Rebel Offensive in Syria

GS 2: International Relations: Conflict in Syria

Why is it in the news?

• Syrian rebel forces launched a surprise three-day “shock offensive” toward Aleppo, concluding on November 29, marking a significant shift in the Syrian civil war that began in 2011. The conflict had largely been dormant since a 2020 ceasefire agreement.
• In response, Syrian government forces, with Russian support, conducted airstrikes on rebel-controlled areas in Idlib province. This offensive, the first since 2016 to see opposition forces capture territory in Aleppo, is a notable development amid the ongoing Israel-Palestine conflict.
• Led by Hayat Tahrir al-Sham (HTS), an extremist group that has controlled Idlib since 2020, the attack inflicted heavy losses on the Syrian military, including dozens of soldiers killed, prompting a temporary withdrawal. Rebels then redirected their focus southward toward Hama.
• President Bashar al-Assad condemned the offensive, pledging to defend Syria’s stability and territorial integrity against “terrorists and their supporters.”

The Syrian Civil War: Background

• The Syrian civil war began during the Arab Spring in 2011, a wave of uprisings against authoritarian regimes in the Middle East and North Africa. While some governments were overthrown, others suppressed the movements.
• In Syria, protests targeted President Assad’s regime, which has retained control over most of the country except for Kurdish-majority regions in the east, parts of the south, and desert areas linked to Islamic State factions.
• A 2020 ceasefire brokered by Turkey and Russia halted major hostilities in Idlib, leaving HTS in control. HTS, formerly Jabhat al-Nusra, is a designated terrorist group by the US, Russia, and Turkey.
• Turkey’s relationship with HTS is complex, involving mutual benefits; Turkey shields Idlib from large-scale attacks while controlling border trade crucial for HTS operations.

Significance of the Offensive

• The latest offensive is the most substantial effort by rebels in recent years. A similar 2016 rebellion in Aleppo was crushed by Assad with Russian air support, a strategy currently being replicated. However, the attack underscores the regime’s vulnerabilities, with its key allies distracted by other conflicts.
• Iran and Hezbollah, Assad’s allies, are engaged in Lebanon and other fronts due to the Israel-Palestine conflict, while Russia remains embroiled in the war in Ukraine.
• Recent tensions, such as Israeli airstrikes on Hezbollah assets despite a provisional ceasefire, further complicate the region’s stability. These developments highlight the interconnected challenges to achieving peace in Syria and its neighbouring regions.

India’s ‘One Nation, One Subscription’: A Step Toward Research Access or a Missed Opportunity

GS 2: Polity and Governance: Access to Research

Why is it in the news?

• On November 25, the Union Cabinet approved the ‘One Nation, One Subscription’ (ONOS) scheme, aiming to provide equitable access to scholarly journals across all public institutions in India.
• With an allocation of ₹6,000 crore for three years (2025-2027), the scheme seeks to democratise knowledge, enabling institutions to access global research irrespective of their financial or institutional status.
• Currently, Indian public institutions collectively spend around ₹1,500 crore annually on journal subscriptions. While the initiative appears ambitious, it raises concerns about its alignment with global trends in research publishing.

The Global Shift Toward Open Access

• ONOS debuts at a time when the global research ecosystem is increasingly embracing Open Access (OA) publishing.
• Unlike traditional subscription models, OA provides unrestricted access to research articles, often funded by article processing charges (APCs) paid by authors. However, these APCs, which can reach thousands of dollars per article, create financial barriers.
• Over 53% of research papers globally are now freely accessible, reflecting a significant increase since ONOS was conceptualised in 2018-2019. Additionally, policies such as the U.S. mandate requiring publicly funded research to be OA by 2026 and the EU’s Horizon Europe initiative signal a decisive global move toward free accessibility.
• These developments raise questions about ONOS’s financial viability and its relevance beyond 2025, as a growing fraction of global research may soon become freely available.

Challenges in Commercial Publishing

• A few dominant Western publishers control the global scholarly publishing system, often criticised for exorbitant subscription fees, delays, and limited innovation. Public institutions are forced to pay for access to research that is publicly funded, highlighting inefficiencies in the system.
• While OA aims to resolve these issues, the prevalence of gold OA with high APCs presents new barriers. ONOS does not cover APCs, restricting Indian researchers from publishing in prestigious OA journals.
• Additionally, many journals now adopt hybrid models combining subscriptions and APCs, further straining financial resources. The initiative’s reliance on Western publishers also stifles innovation and opportunities for a self-reliant Indian publishing ecosystem.

