China’s Interventions in the Horn of Africa
Context:
China has been investing across the African continent throughout the last decade. While the emphasis has been on investments and raw materials, it took a new turn recently, with the first “China-Horn of Africa Peace, Governance and Development Conference.”
Relevance:
GS II- International Relations
Dimensions of the Article:
- About Horn of Africa
- Recent projects between China and countries from the Horn of Africa
- China’s primary interests/investments in the Horn of Africa
- Has the Horn of Africa been welcoming of China’s presence?
- Is China’s new focus on peace in the Horn a shift from Beijing’s principle of non-intervention?
About Horn of Africa
- Horn of Africa is the easternmost extension of African land and includes the region that is home to the countries of Djibouti, Eritrea, Ethiopia, and Somalia, whose cultures have been linked throughout their long history.
- The Horn of Africa has been at the centre of global attention for several decades because of protracted armed conflict, severe food crises and large-scale displacement.
Recent projects between China and countries from the Horn of Africa
- China’s focus on the Horn is a part of its focus on Africa.
- During the 17th trip to Africa, China’s Foreign Minister and State Councillor focused on increasing the infrastructural investments in African countries.
- He refuted accusations of debt-trapping the countries and asserted China’s three objectives in Africa:
- Controlling the pandemic,
- Implementing a Forum on China-Africa Cooperation (FOCAC) outcomes,
- The FOCAC promotes China’s role in the infrastructural and societal development of the Horn.
- Upholding common interests while fighting hegemonic politics.
In the 2021 forum, the entire region of the Horn participated and four resolutions were adopted:
- The Dakar Action Plan,
- The China-Africa Cooperation Vision 2035,
- The Sino-African Declaration on Climate Change
- The Declaration of the Eighth Ministerial Conference of FOCAC
During the COVID-19 pandemic,
- China donated over 3,00,000 vaccines to Ethiopia and Uganda, and 2,00,000 vaccines to Kenya and Somalia. Sudan and Eritrea have also benefited from China’s vaccine diplomacy.
- Beijing has also initiated the “2035 vision for China-Africa cooperation”; it aims to transform the health sector, alleviate poverty, promote trade and investments, and expand digital innovation.
- The vision also focuses on green development, capacity building, improving people-to-people exchanges and facilitating peace and security in the continent.
China’s primary interests/investments in the Horn of Africa
China’s interests are related to four major areas:
Infrastructural projects:
- One of its landmark projects was fully funding the $200 million African Union headquarters in Addis Ababa.
- It has also made significant investments in railways;
- It is building the Addis-Djibouti railway line connecting the land-locked country with Eritrean ports in the Red Sea.
- China has also invested in the Mombasa-Nairobi rail link in Kenya, and has already delivered on railway projects in Sudan.
- It also has a viable military hardware market in Ethiopia and has built over 80 infrastructural projects in Somalia, including hospitals, roads, schools and stadiums. In Djibouti, 14 infrastructural projects are funded by China.
Financial assistance:
- With respect to financial assistance, Ethiopia, is one of the top five African recipients of Chinese investments, and also has a debt of almost $14 billion.
- China accounts for 67% of Kenya’s bilateral debt. In 2022, China promised to provide $15.7 million assistance to Eritrea.
Natural resources:
- The third major Chinese interest in Africa is the presence of natural resources — oil and coal.
- Beijing has invested $400 million in Mombasa’s oil terminal.
- China is also interested in minerals such as gold, iron-ore, precious stones, chemicals, oil and natural gas in Ethiopia.
- South Sudan, a source for petroleum products, has had continued Beijing investment in the industry since the latter’s initial entry in 1995.
Maritime interests:
- China’s first and only military base outside its mainland is in Djibouti.
- During his visit in early 2022, Wang hinted at China’s willingness to develop Eritrea’s coast which would connect to China’s investments in land-locked Ethiopia.
- The U.S. has speculated that China wishes to build another military base in Kenya and Tanzania, thereby increasing its military presence in the region.
