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Obama Ends Freeze On US Military Aid To Egypt
The United States announced on March 31, 2015, it was lifting its hold on the supply
of military equipment to Egypt, which was frozen when the military took power in Cairo
 nearly two years ago. Mr. Obama directed the release of 12 Lockheed Martin F-16 aircraft,
20 Boeing Harpoon missiles, and up to 125 M1A1 Abrams tank kits made by General Dynamics,
National Security Council spokesperson Mr. Bernadette Meehan said. She said this was in
the interest of US national security. The decision was announced after a telephone call
 between Mr. Obama and Egyptian President Mr. Abdel Fattah al-Sisi. Egypt, which has worked
 with the United States on Middle East peace moves, is emerging from a period of domestic
 upheaval and is engaged in several regional conflicts, including in neighbouring Libya,
and fighting Islamic State militants at home. Mr. Sisi is leading an initiative to form a
 unified Arab military force in the region to confront Iranian-allied rebels in Yemen,
 and other threats. The White House said that Washington would modernise the way it
provided military aid to Cairo to focus on counterterrorism, border security, maritime
security and Sinai security, where Islamic State militants have been active. The aid was
frozen after the Egyptian army overthrew former President Mohamed Mursi. Some restrictions
were relaxed in 2014, but Congress made aid dependent on the US Secretary of State
certifying that Egypt was taking certain steps to govern democratically, a delay which
angered the Egyptian government. ( Highlights )   The United States announced to Lift its
 hold on the supply of military equipment to Egypt.  Mr. Obama directed the release of
 12 Lockheed Martin F-16 aircraft, 20 Boeing Harpoon missiles, and up to 125 M1A1 Abrams
 tank kits.  The equipment supply was frozen when the military took power in. Cairo
nearly two years ago. • Egypt is emerging from a period of domestic upheaval and is
engaged in several regional conflicts, including in neighbouring Libya:
US Agrees To Keep 9,800 Troops In Afghanistan Through The End Of 2015
The US President Mr. Barack Obama on March 24, 2015 agreed to slow the US military pullout
from the war-torn Afghanistan through the end of the year 2015. As per the agreement
reached between Mr. Barack Obama and Afghanistans President Mr. Ashraf Ghani in
Washington, the US will maintain 9,800 troops in Afghanistan through the end of the
year 2015. Mr. Obama also promised to end Americas longest war by the end of his term.
 That is, the US will not depart from its current plan of closing its bases in Afghanistan
and consolidate the remaining US forces in Kabul by the end of 2016. Both Mr. Obama and
 Mr. Ghani agreed that an end to the war in Afghanistan could only come through a
political deal with the Taliban. Earlier, it was planned that the US would cut the
presence of its troop in Afghanistan to 5,500 by the end of 2015. Keeping the extra US
 troops through the end of the year 2015 would ensure that the Afghan forces continue to
 make improvements to guarantee that far-flung units have the food, ammunition and
intelligence required to fight on tl2eit own. ( Highlights )   US President Mr. Barack
 Obama agreed to slow the US military pullout from the war-torn Afghanistan through the
 end of the year 2015.  The US will maintain 9,800 troops in Afghanistan through the end
of the year 2015.  US will not depart from its current plan of closing its bases in
Afghanistan by the end of 2016.
France, Germany, Italy Decide To Join China-backed AIIB
Three nations from European Union (EU) France, Germany and Italy have agreed to join the
 China-backed Asian Infrastructure Investment Bank (AIIB) after the United Kingdom decided
to join the bank. If these Western nations join the bank, the total number of the banks
 member states including India will go up to 30. The UK was the first Western country to
join the bank and
also first nation to disregard the reservations expressed by the United States which had
 raised concerns over banks transparency.
German Finance Minister Mr. Wolfgang Schduble (R) and Chinas Vice Premier
Mr. Ma Kai shake hands at ajoint news conference in Berlin.
Asian Infrastructure Investment Bank is an international firiancial institution proposed
by China which seeks to provide support to infrastructure projects in Asia. It is expected
 to be operational by the end of 2015 and its headquarters will be located at Beijing.