Copyright and Intellectual Property Issues

• Under subscription models, researchers must transfer copyright to publishers, allowing publishers to monetise the work without author consent.
• Recent incidents, such as Taylor & Francis permitting Microsoft to use journal content for AI training without compensating authors, underscore the need for policies safeguarding researchers’ intellectual property.
• Institutions like Harvard University have pioneered rights-retention policies, granting researchers the ability to archive their work in OA repositories.
• India’s 2014 Open Access Policy requires government-funded research to be openly accessible, but weak implementation limits its impact. ONOS could have strengthened such policies, ensuring Indian research is globally accessible via OA repositories.

Preservation and Self-Reliance in Publishing

• Digital preservation of research articles remains a concern, with many papers lacking adequate archiving. Incidents like the temporary loss of access to 17,000 articles from a discontinued journal highlight the risks of over-reliance on publishers. Green OA, which encourages self-archiving in repositories, offers a sustainable solution.
• India has the potential to develop a robust indigenous publishing ecosystem. By investing in infrastructure, editorial expertise, and global visibility for Indian journals, the country can reduce reliance on Western publishers.
• Pre-printing and data sharing could also accelerate the dissemination of research, fostering a self-reliant and innovative ecosystem.

Way Forward

• While ONOS’s goal of democratising research access is commendable, it overlooks critical structural issues in scholarly publishing. Complementary measures, such as enabling authors to retain copyright, strengthening OA policies, and fostering self-reliance in publishing, could have enhanced its impact.
• With its substantial budget, ONOS had the potential to set a global benchmark for equitable and innovative publishing. However, by ignoring these systemic challenges, it risks being a short-term fix rather than a transformative initiative. A comprehensive review of the scheme is necessary to ensure its relevance and long-term success.

Mutualism: A Radical Alternative to Capitalism and Authoritarianism

GS 2: Polity and Governance: Eliminating Capitalist Exploitation

About the news

• Mutualism is an economic and social theory that promotes voluntary cooperation, reciprocity, and equitable exchanges of goods and services. It envisions a society where individuals and communities cooperatively own and manage productive resources like land or tools, decentralising control and eliminating capitalist exploitation.
• In mutualism, property is not inherently exploitative; ownership of resources is allowed as long as it does not exploit others. Unlike capitalism, which profits from labour exploitation, mutualism advocates for a system where resources are owned for personal and collective benefit.

Origins of Mutualism

• The concept of mutualism was coined by French philosopher Pierre-Joseph Proudhon in the 19th century as part of his critique of capitalism and authoritarianism. Proudhon famously stated, “Property is theft!” in his work What is Property? (1840), but his philosophy was more nuanced.
• He did not advocate for the total abolition of property but for its reimagination to serve collective well-being and fairness. Proudhon was inspired by a secret society of workers in Lyon, called the ‘Mutualists,’ who envisioned worker-led cooperatives running factories and resources.
• They promoted transforming society through peaceful economic action, challenging centralized political systems. Proudhon adopted the term “mutualism” to honour these workers and advocated for a decentralised society based on cooperation and reciprocity, replacing exploitation with mutual respect.

Mutualism and Property

• A key tenet of mutualism is Proudhon’s distinction between “property” and “possession.” While he condemned capitalist property for enabling exploitation and monopolisation, Proudhon did not call for its total elimination.
• He distinguished property that allowed control over others from possession, where individuals use resources for personal benefit without infringing on others’ freedoms.
• Mutualism rejects state-enforced property rights that perpetuate inequality and advocates for a decentralised system based on voluntary, equitable exchanges.
• Worker cooperatives and shared resources are central to this vision, aligning ownership with fairness and collective well-being, challenging capitalist and state hierarchies.

Mutualism and Anarchism

• Mutualism is closely linked to anarchism, particularly in the debate between individualist and social anarchism. Individual anarchists focus on personal autonomy, while social anarchists advocate for collective resource management and societal organisation to promote equality.
• Proudhon’s work occupies a space between these views, blending individual freedom with collective responsibility. While some early anarchists saw mutualism as individualist, others interpreted it as a more socialist form of anarchism, advocating for mutual cooperation and collective management.
• Proudhon believed a mutualist society could exist without a state, organised around cooperative principles where people freely enter into contracts and exchanges.

