14 June 2023

• Technology: The G7 announced the Hiroshima AI Process, an international framework for regulating generative AI.
• Diplomacy: The United States formally rejoined UNESCO, paying over 600 million dollars in back dues.
• Security: SIPRI reported that nine nuclear-armed states collectively hold 12,512 warheads, with the US and Russia holding 90 per cent.
• Health: The CDSCO approved Cholederm, India's first class D medical device derived from pig gall bladder matrix for wound healing.

GS area: Science and Technology, International Relations

At the G7 Digital and Technology Ministers' meeting in Japan in June 2023, ministers agreed on the Hiroshima AI Process, a framework for international AI governance.

• Focus: Regulating generative AI, meaning AI systems that can create text, images, code, and video from natural language prompts (ChatGPT, Bard, Midjourney type systems).
• Partners: The process works with OECD and GPAI (Global Partnership on AI) for implementing practical projects.
• Guiding principles: Fairness, accountability, transparency, and safety, aligned with democratic values.
• Challenge: G7 nations diverge on key questions. The EU is moving toward mandatory regulation under the EU AI Act. The US favours voluntary commitments. Japan's approach is more permissive. There is no agreement on the AI-intellectual property relationship (copyright of AI-generated content).
• GPAI: The Global Partnership on AI is a multi-stakeholder initiative co-founded by Canada and France in 2020. India joined in 2020. It has 29 member countries.

Static linkage: Science and technology; international relations.

GS area: International Relations

The United States formally rejoined UNESCO in June 2023, committing to pay 600 million dollars or more in arrears accumulated during its absence.

• History: The US joined UNESCO at its founding in 1945. It withdrew in 1984 under Reagan (citing alleged anti-Western bias and mismanagement). It rejoined in 2003 under George W. Bush. It withdrew again in 2017 under Trump, citing anti-Israel bias.
• 2023 reason for return: To counter China's growing influence in UNESCO and reclaim US leverage over UNESCO's standards in education, science, and culture.
• UNESCO basics: 193 member states. Headquarters in Paris. Founded in 1945 as a UN specialised agency. Mandate: education, science, culture, and communication.
• India's connection: India has been a UNESCO member since its founding. UNESCO designates World Heritage Sites, Intangible Cultural Heritage, and Biosphere Reserves that matter for Indian prelims.

Static linkage: International organisations; India and the world.

GS area: International Relations, Security

The Stockholm International Peace Research Institute released its annual nuclear weapons report.

• Total warheads: 12,512 as of early 2023 across nine nuclear-armed states.
• US and Russia: Together hold approximately 90 per cent of all warheads. US: 5,244 (including retired). Russia: 6,257 (including retired).
• India: 164 warheads. Growth of roughly 10 warheads from the previous year.
• Trend: While total warheads have declined from Cold War peaks (over 70,000 in the 1980s), the share that is operationally deployed is increasing. Modernisation is happening across all nine states.
• Nuclear Weapons States under NPT: The five permanent members of the UN Security Council (US, Russia, UK, France, China) are the recognised NWS. India, Pakistan, and Israel are not signatories; North Korea withdrew.

Static linkage: International relations; security.

GS area: Economy (financial regulation)

The Reserve Bank of India permitted third-party Default Loss Guarantees (also called First Loss Default Guarantees) in lending arrangements.

• What FLDG is: An arrangement where a third party (typically a fintech lending service provider) compensates a bank or NBFC for up to a certain percentage of loan defaults in a portfolio it has originated.
• RBI's conditions: The third party must be incorporated under the Companies Act. The maximum FLDG cover is 5 per cent of the loan portfolio.
• Purpose: Enables fintechs to co-lend with banks without the fintech needing to hold a banking licence. The bank bears the credit risk but has a partial guarantee from the originating fintech.

Static linkage: Indian economy (financial sector); governance.

GS area: Economy, Art and Culture

The Kari Ishad mango from Ankola in Uttara Kannada district of Karnataka received a Geographical Indication tag.

• What makes it special: Known for its distinctive aroma, taste, and pulp content.
• GI tag basics: A GI tag indicates that a product originates from a specific geographical area and has qualities or reputation attributable to that origin.
• Legal basis: Geographical Indications of Goods (Registration and Protection) Act, 1999.
• Validity: 10 years, renewable for further 10-year periods.
• First Indian GI tag: Darjeeling tea received India's first GI tag in 2004-05. The tag for Darjeeling tea was also Asia's first for tea.

Static linkage: Economy (trade, IPR); art and culture.

• Hamari Bhasha, Hamari Virasat exhibition: An exhibition marking 75th International Archives Day. Displayed Gilgit Manuscripts, birch-bark documents from the 5th to 6th century CE found in Gilgit. These are among the oldest surviving Buddhist manuscript collections in the world.
• SIPRI on India warheads: Mentioned above. India's 164 warheads place it below the five NPT nuclear weapons states but above North Korea (estimated 30-50).
• Anak Krakatau volcano (Indonesia): Active volcano in the Sunda Strait between Java and Sumatra. It is the offspring of the original Krakatau volcano that had a catastrophic eruption in 1883. A 2018 eruption of Anak Krakatau triggered a deadly tsunami on the Sunda Strait coasts.