CSEET Reference Reading Material - II PDF
Document Details
Uploaded by DignifiedStatistics8684
2024
ICSI
Tags
Summary
This document is a reference reading material for the CSEET exam. It covers current affairs of national and international importance, along with quantitative aptitude concepts.
Full Transcript
CS E ET REFERENCE READING MATERIAL - II Part 4 : Current Affairs and Quantitative Aptitude ICSI House, 22, Instuonal Area, Lodi Road, New Delhi 110 003 tel 011-4534 1000 fax +91-11-2462 6727 email [email protected] website www.ics...
CS E ET REFERENCE READING MATERIAL - II Part 4 : Current Affairs and Quantitative Aptitude ICSI House, 22, Instuonal Area, Lodi Road, New Delhi 110 003 tel 011-4534 1000 fax +91-11-2462 6727 email [email protected] website www.icsi.edu i April, 2024 Price Rs. 1,000/- (Set of 2 Books) (Excluding Postage) © THE INSTITUTE OF COMPANY SECRETARIES OF INDIA All rights reserved. No part of this publication may be translated or copied in any form or by any means without the prior permission of The Institute of Company Secretaries of India. Disclaimer : Although due care and diligence have been taken in preparation of this reference reading material, the Institute shall not be responsible for any loss or damage, resulting from any action taken on the basis of the contents of this material. Anyone wishing to act on the basis of the material contained herein should do so after cross checking with the original source. Published by : THE INSTITUTE OF COMPANY SECRETARIES OF INDIA ICSI House, 22, Institutional Area, Lodi Road New Delhi 110 003 Phones : 011-4534 1000, 4150 4444 Fax +91-11-2462 6727 E-mail : [email protected] Website : www.icsi.edu Laser Typeset by: AArushi Graphics, New Delhi ii CSEET REFERENCE READING MATERIAL - II PART 4 : CURRENT AFFAIRS AND QUANTITATIVE APTITUDE A. CURRENT AFFAIRS* B. QUANTITATIVE APTITUDE (FOR MCQs PLEASE REFER CSEET GUIDE II) *Updated as on April, 2024 iii iv Current Affairs A. CURRENT AFFAIRS LESSONS 1. International and National Affairs 13 2. Financial Affairs 61 3. Political Affairs 75 4. Legal and other Affairs 109 5. Business and Economy 135 1 Total Marks – 70 Current Affairs SYLLABUS PART 4 : CURRENT AFFAIRS Objective: l To test the Awareness of Candidates with reference to Current Affairs of National and International Importance. Total Marks – 30 S. No. Topic Sub Topic 1 National and Current affairs of National and International importance relating to : International l International Bodies such as ASEAN, BRICS, SAARC, G-20, BIMSTEC Current Affairs l Organizations like, RBI, NABARD, CCI, IBBI, IMF, OECD, ADB, World Bank l Summits and Conferences l Current development in Banking and Finance such as digital banking, govt. initiatives, financial inclusion l Current development in stock markets l Recent important judgments passed by Supreme Court and High Courts of India, Tribunals l Current affairs related to CS Institute/Profession and Regulatory Bodies l Current updates on Environment, Bio-Diversity, Climate Change and Sustainable Development l Latest Developments in Science And Technology, IT, Computers and Space Science l Business Personalities and Leaders l Committees and Appointments l Current Political Scenario l Initiatives/ Schemes of the Government l Governance and Ethics l International Diplomacy 2 Business and l International Trade Agreements Economy l Export Import Scenarios l Recent Appointments of Chairman/MD/CEO of renowned companies l Recent Mergers and Acquisitions of Companies in India and Abroad l Other Recent Business Developments 2 Current Affairs ARRANGEMENT OF STUDY LESSONS S. No. Lesson Topics Covered 1. International and National l International bodies (ASEAN, BRICS, SAARC, G-20, Affairs BIMSTEC, International Finance Corporation, etc.) l Organizations like, RBI, NABARD, CCI, IBBI, IMF, OECD, ADB, World Bank l Summits and Conferences l Business Personalities and Leaders l International Diplomacy 2. Financial Affairs l Current development in Banking and Finance (Digital Banking, Govt. Initiatives, Financial Inclusion.) l Current development in Stock Markets 3. Political Affairs l Current Political Scenario l Committees and Appointments l Initiatives/ Schemes of the Government l Governance and Ethics 4. Legal and other Affairs l Recent important judgments passed by Supreme Court and High Courts of India, Tribunals l Current affairs related to CS Institute/Profession and Regulatory Bodies l Current updates on Environment, Bio-diversity, Climate Change and Sustainable Development l Latest Developments in Science and Technology, IT, Computers and Space Science 5. Business and Economy l Current Political Scenario l International Trade Agreements l Export Import Scenarios l Recent Appointments of Chairman/MD/CEO of renowned companies l Recent Mergers and Acquisitions of Companies in India and Abroad l Other Recent Business Developments 3 Current Affairs CONTENTS LESSON 1 INTERNATIONAL AND NATIONAL AFFAIRS INTERNATIONAL BODIES 14 International Monetary Fund 14 INTERNATIONAL BODIES 14 International Monetary Fund 14 – Objectives of IMF 14 – Financial Assistance by IMF 14 – IMF Resources 14 – The IMF Surveillance 16 – The IMF Capacity Development 16 World Bank 17 – Five Constituent Institutions under World Bank 17 International Finance Corporation (IFC) 18 – History of IFC 18 – About IFC 19 – Functions of IFC 20 – Funding by International Finance Corporation 20 – IFC’s Strategic Alignment with the SDGs 21 The Association of Southeast Asian Nations (ASEAN) 22 – Aim and Purpose 22 – ASEAN Charter 23 – ASEAN Summit 23 – ASEAN Chairmanship 24 BRICS 25 South Asian Association For Regional Cooperation (SAARC) 26 The Group of Twenty (G-20) 27 – About G20 27 – History of G20 Summit 27 – How the G-20 works? 28 – Major takeaways from the New Delhi Declaration 29 4 Current Affairs The Bay of Bengal Initiative for Multi-Sectoral Technical and 30 Economic Cooperation (BIMSTEC) – Sectors 31 – Purpose of BIMSTEC 32 Asian Development Bank 33 – Areas of Work 33 – Financing and Investment by Asian Development Banks 34 – Private Sector Financing 34 – Loans and other debt instruments 34 – Equity investments 34 – Guarantees 35 – Loan Syndication 35 – Blended Finance 35 The Organisation for Economic Co-Operation and Development (OECD) 35 – A Brief History 36 NATIONAL BODIES 37 NITI AAYOG 37 – Objective 37 – Relevance of NITI Aayog 39 Reserve Bank of India (RBI) 41 – Main Functions 41 – Related Functions 42 Securities and Exchange Board of India (SEBI) 43 Competition Commission of India (CCI) 46 – The Competition Act 46 – The Competition Commission of India 46 The Insolvency and Bankruptcy Board of India (IBBI) 47 The Institute of Company Secretaries of India (ICSI) 47 SUMMITS AND CONFERENCES 49 G7 Summit 49 – About G7 49 – Major Outcomes of G7 Summit, 2023 49 5 Current Affairs – G-7 Summit 2022 50 – Major Outcomes of G7 Summit, 2022 51 World Investor Week 2023 52 – About IOSCO 52 SCO Summit 2023 52 – Key Highlights of the 23rd SCO Summit 52 BUSINESS PERSONALITIES AND LEADERS 54 Business Personalities 54 INTERNATIONAL DIPLOMACY 57 Quad Leaders’ Summit 57 – Initiatives unveiled in Quad summit 2022 58 Sample Multiple Choice Questions (MCQs) 59 LESSON 2 FINANCIAL AFFAIRS CURRENT DEVELOPMENT IN BANKING 62 Reserve Bank of India 62 – Introduction 62 – Main functions of RBI 62 CURRENT DEVELOPMENT IN FINANCE/STOCK MARKETS 65 Capital Market Indices 65 A brief overview of Social Stock Exchange 66 T+0 Settlement Cycle 72 IEPFA and DBS Bank ink MoU to spread awareness on investment and 73 fraudulent schemes NSE gets Sebi nod to set up Social Stock Exchange 73 Sample Multiple Choice Questions (MCQs) 74 LESSON 3 POLITICAL AFFAIRS CURRENT POLITICAL SCENARIO 76 Governors 76 Lt. Governors & Administrators 77 Chief Ministers 77 6 Current Affairs COMMITTEES AND APPOINTMENTS 79 Committee and Appointment 79 – Vice Admiral Dinesh Kumar Tripathi appointed as the next Chief of the Naval Staff 79 – Appointment of Election Commissioners 79 – Shri AS Rajeev appointed as Vigilance Commissioner in the Central Vigilance 79 Commission – Government appoints Members of the Sixteenth Finance Commission 79 – President Droupadi Murmu appoints new governors of Odisha, Tripura 80 – Centre sets up committee to prepare draft digital competition law 80 – Dr. Michael Debabrata Patra re-appointed as RBI Deputy Governor 82 GOVERNMENT INITIATIVES/SCHEMES 83 Highlights of Interim Budget 2024-25 83 – Launch of Pradhan Mantri Vishwakarma Yojana 96 – Cabinet approves establishment of an autonomous body Mera Yuva Bharat 97 – Establishment of National Turmeric Board 98 – Launch of ‘Viksit Bharat @2047: Voice of Youth’ 99 – PLI Schemes contribute to increase in production, employment generation, and 99 economic growth – Launch of National Logistics Policy 100 – Highlights of New National Education Policy (NEP) 100 GOVERNANCE AND ETHICS 103 IREDA Launches CSR Portal to Improve Transparency in CSR Initiatives 103 Launch of New CSR guidelines ‘Sagar Samajik Sahayog’ 103 Good Governance Initiatives by Ministry of Corporate Affairs to speed up 104 decision-making for ease of doing business to usher in a healthy environment for investment and corporate growth SEBI notifies governance norms for REITs, InvITs similar to listed companies 105 Framework for