Has the Horn of Africa been welcoming of China’s presence?
- Africa has been keen on interacting with China.
- Despite the wariness surrounding China’s projects in Africa, the governments have mostly been welcoming.
- When conflict broke out in Tigray in November 2020, Addis Ababa appreciated Beijing for respecting Ethiopia’s sovereignty.
- In December 2021, Kenya defended Chinese projects in the country; President maintained that China-Africa partnership was mutually beneficial.
- In November 2021, Uganda’s President suggested that China give access to its markets, in a fashion similar to the U.S. or Europe.
Is China’s new focus on peace in the Horn a shift from Beijing’s principle of non-intervention?
- Peace and stability is a mutual requirement for China and Africa.
- For Africa, Chinese investments could lead to stable environments which could help the countries achieve their peace and development objectives.
- For China, conflict in the region comes at a heavy cost.
- In Ethiopia. when the conflict broke out, over 600 Chinese nationals, working on different projects, were evacuated, putting several investments at risk.
- From a trading perspective, the region plays a significant role in achieving the objectives of the China-Africa Cooperation Vision 2035.
Shift in its principle of non-intervention:
- China’s move towards peace in Africa indicates a shift in its principle of non-intervention.
- It is China’s message that its presence in the continent has a larger objective and is not likely to be limited to the Horn of Africa.
- This includes an aim to project itself as a global leader and boost its international status.
- Further, the recent developments imply that China is focussing on a multifaceted growth in the continent for the long run.
- For Africa, China’s presence is an alternative to the European powers, many of whom are facing criticism from African governments.
- Further, African governments, which do not conform to Western standards of democracy, interact better with powers like China and Russia.
Partnership for Global Infrastructure and Investment
Context:
Recently, U.S. President along with his G7 allies unveiled the ambitious Partnership for Global Infrastructure and Investment (PGII), announcing the collective mobilisation of $600 billion by 2027 to deliver “game-changing” and “transparent” infrastructure projects to developing and middle-income countries.
Relevance:
GS II- International Relations
Dimensions of the Article:
- What is the PGII?
- What kind of projects will the PGII undertake?
- What is China’s BRI?
- Is there any overlap between the two schemes?
What is the PGII?
- The PGII is being seen as the G7’s counter to China’s multi-trillion dollar Belt and Road Initiative (BRI) to build connectivity, infrastructure, and trade projects in Asia, Europe, Africa, and Latin America.
- The West has been sceptical of the BRI, since it was launched in 2013 by President Xi Jinping, as it was considered to be part of China’s larger strategy to increase geopolitical influence in Asia and other developing countries.
- The U.S., along with G7 partners the U.K., Japan, France, Canada, Germany, Italy, and the European Union (EU), had in 2021 announced the launch of the Build Back Better World (B3W) with the aim of narrowing the $40 trillion infrastructure gap in the developing world.
- PGII is therefore, a relaunch of Mr. Biden’s B3W plan.
- The factsheet put out by the White House described the PGII as a “values-driven, high-impact, and transparent infrastructure partnership to meet the enormous infrastructure needs of low and middle-income countries and support the United States’ and its allies’ economic and national security interests”.
Aim:
- The G7 members aim to collectively mobilise $600 billion by 2027 to invest in sustainable and quality infrastructure projects in developing countries, including India, and strengthen global supply chains.
- Mr. Biden announced the country’s pledge to channel $200 billion in grants, public financing, and private capital over the next five years for the PGII.
- European Commission President declared Europe’s pledge of mobilising 300 billion euros for the partnership over the same period.
What kind of projects will the PGII undertake?
- All PGII projects will be driven by the pillars that will define the second half of the 21st century.
- The G7 grouping aims to tackle the climate crisis and ensure global energy security through clean energy supply chains.
- The projects will focus on bolstering digital information and communications technology (ICT) networks facilitating technologies such as 5G and 6G internet connectivity and cybersecurity.