The bank is also considered as Chinas move to balance the power with the WB, IMF and ADB
which are being controlled/ dominated by the US, EU and Japan, respectively. The
authorised capital of AIIB is $100 billion and the initial subscribed capital is expected
to be around $50 billion. The paid-in ratio will be 20%. India along with other 20 member
 nations was founding member of AIIB and had signed agreement in this regard in October
2014. ( Highlights )   France, Germany and Italy agreed to join AIIB after the United
Kingdom decided to join it.  After these nations join the bank, the number of the banks
 member states including India will go up to 30.  AIIB seeks to provide support to
infrastructure projects in Asia.
China-Sri Lanka Ink Five Agreements During Sirisenas China Visit
China aid Sri Lanka signed five agreements on March 26, 2015 to deepen development
 partnership between the two countries. The agreements were signed in Beijing during the
 four-day maiden visit of Sri Lankan President Mr. Maithripala Sirisena to China after
assuming office in January 2015.
32 COMPETITION SUCCESS REVIEW MAY 2015


Both the countries reiterated the hared adherence of the two countries to the Five
Principles of Peaceful Co-xistence or Pancha Sheela. The two ations signed five agreements
related cooperation for special aid in public alth, development of water treatment ethods
and technologies in kidney disease-affected areas, research and development of the coconut
 industry and refurbishment of the Superior Courts Complex in Sri Lanka.
Sri Lankan President Mr. Maithripala Sirisena with Chinese President Mr. Xi Jinping during
 a signing ceremony in the Great Hall of the People, Beijing on March 26, 201 5.
During the talks between the Sri ankan President and his Chinese counterpart Mr. Xi Jinping
 it was also agreed to kick-start third round of negotiations to conclude the proposed
China-Sri Lanka Free Trade Agreement (FTA). Sri Lanka accepted Chinas invitation to become
 a founding member of the Chinese proposed Asian Infrastructure Investment Bank (AIIB).
 China agreed to provide for 2,000 training opportunities for young scientists from
Sri Lanka in the next five years besides setting up Chinese language training centres in
 Sri Lanka to deepen cultural partnership between both the countries. Sri Lankan President
 Mr. Maithripala Sirisenas four-day visit to China was part of a delicate balancing act
 being executed by Colombo. Under former President Mr. Mahinda Rajapaksa, Sri Lanka had
drifted close to China in ways that made it seem unconcerned about Indias sensitivities.
 Sri Lanka also hosted two Chinese submarines in 2014, which made New Delhi apprehensive
 about its security and contributed to its reservations about the Chinese Maritime Silk
Road (MSR) project. In Januarys general elections, the opposition front led by
Mr. Sirisena had promised a more balanced foreign policy. Mr. Sirisena thus made India
 his first foreign destination as President and Prime
Minister Mr. Narendra Modi paid a quick return visit in March. In the event,
 Mr. Sirisenas visit to China was an indication that while Colombo would like to nuance
its ties with Beijing, it would not like to alienate China.
Highlights )   China and Sri Lanka signed five agreements to deepen development
partnership between the two countries.  The agreements related to cooperation for special
 aid in public health, development of water treatment method, research and development of
 the coconut industry and refurbishment of the Superior Courts Complex in Sri Lanka. 
The agreements were signed in Beijing during the four-day maiden visit of Sri Lankan
President Mr. Maithripala Sirisena to China.
China To Accommodate India In Silk Road Plan
China has indicated that it was ready to merge its Silk Road programme with Indias
 Mausam and other plans to enhance connectivity with South Asian nations. Beijing has
changed its earlier stance that road connectivity in South Asia be made part of its own
 programme. Chinese government said on March 28, 2015 that the China-Pakistan economic
 corridor and the Bangladesh-China-India-Myanmar economic corridor were closely related
to the Belt and Road Initiative and therefore required closer cooperation and greater
 progress. The change in Chinas stance comes after the countrys official media suggested
that the Silk Road programme be merged with the `Mausam programme announced by Prime
 Minister Mr. Narendra Modi. Discussing its programme, China said that the Silk Road
focuses on bringing together China, Central Asia, Russia and Europe; linking China with
the Persian Gulf and the Mediterranean Sea through Central and West Asia; and connecting
 it with South Asia and the Indian Ocean. The 21st-Century Maritime Silk Road is designed
 to go from Chinas coast to Europe through the South China Sea and the Indian Ocean in
one route, and through the South China Sea to the South Pacific in the other.
