Israel’s Banned UNRWA, Gold Surge due to acquisition by Central Banks, Dhanteras: Celebrating Health and Prosperity

(General Studies II – International Relations Section – India and its Neighbourhood- Relations.)

• India and Sri Lanka share a relationship spanning over 2,500 years, built on intellectual, cultural, and religious connections, with Buddhism forming a strong foundation.
• Exchanges of cultural delegations and the celebration of shared heritage, such as the opening of the Kushinagar airport for Sri Lankan pilgrims, underscore this legacy.

• The two nations have maintained consistent high-level political engagements, with recent bilateral summits and exchanges highlighting cooperation on various fronts.
• India’s support during Sri Lanka’s civil war emphasized its stance on sovereignty and human rights, advocating for reconciliation within a united framework.
• Recent visits from both sides emphasize the commitment to a cooperative approach across development and security.

• India is one of Sri Lanka’s largest trade partners, with a robust trade relationship since the implementation of the India-Sri Lanka Free Trade Agreement (ISFTA) in 2000.
• Bilateral trade reached approximately $5.45 billion in 2021, and Indian investments, especially in energy, tourism, and manufacturing, have exceeded $2.2 billion.
• Development projects funded by India include significant infrastructure and livelihood projects.

• India has pledged over $3.5 billion in grants and lines of credit for projects in housing, health, education, and transportation.
•  Flagship projects, such as the 1990 Emergency Ambulance Service and the construction of 62,500 houses, reflect India’s focus on humanitarian aid.
• Lines of credit have been used to upgrade Sri Lankan railways and develop solar power infrastructure.

• The shared Buddhist heritage drives cultural diplomacy, with mutual programs and scholarships promoting educational exchanges.
• The Swami Vivekananda Cultural Centre in Colombo fosters cultural awareness, offering training in classical arts and yoga.

• India is the largest source of tourists to Sri Lanka, facilitated by the e-Tourist Visa scheme and the Open Sky Agreement, allowing direct flights between major cities.
• Tourism recovery post-COVID has been strong, with tourism contributing significantly to both economies.

• Israel’s parliament passed two bills banning the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) from operating in Israel and Palestinian territories.
• It designated the agency as a terrorist organization and severed all ties.
• Nearly 2 million Palestinians rely on UNRWA for essentials in Gaza.
• Israel claims some UNRWA employees have links to militant groups.
• Israel presented evidence alleging some UNRWA staff’s involvement in recent attacks.
• It revokes the agency’s legal immunities.

UNRWA:

• Following the 1948 War, UNRWA was established by United Nations General Assembly Resolution 302 (IV) of 1949 to carry out direct relief and works programmes for Palestine refugees.
• In the absence of a solution to the Palestine refugee problem, the General Assembly has repeatedly renewed UNRWA’s mandate, most recently extending it until 30 June 2026.
• UNRWA provides education, healthcare, relief, and emergency services for approximately 5.9 million Palestinian refugees across Gaza, the West Bank, Lebanon, Syria, and Jordan.
• Funded mainly through donor contributions, UNRWA employs around 30,000 Palestinians.
• These measures may force UNRWA to cease operations in Gaza and the West Bank, affecting its East Jerusalem headquarters.
• In the West Bank, UNRWA currently provides essential services to refugee camps, schools, and health facilities.

Dig Deeper: Read about the UN Interim Force in Lebanon.

• Amidst geopolitical tensions and economic uncertainty, gold prices have reached record highs.
• Gold is favoured during geopolitical or economic instability due to its low correlation with other assets, offering stability when markets face downturns.
• Generally, higher interest rates make gold less attractive since it offers no yield, while lower rates and a weaker dollar increase its appeal as a safe asset. However, exceptions can occur due to inflation and geopolitical events.
• Central banks buy gold to hedge against uncertainties and diversify foreign reserves.
• As of August, net purchases were recorded at 8 tonnes, with notable acquisitions from Turkey, Poland, and India.
• Gold’s finite nature and the lengthy process from discovery to production (often decades) make it difficult for supply to adjust quickly to market changes.
• The World Gold Council notes an increase in demand from rural areas
• Due to favourable monsoons and better crop yields, boosting rural incomes and gold purchases.
• The reduction in gold import duties in July has stimulated demand in India.
• Gold demand remains high in India during the festive and wedding seasons.

Dig Deeper: Read about other acquisitions of central banks to hedge risk amid an uncertain environment.

• U.S. citizens will soon vote to choose their 47th President.
• The U.S. Constitution mandates that instead of securing the popular vote, the winner is the candidate who clinches the maximum number of electoral college votes.
• Electoral College System
• The electoral college is an intermediary body or process that chooses the U.S. President.
• n this system, voters of each State cast their ballots to choose members (or electors) of the electoral college who then vote to select the President.
• The number of electors accorded to each State is in proportion to its population and mirrors its number of members in Congress — both the House of Representatives and the Senate.
• The system was put in place to ensure States got equal representation in the election process.
• Election Process and Voting:

• In the lead-up to the election, parties nominate electors in each state.
• The electors from the party that wins the state’s popular vote go on to represent that state in the Electoral College.
• Except for Maine and Nebraska, states follow a “winner-takes-all” system, where the popular vote winner receives all the state’s electoral votes.
• In December, electors typically vote for the candidate who won the state’s popular vote; those who vote otherwise are called “faithless electors,” and some states penalize this.
• With 538 total electoral votes, a candidate needs at least 270 to win the presidency.

Dig Deeper: Compare Elections in India with the Electoral College system of the US.

• On Ayurveda Day and Dhanteras, health-linked projects worth nearly Rs 12,850 crore were launched.
• Ayurveda Day is celebrated annually on Dhanvantri Jayanti, the believed birth anniversary of Dhanvantri, regarded as the divine physician.
• In Hindu mythology, Dhanvantri emerged from the churning of the ocean, Samudra Manthan, bearing a pot of amrita, symbolizing the nectar of immortality.
• Dhanvantri is depicted with four hands, holding amrita, a discus, a conch, and often herbs or a leech, symbolizing health and healing.
• Dhanvantri and Lakshmi are worshipped on Dhanteras for health and prosperity, as Dhanvantri appeared with amrita and Lakshmi emerged on the same day.
• Kuber, the divine treasurer, is also worshipped on Dhanteras, symbolizing wealth and abundance.
• Another tradition suggests Dhanvantri incarnated as King Divodasa of Kashi, passing Ayurvedic knowledge to sages, including the renowned surgeon Susruta.

Dig Deeper: Read about Charaka and Susruta.