1. India-Middle East-Europe Economic Corridor (IMEC): Progress, Challenges, and Strategic Opportunities
Introduction:
The India-Middle East-Europe Economic Corridor (IMEC) is a strategic infrastructure project announced during the G20 Summit in New Delhi in 2023. It aims to create a trade route connecting the eastern and western regions, offering faster and cheaper transport compared to the Suez Canal. However, the corridor’s potential benefits, especially for trade and economic cooperation, have been tempered by various geopolitical challenges, particularly in West Asia.
- Progress on the Project:
- The announcement of IMEC generated optimism due to its promise of reducing transport time by 40% and costs by 30%.
- However, political instability, particularly the escalation of the Israel-Palestine conflict in October 2023, stalled significant progress.
- Countries such as Saudi Arabia and Jordan have been unable to push the project forward amidst these challenges, particularly the ongoing geopolitical conflict in West Asia.
- Implementation on the northern section of the corridor (largely connecting Israel) is moving slowly until the situation stabilizes.
- Progress on the Eastern Leg (UAE-Indian Ports):
- Despite issues in the western part, the eastern segment, connecting the UAE and India, has seen notable progress.
- Bilateral trade between the UAE and India has grown dramatically, reaching $83.64 billion in 2023-24, up from $43.30 billion in 2020-21, driven by oil and non-oil trade.
- India’s economic relations with the UAE are advancing through initiatives like the Comprehensive Economic Partnership Agreement (CEPA) and the Virtual Trade Corridor.
- Strategic Opportunities for India:
- IMEC offers India the chance to enhance its position as a global supply chain player, provided it improves domestic infrastructure and logistical efficiency.
- The IMEC corridor could strengthen India’s exports, particularly by reducing costs and improving trade facilitation through standardization of procedures.
- India’s role in connecting its logistics with IMEC will be crucial in enhancing trade competitiveness, and the project will serve as a model for cross-border trade facilitation.
- Challenges Ahead:
- The ongoing Israel-Palestine conflict has placed the western leg of the IMEC on hold, slowing down progress in key countries like Saudi Arabia and Jordan.
- Energy projects, fiber-optic cables, and clean energy technology initiatives are delayed, awaiting stability in West Asia.
- While the UAE-India leg has progressed, the broader corridor still needs time and political stability for full implementation.
Conclusion:
IMEC has the potential to reshape global trade routes by providing a faster, cost-effective alternative to the Suez Canal. However, geopolitical tensions in West Asia present significant obstacles to its timely completion.
India’s strategic involvement in the corridor, especially its collaboration with the UAE, positions it to benefit economically, but it must enhance its logistical capabilities and manufacturing competitiveness to fully capitalize on this opportunity. Progress in the region will depend on resolving regional conflicts and creating stable frameworks for cross-border trade.
Mains Practice Question: |
Q. Discuss the potential economic and geopolitical benefits of the India-Middle East-Europe Economic Corridor (IMEC) for India. What are the key challenges to its implementation, and how can India address them?
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2. Debating the World Bank’s Healthy Longevity Initiative: Feasibility, Challenges, and Opportunities for LMICs
Introduction:
The World Bank’s “Healthy Longevity Initiative” (HLI), launched in September 2024, addresses the growing concern of non-communicable diseases (NCDs) and demographic aging, particularly in Low and Middle-Income Countries (LMICs).
This initiative envisions reducing avoidable deaths and disability by improving physical, mental, and social functioning through middle and older ages. While the initiative offers a bold approach to addressing NCDs and aging, its feasibility in countries like India remains debatable.
- India’s Demographic and Disease Trends:
- India’s population of those over 60 has risen to 150 million in 2023 and is projected to reach 250 million by 2050.
- There is a rapid rise in NCDs like cardiovascular diseases, diabetes, and cancers, now accounting for a significant proportion of deaths.
- The aging population in India is growing at a rate three times higher than the overall population growth, putting enormous strain on healthcare systems.
- Most deaths (60%) of the elderly in India are now attributed to NCDs, which are poised to increase with the demographic shift.
- Challenges of the Healthy Longevity Initiative (HLI) in LMICs:
- Healthcare Infrastructure:
- LMICs, including India, lack adequate infrastructure, trained healthcare professionals, and equitable access to health services.
- Hospitals are not well-equipped to handle the growing NCD burden, and primary healthcare systems, especially in rural areas, are often underfunded and inefficient.
- Healthcare Financing:
- Financial constraints, particularly in impoverished populations, lead to gaps in disease screening, treatment, and rehabilitation.
- Insurance schemes such as Ayushman Bharat provide only limited coverage for non-hospital care.
- Behavioral Challenges:
- Diet and lifestyle changes are critical to addressing NCDs, but refined grains, high red meat consumption, and lack of physical activity exacerbate health problems.
- Government programs have struggled to address these lifestyle issues effectively.
- Socioeconomic Inequality:
- Poorer households often lack the ability to afford preventive healthcare, leading to higher mortality and morbidity from NCDs.
- Remote and marginalized areas face additional challenges due to poor healthcare access and weak infrastructure.
- Strategies to Reduce NCDs:
- Healthcare System Reform:
- Universal and affordable access to healthcare, particularly for NCD prevention and early detection, is essential.
- The government needs to simultaneously tackle healthcare financing, particularly the rising out-of-pocket expenses for the elderly.
- Policy and Legislative Reforms: Effective policy changes targeting the reduction of NCD risk factors, such as diet improvement, reducing alcohol and tobacco consumption, and promoting physical activity, must be enforced.
- Raising Awareness and Accessibility: Public health campaigns targeting rural and urban populations on lifestyle changes, early screening for NCDs, and regular health check-ups are necessary.
- Impact of Social Security Schemes:
- Ayushman Bharat and Other Schemes: While government programs aim to provide health coverage, they often fail to address the needs of older adults suffering from NCDs due to limited coverage, logistical challenges, and bureaucratic hurdles.
- Pension and Social Safety Nets: Broader social security schemes need to include better support for the aging population, especially in managing long-term health conditions.
Conclusion:
- The World Bank’s Healthy Longevity Initiative is a much-needed strategy to address the aging crisis and the rising burden of non-communicable diseases in LMICs.
- However, its success depends on structural reforms in healthcare infrastructure, financing, and policy, particularly in India. Addressing these challenges will require a multi-faceted approach that not only improves healthcare systems but also promotes healthier lifestyles and better social security nets for the aging population.
- The initiative’s goals are ambitious, but with strategic implementation, they could significantly impact public health in developing countries.
Mains Practice Question: |
Q. Critically analyze the feasibility of the World Bank’s Healthy Longevity Initiative in the context of Low and Middle-Income Countries (LMICs) like India. What are the major challenges and potential solutions for achieving its goals? |
