Recent Development in India's Foreign Policy - 5 | PSIR Optional for UPSC (Notes) PDF Download

Pathways to Global Reform

Upcoming United Nations Summit on September 22-23, 2024

• Critical Time for Global Governance: The summit is happening at a crucial moment when trust in multilateralism is low due to challenges like the Covid-19 pandemic and conflicts in Ukraine and Gaza.
• Pact for the Future: The main focus of the summit is the Pact for the Future, which aims to propose a vision for reforming the UN and improving global cooperation.
• Skepticism About Effectiveness: Some people doubt whether the summit can effectively tackle the UN's long-standing problems, especially the outdated power structure of the Security Council.
• Opportunity for Collective Action: Despite the challenges, the summit presents a valuable chance for countries to come together and address global issues, potentially sparking real reforms within the UN system.
• Involvement of Civil Society and Private Sector: The participation of civil society and private sector representatives in discussions could revitalize multilateralism and bring fresh perspectives.
• Dependence on Member States' Commitment: The success of the summit hinges on the willingness of member states to go beyond superficial agreements and make genuine commitments to reform.
• Long-Term Impact: While the Pact for the Future may not lead to immediate drastic changes, it could lay the groundwork for revitalizing global governance and proving that multilateralism, though weakened, is still viable.

What is the Significance of Multilateral Institutions?

Conflict Resolution and Peacekeeping: Multilateral institutions are vital for preventing and resolving conflicts.

• Since 1948, UN peacekeeping operations have been deployed 71 times to help end conflicts and promote stability.
• As of May 2023, 87,000 peacekeepers, including women and men, are serving in 12 conflict zones across Africa, Asia, Europe, and the Middle East.

Economic Stabilization: Institutions like the International Monetary Fund (IMF) and World Bank are crucial for global economic stability.

• During the 2008 financial crisis, the IMF committed over USD 250 billion in loans to stabilize economies.
• Currently, the IMF is lending nearly USD 200 billion to over 35 countries, including Argentina, Ecuador, Egypt, Iraq, Jordan, Tunisia, Ukraine, and 16 countries in Sub-Saharan Africa.

Global Health Management: The World Health Organization (WHO) plays a key role in managing global health crises.

• During the COVID-19 pandemic, the WHO coordinated the largest vaccine distribution in history through COVAX.
• The WHO's efforts in eradicating smallpox (declared in 1980) and reducing polio cases by 99% since 1988 highlight its long-term impact on global health.
• The WHO's International Health Regulations guide 196 countries in collaborating to contain health threats.

Climate Change Mitigation: Multilateral environmental agreements, facilitated by institutions like the UN Framework Convention on Climate Change (UNFCCC), are essential in tackling climate change.

• The Paris Agreement, adopted by 196 parties in 2015, aims to limit global warming to well below 2°C.
• The Montreal Protocol, achieving universal ratification, has been innovative and successful in addressing environmental challenges.

Human Rights Advocacy: The UN Human Rights Council and other multilateral bodies are crucial for promoting and protecting human rights worldwide.

• The Universal Periodic Review process has evaluated the human rights records of all 193 UN member states since 2008.
• These institutions establish mechanisms for global accountability and standard-setting in human rights.

Sustainable Development: The UN's Sustainable Development Goals (SDGs), adopted in 2015, offer a shared framework for peace and prosperity.

• The goals have driven efforts to eradicate extreme poverty, with the global rate dropping from 36% in 1990 to 8.4% in 2019.
• Multilateral development banks like the World Bank Group committed USD 157 billion in 2020-2021 to assist developing countries in addressing health, economic, and social impacts of the COVID-19 pandemic.

International Standard Setting: Multilateral institutions play a key role in establishing global norms and standards.

• The International Labour Organization (ILO) sets labor standards through various conventions.
• The International Civil Aviation Organization (ICAO) establishes safety standards that make air travel one of the safest modes of transport.

Scientific and Educational Advancement: Organizations like UNESCO promote international cooperation in education, science, and culture.

• As of July 2024, there are 1,199 World Heritage Sites (933 cultural, 227 natural, and 39 mixed properties) across 168 countries.
• UNESCO's efforts in education have contributed to rising global literacy rates, from 12% in 1820 to 87% in 2020.
• CERN (European Organization for Nuclear Research), a notable example of scientific multilateralism, led to significant discoveries like the Higgs boson in 2012.

Why the Role of Multilateral Institutions Are Diminishing?