Disclosures by Fund Management Entities for Environmental, Social or 105 Governance (ESG) Schemes NFRA to introduce Annual Transparency Report by the Audit Firms 107 Reduction of time limit for verification of Income Tax Return (ITR) from within 107 120 days to 30 days of transmitting the data of ITR electronically Sample Multiple Choice Questions (MCQs) 108 7 Current Affairs LESSON 4 LEGAL AND OTHER AFFAIRS RECENT IMPORTANT JUDGMENTS PASSED BY SUPREME COURT, HIGH COURTS AND TRIBUNALS 110 IN INDIA Supreme Court 110 – Constitutional Provisions 110 – Organisation of Supreme Court 110 High Courts in India 110 Administrative Tribunals 111 National Company Law Tribunal 111 National Company Law Appellate Tribunal 112 Some recent important judgement by Supreme Court, High Court and Tribunals 112 – Supreme Court decision on Electoral Bond Scheme 112 – Supreme Court judgement on Hindenburg Report Case 113 Vishal Tiwari (Petitioner) Vs. Union of India & Ors. (Respondents) – Climate crisis impacts citizens’ right to life: Supreme Court 114 – SC verdict on abrogation of Article 370 115 – Supreme Court upheld by 4:1 majority the Central Government decision on 115 demonetise the Rs 1,000 and Rs 500 denomination notes – Daughter’s right to inherit self-acquired property 116 CURRENT AFFAIRS RELATED TO ICSI 117 About the Institute of Company Secretaries of India 117 – The ICSI elects its New President and Vice President for the year 2024 117 – ICSI Related Updates 117 CURRENT UPDATES ON ENVIRONMENT, BIO-DIVERSITY, CLIMATE CHANGE AND SUSTAINABLE 121 DEVELOPMENT – Historic Resolution on Promoting Sustainable Lifestyles 121 – Green Credit Programme (GCP) 121 – India’s achievements against the NDC targets 122 – India Cooling Action Plan 122 – G20 Initiatives under India’s Presidency - Environment and Climate Sustainability 122 Work Group (ECSWG) – Forest Conservation 123 8 Current Affairs – 95% of Apple’s Supply Chain Commits to 100% Renewable Energy Use by 2030 123 – Transforming manufacturing: Embracing the circular economy and ESG initiatives 124 – Canada to Mandate Plastic Reporting, Tracking from Plastic Manufacturers and 124 Importers – 82% of Business Leaders Confident in Meeting New Sustainability Disclosure 124 Requirements: Honeywell Survey – CII brings out new corporate governance charter for startups 125 COP28 : UN Climate Change Conference 125 – Introduction 125 – Major outcomes from COP 28 125 – Launch of NITI Aayog report, ‘A Green and Sustainable Growth Agenda for the 127 Global Economy’ – United Nation’s Conference of Parties 127 – Government extends Rooftop Solar Programme till March 2026 128 – India embarked on new initiatives in renewable energy: Environment Minister 128 LATEST DEVELOPMENTS IN SCIENCE AND TECHNOLOGY, INFORMATION TECHNOLOGY 129 COMPUTERS AND SPACE SCIENCE – NASA announces plan to build First Railway System on Moon 129 – India delivers first batch of BrahMos Missiles to Philippines 129 – Cabinet Approves Over Rs 10,300 Crore for IndiaAI Mission 130 – Launches DoT’s Digital Intelligence Platform (DIP) and Chakshu Facility 130 – Digital Intelligence Platform (DIP) 130 – Chakshu facility on Sanchar Saathi portal 130 – Launch of Chandrayaan-3 131 – Honourable Prime Ministers of India and Singapore Launch Real-time Payment 132 Systems Linkage between the Two Countries – Google launches anti-misinformation campaign in India 132 – Government launches DigiYatra Facility at 3 Airports 132 – Launch of 5G Services 132 – Government mandates registration of IMEI number of all mobile phones 133 before sale in India Sample Multiple Choice Questions (MCQs) 134 9 Current Affairs LESSON 5 BUSINESS AND ECONOMY INTERNATIONAL TRADE AGREEMENTS 136 – Free Trade Agreements (FTAs) 136 – India-EFTA Trade and Economic Partnership Agreement 136 – MoU signed between International Solar Alliance and International Aviation Group 138 – Virtual Launch of UPI-PayNow Linkage between India and Singapore 138 – Joe Biden Calls Air India-Boeing Deal a Historic Event, Will Grant 1 million Jobs in US 139 – Cabinet approves Air Services Agreement between India and Guyana 139 – Objectives of the Agreement 140 – Benefits under Trade in Goods 140 – Benefits under Trade in Services 140 – EU-India Trade and Technology Council 140 – Need for Trade and Technology Council 141 – Rolls-Royce Marine North America and Kalyani Strategic Service sign an Agreement 141 – Cabinet approves MoU between India, Chile in Agricultural Sector 141 – Cabinet Approves Signing of the MoU between the India and South Africa for 141 cooperation in Disability Sector – India, Fiji Ink MoU on visa exemption for diplomatic, official passport holders 141 – India signs MoU with Indonesia-Malaysia-Thailand Growth Triangle Joint Business 141 Council to promote adoption of energy efficiency – India welcomes Congo into International Solar Alliance 142 – Reliance announces partnership with Sri Lanka’s Maliban 142 – India signed MoU Between Prasar Bharati and National Media Authority of Egypt 142 – Indo-Russian Joint Venture Embarked Manufacturing AK-203 Assault Rifles in U.P 142 EXPORT IMPORT SCENARIOS 143 Indian Export Performance in 2023-24 143 – India’s Foreign Policy 2023-28 143 – Highlights of India’s Foreign Trade Policy 2023- 2028 143 – India Lifts Export Restrictions on Essential Goods for Maldives 145 – PM Launched 100,000sqm Bharat Mart in Dubai for Exports 145 – Record Growth in Indian Defence Exports: A Milestone Achievement 145 10 Current Affairs Releases ‘E-Commerce Exports Handbook for MSMEs’ 145 Government permits rupee settlement in export promotion schemes 146 Cabinet approves setting up of a national level Multi-state cooperative export society 146 under Multi State Cooperative Societies (MSCS) Act, 2002 Centre formulates action plan to promote exports of millets and value-added products 146 of millets Union Budget to give a boost to exports and manufacturing 147 Measures taken by Government to boost exports 148 One District One Product (ODOP) initiative operationally merged with ‘Districts as 148 Export Hub (DEH)’ initiative Import in Defence Sector 149 RECENT APPOINTMENTS OF CHAIRMAN/MD/CEO OF RENOWNED COMPANIES 151 RECENT MERGERS AND ACQUISITIONS OF COMPANIES IN INDIA AND ABROAD 155 – HDFC Bank Group Granted RBI Approval to Purchase 9.5% Stake in 6 Banks 155 – Parent Company of IndusInd Bank to Purchase 60% Stake in Invesco India 155 Asset Management – SBI Mutual Fund Receives RBI Approval for Acquisition of 9.99% Stake in Karur Vysya Bank 155 – SBI to acquire 20% stake in SBI Pension Funds 155 – Edelweiss Alternatives backed platform acquires L&T Infrastructure Development 155 Projects for Rs 6,000 crore – Elon Musk/Twitter 156 – Tata Group/Air India 156 – Adani Group/NDTV 156 – PVR/INOX Merger 156 – HDFC Ltd/HDFC Bank Merger 156 – Adani Group/Ambuja Cement 156 – Microsoft Activision/Blizzard 156 – Moj/MX TakaTak Merger 157 – Broadcom/VMWare 157 – Zomato/Blinkit 157 OTHER RECENT BUSINESS DEVELOPMENTS 158 – GeM crosses `4 Lakh Crore in GMV at the end of this Fiscal Year, doubles business in 158 a year – Bharat Tex 2024 158 11 Current Affairs – India ranks 38 out of 139 countries on World Bank’s Logistics Performance Index 158 Report 2023; India’s rank has improves by sixteen places from 54 in 2014 – AIM– NITI Aayog launches new accelerator to support Australian and Indian 159 circular economy startups to rise – Uber Signed MoU with Tata Motors for 25000 EVs 159 – Bajaj Finance Launched Insurance Mall for Easy-Buy Experience 159 – ChatGPT introduces boom in AI-written e-books on Amazon 160 – Reliance unveiled India’s 1st hydrogen-powered tech for heavy-duty trucks 160 – Reliance Retail to Accept Digital Currency for Payments 160 – Google Invests $300 million in Artificial Intelligence Startup Anthropic 160 – Foxconn, Vedanta plan tech tie-up with STM for Semiconductor Manufacturing unit in 161 India – Bharti Airtel to Invest Rs 2,000 Crore to set up Hyperscale data Centre in Hyderabad 161 Sample Multiple Choice Questions (MCQs) 162 12 Current Affairs LESSON 1 INTERNATIONAL AND NATIONAL AFFAIRS 13 Current Affairs CSEET Reference Reading Material - II INTERNATIONAL BODIES INTERNATIONAL MONETARY FUND The International Monetary Fund (IMF) is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s. 44 founding member countries sought to build a framework for international economic cooperation. Today, its membership embraces 190 countries, with staff drawn from 150 nations. The IMF is governed by and accountable to the 190 countries that make up its near-global membership. The IMF’s primary purpose is to ensure the stability of the international monetary system – the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macro-economic and financial sector issues that bear on global stability. The IMF’s fundamental mission is to ensure the stability of the international monetary system. It does so in three ways: (i) keeping track of the global economy and the economies of member countries; (ii) lending to countries with balance of payments difficulties; and (iii) giving practical help to members. Objectives of IMF IMF was developed as an initiative to promote international monetary cooperation, enable international trade, achieve financial stability, stimulate high employment, diminish poverty in the world and sustain