The Collective and the Individual

• Mutualism stresses the importance of cooperative associations, mutual credit systems, and workers’ control over production. These principles aim to create social and economic environments based on mutual aid and cooperation, rather than competition and exploitation.
• Mutualism also aligns with humanity’s natural tendency to cooperate, seeking to build a society where individuals can pursue their goals while maintaining community and mutual respect.

Mutualism as Libertarian Socialism

• Mutualism is often viewed as a form of libertarian socialism, balancing individual freedom with collective well-being. It presents an alternative to both capitalism and state socialism by advocating for voluntary cooperation and mutual respect, without centralized power or hierarchy.
• This philosophy calls for a society where resources are managed collectively, and people engage in reciprocal exchanges, promoting equality and justice.

Critiques of Mutualism

• Despite its revolutionary potential, mutualism faces several critiques. One significant criticism is that its focus on small-scale property ownership may not challenge the structural inequalities inherent in capitalist systems.
• Critics argue that mutualism does not address the concentration of wealth and power in modern economies. Marxist critics contend that mutualism fails to dismantle capitalist exploitation and inequality, especially since Proudhon defended small property owners and opposed collectivism, overlooking the realities of class struggle.

Conclusion

• Despite these critiques, mutualism remains a vital concept in anarchist and socialist thought. While it may not resolve all the challenges of inequality and exploitation, mutualism offers a significant alternative to capitalist exploitation and authoritarianism.
• Its emphasis on voluntary cooperation, mutual respect, and equitable resource management challenges entrenched power dynamics and provides a radical vision for a more just and cooperative society.

Promoting Disability Inclusion through Nutrition and Community Support

GS 2: Society: Addressing needs of Marginalized group

Why is it in the news?

• December 3 marks the International Day of Persons with Disabilities, a day dedicated to advocating for the rights of people with disabilities, raising awareness, and addressing the inclusion and needs of this marginalized group.
• Persons with disabilities are among the most under-represented and underserved communities globally, and this day highlights the importance of their inclusion in society.

The Connection Between Nutrition and Disability

• There has been a growing global recognition of the significant relationship between nutrition and disability. Research has increasingly underscored how malnutrition can contribute to higher disability rates, with countries facing high levels of malnutrition also showing poorer health outcomes and higher disability rates.
• Malnutrition weakens the immune system, impairs physical development, and exacerbates chronic health conditions, leading to significant functional impairments in individuals.
• To improve public health and reduce disability rates, addressing malnutrition is crucial. This calls for integrated health policies that improve dietary practices and ensure access to nutritious food, particularly for vulnerable populations.

The Impact of Maternal Malnutrition and Developmental Delays

• Malnutrition during pregnancy can result in prenatal disabilities, while deficiencies at various life stages can cause developmental delays and other disabilities. For example, vitamin A deficiency can cause blindness, and conditions like cerebral palsy or Down syndrome can increase the risk of nutritional deficiencies.
• This highlights the need for accessible nutrition services, information, and benefits for persons with disabilities to ensure their well-being.

Anganwadi Protocol for Divyang Children

• In 2023, India’s Ministry of Women and Child Development introduced the ‘Anganwadi Protocol for Divyang Children,’ a national guideline aimed at enhancing disability inclusion among frontline community nutrition workers.
• Anganwadi workers play a crucial role in executing India’s development programs, providing nutrition services, and driving social changes related to gender equality, social inclusion, and early childhood development.
• The protocol equips Anganwadi workers with the tools to identify disabilities early, monitor developmental milestones using the POSHAN Tracker, and ensure necessary referrals in collaboration with Accredited Social Health Activist (ASHA) workers.

The Haryana Experience: Promoting Disability Inclusion

• The Haryana government, through its Department of Women and Child Development, is committed to promoting disability inclusion.
• Under Mission Vatsalya and the Integrated Child Development Scheme, Haryana has introduced the Divyang Protocol and a unique podcast initiative, ‘Nanhe Farishtey,’ to educate communities about disabilities and promote early detection and inclusion at Anganwadi centres.
• The World Food Programme (WFP) has partnered with Haryana’s Department of Women and Child Development for a three-year intervention aimed at transforming societal norms around gender equality and social inclusion, including disability inclusion. This initiative is focused on enhancing the capacity of Haryana’s network of 25,000 Anganwadi workers.
• As part of the intervention in Haryana, the WFP conducted a Needs Assessment Study across four districts to evaluate the role of Anganwadi workers in supporting children and adults with disabilities.
• The study found that Anganwadi workers were crucial in identifying disabilities early and facilitating referrals for medical and educational support. Many workers helped connect individuals with disabilities to resources, including disability certificates and government benefits such as the National Disability Pension.