• Shift in Global Power Dynamics: The post-World War II order that established numerous multilateral institutions is weakening as power shifts from the West to the East.
• China's Rise: China has emerged as a major economic power, challenging the dominance of Western-led institutions.
• India's Growing Influence: India is becoming increasingly influential on the global stage.
• Russia's Resurgence: Russia's return as a significant global player has also impacted the balance of power.
• The BRICS group, which includes Brazil,Russia,India,China, and South Africa, has expanded and now represents 37.3% of global GDP.
• This shift in power has led to the creation of alternative institutions, such as the Asian Infrastructure Investment Bank (AIIB), which has grown to include 109 members.
• Rise of Sovereignty Prioritization: There is a growing trend among nations to prioritize sovereignty over multilateral commitments. This shift is exemplified by events such as Brexit, where the UK left the EU after 47 years.
• The rise of populist and nationalist leaders globally has fueled skepticism towards international institutions. For instance, former US President Donald Trump's "America First" policy led to withdrawals from agreements like the Paris Climate Accord.
• Institutional Decision-Making Paralysis: Multilateral institutions often face challenges in decision-making due to their consensus-based approach.
• The UN Security Council's inability to take decisive action on conflicts like Syria, where over 300,000 deaths have occurred since 2011, illustrates this problem. Russia has used its veto power 19 times on Syria, complicating the Council's effectiveness.
• The World Trade Organization's Doha Round negotiations, initiated in 2001, remain unresolved after two decades, highlighting the difficulties in reaching agreements on complex global issues.
• Technological Adaptation Lag: Traditional multilateral institutions struggle to keep up with rapid technological advancements.
• Issues like cryptocurrency regulation,artificial intelligence governance, and cybersecurity threats require agile responses that bureaucratic institutions often cannot provide.
• The lack of a unified global approach to AI regulation, despite its significant impact on economies and societies, underscores this challenge.
• Declining Public Trust: Public trust in multilateral institutions is declining, driven by perceptions of elitism and lack of transparency.
• The scandal surrounding the World Bank's "Doing Business" report in 2021, which led to its discontinuation, further eroded trust in international financial institutions.
• This trust deficit makes it challenging for multilateral bodies to gain support for their initiatives and policies.
• Financial Constraints: Many multilateral institutions face chronic underfunding, limiting their ability to effectively tackle global challenges.
• The UN's regular budget for 2022 was only USD 3.12 billion, less than the annual revenue of many multinational corporations.
• This financial constraint forces institutions to rely more on voluntary contributions, potentially compromising their independence and long-term agendas.
• Representation Imbalances: Many multilateral institutions still reflect the power dynamics of the mid-20th century, raising questions about their legitimacy.
• The UN Security Council's permanent members have not changed since 1945, despite significant global power shifts.
• Countries like India,Brazil,Germany, and Japan, which are prominent contenders for permanent seats, remain excluded.
• The IMF's voting share still favors Western countries, and African nations have minimal influence in the World Bank and IMF decision-making, with less than 10 percent vote share in the IMF board.
• Siloed Approach to Global Issues: The fragmented nature of many multilateral institutions makes it difficult to address complex, interconnected global challenges.
• For example, tackling climate change requires coordination across environmental, economic, and social bodies.
• However, the UN system has over 15 separate agencies working on climate-related issues, often with overlapping mandates and competing priorities, hindering a unified global strategy.

What Strategies can be Implemented to Reform Multilateral Institutions?

Rebalancing the Power Equation:

• Reform voting structures to better reflect current global economic and demographic realities.
• Update the UN Security Council composition to include emerging powers like India,Brazil,Japan, and increased African representation.
• Implement weighted voting systems in institutions like the IMF and World Bank, dynamically adjusting based on GDP,population, and other relevant factors.
• The African Union's push for Security Council reform and the G20's inclusion of the African Union as a permanent member in 2023 show growing momentum for such changes.

Embracing Digital Democracy:

• Implement secure digital platforms for more inclusive global decision-making processes.
• Use blockchain technology to ensure transparent voting and decision-tracking in multilateral forums.
• Develop AI-powered translation services to break language barriers in real-time during international meetings.
• Estonia's e-governance model, which allows citizens to vote and access government services online, could serve as inspiration for digital integration in global institutions.

Adaptive Coalition Formation:

• Encourage the formation of issue-specific coalitions within multilateral frameworks to address urgent global challenges.
• These coalitions can act more swiftly than larger, consensus-based bodies.
• The High Ambition Coalition for Nature and People, which successfully pushed for the 30x30 target in the Global Biodiversity Framework, demonstrates the effectiveness of such flexible arrangements.

Localization of Global Goals:

• Develop mechanisms to translate global agreements into local action more effectively.
• Create direct funding channels from multilateral institutions to local governments and civil society organizations for implementing global initiatives.
• Expand programs like the UN Global Compact Cities Programme to enhance urban participation in global governance.

