International Organizations

Article 99 of UN Charter Invoked by Secretary General

Context: UN Secretary General formally warns the Security Council to push for Gaza ceasefire by invoking Article 99 of the UN Charter. UN Secretary General has urged Israel to carry out a ceasefire in this conflict.

About Article 99 of UN Charter

Article 99 of UN Charter states that “The Secretary General may bring to the attention of the Security Council any
matter which in his opinion may threaten the maintenance of international peace and security.” Thus, it is a discretionary power of the Secretary General of the UN.
According to the UN, President of the UN Security Council is under the obligation to call a meeting of the UNSC, if the Secretary General brings to the attention of the UNSC any matter under Article 99 of the UN Charter. However, this provision has been rarely invoked in the past. Some instances when it was invoked are:
Article 99 of the UN Charter was invoked earlier in the Republic of Congo in 1960 after Belgium’s colonial rule ended and in 1961, when Tunisia demanded it after attack by its former colonial ruler France.

About Charter of United Nations

It is the founding document of United Nations, which was signed on 26 June 1945, in San Francisco, at the conclusion of United Nations Conference on International Organization.
UN Charter is an instrument of international law, and UN Member States are bound by it.
UN Charter codifies major principles of international relations, from sovereign equality of States to prohibition of use of force in international relations.
International Court of Justice, the principal judicial organ of UN, functions in accordance with the Statute of the International Court of Justice, which is annexed to the UN Charter, and forms an integral part of it.

India re-elected to International Maritime Organisation Council

Context: India was re-elected to International Maritime Organisation (IMO) Council with highest number of votes. This will allow India to be a member of IMO Council which is the executive body responsible for international shipping. The term of the IMO Council will be for biennium 2024-25. India has been elected under Category (B) of IMO Council which represent States with largest interest in international seaborne trade.

About International Maritime Organisation (IMO)

International Maritime Organisation is a specialized agency of the UN, which is responsible in the following:

Improving the safety and security of international shipping
Preventing marine and atmospheric pollution from ships.
Legal matters such as liability and compensation issues
Facilitation of international maritime traffic.

Established by means of Convention on International Maritime Organisation (CIMO), which entered into force in 1958.

Membership: Currently 175 countries are members of IMO. Many intergovernmental organisations and non-governmental organisations are members of IMO.

Structure of the International Maritime Organisation

IMO Assembly is the highest governing body. All member states of IMO are members of IMO Assembly and meets once in two years. It is responsible for approving the work program and budget and determining financial arrangements and electing IMO Council.
IMO Council is the executive organ of IMO and is responsible to the IMO Assembly for supervising the work of IMO Council. The Council is made up of 40 Member States, elected by the Assembly for two-year terms. Between the sessions of the assembly, the Council performs the functions of IMO Assembly, except that of making recommendations to governments on maritime safety and pollution prevention.

Assembly of International Maritime Organisaton elects following States to be Members of IMO Council for two years:

Category (A): 10 States with largest interest in providing international shipping.
Category (B): 10 States with largest interest in international seaborne trade. India has been elected in this category.
Category (C): 20 States not elected under Category (A) or (B), which have special interests in maritime transport or navigation and whose election to the IMO Council will ensure representation of all major geographical areas of the world.

Secretary General of IMO: IMO is led by the Secretary General supported by a Secretariat which is based a IMO headquarters in London, UK.
IMO has five main committees:
- Maritime Safety Committee (MSC)
- Marine Environment Protection Committee (MEPC)
- Legal Committee
- Technical Cooperation Committee
- Facilitation Committee

Key IMO Conventions

International Convention for Safety of Life at Sea (SOLAS): This treaty was developed as a result of Titanic disaster in 1912. It applies to passenger ships carrying more than 12 passengers on international voyages.
International Convention for Prevention of Pollution from Ships, 1973 and its protocols (MARPOL)
International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) and its Manila Amendments.
Hong Kong International Convention for the Safety and Environmentally Sound Recycling of Ships, 2009.

Other Key Initiatives

Global Maritime Distress and Safety System (GMDSS):

GMDSS is an integrated communications system using satellite and terrestrial radio-communication systems.
GMDSS mandates all ships and cargo ships over 300 gross tonnages on international voyages to carry specified terrestrial and satellite radio-communications equipment for sending and receiving distress alerts and maritime safety information and for general communications.
Regulations covering GMDSSS are under chapter IV of International Convention for Safety of Life at Sea (SOLAS), 1974.

