opportunities, and pumping more capital into the economy.To capitalize on the many benefi ts which IP provides, India can introduce appropriate legislation, support policies, and encourage legal decisions that embrace - rather than inhibit - innovation and intellectual property. The continued threat of compulsory licenses (CLs) send a chilling signal to global innovators that the market is not safe for their IP. A repudiation of the use of CLs would do much to increase investor’s confi dence in India.Section 3(d) of the Indian Patent Act introduced an additional step - “enhanced effi cacy” - for patentability, which is inconsistent with India’s obligations under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement and limits an innovative company’s ability to further improve an existing medicine, which often times enhances its life saving potential.Steps taken to reduce the patent backlog and provide a fair, transparent dispute resolution mechanism would signifi cantly strengthen India’s overall IP system.The government’s commitment to enhance cooperation and exchange information with the US on IP-related issues under the US-India Trade Policy Forum is one such positive step. Meanwhile, the formation of a six-member IPR Think Tank by the Department of Industrial Policy & Promotion is another initiative in the same direction.

Other Issues The ceiling for H-1B visas is 85,000 per year, a quota that is usually reached in a matter of days. India’s software companies and the many U.S. companies that depend on their services want a higher ceiling.

The Obama Legacy The Obama legacy in foreign relations is realizing and recognizing the course of US foreign policy. Thawing of relations with Cuba, the lifting of Trade embargo and a landmark nuclear deal with Iran (Discussed in Iran section) are example of this. Thus, Obama doctrine is- “Engage the perceived Enemy while preserving the capabilities of USA”. It can be called the Soft Power tilt of USA’s foreign policy. It also has the element of economic engagement diplomacy- the Trans pacifi c partnership and transatlantic trade and investment partnership are examples of this engagement.

Recent Developments Bilateral relations have developed into a “global strategic partnership” The US Senate has unanimously approved a move to enhance military co-operation.

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Civil Nuclear Cooperation Announced completion of all steps to begin implementation of CNC Nov 10. The civil nuclear initiative has been strengthened by the regular meeting of the Indo US Civil Nuclear Working Group (CNWG). U.S. assurances of support for its membership in four nuclear regimes viz. NSG Already admitted as a member of MTCR

Trade and Economic Relations. Commercial Dialogue has been set up to cover:

Trade Defence Measures Small and Medium Enterprises and Capacity building on Intellectual Property Rights (IPRs).

Mutual Investments U.S. is the third largest source of foreign direct investments into India. Cumulative FDI infl ows amounted to about $ 11.1 billion (6% of total FDI)

Energy Cooperation The U.S.-India Energy Dialogue was launched on May 31, 2005 To promote increased trade and investment in the energy sector

Defence ties U.S. administration wants India to sign three agreements -

The Communications and Information Security Memorandum of Agreement (CISMOA). The Logistics Support Agreement (LSA). The Basic Exchange and Cooperation Agreement (BECA) for geospatial intelligence.

Strengthened strategic and defense ties with the U.S India is avoiding steps that could provoke a major reaction from Beijing.

DTTI (Defense Technology and Trade Initiative) & Make in India. Enhance cooperation in support of the ‘Make in India’ initiative Expand co-prod and co-devp of technologies under DTTI.

Impact of President Trump

He is highly unpredictable and has already discredited CIA and thus, his foreign policy would be a completely new and can be random and erratic.