- The projects aim to advance gender equality and equity, and lastly, to build and upgrade global health infrastructure.
- The U.S International Development Finance Corporation (DFC), along with the G7 nations and the EU are disbursing a $3.3 million technical assistance grant to build a vaccine facility in Senegal, having a potential yearly capacity of manufacturing “millions of doses of COVID-19 and other vaccines”.
- In India, the U.S. DFC will invest up to $30 million in Omnivore Agritech and Climate Sustainability Fund 3, an impact venture capital fund that invests in entrepreneurs building the future of agriculture, food systems, climate, and rural economy in India.
What is China’s BRI?
- China began the Belt and Road Initiative in 2013 under its President Xi Jinping.
- It aims to revive the ancient trade routes crossing to and from China–from Rome in Europe to East Asia.
- Under this, the Chinese government helped in providing loans for infrastructure projects to various countries, and in many cases, Chinese companies were awarded contracts for carrying out the work.
- This helped China mark its footprints at a global level.
- However, China was criticised in the West and by some other countries for providing unsustainable debts to countries that will be unable to repay them.
According to a 2019 World Bank report,
- Among the 43 corridor economies for which detailed data was available, 12 could face a situation where debts were not sustainable, which could lead to public assets being handed over to foreign contractors or China itself.
- The report adds if issues of environmental degradation, high debts, and corruption are successfully countered and the BRI is fully implemented to its potential, it could increase trade between 1.7 and 6.2 percent for the world, increasing global real income by 0.7 to 2.9 percent.
Is there any overlap between the two schemes?
- While the US has been critical of BRI, other countries of the G7 have had varying responses to it.
- Italy became the first G7 member to be a part of the BRI in 2019, and the British finance minister Philip Hammond described the policy as a “vision” in the same year, though it is not officially a part of the BRI.
- Germany and France, while not directly participating in the BRI, have also partnered with China in building rail networks and other projects for connectivity.
GST Council
Context:
The 47th meeting of the Goods and Services Tax Council began in Chandigarh, almost marking five years of the tax system coming into effect on July 1, 2017.
Relevance:
GS III- Indian Economy
Dimensions of the Article:
- What is GST?
- GST Council
- What has changed this time?
What is GST?
GST is a destination-based indirect tax and is levied at the final consumption point. Under it, the final consumer of the goods and services bear the tax charged in the supply chain. GST is a transparent and fair system that prevents black money and corruption and promotes new governance culture.
GST Act
- Goods and Services Tax (GST) Act came into effect in 2017.
- Goods and Services Tax (GST) was introduced by the Government of India to boost the economic growth of India. GST is considered to be the biggest taxation reform in the history of the Indian economy.
- The power to make any changes in the GST law is in the hands of the GST Council. GST Council is headed by the Finance Minister. One hundred and first amendment act, 2016 introduced the GST in India in July 2017.
GST Council
- Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
- As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A.
- The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, for the introduction of Goods and Services Tax in the country was introduced in the Parliament and passed by Rajya Sabha on 3rd August 2016 and by Lok Sabha on 8th August 2016.
- GST Council is an apex member committee to modify, reconcile or procure any law or regulation based on the context of goods and services tax in India.
- The GST council is responsible for any revision or enactment of rule or any rate changes of the goods and services in India.
- The council contains the following members:
- Union Finance Minister (as chairperson)
- Union Minister of States in charge of revenue or finance (as members)
- The ministers of states in charge of finance or taxation or other ministers as nominated by each state’s government (as members).
Matters on which GST Council makes recommendations
- Taxes, cesses, and surcharges levied by the Centre, States and local bodies which may be subsumed in the GST;
- Goods and services which may be subjected to or exempted from GST;
- Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply;
- Threshold limit of turnover below which goods and services may be exempted from GST;
- Rates including floor rates with bands of GST;
- Special rates to raise additional resources during any natural calamity;
- Special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand;
- Any other matter relating to the goods and services tax, as the Council may decide.
What has changed this time?
