GS Analyst: Daily Current Affairs

Context:

With the recently introduced India-Middle East-Europe Corridor (IMEC) has immense potential to put India, Middle East and Europe on collective path to growth, triggering regional and global cooperation.

Historic Establishment of IMEC

• Global Summit for Connectivity: World leaders convened in New Delhi to establish IMEC, fostering trade and connectivity on a global scale.
• Ancient Roots, Modern Vision: IMEC draws inspiration from ancient trade routes, envisioning a reliable, cost-effective transport network for goods and services.
• Revolutionizing Regional Trade: IMEC shortens transit times and enhances accessibility, promising economic benefits for India, the Middle East, and Europe.

IMEC's Dual Corridors and Infrastructure Challenges

• Two Vital Corridors: IMEC comprises an eastern corridor connecting India to the Arabian Gulf and a northern corridor linking the Gulf to Europe.
• Eastern Strength, Western Potential: India boasts robust infrastructure in the east, while the west offers established sea routes to Europe.
• Bridging Land Gaps: The main challenge is connecting Gulf and Mediterranean ports, especially the critical Saudi Arabia-Haifa Standardization and funding are essential.

IMEC's Advantages and Vision

• Green and Sustainable Growth: IMEC includes electricity and hydrogen pipelines, contributing to eco-friendly development and reduced greenhouse gas emissions.
• India's Leadership Role: India, as a regional leader, can support rail projects through its public sector units, enhancing connectivity.
• Global Cooperation for Prosperity: IMEC initiates a new era of global cooperation, fostering socio-economic development across continents, benefiting millions.

Context:

Health is today a political priority and is linked with economic interests and international relations. It's concerning that the world's leaders cannot make sure that poorer countries must get what need from global rules and systems.

Global South in Foreign Policy

• Inclusive Global Leadership: G20 presidencies from the Global South show a positive trend in prioritizing the needs of less endowed countries.
• Questioning equity: The intersection of global health and foreign policy raises questions about equity.
• Health must be the priority: Foreign policy's role in health can be either self-serving or driven by global altruism.

Challenges in Global Health Governance

• Lack of R & D: Global health governance should ensure equitable access to healthcare, fair R&D, and balanced research
• Gaps in global leadership: The COVID-19 pandemic exposed gaps in global leadership, with national interests often taking precedence.
• Cooperation form international bodies: Existing frameworks like the International Health Regulations and WHO fell short in addressing the pandemic's challenges.

The Way Forward for Global Governance

• Need of a strategy: Geopolitical interests often overshadow global equity, highlighting the need for checks and balances.
• Aligning National Interest: Future conventions must focus on aligning national interests with global equity goals.
• Covert commitments to policies: Effective global governance mechanisms are essential to translate commitments into action for the benefit of all nations.

Context:

The increasing trend of food inflation in the country has led to a made it a political agenda for elections, but with fewer results.

India's Inflation Challenges

• Inflation trends: India's headline inflation remains high at 6.83%, above the acceptable range of 2-6% set by the Reserve Bank of India.
• Food inflation: it is a crucial factor for the public, is still at 9.19%, influencing political outcomes.
• Political Impact: Past elections have been shaped by rising food prices, such as the "Onion elections" in 1980 and 1998.

Persistent Food Inflation:

• Increasing Consumer Food Price Index (CFPI): Despite overall inflation dropping, food inflation remains concerning at 9.19%, with Consumer Food Price Index (CFPI) even higher.
• Rapid rising Vegetable prices: They have soared by 26.14%, with spices and pulses following closely.
• Creating Urban-Rural Divide: Rural areas face higher food inflation, creating a significant urban-rural divide.

State Disparities

• Politicization of price-rise in states: Inflation rates vary across states, potentially leading to political debates in upcoming elections.
• Varied growth: Maharashtra, a top onion-producing state, has shown slower production growth compared to Bihar, Madhya Pradesh, and Karnataka.
• Supply-Side Solutions: Low-production states must improve yield, invest in supply chains, and avoid market-distorting measures for effective inflation management.