economic growth. Initially, there were 29 countries with a goal of redoing the global payment system. Today, the organization has 190 members. The main objectives of the International Monetary Fund (IMF) are as under: l To improve and promote global monetary cooperation of the world. l To secure financial stability by eliminating or minimizing the exchange rate stability. l To facilitate a balanced international trade. l To promote high employment through economic assistance and sustainable economic growth. l To reduce poverty around the world. Financial Assistance by IMF IMF lending aims to give countries breathing room to implement adjustment policies in an orderly manner, which will restore conditions for a stable economy and sustainable growth. These policies will vary depending upon the country’s circumstances. For instance, a country facing a sudden drop in the prices of key exports may need financial assistance while implementing measures to strengthen the economy and widen its export base. A country suffering from severe capital outflows may need to address the problems 14 Lesson 1 - International and National Affairs Current Affairs that led to the loss of investor confidence-perhaps interest rates are too low; the budget deficit and debt stock are growing too fast; or the banking system is inefficient or poorly regulated. The causes of crises are varied and complex. They can be domestic, external, or both. Domestic factors include inappropriate fiscal and monetary policies, which can lead to large current account and fiscal deficits and high public debt levels; an exchange rate fixed at an inappropriate level, which can erode competitiveness and result in the loss of official reserves, and a weak financial system, which can create economic booms and busts. Political instability and weak institutions also can trigger crises. External factors include shocks ranging from natural disasters to large swings in commodity prices. Both are common causes of crises, especially for low-income countries. With globalization, sudden changes in market sentiment can result in capital flow volatility. Even countries with sound fundamentals can be severely affected by economic crises and policies elsewhere. The COVID-19 pandemic was an example of external shock affecting countries across the globe. The IMF responded with unprecedented financial assistance to help countries protect the most vulnerable and set the stage for economic recovery. Some other crises situations are depicted below: l Balance of payment problems occur when a nation is unable to pay for essential imports or service its external debt. l Financial crises stem from illiquid or insolvent financial institutions. l Fiscal crises are caused by excessive deficits and debt. It also provides precautionary financing to help prevent and insure against crises. The IMF’s lending toolkit is continuously refined to meet countries’ changing needs. IMF Resources IMF funds come from following three sources: 1. Member quotas- Quotas are the IMF’s main source of financing. Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. The IMF regularly reviews quotas to assess their adequacy overall and their distribution among members. The Board of Governors of the International Monetary Fund (IMF) concluded the 16th General Review of Quotas on December 15, 2023 and approved an increase of IMF members quotas by 50 percent (SDR 238.6 billion, or US$320 billion), which will bring total quotas to SDR 715.7 billion (US$960 billion). 2. New Arrangements to Borrow- The New Arrangements to Borrow (NAB) constitutes a second line of defence. Through the NAB, certain member countries and institutions stand ready to lend additional resources to address challenges to the international monetary system. NAB activation requires support from 85% of participants eligible to vote. 3. Bilateral borrowing agreements- Bilateral Borrowing Agreements serve as a third line of defines after quotas and the NAB. Since the onset of the global financial crisis, the IMF has entered into several rounds of bilateral borrowing agreements (BBAs) to meet its members’ financing needs. Activation of the agreements requires support of 85% of creditors eligible to vote. 15 Current Affairs CSEET Reference Reading Material - II The IMF Surveillance The IMF monitors the international monetary system and global economic developments to identify risks and recommend policies for growth and financial stability. The Fund also undertakes a regular health check of the economic and financial policies of its 190 member countries. In addition, the IMF identifies possible risks to the economic stability of its member countries and advises their governments on possible policy adjustments. The IMF Capacity Development The IMF provides technical assistance and training to governments, including central banks, finance ministries, revenue administrations, and financial sector supervisory agencies. These capacity development efforts are centered on the IMF’s core areas of expertise ranging from taxation through central bank operations to the reporting of macro-economic data. Such training also helps countries tackle cross-cutting issues, such as income inequality, gender equality, corruption, and climate change. Fast Facts Membership 190 countries Headquarters Washington, D.C. 24 Executive Directors each representing a single Executive Board country or groups of countries. Amount available for lending $ 1 trillion Current Lending Arrangements 34 Recipient Countries of emergency pandemic 76 financing Primary aims of IMF to: l Promote international monetary cooperation; l Facilitate the expansion and balanced growth of international trade; l Promote exchange stability; l Assist in the establishment of a multilateral system of payments; and l Make resources available (with adequate safeguards) to members experiencing balance-of- payments difficulties. IMF Leadership Managing Director Kristalina Georgieva First Deputy Managing Director Gita Gopinath Deputy Managing Director Antoinette Sayeh 16 Lesson 1 - International and National Affairs Current Affairs Deputy Managing Director Kenji Okamura Deputy Managing Director Bo Li India at a Glance* 2024 Projected Real GDP (% Change) 6.5 Date of Membership December 27, 1945 Article IV/Country Report December 18, 2023 Special Drawing Rights (SDR) 13688.31 million Quota (SDR) 13114.4 million Number of Arrangements since membership 7 *Data extracted from the IMF website on April 09, 2024. (For more information, students may visit https://www.imf.org/external/) WORLD BANK World Bank is an international organization affiliated with the United Nations (UN) and designed to finance projects that enhance the economic development of member states. Headquartered in Washington, D.C., the bank is the largest source of financial assistance to developing countries. It also provides technical assistance and policy advice and supervises -on behalf of international creditors - the implementation of free-market reforms. Together with the International Monetary Fund (IMF) and the World Trade Organization, it plays a central role in overseeing economic policy and reforming public institutions in developing countries and defining the global macroeconomic agenda. Five Constituent Institutions under World Bank The World Bank Group comprises following five constituent institutions that share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable growth and development. 1. The International Bank for Reconstruction and Development (IBRD) - provides loans at market rates of interest to middle-income developing countries and creditworthy lower-income countries. 2. The International Development Association (IDA) - provides interest-free long-term loans, technical assistance, and policy advice to low-income developing countries in areas such as health, education, and rural development. 3. The International Finance Corporation (IFC) - operating in partnership with private investors, provides loans and loan guarantees and equity financing to business undertakings in developing countries. 