- The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
- The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST and recommendations of the Council “are the product of a collaborative dialogue involving the Union and States”.
- This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.
- The council’s meeting is also likely to focus on the issue of extension of the GST compensation regime beyond June 2022.
- This was a special mechanism by which states were assured that their revenues would not be affected by the new GST system.
- Some states are already demanding that the compensation be continued.
- Earlier, the Council had agreed to extend the levy of compensation cess till 2026, but only for repayment of the borrowings made in the aftermath of the pandemic to provide compensation to states.
Hermit, The Pegasus-like Spyware
Context:
‘Hermit’ is the latest sophisticated spyware in the news, and it is believed to have targeted iPhones and Android devices in Italy and Kazakhstan.
- Hermit’s deployment – the spyware has been developed by an Italian vendor called RCS Lab – was first reported by cyber security researchers at the Lookout, a San-Francisco-based cybersecurity firm.
Relevance:
GS III- Cyber Security
Dimensions of the Article:
- What is Hermit and what exactly does it do on a device?
- How did Hermit get deployed on Android and iOS devices?
- What is a spyware and what are other similar types of Cyber Attacks?
What is Hermit and what exactly does it do on a device?
- Hermit is a spyware on the lines of Pegasus by NSO Group. Once installed on a device, it can record audio on the device, carry out unauthorised calls, and carry out many unauthorised activities.
- The spyware can steal stored account emails, contacts, browser bookmarks/searches, calendar events, etc.
- It can also take pictures on the device, steal device information such as details about applications, the kernel information, model, manufacturer, OS, security patch, phone number, etc.
- It can also download and install APK (the app software files on Android) on a compromised phone.
- The spyware can also upload files from the device, read notifications, and take pictures of the screen.
- Because it can gain access to the root or the ‘privilege’ access of an Android system, Lookout’s research showed, it can uninstall apps like Telegram and WhatsApp.
- According to the researchers, the spyware can silently uninstall/reinstall Telegram.
- Except the reinstalled version is likely a compromised one. It can also steal data from the old app.
- For WhatsApp, it can prompt the user to reinstall WhatsApp via Play Store.
- So, once Hermit has been deployed to a phone, it can control and track data from all key applications.
How did Hermit get deployed on Android and iOS devices?
- Sophisticated spyware such as Hermit and Pegasus cost millions of dollars in licensing fees, and these are not simple operations.
- It’s not like common malware targeting regular users.
- And in the case of Hermit, it appears the operations used were complex.
- According to Google’s TAG team, all campaigns started with a unique link sent to the victim’s phone.
- When the user clicked, the page installed the application on both Android and iOS.
What is a spyware and what are other similar types of Cyber Attacks?
What is Malware?
- Malware is short for malicious software and it is a catch-all term for various malicious software, including viruses, adware, spyware, browser hijacking software, and fake security software.
- Ransomware, Spyware, Worms, viruses, and Trojans are all varieties of malware.
Types of Malware
- Viruses which are the most commonly-known form of malware and potentially the most destructive. They can do anything from erasing the data on your computer to hijacking your computer to attack other systems, send spam, or host and share illegal content.
- Worm is a type of malware that spreads copies of itself from computer to computer which can replicate itself without any human interaction, and it does not need to attach itself to a software program in order to cause damage.
- Trojan is a type of malware that is often disguised as legitimate software which can be employed by cyber-thieves and hackers trying to gain access to users’ systems.
- Spyware collects your personal information and passes it on to interested third parties without your knowledge or consent. Spyware is also known for installing Trojan viruses.
- Ransomware is malware that employs encryption to hold a victim’s information at ransom.
- Adware displays pop-up advertisements when you are online.
- Fake security software poses as legitimate software to trick you into opening your system to further infection, providing personal information, or paying for unnecessary or even damaging “clean ups”.
- Browser hijacking software changes your browser settings (such as your home page and toolbars), displays pop-up ads and creates new desktop shortcuts. It can also relay your personal preferences to interested third parties.