( Highlights )   China indicates its readiness to merge its Silk Road programme with .
Indias plans to enhance connectivity with South Asian nations.  The Maritime Silk Road
 is designed to go from Chinas coast to Europe through South China Sea and Indian Ocean
in one route, and through South China Sea to South Pacific in the other.
Japan And China Hold First Security Talks After 4 Years
Japan and China on March 19, 2015 held their first security talks in Tokyo after four
years since the ties had worsened over a row over islands in the East China Sea. In the
 security talks, both nations agreed to keep alive and foster a nascent recovery in
bilateral ties plagiled by the legacy of Japans wartime aggression and a territorial
dispute. However, both nations failed to set a timetable for the implementation of a
scheme designed to ensure real-time communication between their armed forces.
Japans Prime Minister Mr. Shinto Abe shakes hands with Chinas President Mr. Xi Jinping
(R) on March 19, 2015. Sino-Japanese relations had worsened after China had claimed its
 rights over the group of tiny East China Sea islets. The islets comprise group of eight
 uninhabited islands and rocks. They have a total area of about 7 sq km in China Sea and
 are controlled by Japan. These islets are close to strategically important shipping lanes
in this region and also offer rich fishing grounds. The region surrounding these islets
is also thought to contain oil deposits. China claims that these islets have been part of
 its territory since ancient times. On the other hand, Taiwan is also claim its right on
 the islands.
COMPETITION SUCCESS REVIEW, MAY 2015
33



( Highlights )   Japan and China held talks after 4 years.  Both the nations agreed to
keep alive and foster a hopeful recovery in bilateral ties.  Sino-Japanese relations
worsened after China claimed its rights over the group of tiny East China Sea islets.
Thai Military Government Replaces Martial Law
Thailands military government has announced that it is lifting martial law, 10 months
after it was imposed in May 2014. The military law was imposed shortly before the army
staged a coup. Prime Minister Gen. Prayuth Chan-ocha announced the move in a televised
statement and said that the law would be replaced by a new security order. Gen. Prayuth
 made the announcement on April 1, 2015, saying the king had given his formal approval
to the lifting of martial law. Gen. Prayuth said that the law would be replaced by
bringing into force Article 44 of a new constitution, which has been heavily criticised by
human rights groups. Article 44 allows the prime minister to issue executive orders to
disrupt or suppress threats to national security or the monarchy, and Gen. Prayuth has
 said that under the new measure soldiers would be able to apprehend people, if an
incident occurs, without an arrest warrant. The new measure has drawn considerable
criticism, with many fearing that it could give the military more power than it had
 enjoyed before. The tourism industry, vital to Thailands economy, was among the critics
 of martial law, saying it was stifling the sector. The Thai military government,
officially known as the National Council for Peace and Order, has promised to restore
democracy and hold elections in late 2015, but has repeatedly cracked down on dissent,
jailing critics and censoring the media. The army seized power last May, ousting the
 elected government following months of unrest. ( Highlights )   Thailands military
government announced to lift martial law, 10 months after it was imposed in May 2014.
•  The law would be replaced by bringing into force Article 44 of a new constitution.
 Under the new measure, soldiers would be able to apprehend people, if an incident occurs,
 without an arrest warrant.
Pakistan 8th Most Dangerous Country In The World : Report
Pakistan has emerged as the worlds eighth most dangerous country in a latest analysis of
 the top 10 danger zones based on terrorist and rebel activity. The IntelCenters
Top 10 Most Dangerous Countries list as of March 2015 is topped by the Middle East,
with Iraq and Syria ranked No. 1 and 2, respectively. The countries completing the top
10 include Nigeria (3rd), Somalia (4th), Afghanistan (5th), Libya (6th), Yemen (7th),
 Ukraine (9th) and Egypt (10th). IntelCenters Country Threat Index (CTI) examines the
 volume of terrorist and rebel alerts, messaging traffic, videos, photos, incidents
and the number killed and injured in a country and runs it through an algorithm to assign
 the country its CTI. The higher the CTI, the greater is the risk. In Indias
neighbourhood, Pakistan with a CTI of 122 is joined by Afghanistan with a CTI of 186 and
ranked fifth. According to IntelCenter, a Washington-based company working for intelligence
 agencies, a low CTI does not necessarily reflect the absence of risk-As the US in the
lead up to 9/11 would have had a low CT. It does, however, reflect a lower level of
activity over the preceding 30 days (of the analysis), which means high-volume activity
is unlikely but one-off events are always a possibility. The CTI is based solely on
terrorist and rebel-related activity. It does not evaluate other risk factors such as
crime and political instability. The Global CTI is arrived at by adding up each individual
 countrys CTI. It serves as an overall indicator of global terrorist and rebel activity.