His questioning of the value of military alliances, highlighted by his comment on the obsolescence of NATO, given its inability to combat terrorism effectively, and his call for proportional parity in fi nancial and military contributions to fund NATO, raised alarm bells in a Europe already grappling with economic, political and security crises.Additionally, he seemed to abandon the long held American position on the proliferation of nuclear weapons by expressing indifference to the possibility of Japan, South Korea, and Saudi Arabia developing their own nuclear weapons programmes. He also praised Russian president Putin and expressed hope to vanquish ISIS by collaborating with Russia in Syria.Trump rejected globalisation and promised to bring back manufacturing jobs to the U.S. by repudiating extant international trade agreements. Apart from threatening to impose tariffs of up to 45% on imports from China and 35% on those from Mexico, he also promised to pull the U.S. out of the Trans-Pacifi c Partnership (TPP), renegotiate the North American Free Trade Agreement (NAFTA), and possibly withdraw from the World Trade Organisation (WTO).As part of his anti-immigration tirade, Trump proposed the termination of the H-1B visa programme of which the Indian IT industry has been the greatest benefi ciary.

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The immediate response of various leaders has been to accommodate and adjust to his pronouncements even before Trump assumes offi ce. Prime Minister Modi was among the fi rst to congratulate him the day after he became the president-elect despite the possible hit to Indian IT exports in services to the U.S.China’s offi cial statement claims that the U.S. has no option but to cooperate with it while surrogate Chinese analysts have argued that a trade war would hurt American consumers the most. Russia has been offi cially correct, but analysts have hoped that U.S.-Russia relations can improve, especially by cooperating against terrorism in Syria.Mexico has expressed concern, threatened as it is with the building of a wall on the U.S.-Mexico border, the levying of high tariffs on its exports to the U.S., and deportation of illegal Hispanic immigrants from the U.S. But the Canadian prime minister immediately offered to renegotiate NAFTA.The Japanese prime minister, who became the fi rst foreign leader to be received by Trump, expressed satisfaction about their exchange, despite the cavalier manner in which Trump had discounted nuclear and defence treaty obligations to Japan, apart from the criticism on unfair trade practices.Meanwhile, shaken by Trump’s criticism of NATO, European leaders like Angela Merkel have sought to remind him of their common values of “democracy, freedom, as well as respect for the rule of law and the dignity of each and every person, regardless of their origin, skin colour, creed, gender, sexual orientation, or political views”.Trump’s win apart, there have been other major infl ection points after the Second World War that have caused geopolitical dislocations. These include:

The creation of a new political and economic world order, dominated by the West in the form of the United Nations Security Council and the Bretton Woods institutions respectively. While these institutions were created for global governance, there continues to be an over-representation and infl uence of the West and an equivalent neglect of the developing world in their functioning.The end of the Cold War in 1991 diminished the ideological polarisation and rivalry that had dominated international politics for nearly fi ve decades. This led to the commencement of an era of U.S. unipolar hegemony that lasted until about 2010 when China replaced Japan as the second largest economy in absolute terms and overtook the U.S. as the largest in purchasing power parity (PPP) terms in 2013.The relative economic decline of the U.S. was paralleled by the historically unprecedented scale and speed of the rise of China, which achieved double digit rates of growth from 2003 to 2010 (with the exception of 2008). Therefore, in 2013, a confi dent president Xi Jinping proposed to President Obama ‘a new type of great power relations’: in effect, the sort of superpower condominium that existed between the U.S. and the USSR during the Cold War.

By this time too, the myth of the peaceful rise of China had begun to be discredited by the economic and military pressure that it began to exert on island neighbours, such as Japan (by withholding exports of rare earth materials) and the Philippines (by choking the fl ow of Chinese tourists).That both these countries are security treaty allies of the U.S. signaled a challenge to the U.S. itself. The contemptuous Chinese dismissal of the judgment of the Permanent Court of Arbitration (PCA), rejecting its exaggerated claims to islands in the South China Sea, has strained relations with the West and brought ASEAN unity to breaking point. Small member countries of ASEAN, such as Cambodia and Laos, had begun to attach more importance to the economic largesse from China over the need to support other members, such as, Vietnam and Philippines, in their island disputes with China.

Critically examine international framework pertaining to nuclear liability? What Q 1. are nuclear liability principles? Also enumerate logjams in implementation of civil nuclear cooperation agreement between India and the USA.

Practice Question

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