Enhanced Transparency Measures:

• Implement comprehensive open data policies across all multilateral institutions.
• Establish audit committees with rotating membership from different countries to oversee institutional operations.
• The International Aid Transparency Initiative(IATI), which makes data on aid spending openly available, could be expanded to cover all aspects of multilateral operations.
• Develop user-friendly dashboards and regular public reporting mechanisms to enhance accountability.

Multi-Stakeholder Engagement:

• Formalize mechanisms for private sector and civil society participation in multilateral decision-making processes.
• The World Economic Forum's model of multi-stakeholder engagement could be adapted for formal multilateral institutions.
• Expand initiatives like the UN Global Compact to create more binding commitments for corporate participation in global governance.

Crisis Response Readiness:

• Develop dedicated rapid response units within multilateral institutions with pre-approved funding and authority to act in emergencies.
• Create a global emergency coordination platform that integrates data and resources from various agencies and countries.
• Implement regular global crisis simulation exercises involving multiple institutions and countries.

Comprehensive Digital Governance:

• Develop a comprehensive global digital governance framework addressing issues like cybersecurity,data privacy, and AI ethics.
• Create a dedicated agency for digital affairs to coordinate international efforts.
• The Budapest Convention on Cybercrime, the first international treaty on crimes committed via the Internet, could serve as a foundation for broader digital governance efforts.

What Role can India play in Reforming Multilateral institutions?

Bridging Developed and Developing Worlds: India, uniquely positioned as both a developing nation and an emerging economic leader, can act as a vital link between the Global North and South.

• Global Influence: As the most populous country and fifth-largest economy, India's role is crucial for equitable global governance.
• G20 Leadership: In 2023, India led the G20, focusing on digital public infrastructure and climate finance for developing nations, highlighting its bridging capabilities.
• Unified Theme: India's G20 theme, "One Earth, One Family, One Future," resonated globally, emphasizing its potential to foster unity.

Strengthening Global Democratic Processes: As the largest democracy, India can enhance democratic processes in global institutions.

• Democratic Framework: India's experience in managing diverse opinions can inform reforms in global decision-making.
• 2024 Elections: The upcoming Indian general election, a massive democratic exercise, offers lessons in transparency and efficiency for global governance.

Digital Innovation Leadership: India's expertise in technology and large-scale digital initiatives positions it as a leader in tech-driven global governance.

• Aadhaar System: The world's largest biometric ID program, Aadhaar, serves as a model for global digital identity solutions.
• Unified Payments Interface: In 2023, India’s UPI managed 117 billion transactions worth 2.19 trillion dollars, showcasing its digital prowess.
• Platform Development: India can lead in creating platforms for international cooperation.

Climate Action Catalyst: As a major emitter and climate-vulnerable nation, India plays a key role in shaping equitable climate action.

• Net-Zero Commitment: India aims for net-zero emissions by 2070, reflecting its climate leadership.
• International Solar Alliance: Founded by India with 110 member countries, this initiative exemplifies India's role in sustainable development.

Peacekeeping Operations Expertise: India's vast experience in UN peacekeeping positions it to reform global security mechanisms.

• Troop Contributions: India has deployed over 200,000 troops in 49 missions, advocating for effective peacekeeping strategies.
• Female Peacekeeping: India was the first to send an all-female contingent to a UN force, promoting gender inclusivity in peacekeeping.
• Human-Centric Approach: India's "human-centric" peacekeeping focuses on capacity building and community engagement, informing conflict resolution reforms.

Vaccine Diplomacy Leader: India's role as the "pharmacy of the world" and its vaccine diplomacy efforts position it to lead in global health governance.

• Covid-19 Response: During the pandemic, India supplied vaccines to over 150 countries, showcasing its global health leadership.
• WHO Reforms: India can advocate for reforms in the WHO to enhance epidemic preparedness and ensure equitable access to medicines.

Cultural Diplomacy: India's rich cultural heritage and the philosophy of "Vasudhaiva Kutumbakam" (the world is one family) provide a foundation for global cooperation.

• Cultural Initiatives: India can champion cultural exchange initiatives to strengthen multilateral cooperation.
• UNESCO Proposal: India's proposal for a UNESCO Heritage Site dedicated to shared democratic heritage exemplifies cultural diplomacy in action.

Conclusion 

Despite the challenges facing multilateral institutions, the upcoming UN Summit of the Future presents an opportunity to revitalize global governance. India's growing global stature positions it to lead efforts for a more inclusive and effective multilateral system.