17 Current Affairs CSEET Reference Reading Material - II 4. The Multilateral Investment Guarantee Agency (MIGA) - Loan guarantees and insurance to foreign investors against loss caused by non-commercial risks in developing countries are provided by the MIGA. 5. The International Centre for Settlement of Investment Disputes (ICSID)- is responsible for the settlement by conciliation or arbitration of investment disputes between foreign investors and their host developing countries. World Bank Leadership World Bank Group Ajay Banga, President International Finance Corporation Makhtar Diop, Managing Director Multilateral Investment Guarantee Agency Hiroshi Matano, Executive Vice president The International Centre for Settlement of Meg Kinnear, Secretary General Investment Disputes World Bank News World Bank keeps India’s FY25 GDP growth estimate unchanged at 6.4% (January 09, 2024) The World Bank kept its FY25 economic growth projection for India unchanged at 6.4 per cent, mainly on account of strong domestic demand, rising public infrastructure spending and strong private- sector credit growth. However, it projected that the private consumption growth might taper off due to high food inflation and diminishing pent-up demand. In its biannual ‘Global Economic Prospects’ report, the World Bank said India was likely to maintain the fastest growth rate among the world’s largest economies, but its post-pandemic recovery was expected to slow, with estimated growth of 6.3 per cent in FY24, before recovering gradually to 6.5 per cent in FY26. For details: https://www.business-standard.com/economy/news/world-bank-keeps-india-s-gdp- growth-projection-unchanged-at-6-4-for-fy25-124010901108_1.html INTERNATIONAL FINANCE CORPORATION (IFC) History of IFC More than Six decades ago, a few dozen countries made a calculated bet on the transformative potential of the private sector in developing countries. They put up $100 million in capital and established IFC to reinforce the work of the World Bank in spurring growth and development. Today, IFC is the largest global development institution focused on the private sector, having delivered nearly $250 billion in financing to businesses in emerging markets. Throughout its history, IFC has introduced new approaches to meet the needs of developing countries. Initially, it helped to bring leading multinational companies to developing countries— beginning in 1957, when IFC invested alongside Siemens in Brazil. In addition, as businesses in these countries began to thrive, IFC deployed its staff to local markets to be closer to clients. Over time, IFC helped drive growth by providing investment and advice, and by mobilizing resources from other capital providers. 18 Lesson 1 - International and National Affairs Current Affairs IFC consistently brought to bear a distinctive set of advantages in working with the private sector to end extreme poverty and boost shared prosperity—a history of innovation, a mandate for global influence, an understanding of the demonstration effect of its actions, and a determination to achieve measurable development impact. About IFC The International Finance Corporation (IFC) is a sister organization of the World Bank and member of the World Bank Group is the largest global development institution focused exclusively on the private sector in developing countries. The Bank Group has set two goals for the world to achieve by 2030: 1. End Extreme Poverty; and 2. Promote shared prosperity in every country. The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries. IFC was founded in 1956 on a bold idea : that the private sector has the potential to transform developing countries. Since then IFC has expanded its horizons in more than 100 countries, coining the term “emerging markets” and pioneering new markets such as sustainable bonds. The mission of IFC is Advance economic development by encouraging the growth of private enterprise in developing countries. The IFC helps the countries to develop their private sectors in a variety of ways: m Investing in companies through loans, equity investments, debt securities and guarantees. m Mobilizing capital from other lenders and investors through loan participations, parallel loans and other means. m Advising businesses and governments to encourage private investment and improve the investment climate. Since 2009, the IFC has focused on a set of development goals that its projects are expected to target. Its goals are to increase sustainable agriculture opportunities, prove healthcare and education, increase access to financing for microfinance and business clients, advance infrastructure, help small businesses grow revenues, and invest in climate health. The IFC is owned and governed by its member countries but has its own executive leadership and staff that conduct its normal business operations. It is a corporation whose shareholders are member governments that provide paid- in capital and have the right to vote on its matters. Originally, it was more financially integrated with the World Bank Group, but later, the IFC was established separately and eventually became authorized to operate as a financially- autonomous entity and make independent investment decisions. It offers an array of debt and equity financing services and helps companies face their risk exposures while refraining from participating in a management capacity. The corporation also offers advice to companies on making decisions, evaluating their impact on the environment and society, and being responsible. It advises governments on building infrastructure and partnerships to further support private sector development. 19 Current Affairs CSEET Reference Reading Material - II Functions of IFC l It provides a wide range of investment and advisory services that help businesses and entrepreneurs in the developing world meet the challenges they face in the marketplace. l It offers innovative financial products to private sector projects in developing countries. These include loans for IFC’s own account (also called A-loans), equity financing, quasi- equity financing, syndicated loans (or B-loans), risk management products, and partial credit guarantees. IFC often provides funding to financial intermediaries that on-lend to clients, especially small and medium enterprises. l It also provides advisory services that help build businesses. Much of IFC’s advisory work is conducted by facilities managed by IFC but funded through partnerships with donor Governments and other multilateral institutions. Other sources of funding include donor country trust funds and IFC’s own resources. l It can provide a mix of financing and advisory services that is tailored to meet the needs of each project. But the bulk of the funding, as well as leadership and management responsibility, lies with private sector owners and investors. Funding by International Finance Corporation IFC’s first investment came in September 1957. It was a $2 million, 15-year loan to help the local affiliate of German electrical equipment manufacturer Siemens build Brazil’s first integrated assembly plant to supply local utilities. Many more loans ensued in different markets in the coming years, financing steel products plants in India and Pakistan, textiles in El Salvador, and cement production in Thailand. In 1960, IFC first invested in Africa with a $2.8 million loan package for the new Kilombero Sugar Co. operation in Tanzania. IFC is an active issuer of ESG bonds also known as Socially Responsible Investments. A subset of loan portfolio is funded through its established Green Bond program which finances climate friendly projects and Social Bond Program which finances projects that aim to alleviate social issues. Both programs are fully aligned to the capital markets’ most referenced frameworks: The Green Bond Principles and The Social Bond Principles. All projects financed by IFC must adhere to stringent ESG standards and our Sustainability Framework which help our clients do business in a sustainable way. Under funding program, IFC issues bonds in a variety of markets, formats, and currencies - including global benchmarks bonds, green and social bonds, uridashi notes, private placements, and discount notes. In addition, IFC issues local-currency bonds to develop domestic capital markets and facilitate local-currency lending. A brief on some of the funding instruments are discussed below: l Benchmark & Global Bonds- IFC issues various Benchmark and Global Bonds such as U.S. Dollar Benchmark Bonds, USD SOFR Floating Rate Notes Bonds, Australian Dollar Public Bonds, British Pound Sterling Public Bonds, New Zealand Dollar Public Bonds etc. l Discount Notes- IFC’s Discount Note Program was launched in June 2009 and provides an additional funding and liquidity management tool for IFC to support our trade finance and supply chain initiatives, and to expand the availability of short-term local currency finance. Our discount notes offer a high-quality, short-term investment opportunity in U.S. dollar and Chinese renminbi. 20 Lesson 1 - International and National Affairs Current Affairs l Green Bonds - IFC is one of the world’s largest financiers of climate-smart projects for developing countries. IFC was also one of the earliest issuers of green bonds, launching a Green Bond Program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. l Impact Notes - IFC is one of the world’s largest financiers of climate-smart projects for developing countries. Since 2005 - when we started to track climate-smart components of our investments and advisory services - IFC has provided more than $28 billion in long-term financing and raised over $22.3 billion in core mobilization through partnerships with investors. IFC was also one of the earliest issuers of green bonds, launching a Green Bond Program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. l MTNs & Structured Notes- IFC aims to maintain the position as an active and flexible issuer of plain vanilla and structured notes. Our structured notes offer investors a yield pickup and can accommodate investor needs. IFC currently allows: m Interest rate linked, foreign exchange linked, equity index linked, commodity linked, floating rate notes (FRNs), Bermudan and European callable, and hybrid notes. m Minimum size of $3 million equivalent with maturities ranging from one to 30 years. IFC has an active buyback program, serving as a liquidity backstop for IFC’s issuances. l Social Bonds - IFC’s Social Bond Program, launched in 2017, offers bond investors an opportunity to allocate investments to the achievement of certain SDGs without any additional credit risk than that of IFC as a triple-A rated issuer. Proceeds from the bonds go towards financing select projects from IFC’s Banking on Women and Inclusive Business programs, which benefit under- served populations in emerging markets including women and low-income communities with limited access to essential services such as basic infrastructure, finance etc. IFC is a frequent issuer of social bonds in public and private markets, in various currencies and tenors. The Social Bond Program aligns with the Social Bond Principles published by the International Capital Market Association (ICMA). IFC’s Strategic Alignment with the SDGs IFC seeks to create markets through several ways: by demonstrating successful innovative business models that can be replicated; by stimulating competitiveness through efficiency gains, cost and/or price reductions, and new market entrants; by improving business regulatory frameworks to enable the development and growth of a vibrant private sector in a sustainable manner; and by building capacity and skills that open new market opportunities. This will enable IFC to achieve impact beyond what is obtained with the financing from IFC’s own balance sheet. IFC is playing a key role in the World Bank Group’s Maximizing Finance for Development approach. To meet the ambitious SDGs, there is a need to expand the role of the private sector and mobilize private capital while reserving scarce public resources. Together with the World Bank and the Multilateral Investment Guarantee Agency (MIGA), IFC is working on this initiative by focusing on mobilizing private sector solutions for development and by creating markets that enable private investment to contribute to the achievement of the SDGs. 21 Current Affairs CSEET Reference Reading Material - II IFC contributes to the SDGs through two pathways, namely: project outcomes and market creation. IFC measures and reports on project outcomes, including the direct impact on stakeholders (including customers, suppliers, government, and the community), the indirect and induced effects on the economy (value added, employment, etc.), and environment and social impacts. In addition, IFC projects are assessed for the ability to create markets, defined as enabling the development of new markets or contributing to systemic improvements in how markets function and deliver sustainable development impact. THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding countries of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. The current members of the group include Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam. Brunei Darussalam joined on 7 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up ten Member States of ASEAN. H.E. Dr. Kao Kim Hourn is the Secretary General of ASEAN. ASEAN Member States l Brunei Darussalam l Malaysia l Singapore l Cambodia l Myanmar l Thailand l Indonesia l Philippines l Vietnam l Lao PDR Aim and Purpose As set out in the ASEAN Declaration, the aims and purposes of ASEAN are: 1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations; 2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter; 3. To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific and administrative fields; 4. To provide assistance to each other in the form of training and research facilities in the educational, professional, technical and administrative spheres; 5. To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples; 22 Lesson 1 - International and National Affairs Current Affairs 6. To promote Southeast Asian studies; and 7. To maintain close and beneficial cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves. ASEAN Charter The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legal status and institutional framework for ASEAN. It also codifies ASEAN norms, rules and values; sets clear targets for ASEAN; and presents accountability and compliance. The ASEAN Charter entered into force on 15 December 2008 at the presence of ASEAN Foreign Ministers at the ASEAN Secretariat in Jakarta. With the entry into force of the ASEAN Charter, ASEAN will henceforth operate under a new legal framework and establish a number of new organs to boost its community-building process. In effect, the ASEAN Charter is the legally binding agreement among the 10 ASEAN Member States. It will also be registered with the Secretariat of the United Nations, pursuant to Article 102, Paragraph 1 of the Charter of the United Nations. The importance of the ASEAN Charter can be seen in the following contexts: l New political commitment at the top level l New and enhanced commitments l New legal framework, legal personality l New ASEAN bodies l Two new openly-recruited DSGs l More ASEAN meetings l More roles of ASEAN Foreign Ministers l New and enhanced role of the Secretary-General of ASEAN l Other new initiatives and changes. l What remains unchanged? ASEAN Summit The ASEAN Summit is the highest policy-making body in ASEAN comprising the Head of States or Government of ASEAN Member States. The ASEAN Summit is held twice annually at a time to be determined by the Chair of the ASEAN Summit in consultation with other ASEAN Member States. The summit is to be hosted by the ASEAN Member State holding the ASEAN Chairmanship. The First ASEAN Summit was held in Bali, Indonesia on 23-24 February 1976. The 43rd ASEAN Summits was held on September 4-7, 2023 under the leadership of President Joko Widodo of Indonesia. In this Summit, Honourable Prime Minister of India presented a 12-point proposal for strengthening India - ASEAN cooperation covering connectivity, digital transformation, trade and economic engagement, addressing contemporary challenges, people-to-people contacts and deepening strategic engagement, as follows: 23 Current Affairs CSEET Reference Reading Material - II l Establishing multi-modal connectivity and economic corridor that links South-East Asia-India- West Asia-Europe l Offered to share India’s Digital Public Infrastructure Stack with ASEAN partners l Announced ASEAN-India fund for Digital Future focusing on cooperation in digital transformation and financial connectivity l Announced renewal of support to Economic and Research Institute of ASEAN and East Asia (ERIA) to act as knowledge partner for enhancing our engagement l Called for collectively raising issues being faced by Global South in multilateral fora l Invited ASEAN countries to join Global Centre for Traditional Medicine being established by WHO in India l Called for working together on Mission LiFE. l Offered to share India’s experience in providing affordable and quality medicines to people through Jan-Aushadhi Kendras. l Called for collective fight against terrorism, terror financing and cyber disinformation l Invited ASEAN countries to join Coalition for Disaster Resilient Infrastructure l Called for cooperation in disaster management l Called for enhanced cooperation on maritime safety, security and domain awareness ASEAN Chairmanship The Chairmanship of ASEAN shall rotate annually based on the alphabetical order of the English names of Member States. A Member State assuming the Chairmanship shall chair the ASEAN Summit and related summits, the ASEAN Coordinating Council, the three ASEAN Community Councils, relevant ASEAN Sectoral Ministerial Bodies and senior officials, and the Committee of Permanent Representatives – Article 31 of the ASEAN Charter. The Member State holding the Chairmanship of ASEAN shall actively promote and enhance the interests and well-being of ASEAN, including efforts to build an ASEAN Community through policy initiatives, coordination, consensus and cooperation; ensure the centrality of ASEAN; ensure an effective and timely response to urgent issues or crisis situations affecting ASEAN, including providing its good offices and such other arrangements to immediately address these concerns; represent ASEAN in strengthening and promoting closer relations with external partners; and carry out such other tasks and functions as may be mandated. – Article 32 of the ASEAN Charter. (For more information, students may visit https://asean.org/about-us) ASEAN in News ASEAN Chairmanship 2024 - Laos PDR The theme “ASEAN: Enhancing Connectivity and Resilience” aim at reflecting the challenges and opportunities that the ASEAN region has faced over the past decades, reported local media. 