 ( Highlights )   Pakistan has emerged as the worlds eighth most dangerous country in
 IntelCenters Top 10 Most Dangerous Countries list as of March 2015.  The list is
topped by the Middle East, with Iraq and Syria ranked No. 1 and 2, respectively. .
IntelCenters Country Threat Index (CTI) examines the volume of terrorist and rebel alerts
in last 30 days.
S
•
ADB Releases Asian Development Outlook 2015
The Asian Development Bank (ADB) released the Asian Development Outlook (ADO) on March 24,
2015. The report is titled Financing Asias Future Growth. The ADO report projected that
 India would overtake China in terms of growth rate in Financial Year (FY) 2015, and 2016.
 India is forecast to grow at the rate of 7.4 percent in FY 2014, 7.8 percent in FY 2015
and 8.2 percent in 2016 compared to Chinas growth rate of 7.4 percent in FY 2014,
7.2 percent in FY 2015 and 7.0 percent in FY 2016.
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According to the ADO 2015, developing Asia will grow at a steady 6.3 percent in 2015 and
2016-the same pace as 2014. Driven by the fall in oil prices, inflation will slow from 3.1
percent in 2014 to 2.6 percent in 2015. It says that as oil prices gradually rebound,
inflation will pick up to 3.0 percent in 2016. Driven by the growth in the United States
(US), the major industrial economies are collectively forecast to expand by 2.2 percent
in 2015 and accelerate further to 2.4 percent in 2016. The ADO says that weaker investment
 in real estate in China is expected to further curtail growth to 7.2 percent in 2015
 and 7.0 percent in 2016. China grew at a pace of 7.4 percent in 2014. The report says
that the combined GDP of the 10 ASEAN economies is forecast to expand by 4.9 percent in
2015, lifted from 4.4 percent in 2014 by  recovery in Indonesia and Thailand. It says
that developing Asia has been the main source of global growth since the Financial Crisis
 in 2009. The region contributed 2.3 percentage points - to global GDP growth, nearly
 60 percent of the worlds annual 4.0 percent pace. It further says that the drop in
 commodity prices, for oil in particular, will enlarge developing Asias current account
surplus by 0.2 percentage points to 2.5 percent of GDP in 2015. Asia has experienced rapid
 credit growth since the global financial crisis. From 2009 to


2013, proliferating bank loans and bonds in the 14 large economies of developing Asia
almost doubled total domestic debt from $18.3 trillion to $34.1 trillion. ADO 2015 also
cautions about some dangers to growth in the Asian region. It says that reversals in an
 otherwise supportive environment could dampen growth. ( Highlights )   The Asian
Development Bank released the Asian Development Outlook 2015.  The report says developing
Asia will grow at a steady 6.3 percent in 2015 and 2016.  ADO 2015 cautions that reversals
 in an otherwise supportive environment could dampen growth in Asia.
Saudi Arabia Launches Military Operation Against Houthi Rebels In Yemen
Saudi Arabia on March 25, 2015 launched a military operation including airstrikes in Yemen
against the Houthi rebels, who drove out the Yemeni President Mr. Abd-Rabbu Mansour Hadi.
 It launched the operation in coalition with nine other countries of the region. The
operation against the Houthi rebels was launched to defend and support the legitimate
government of Yemen and prevent the radical Houthi movement from taking over the country.
 The action started with airstrikes on various targets around Yemen. The airstrikes
targeted the Presidential palace and the police and Special Forces headquarters in the
 capital, Sanaa.