Key focus areas of IMO

More than 80% of global trade is delivered by sea. This means critical goods such as food, fuel, medicine etc. are delivered by ships and seafarers.
Other modes of transport which don't have the required capacity and are not as carbon efficient as required for international shipping.
There is a need for universal standards to regulate and develop international shipping in an orderly fashion. For these the key focus areas of IMO are:

Safety of life at sea: IMO, particularly through the Maritime Safety Committee (MSC) has developed various codes, conventions and guidelines promoting safety of life at sea, lifesaving appliances, safety of ships in polar waters, guidelines on fatigue and communications etc.
Combating illicit maritime activities: Addressing maritime piracy, armed robbery of ships and human trafficking has been a key focus area for IMO. In 2009, IMO adopted Djibouti Code of Conduct to support repression of piracy and armed robbery against ships in the Western Indian Ocean and Gulf of Aden. The scope of Djibouti code was expanded in 2017 to include organised crime in maritime sector, maritime terrorism, human trafficking and illegal unreported and unregulated fishing by the Jeddah Amendment to Djibouti Code of Conduct in 2017.
Curbing Air Pollution from Ships: IMO adopted Annex VI to its MARPOL Convention to address air pollution from ships. Initially main air pollutants contained in ships included sulphur oxides (SOx) and nitrous oxide (NOx), deliberate emissions of ozone depleting substances, shipboard incineration, emissions of volatile organic compounds (VOC) from tankers. In 2011, regulations were introduced to increase energy efficiency of ships to limit greenhouse gas emissions. In 2020, a new lower limit on sulphur content in fuel oil used on board ships was implemented (called 'IMO 2020' rule). The implementation of this rule in expected to result in 77% reduction in overall sulphur dioxide emissions from ships preventing many diseases and ocean acidification and other environmental benefits.
Energy Efficiency of Ships: IMO has made it mandatory for all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) to measure their energy efficiency and to initiate collection of data for reporting of annual operational carbon intensity indicator (CII) and CII rating.
Decarbonization of Shipping: IMO's Marine Environment Protection Committee (MEPC) was introduced for reduction of greenhouse gas emissions from ships under which IMO Member States have pledged to cut annual greenhouse gas emissions from international shipping by at least half by 2025, compared to 2008.
Regulating fishing: IMO has been implementing regulations in fishing through IMO treaty on training for fishers. IMO has negotiated Cape Town Agreement which will set minimum requirements on the design, construction, equipment and inspection of fishing vessels of 24 meters in length or equivalent in gross tons. Cape Town Agreement will provide safe, legal and sustainable shipping providing an internationally binding standardisation of fishing practices.
Protection of vulnerable ocean areas: Ocean areas of ecological or scientific significance are granted special protection status of a Particularly Sensitive Sea Area (PSSA). PSSA cases require special protective measures which are agreed and adopted, such as compulsory routeing of ships to avoid these areas altogether.
Biofouling: Biofouling refers to accumulation of various aquatic organisms on ships' hulls as a result invasive aquatic organisms can be introduced to new marine environments affecting marine biodiversity, coastal properties and infrastructure. To deal with biofouling, IMO is leading GloFouling Partnerships.
Recycling of Ships: Member states of IMO, NGOs, ILO and Basel Convention have together developed Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ship (Hong Kong Convention). The Hong Kong Convention is aimed at ensuring that ships, when being recycled do not pose any unnecessary risk to human health and safety to environment. This Convention will come into force in 2025. India has ratified the Hong Kong Convention.

Paris Club reaches agreement in principle with Sri Lanka

Context: Debt ridden Sri Lanka has reached an ‘agreement-in-principle’ with India and other Paris Club creditors on a debt treatment plan. Facing economic distress due to the economic upheaval due to COVID-19 Pandemic and Ukraine-Russia war induced economic uncertainty, Sri Lanka had appealed to its sovereign, multilateral and private creditors for a debt restructuring. In response, an Official Creditor Committee was formed which was co-chaired by India, Japan and France (as Chair of the Paris Club).

OCC and Sri Lanka have agreed to debt treatment on the lines of Extended Fund Facility (EFF) between Sri Lanka and IMF. This agreement is expected to soon be formalised between Sri Lanka and the OCC.

What is the Paris Club?

Paris Club is an informal group of mostly western creditor countries that grew from a 1956 meeting in which Argentina agreed to meet its public creditors in Paris. Their objective is to find sustainable debt-relief solutions for countries that are unable to repay their bilateral loans.

It is a forum where official creditors meet to solve payment difficulties faced by debtor countries.
There are currently 22 permanent members of Paris Club.
However, other creditor countries can participate in negotiation meetings on a case-by-case basis, provided certain conditions are met.
Representatives of international financial institutions or countries can be invited to attend the meetings of Paris Club as observers.

What does the Paris club do?

The Paris club fund has two important functions – to offer loans to countries in extreme debt situations and to provide solutions to the debt issues they face.

MEMBERS

Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, Korea, Netherlands, Norway, Russian Federation, Spain, Sweden, Switzerland, United Kingdom, United States of America.

Apart from members there are observers—often international NGOs—who attend but cannot participate in the meetings.

PRINCIPLES OF PARIS CLUB

Solidarity: All members of Paris Club agree to act as a group in their dealings with a given debtor country.

Consensus: All decisions of Paris Club are taken with consensus.

Information sharing: Paris Club members share views and information with each other about debtor countries. These discussions are productive and deliberations are kept confidential.

Case-by-case: Paris Club makes decisions on a case-by-case basis in line with individual country’s situation. This was consolidated by Evian approach.

