NATO

Disclaimer: Copyright infringement not intended.

Context

• Finland and Sweden set to apply to join NATO, which could be considered a historic move for the Nordic nations (traditionally neutral countries).
• Finland and Sweden have both been reviewing their security policies following Russia’s invasion of Ukraine, which showed the Kremlin is willing to attack a neighbouring nation.

About NATO

• North Atlantic Treaty Organization (NATO) is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 1949, by the United States, Canada, and several Western European nations to provide collective security against the Soviet Union.
• NATO promotes democratic values and enables members to consult and cooperate on defence and security-related issues to solve problems, build trust and, in the long run, prevent conflict.
• It headquarters in Brussels, Belgium.

Impact of NATO’s expansion

• Expanding NATO could complicate its ability to achieve consensus, weaken the security of those countries not brought in, increase demands on defence budgets when they are already overstretched, and alienate Russia.
• Even Russia will look to rejuvenate Warsaw Pact.
• After Finland and Sweden, the NATO and US combined have the largest-military power, Russia will look to counter it by aligning with China.
• India will have to frame a cautious foreign policy from the long-term prism by maintaining relations with all the players.

https://www.reuters.com/markets/us/imf-lifts-weighting-dollar-chinese-yuan-sdr-basket-2022-05-15/