Saudi Ambassador to the US Mr. Adel Al-jubeir announced on March 15, 2015 • that Saudi
Arabia would carry out air strikes in Yemen against Houthi militias.
The operation led by Saudi Arabia is joined by Jordan, Sudan, Morocco,
Egypt, Pakistan and countries of Gulf Cooperation Council (GCC), viz., Bahrain, Kuwait,
 Qatar and the United Arab Emirates (UAE). Besides, the US President Mr. Barack Obama
 though had authorised logistical and intelligence support for the operation, yet the US
forces will not participate directly in the operation in Yemen. Earlier, the President of
 Yemen Mr. Abd-Rabbu Mansour Hadi fled his palace in Aden as Houthi rebels advanced
 towards the southern port city. Iran-backed Shiite rebels have been demanding economic
 and political reforms in Yemen and have made rapid gains in recent months. In the third
 week of March 2015, Shiite rebels seized Yemens third largest city, Taiz and in February
2015, took command of the capital, Sanaa leading to the US closing its operation in Sanaa.
 ( Highlights )   Saudi Arabia launched a military operation in Yemen against the Houthi
 rebels.  It launched the operation in coalition with nine other countries of the region.
  The operation was launched to defend and support the legitimate government of Yemen
and prevent Houthi movement from taking over the country.
SIPRI Releases Trends In International Arms Transfers 2014 Report
Stockholm International Peace Research Institute (SIPRI), an independent international
 institute dedicated to research into conflict, armaments, arms control and disarmament,
on March 16, 2015 released Trends in International Arms Transfers 2014 Report. According
 to it, India is the worlds largest importer of weapons and military equipment,
accounting for 15 percent of global imports, with Russia being its majority supplier.
According to the report, the volume of transfers of major weapons in 2010-14 was 16 percent
 higher than in 2005-2009. The five biggest exporters in 2010-14 were the USA, Russia,
China, Germany and France. Together, they accounted for 74 percent of the volume of arms
exports. Combined, the USA and Russia supplied 58 percent of all exports. China replaced
Germany as the third largest arms exporter in 2010-14,
in 2005-09 China was ranked ninth. Total exports from all EU member states in 2010-14 were
 16 percent lower than in 2005-09; in 2005-09, EU export volumes were higher than those
 for the USA or Russia, while in 2010-14, they were below the US and Russian export totals.
 The report says that the five biggest importers in 2010-14 were India, Saudi Arabia,
China, the UAE and Pakistan. Together, they received 33 percent of all arms imports. The
main recipient region in 2010-14 comprised Asia and Oceania (accounting for 48 percent of
imports), followed by the Middle East (22 percent), Europe (12 percent), the Americas
 (10 percent) and Africa (9 percent). Between 2005-09 and 2010-14, arms imports by states
 in Africa increased by 45 percent, Asia and Oceania by 37 percent, the Middle East by
25 percent and the Americas by 7 percent. Imports by the states in Europe decreased by
36 percent. The report says that India was the largest importer of major arms in 2010-14,
 accounting for 15 percent of the global total. Between 2005-09 and 2010-14 imports
increased by 140 percent. In 2010-14, Indias imports were three times larger than those
of its regional rivals China and Pakistan. This contrasts with 2005-09 when Indias
imports were 23 percent below Chinas and just over double those of Pakistan. India has
 so far failed to produce competitive indigenous-designed weapons and remains dependent
on imports. In 2010-14. Russia supplied 70 percent of Indias arms imports, the USA
12 percent and Israel 7 percent. The acquisitions from the USA are a break with the
recent past. Prior to 2005-09, India barely received any major weapons from the USA.
However, there now appears to be an upward trend in arms imports from the USA. Imports
in 2010-14 were 15 times higher than in 2005-09 and included advanced weapons such as
 anti-submarine warfare  aircraft. In 2014 additional deals with the USA were agreed,
including for 22 combat helicopters. ( Highlights )   According to SIPRI report, India
 is the worlds largest importer .of weapons and military equipment. it The five biggest
 exporters in 2010-14 were the USA, Russia, China, Germany and France.  The five biggest
 importers in 2010-14 were India, Saudi Arabia, China, the UAE and Pakistan.  In 2019-14,
 Indias imports were three times larger than those of its regional rivals China and
Pakistan.
 
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