24 Lesson 1 - International and National Affairs Current Affairs In the face of challenges from economic and financial difficulties, climate change, natural disasters, cyber and traditional security issues, Laos realises the significance of increasing connectivity and resilience as a way to reinforce the ASEAN Community and effectively deal with current and emerging threats. For details: https://en.vietnamplus.vn/laos-announces-theme-logo-of-asean-chairmanship-2024/ 270672.vnp BRICS BRICS is an informal group of states comprising the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa. BRICS leaders announced the admission of six new countries -Argentina, Ethiopia, Iran, Saudi Arabia, Egypt and the United Arab Emirates - into the bloc from January 01, 2024. In 2006, the foreign ministers of Brazil, Russia, India, and China met for the first time on the sidelines of the UN General Assembly, marking the beginning of BRIC cooperation. In June 2009, the BRIC leaders held their first meeting in Russia, upgrading BRIC cooperation to Summit level. In 2011, with South Africa officially becoming a member, BRIC was enlarged to BRICS. Since 2009, the BRICS leaders have convened 14 formal meetings and 9 informal meetings. In 2016, India became the head of the Association. The culmination of its presidency was the eighth summit of BRICS, which was held in the Indian state of Goa on 15-16 October. Its motto was ‘The Formation of popular, inclusive and collective decisions’. The leaders of five countries signed the Declaration of Goa, which expressed a coherent position on issues related to the development of the Association and critical issues. At the summit in Goa, the issues of energy, trade, banking cooperation, agriculture, space utilization and other common spaces, health, education, development of humanitarian contacts and tourism, the fight against poverty and social inequality were discussed. In addition to the Declaration was signed a number of sectoral agreements. BRICS is an important grouping bringing together the major emerging economies from the world, comprising 41% of the world population, having 24% of the world GDP and over 16% share in the world trade. BRICS countries have been the main engines of global economic growth over the years. Over a period of time, BRICS countries have come together to deliberate on important issues under the three pillars of political and security, economic and financial and cultural and people to people exchanges. Over the past 16 years since the establishment of BRICS, the foundation for cooperation has been consolidated and the areas of cooperation have been expanded. It has become an all-round and multi-level framwork, with BRICS Summit playing a leading role, supported by BRICS Meetings of Ministers of Foreign Affairs and the Meetings of National Security Advisers, carrying out practical cooperation in dozens of areas, such as economy and trade, finance, science and technology, industry, agriculture, culture, education, health, think tanks, and friendship cities. With the growing strength of the five countries, BRICS cooperation has deepened and become more tangible. The influence of BRICS cooperation has gone beyond the five countries and become a constructive force for boosting world economic growth, improving global governance and promoting democracy in international relations. 25 Current Affairs CSEET Reference Reading Material - II In recent years, the influence and attractiveness of the BRICS mechanism has been increasing. The BRICS countries uphold fairness and justice, actively promote reform of the global governance system and make the BRICS voice heard on international and regional hotspot issues. This has not only enhanced the say of emerging markets and developing countries in the world, but also made BRICS an important platform for promoting South-South cooperation. BRICS cooperation has been widely recognized by developing countries, and its status and role in multilateral mechanisms such as the United Nations, the G20, the World Bank and the International Monetary Fund have been rising and growing. The World must unite as one to decisively confront global challenges. Corrective action must begin with the reform of institutions of global governance. This has been on the BRICS agenda since its inception. Shri Narendra Modi, Hon’ble Prime Minister of India BRICS in News 15th BRICS SUMMIT The 15th BRICS summit was hosted by South Africa in Johannesburg from August 22 to August 24, 2023, holds significant importance against the backdrop of geopolitical changes and global economic dynamics. The theme for the 15th BRICS Summit was “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”. 16th BRICS Summit 16th BRICS Summit will be held in Russia from October 22-24, 2024. (For more news, students may visit http://brics2022.mfa.gov.cn/eng/gyjzgj/jzgjjj/) SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC) The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka on 8 December 1985. SAARC comprises of eight Member States: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The Secretariat of the Association was set up in Kathmandu on 17 January 1987. The objectives of the Association as outlined in the SAARC Charter are: to promote the welfare of the peoples of South Asia and to improve their quality of life; to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials; to promote and strengthen collective self-reliance among the countries of South Asia; to contribute to mutual trust, understanding and appreciation of one another’s problems; to promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; to strengthen cooperation with other developing countries; to strengthen cooperation among themselves in international forums on matters of common interests; and to cooperate with international and regional organizations with similar aims and purposes. Decisions at all levels are to be taken on the basis of unanimity; and bilateral and contentious issues are excluded from the deliberations of the Association. 26 Lesson 1 - International and National Affairs Current Affairs Ambassador Mr. Md. Golam Sarwar, a Senior Diplomat from Bangladesh, joined the SAARC Secretariat in Kathmandu, Nepal, as the fifteenth Secretary General of the Association on 25 October 2023. Current Chair: Nepal From Date: 26-11-2014 (Till Date) (For more updates, students may visit http://saarc-sec.org/) THE GROUP OF TWENTY (G-20) About G20 The Group of Twenty (G20) is the premier international forum for global economic cooperation. The participants are leaders from 19 countries and the European Union (EU). The members of the G20 are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, Republic of South Africa, Turkey, United Kingdom, United States of America, and the European Union (EU). In addition, leaders of invited guest countries and representatives of invited guest international organizations participate in the summit along with leaders from the G20 members. The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”. As the “premier forum for international economic cooperation” (agreed by leaders at the Pittsburgh Summit in September 2009), representing more than 80% of the global GDP, the G20 has made continuous efforts toward achieving robust global economic growth. As globalization progresses and various issues become more intricately intertwined, the recent G20 summits have focused not only on macro economy and trade, but also on a wide range of global issues which have an immense impact on the global economy, such as development, climate change and energy, health, counter-terrorism, as well as migration and refugees. The G20 has sought to realize an inclusive and sustainable world through its contributions towards resolving these global issues. The host country of the G20 summit leads the group over the course of one year from December through the following November as the G20 presidency. The G20 presidency also organizes relevant ministerial and working group meetings. History of G20 Summit After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries is needed in discussions on the international financial system, and G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting in 1999. The G20 Finance Ministers and Central Bank Governors meetings were centered on major economic and monetary policy issues amongst major countries in the global financial system and aimed at promoting cooperation towards achieving stable and sustainable global economic growth for the benefit of all countries. The participating members in the meetings were the same as the current G20 members. In November 2008, the inaugural G20 Summit was held in Washington, D.C. in response to the global financial crisis that occurred in the wake of the collapse of the Lehman Brothers. The G20 Meeting of Finance Ministers and Central Bank Governors was upgraded to the head of the state level, as a forum 27 Current Affairs CSEET Reference Reading Material - II for leaders from major developed and emerging market countries. In September 2009, the third summit was held in Pittsburgh where the leaders designated the G20 as the “premier forum for international economic cooperation.” From thereon, the summit meetings were held semi-annually until 2010 and annually from 2011 onwards. The G20 holds a strategic role in securing future global economic growth and prosperity. Together, The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two- thirds of the world population. Each year, the Presidency invites guest countries, which take full part in the G20 exercise. Several international and regional organizations also participate, granting the forum an even broader representation. vv 1999 vv llllllllllllll vv 2008 vv Inception of G20 Elevation to Leader’s Level The G20 was founded in 1999 The G20 was upgraded to after the Asian financial crisis the level of Heads of State/ as a forum for the Finance Government in the wake of the Ministers and Central Bank global economic and financial Governors to discuss global crisis of 2007, and, in 2009, was economic and financial designated the “premier forum issues. for international economic cooperation”. The G20 Summit is held annually, under the leadership of a rotating Presidency. The G20 initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, climate change, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption. How the G-20 works? The presidency of the G20 rotates every year among its members, with the country that holds the presidency working together with its predecessor and successor, also known as Troika, to ensure the continuity of the agenda. Currently India , Brazil and South Africa are the Troika countries. The G20 has no permanent secretariat. Agenda and the work coordination are completed by G20 leaders’ personal representatives, known as sherpas together with finance ministers and central bank governors. The pinnacle of the G20 work in each cycle is a communiqué expressing members’ commitments and vision for the future, drafted from the chosen recommendations and deliverables from ministerial meetings and other work streams. 