The Vital Role of Early Intervention and Supportive Services

• Early intervention, accessible medical therapy, and supportive services are critical for the well-being of children with disabilities. Anganwadi workers play a vital role in providing these services.
• However, in addition to building the capacity of Anganwadi workers on the Divyang Protocol, there is a need to create supportive services and infrastructure, such as trained specialist therapists, accessible schools and transportation, affordable assistive devices, and effective communication systems to promote tailored nutrition for individuals with disabilities.
• Additionally, community members and frontline workers can help reduce the stigma around disabilities, contributing to an inclusive society.

Conclusion

• Ensuring the nutrition and food security of persons with disabilities, especially children, is a fundamental aspect of their rights and well-being.
• We all share the responsibility to create an inclusive society where individuals with disabilities have equal opportunities and access to the resources they need for a healthy and fulfilling life.

The Unintended Consequences of DNA Analysis

GS 3: Science and Technology: Protecting genetic information

Why is it in the news?

• DNA analysis can reveal deeply personal family secrets, as seen in a recent case handled by the Centre for DNA Fingerprinting and Diagnostics (CDFD) in Hyderabad.
• The case involved a father offering to donate an organ to his ailing son. The CDFD technicians generated DNA profiles for the donor, the patient, and the patient’s mother, only to uncover that the man who had been thought to be the father was not the biological father. Instead, the DNA analysis indicated that the father was a close paternal relative, likely the brother of the biological father.
• While the transplant could proceed, the revelation of this family secret, linked to the practice of levirate marriage, created an awkward situation that the family had hoped to keep private.

Understanding DNA Profiles

• DNA profiles are created by analyzing specific loci on the chromosomes, known as Simple Tandem Repeats (STRs). Each chromosome has repeating DNA sequences, and the number of these repeats can vary between individuals.
• When DNA from a person is analyzed, technicians can measure the number of repeats at these STR loci and compare them with those of the parents to confirm biological relationships. For example, in the case of the family in Hyderabad, the analysis showed that the mother’s and the son’s DNA were consistent, but the father’s profile did not match the son’s in certain loci.
• Despite sharing identical Y-chromosome profiles and other STR variants, the absence of certain repeats in the father’s DNA led to the conclusion that he was not the biological father, but instead, a close relative.

The Levirate Practice in India

• The practice of levirate marriage, where a woman’s brother-in-law fathers children when her husband is deceased or incapacitated, is part of some traditional Indian families.
• This practice arose from cultural and religious beliefs surrounding the duties of sons, particularly in Hinduism, where offering ancestral rites was seen as essential for salvation.
• As discussed by historian Projit Bihari Mukharji, the social role of a son was not necessarily tied to biological inheritance but to fulfilling religious and cultural obligations.
• Levirate marriages were one-way families ensured that these duties could be performed, even when the biological father was absent.

The Tension Between Tradition and DNA

• In the case of the Hyderabad family, the DNA results forced the family into a modern dilemma — the molecular revelation of their traditional practice. Mukharji points out that the reluctance of families to reveal such information is not only due to modern concerns about scandal but also stems from a deeper, older understanding of kinship.
• In this view, the concept of inheritance was not strictly biological but was more about fulfilling social and religious roles within the family structure. The DNA analysis, however, follows a narrow, biologically-based view of inheritance that does not account for the complex cultural practices like levirate.
• This raises concerns about the implications of DNA testing on genetic privacy and how laws need to adapt to protect individuals from unwanted disclosures of personal or familial information.

The Impact on Genetic Privacy Laws

• DNA analysis, while offering precise biological relationships, can inadvertently expose private family matters, leading to potential breaches of privacy.
• As DNA testing becomes more accessible and widespread, the need for stronger legal frameworks to protect genetic privacy becomes increasingly important. Without proper safeguards, individuals could find themselves exposed to unintended revelations that could disrupt personal lives and family structures.
• As seen in this case, DNA analysis doesn’t “know when to stop” and may reveal much more than is comfortable or culturally appropriate, highlighting the urgent need for legal protections around genetic information.

Land Degradation: A Growing Threat to Humanity and Ecosystems

GS 1: Geography: Land Degradation

Why is it in the news?

