International Relations

India’s move to release 5 million barrels of oil from its strategic reserves as part of a coordinated challenge led by the US against the OPEC+ producers’ cartel’s move to curb output.

Background:

·         It is part of a concerted effort ( USA, China, EU , Britain , Republic of India )to negate upward pressure on crude costs from OPEC+ — a 13-country grouping of oil exporters that has been joined since 2016 by ten others led by Russia to make a decision production quotas — keeping provide below demand, even though the action is largely symbolic in nature.

·         India has called for an increase in the provide by OPEC+ at multiple international forums and in bilateral talks with oil manufacturing countries. India argues that top crude oil costs are impacting the post-Covid economic recovery, particularly within the developing countries.

·         It is that the 1st time that New Delhi would be dipping into its reserves to leverage it as a geopolitical tool India’s strategic reserves are the effort of a broader decide to build an emergency stockpile with millions of barrels of petroleum, on the lines of the reserves that the U.S. and its Western allies set up after the first oil crisis of 1973-74.

·         These is utilized in situation that include any natural tragedy or unforeseen world event resulting in an abnormal increase in costs.

·         More about Strategic reserves: DPN Oct 9.

·         UN LDCs standing The United Nations General Assembly has adopted a historic resolution to graduate 3 nations, together with Bangladesh and Nepal, from the least developed country (LDC) class to the developing country grouping, a major} milestone demonstrating the countries’ significant development progress.

·         The U.N. General Assembly (UNGA) adopted the resolution at its 76th session.

·         The 3 countries that got clearance for graduation are Bangla Desh, Nepal and also the Lao People’s Democratic Republic.

·         The 3 countries can graduate from the LDC class after an exceptionally extended preceding amount of 5 years (the standard period is of 3 years) to modify them to arrange for graduation whereas designing for a post-COVID-19 recovery and implementing policies and techniques to reverse the economic and social damage incurred by the COVID-19 shock, Bangladesh is currently scheduled  to formally become a developing country in 2026 because the U.N. committee suggested that the country should get 5 years, to organize for the transition .

·         All the three eligibility criteria for graduation involving per capita income, human assets index (HAI), and economic and environmental vulnerability index (EVISince 1971, the United Nations has recognized least developed countries (LDCs) as a class of States that are deemed extremely disadvantaged in their development method, for structural, historical and additionally geographical reasons.

·         LDCs face more than other countries the danger of deeper poverty and remaining during a situation of underdevelopment.

·         More than 75 per cent of the LDCs’ population still live in poverty.

·         These countries are also characterized by their vulnerability to external economic shocks, natural and man-made disasters and communicable diseases.

·         As such, the LDCs are in want of the highest degree of attention from the international community.

·         Currently, the 46 LDCs comprise around 880 million people, 12 percent of the world population, which face severe structural impediments to growth. However, the LDCs account for less than 2 percent of world GDP and around 1 percent of world trade.

·         Four United Nations Conferences on the LDCs were held in: 1981, 1990, 2001 and 2011.

·         The Fourth United Nations Conference on the least Developed Countries adopted the Programme of Action for the least Developed Countries for the last decade 2011-2020 – the so-called Istanbul Programme of Action (IPoA).

·         LDCs are those who suffer from severe structural impediments to achieve sustainable development. Currently, there are forty six countries on the LDC list, according to the U.N. Committee for Development Policy (CDP).

·         According to the U.N., per capita financial gain of $1,230 is one amongst the requirements for transitioning into a developing nation. Membership is revised each 3 years supported

1.      Per Capita Income (GDP plus net income received from overseas)

2.      Human assets (level of population undernourished, under-five mortality rate, gross secondary enrolment ratio and adult literacy rate)

3.      Economic vulnerability (such as population, remoteness, merchandise export concentration, natural disasters, instability of agriculture production, and instability of goods and services exports, among other factors).  By periodically identifying LDCs and highlight their structural issues, the United Nations provides a strong signal to the international community to the requirement of special concessions in support of LDCs. Concessions associated with LDC standing include advantages within the areas of: Development financing, notably grants and loans from donors and monetary establishments. multilateral  trading system, like preferential market access and special treatments.

·         Technical assistance, notably, toward trade mainstreaming (Enhanced Integrated Framework)

·         In past, six countries have graduated from LDC status: Botswana in 1994, Cape Verde in 2007, Maldives in 2011, Samoa in 2014, Equatorial Guinea in 2017, and Vanuatu in 2020.

·         UNCTAD extends to all graduating countries a range of services aimed at supporting their progress toward graduation from LDC status.

·         These include preparing vulnerability profiles of states with the challenges of graduation, supporting them in their preparation for a sleek transition to post-LDC life.

·         UNCTAD conjointly assists ex-LDC in their quest for continuing socio-economic progress, notably, toward enhanced economic specialization