28 Lesson 1 - International and National Affairs Current Affairs G20 in News Highlights of G20 Summit 2023 The G20 summit held in New Delhi surprised many by achieving consensus among world leaders. Here are the key moments from the summit: l Welcoming the African Union: The Group of 20, representing 85 percent of the world’s GDP, extended a warm welcome to the African Union as its newest member. Indian Prime Minister Narendra Modi, the summit’s host, highlighted the significance of India’s presidency in amplifying the voices of the Global South. l Diplomatic Milestone: Prime Minister Modi initiated the formal proceedings by inviting African Union President Azali Assoumani to join world leaders, symbolized by the ceremonial gavel. The G20, which previously comprised 19 countries and the European Union, saw South Africa as its sole African member. The African Union, with 55 members (excluding six junta-ruled nations), boasts a collective GDP of $3 trillion and a population of 1.4 billion. l Ukraine Conflict Division: The G20 leaders remained divided over the Ukraine conflict, with Russian President Vladimir Putin opting to skip the summit. In an attempt to prevent diplomatic embarrassment, India urged members to agree on a statement that toned down earlier condemnations of the war. The resulting statement denounced the use of force for territorial gain but avoided directly naming Russia, acknowledging differing views on the situation. l Climate Change Standoff: Despite a UN report emphasizing the necessity of phasing out fossil fuels, G20 leaders could not reach an agreement on this matter. This disagreement casts a shadow over upcoming climate discussions in November in the United Arab Emirates, where G20 nations account for 80 percent of global emissions. However, for the first time, the G20 endorsed tripling global renewable energy capacity and acknowledged the need to peak emissions before 2025 to limit warming to 1.5 degrees Celsius. l The Modern Spice Route: A diverse coalition, including the United States and Saudi Arabia, unveiled ambitious plans to establish a modern-day Spice Route connecting Europe, the Middle East, and India. This initiative envisions the development of railways, ports, electricity and data networks, and hydrogen pipelines, presenting an alternative to China’s extensive infrastructure investments. One proposed project aims to enhance trade between India and Europe by up to 40 percent by linking rail and port facilities across the Middle East. These plans also hold the potential to foster improved relations between Israel and Gulf Arab states In a historic development, the New Delhi Declaration was adopted on September 09, 2023 by the leaders of the G20 leaders during the Leader’s Summit in Delhi. Major takeaways from the New Delhi Declaration l The biggest takeaway of the declaration was that all 83 paras of the declaration were passed unanimously with a 100 per cent consensus along with China and Russia in agreement. For the first time, the declaration contained no footnote or Chair’s Summary. l Also, the declaration being the most ambitious, contained 112 outcomes — both the outcomes and annexed documents — which is two-and-a-half- times more than any other. 29 Current Affairs CSEET Reference Reading Material - II l Launch of the Global Biofuels Alliance in the presence of US President Joe Biden, President of Brazil Luiz Inacio, President of Argentina, Alberto Fernández and Prime Minister of Italy Giorgia Meloni. It is one of the priorities under India’s G20 Presidency. Brazil, India, and the United States, as leading biofuel producers and consumers, will work together during the next few months towards the development of a Global Biofuels Alliance along with other interested countries. l Launch of a mega India-Middle East-Europe shipping and railway connectivity corridor by India, the US, Saudi Arabia and the European Union. The India-Middle East-Europe Economic Corridor (IMEE EC) will encourage and provide impetus to economic development through enhanced connectivity and economic integration between Asia, West Asia/Middle East and Europe. The corridor will consist of two separate corridors (i) East Corridor connecting India to West Asia/Middle East and (ii) Northern Corridor connecting West Asia/Middle East to Europe. It will include a rail line that, which upon completion, will provide a reliable and cost-effective cross- border ship-to-rail transit network to supplement the existing multi-modal transport routes enhancing transshipment of goods and services between South East Asia through India to West Asia/Middle East Europe. Notably, a major and historic takeaway of India’s presidency of the G20 Summit has been the inclusion of the African Union as a permanent member of the Group of 20 (G20). G20 New Delhi Leaders’ Declaration adopted on September 09, 2023 can be accessed at: https:// static.pib.gov.in/WriteReadData/specificdocs/documents/2023/sep/doc202399250001.pdf Following the conclusion of the two-day G20 summit in New Delhi, Prime Minister Narendra Modi handed over the presidency gavel to Brazilian President Luiz Inácio Lula da Silva. The two leaders also held a bilateral meeting, where they agreed to work together for the expansion of India-MERCOSUR Preferential Trade Agreement during Brazil’s MERCOSUR Presidency, to leverage the full potential of their economic partnership. For details : https://economictimes.indiatimes.com/news/newsblogs/g20-summit-2023-live-news- delhi-traffic-restrictions-xi-jinping-pm-narendra-modi-latest-updates-09-september-2023/live- blog/103522450.cms (For more updates, students may visit https://g20.org/) THE BAY OF BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND ECONOMIC COOPERATION (BIMSTEC) BIMSTEC is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity. This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration. It constitutes seven Member States: five deriving from South Asia, including Bangladesh, Bhutan, India, Nepal, Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand. Initially, the economic bloc was formed with four Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri Lanka and Thailand Economic Cooperation). Following the inclusion of Myanmar on 22 December 1997 during a special Ministerial Meeting in Bangkok, the Group was renamed ‘BIMST-EC’ (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation). With the admission of Nepal and Bhutan at the 6th Ministerial 30 Lesson 1 - International and National Affairs Current Affairs Meeting (February 2004, Thailand), the name of the grouping was changed to ‘Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation’ (BIMSTEC). The regional group constitutes a bridge between South and Southeast Asia and represents a reinforcement of relations among these countries. BIMSTEC has also established a platform for intra- regional cooperation between SAARC and ASEAN members. The BIMSTEC region is home to around 1.5 billion people which constitute around 22% of the global population with a combined gross domestic product (GDP) of 2.7 trillion economy. In the last five years, BIMSTEC Member States have been able to sustain an average 6.5% economic growth trajectory despite global financial meltdown. The objective of building such an alliance was to harness shared and accelerated growth through mutual cooperation in different areas of common interests by mitigating the onslaught of globalization and by utilizing regional resources and geographical advantages. Unlike many other regional groupings, BIMSTEC is a sector-driven cooperative organization. Starting with six sectors—including trade, technology, energy, transport, tourism and fisheries—for sectoral cooperation in late 1997, it expanded to embrace nine more sectors—including agriculture, public health, poverty alleviation, counter-terrorism, environment, culture, people to people contact and climate change—in 2008. Being a sector-driven grouping, cooperation within BIMSTEC had initially focused on six sectors in 1997 (trade, technology, energy, transport, tourism, and fisheries) and expanded in 2008 to incorporate agriculture, public health, poverty alleviation, counter-terrorism, environment, culture, people-to- people contact, and climate change. Subsequently, following steps to rationalize and reorganize sectors and sub-sectors, cooperation was reorganized in 2021 under the following sectors and sub- sectors led by the respective Member States: Sectors Bangladesh : Trade, Investment and Development Bhutan : Environment & Climate Change India : Security Sub-sectors: Counter-Terrorism and Tras-national Crime, Disaster Management, Energy Myanmar : Agriculture and Food Security Sub-sectors: Agriculture, Fisheries & Livestock Nepal : People-to-People Contact Sub-sectors: Culture, Tourism, People-to-People Contact (forums of think tanks, media etc.) Sri Lanka : Science, Technology & Innovation (Sri Lanka) Sub-sectors: Technology, Health, Human Resource Development Thailand : Connectivity H. E. Shri Indra Mani Pandey assumed office as the Secretary-General of BIMSTEC in October, 2023. He is the fourth BIMSTEC Secretary-General. 