The Quadrilateral Security Dialogue (QUAD) – an initiative of Australia, India, Japan and the USA – had its maiden leadership summit on March 12.Key Highlights of the Summit
· The joint statement has brought a consensus approach towards the concept of Indo-Pacific
– which Quad members want to be free, open, inclusive, healthy, anchored by democratic values and free from any coercion.
· A nuanced approach towards the elephant in the room – China – has been taken, by emphasizing on rules-based maritime order and highlighting security challenges.
o Quad also prefers to have a blend of competition, cooperation and confrontation with China – without directly antagonizing Beijing.
· Quad is taking a soft-power approach to convince countries that it is a benign grouping committed to development in the region.
o This has been done through the special initiative to ensure equitable access of COVID vaccines for countries from Western Pacific to Eastern Africa – target of 1 Billion vaccine doses by 2022 has been set.
o Financial support to be provided by U.S. and Japan, logistics from Australia, and the vaccine manufacturing-cum-distribution by India.
· Strengthening cooperation among the four through the new three working groups on vaccine partnership, climate change and critical technologies.
Concept of Development Financial Institution (DFI)
· DFIs are provide long-term finance for segments of economy – whose risks are beyond the acceptable limits of other financial institutions.
· These Development Banks not just finance segments of economy, but also augments development of sectors for hastening economic growth. · Unlike banks, DFIs do not accept deposits from people - they source funds from market, government, multi-lateral institutions, and are supported by government guarantees.
· India’s 1st DFI was set up in 1948 – in form of State Financial Corporations (SFCs).
· Post-1991, DFI’s share in economy reduced from 2/3rd to 30% (reduced public spending on DFI is a key reason) – which was also highlighted by the Narsimham committee.
· Commercial banks (Universal banking) has mostly replaced the functions of DFIs
· Leaders have agreed to continue Quad meetings in a recurring fashion to facilitate working towards their common vision.