• Land degradation is significantly undermining Earth’s capacity to sustain humanity. According to a new United Nations report, reversing this trend is essential for future generations.
• Currently, about a million square kilometres of land are degraded annually, with an estimated 15 million square kilometres already impacted—an area larger than Antarctica. This analysis, titled Stepping Back from the Precipice: Transforming Land Management to Stay Within Planetary Boundaries, was published by the United Nations Convention to Combat Desertification (UNCCD) in collaboration with Germany’s Potsdam Institute for Climate Impact Research.
• The report was released ahead of the 16th session of the Conference of the Parties (COP16) to UNCCD in Riyadh, Saudi Arabia.

About Land Degradation

• The UNCCD defines land degradation as the “reduction or loss of the biological or economic productivity and complexity” of various ecosystems, including croplands, pastures, and forests, caused by a mix of pressures such as land use and management practices.
• This phenomenon poses risks to human and ecosystem health worldwide, impacting food security, spreading water- and food-borne diseases, and contributing to respiratory illnesses due to soil erosion.

Impact on Ecosystems and Climate

• Land degradation extends its impact to marine and freshwater systems, with eroded soil carrying fertilizers and pesticides into water bodies, harming aquatic life and dependent communities.
• It also exacerbates climate change by reducing the ability of ecosystems, such as soils and trees, to absorb carbon dioxide. Over the past decade, land degradation has decreased these ecosystems’ capacity to sequester human-caused carbon emissions by 20%.

Causes of Land Degradation

• Unsustainable agricultural practices, including the excessive use of chemical inputs and water diversion, are primary drivers of land degradation. These practices lead to deforestation, soil erosion, and pollution.
• Unsustainable irrigation depletes freshwater resources, while overuse of nitrogen- and phosphorus-based fertilizers destabilizes ecosystems. Climate change intensifies the issue by increasing heavy precipitation, heat stress, and other extreme weather events.
• Additionally, rapid urbanization contributes to habitat destruction, pollution, and biodiversity loss.

Most Affected Areas

• The report identifies several hotspots of land degradation, including dry regions such as South Asia, northern China, the High Plains and California in the United States, and the Mediterranean. Drylands, where a third of humanity lives, are particularly vulnerable.
• These regions include three-quarters of Africa, where the impacts of land degradation disproportionately affect low-income countries due to their limited resilience and resources.
• By addressing these challenges, global efforts can mitigate the devastating effects of land degradation on ecosystems, climate, and human well-being.

 AI Unveils Hundreds of Mysterious Nazca Geoglyphs in Peru

GS 3: Science and Technology: Role of AI in Archaeology

Why is it in the news?

• Located 400 km south of Lima, Peru, on the barren Nazca Pampa, lie hundreds of ancient geoglyphs, considered one of archaeology’s greatest enigmas. Discovered in the 1920s, it took nearly a century to identify 430 geoglyphs.
• However, in under six months, AI technology enabled the discovery of 303 additional geoglyphs, marking a breakthrough in archaeological research.

Ancient Ground Art

• Geoglyphs are designs created by manipulating ground surfaces, often by removing topsoil. The Nazca Lines, over 2,000 years old, are preserved due to the desert’s arid conditions and lack of wind.
• First studied systematically in 1926 by Peruvian archaeologist Toribio Mejia Xesspe, more shapes were discovered in the 1930s through aerial surveys.
• These geoglyphs range from geometric patterns to stylized figures like hummingbirds and spiders, but identifying them has been challenging due to their scale and visibility limitations.

Accelerated Discovery Through AI

• A recent study published in Proceedings of the National Academy of Sciences used low-flying drones and AI to survey over 600 sq km, leading to the identification of 303 new geoglyphs in a fraction of the time.
• AI technology, developed by a team of Japanese researchers and IBM, analyzed aerial images to eliminate 98% of irrelevant data, narrowing the focus to 47,410 potential sites.
• Researchers further reduced this to 1,309 candidates and confirmed 303 new geoglyphs through ground verification. The team believes at least 500 more figures remain undiscovered.

Cultural Significance of the Nazca Lines

• These discoveries shed light on the shadow culture that created the geoglyphs, a pre-Incan civilization with no written records. While early theories linked the designs to astronomy or aliens, modern archaeologists emphasize their ritualistic importance.
• According to an expert who have studied the lines for decades, geoglyphs served as sacred spaces for community rituals and reflected planned public architecture. Many new geoglyphs align with trails, suggesting they conveyed information about rituals and animal husbandry.