31 Current Affairs CSEET Reference Reading Material - II Purpose of BIMSTEC l To create an enabling environment for rapid economic development through the identification and implementation of specific cooperation projects in the already agreed areas of cooperation and such other areas that may be agreed upon by the Member States. Member States may periodically review the areas of cooperation. l To accelerate the economic growth and social progress in the Bay of Bengal region through joint endeavours in a spirit of equality and partnership. l To promote active collaboration and mutual assistance on matters of common interest in the economic, social, technical and scientific fields. l To provide assistance to each other in the form of training and research facilities in the educational, professional and technical spheres. l To cooperate more effectively in joint efforts that are supportive of and complementary to national development plans of the Member States which result in tangible benefits to the people in raising their living standards, including generating employment and improving transportation and communication infrastructure. l To cooperate in projects that can be dealt with most productively on a regional basis among the BIMSTEC Member States and that make best use of available synergies. l To maintain peace and stability in the Bay of Bengal region through close collaboration in combating international terrorism, transnational organized crimes as well as natural disasters, climate change and communicable diseases. l To maintain close and beneficial cooperation with existing international and regional organizations with similar aims and purposes. l To endeavour to eradicate poverty from the Bay of Bengal region. l To establish multidimensional connectivity, promote synergy among connectivity frameworks in the region, as a key enabler to economic integration for shared prosperity. l To promote trade and investment as a major contributing factor for fostering economic and social development in the region. BIMSTEC in News BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Aquatic Championship 2024 (February 05, 2024) India hosted the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Aquatic Championship 2024 in New Delhi from 5-10 February 2024, as an initiative to foster regional cooperation spirit in the Bay of Bengal Region. The BIMSTEC Aquatic Championship played a catalytic role in making the Bay of Bengal Region a sports powerhouse. This initiative will lead towards creation of a culture of games and sports for the world’s most young Region. Ref: https://www.mea.gov.in/press-releases.htm?dtl/37564/BIMSTEC_Bay_of_Bengal_Initiative_for_ MultiSectoral_Technical_and_Economic_Cooperation_Aquatic_Championship_2024 32 Lesson 1 - International and National Affairs Current Affairs Shri Indra Mani Pandey will be the next Secretary General of the Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation (BIMSTEC) October 20, 2023 Shri Indra Mani Pandey will be the next Secretary General of the Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation (BIMSTEC). He is an Indian Foreign Service Officer of 1990 batch and is presently the Ambassador/Permanent Representative of India to the United Nations and other International Organisations in Geneva. This is the first time that an Indian will hold the position of the Secretary General of BIMSTEC. (For more information, students may visit https://bimstec.org/) ASIAN DEVELOPMENT BANK The Asian Development Bank (ADB) was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and co-operation in one of the poorest regions in the world. The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region. ADB assists its member and partners, by providing loans, technical assistance, growth and other equity investments to promote social and economic development ADB is composed of 68 members 49 of which are from Asia and the Pacific region. Areas of Work The ADB is committed to achieve a prosperous and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. ADB supports projects in developing member countries that create economic and development impact, delivered through both public and private sector operations, advisory services, and knowledge support. ADB in partnership with member governments, independent specialists and other financial institutions is focussed on delivering projects in developing member countries that create economic and developments impact. As a multilateral development finance institution, ADB provides: l loans l technical assistance l grants ADB maximizes the development impact of its assistance by: l facilitating policy dialogues, providing advisory services, and l mobilizing financial resources through co-financing operations that tap official, commercial, and export credit sources. 33 Current Affairs CSEET Reference Reading Material - II Financing and Investment by Asian Development Banks Private Sector Financing ADB undertakes non-sovereign operations to provide financing to eligible recipients in developing member countries (DMCs). Non-sovereign operations comprise the provision of any loan, guarantee, equity investment, or other financing arrangement to privately held, state-owned, or sub-sovereign entities, in each case, (i) without a government guarantee; or (ii) with a government guarantee, under terms that do not allow ADB, upon default by the guarantor, to accelerate, suspend, or cancel any other loan or guarantee between ADB and the related sovereign. ADB catalyzes private investments through direct financing, credit enhancements, and risk mitigation instruments. ADB provides direct funding assistance through loans and equity investments. ADB offers political risk guarantee and partial credit guarantee instruments to enhance the risk profiles of transactions to attract both foreign and local commercial lenders to projects in the DMCs, and to encourage them. Through co-financing and guarantees, ADB also support local investors, domestic banks, and financial institutions to provide funds on suitable terms for ADB-assisted development projects. ADB also mobilizes additional resources for projects through a “B-loan” arrangement. Loans and other debt instruments ADB offers hard currency loans, both senior and subordinated, as well as mezzanine financing. ADB also offer local currency loans in selective markets on a case to case basis. Interest rates and other terms vary, depending on a company’s or project’s needs and risks. l Rates - In pricing its loans, ADB considers prevailing market rates in the relevant country and sector, factoring in country and transaction risks. ADB provides floating rate loans at a spread above the Secured Overnight Financing Rate (SOFR) or Euro interbank rate, depending on the currency. It also offers fixed-rate loans at the fixed-rate swap equivalent of floating-rate loans. l Fees - Market-based fees are charged. Typically, on floating-rate loans, ADB charges a once- only front-end fee as well as an ongoing commitment fee on the undisbursed balance. ADB also charge a fee to cover upfront costs associated with due diligence. Project sponsors or clients will reimburse out-of-pocket expenses, such as travel and external advisory services (i.e., legal counsel, technical consultants, and environmental and insurance advisors, if any). l Security - ADB will seek security appropriate for the loan and type of financing. Equity investments ADB may invest directly in an enterprise. It offers financing through equity investments, including direct equity investments in the form of common shares, preferred stock, or convertibles. Equity investments in enterprises, especially financial institutions, occur before an initial public offering. ADB does not seek a controlling interest in an investee company, and will not assume any management responsibilities. It will, however, typically wish to reserve the right to appoint a nominee or an observer to the board of directors of each of its investee companies and to selected board committees, and will exercise voting rights as a shareholder. It will maintain regular contact with company management and require periodic reports on the progress of capital projects, operating performance, financial condition of the enterprise, and economic value added. ADB also requires 34 Lesson 1 - International and National Affairs