The Role of AI in Archaeology

• The study highlights AI’s potential to revolutionize archaeology, even for well-documented UNESCO World Heritage Sites. Historically, the rate of discovery for new Nazca geoglyphs was 1.5 per year, increasing to 18.7 annually from 2004 to 2020 due to high-resolution imagery.
• The latest AI-driven research represents a 16-fold acceleration, demonstrating how advanced technology can transform archaeological exploration and deepen our understanding of ancient cultures.

US Threats to BRICS Over Dollar Replacement Efforts

GS 2: International Relations: For a New Global Currency

Why is it in the news?

• The US’s use of financial tools like SWIFT to impose sanctions on Iran (2012) and Russia (2022) has driven many nations to explore alternatives to reduce reliance on the US dollar.
• Amid these efforts, US President-elect Donald Trump has issued a stern warning to BRICS nations—Brazil, Russia, India, China, and South Africa. He threatened 100% tariffs if they move forward with creating a BRICS currency or backing any alternative to replace the dollar as the global reserve currency.
• Trump’s social media statement declared that such initiatives would invite harsh economic retaliation, stating, “The idea that BRICS countries are trying to move away from the dollar while we stand by and watch is OVER.”
• This followed Russian President Vladimir Putin’s critique of the dollar’s “weaponization” and Indian Prime Minister Narendra Modi’s advice for BRICS to avoid being perceived as a rival to global institutions.

India’s Drive for Rupee Internationalization

• India has been working to internationalize the rupee, especially after sanctions disrupted global trade with Russia during the Ukraine war. In 2022, the Reserve Bank of India (RBI) allowed rupee-based invoicing and payments for international trade.
• Despite this, the rupee’s presence in the global forex market remains minimal, contributing just 1.6% to turnover compared to the dollar’s 88%. India-Russia trade, though growing, remains imbalanced—Indian exports to Russia stood at $4.2 billion in FY24, while imports reached $61 billion.
• This disparity has left Russia with surplus rupee reserves, which it invests in Indian stocks and bonds rather than bilateral trade. Conversely, balanced trade between Russia and China has boosted transactions in yuan and rouble, with over 90% of their trade now settled in domestic currencies.

India’s Balanced Stance on the Dollar

• Indian External Affairs Minister has clarified that India’s efforts aim to simplify trade transactions rather than challenge the dollar’s dominance. He noted that multipolarity will influence global currencies but emphasized that India’s actions are pragmatic, focusing on overcoming trade hurdles rather than undermining the dollar.
• Further, he stressed that India seeks workarounds for partners without dollar reserves, avoiding any deliberate antagonism toward the US currency.

Concerns Over US Tariffs on BRICS

• Trade experts have criticized Trump’s tariff threats as impractical and likely to backfire. Former trade officer noted that US actions, such as weaponizing SWIFT, have already prompted countries to seek alternatives.
• He argued that imposing 100% tariffs on BRICS would only shift imports to third countries, raising costs for US consumers without reviving domestic manufacturing.
• Further, he added that the US’s competitiveness in labour-intensive goods has eroded, and tariffs alone will not reverse this trend.

China’s Growing Influence in BRICS

• According to the Director General of the Federation of Indian Export Organisations (FIEO), China’s growing influence in BRICS initiatives could disproportionately benefit Beijing. He noted that while China aims to use BRICS to counter the US, nations like India, Brazil, and South Africa prefer resolving differences diplomatically.
• He advised India to accelerate the development of its digital currency (CBDC) and payment platforms like UPI to take a leadership role in BRICS while maintaining strong US ties to protect its broader economic and strategic interests.

Declining Dollar Dominance and Rising Alternatives

• Data from the IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER) highlights a gradual decline in the dollar’s share of global reserves. Non-traditional reserve currencies like the Australian dollar, Canadian dollar, and Chinese renminbi have gained prominence.
• China has aggressively promoted renminbi internationalization through policies such as cross-border payment systems and a central bank digital currency. However, the IMF noted that the renminbi’s global reserve share has plateaued despite these efforts.

Conclusion

• Trump’s threats are unlikely to dissuade BRICS from exploring alternatives to the dollar. For India, the challenge lies in balancing BRICS reforms with maintaining strong ties with the US.
• By promoting rupee internationalization and leveraging digital financial tools, India can align its economic priorities with BRICS initiatives while ensuring stability in its global partnerships.