Conditionality: Paris Club members only negotiate with countries that meet certain conditions such as the countries that need debt relief, have implemented and are committed to reforms etc.

Comparability of treatment: A debtor country that signs an agreement with its Paris Club creditors should not accept from its non-Paris club commercial and bilateral creditor terms of treatment.

PERFORMANCESince 1956, the debt treated in the framework of Paris Club agreements amounts to $614 billion.

Does the Paris Club have statutes?

As the Paris Club is an informal group, it does not have any statutes.This situation gives Paris Club creditors the flexibility to address the specific situation of each debtor country facing debt payment difficulties.

AGREED MINUTES AND BILATERAL AGREEMENT

The outcome of the negotiation is not a legally binding agreement between the debtor and each of its creditors but instead a document called Agreed Minutes.
These Agreed Minutes are signed by the Chair of the Paris Club, the minister representing the debtor country and the representative of each creditor and constitute a recommendation to the governments of Paris Club creditors and of the debtor country to conclude bilateral agreements implementing the provisions of these Agreed Minutes.
These bilateral agreements give a legal effect to the agreement reached during the negotiating meeting.
The bilateral agreements also set the applicable interest rates

Secretariat of Paris Club

The Secretariat was established to prepare more effective negotiating sessions. The Secretariat is composed of a dozen people from the Treasury of the French Ministry of Finance and Public Accounts.

Chair of Paris Club

Since 1956, the Presidency of the Paris Club is ensured by the French Treasury.

PARIS CLUB VS CHINA

The Paris group countries dominated bilateral lending in the last century, but their importance has receded over the last two decades or so with the emergence of China as the world’s biggest bilateral lender.

PARIS CLUB VS LONDON CLUB

The London club is another informal group that was founded in 1976.
It is similar to the Paris club, except for banks lending to countries instead of other countries. London club meeting procedures are similar to the Paris club but are mostly prolonged due to the higher membership.
Another difference between the two clubs is that major clients of the London club belong to Latin America and Asia. In contrast, the Club de Paris gets its clients from Sub-Saharan Africa.

United Nations High Commissioner for Refugees

Context: The UK government's attempt to relocate asylum seekers to Rwanda has been deemed illegal by the Supreme Court.

About UNHCR

It leads international action to protect people forced to flee conflict and persecution and those denied a nationality.
It was established by the General Assembly of the United Nations in 1950 in the aftermath of the Second World War to help the millions of people who had lost their homes.
It is part of United Nations Development Group (UNDG) which leads the action for sustainable development.
It won the Nobel peace prize twice, in 1954 and 1981.
Headquarters: Geneva, Switzerland.

Convention Relating to the Status of Refugees (The 1951 Refugee Convention)

It provides the internationally recognized definition of a refugee and outlines the legal protection, rights and assistance a refugee is entitled to receive.
Article 1 of the 1951 Convention defines a refugee as someone who "owing to well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of [their] nationality and is unable or, owing to such fear, is unwilling to avail [themself] of the protection of that country; or who, not having a nationality and being outside the country of [their] former habitual residence, is unable or, owing to such fear, is unwilling to return to it."
It is a cornerstone of refugee protection and a key legal document that form the basis of UNHCR’s work.
The core principle of the 1951 Convention is non-refoulement, which asserts that a refugee should not be returned to a country where they face serious threats to their life or freedom.

Note: India is not a signatory to 1951 Refugee Convention and its 1967 Protocol.

Asian Development Bank

Context: India inked a policy-based loan agreement with the Asian Development Bank (ADB), securing $400 million. The funds are earmarked to facilitate the development of high-quality urban infrastructure, enhance service delivery, and advance efficient governance systems, as outlined in a statement from the finance ministry.

More about the news:

Sub-programme 1, sanctioned in 2021 with a budget of $350 million, laid the groundwork for national-level policies and guidelines aimed at enhancing urban services.
In parallel, the more recent sub-programme 2 is dedicated to supporting investment planning and reform initiatives at both the state and urban local body (ULB) levels.
Specifically, sub-programme 2 aligns with the ongoing reforms led by states and ULBs to implement the national flagship program, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, which targets universal access to water supply and sanitation.
Urban Local Bodies will play a pivotal role in advancing modernization efforts, including building bylaw updates, land pooling, urban agglomeration, and comprehensive urban mobility planning with a focus on transit-oriented development.
These integrated planning processes incorporate climate and disaster resilience, promote nature-based solutions, enhance the urban environment, and boost cities' financial sustainability by generating additional revenues.
Cities will be incentivized to enhance their creditworthiness through reforms targeting increased revenues, such as property taxes and user charges, coupled with efficiency improvements and streamlined expenditures.
This strategic approach aims to empower cities to explore innovative financing avenues, including commercial borrowings, municipal bonds issuance, sub-sovereign debts, and public–private partnerships, thereby addressing significant deficits in urban infrastructure investments.

About Asian Development Bank:

Founded in December 1966, the Asian Development Bank (ADB) is a regional development bank with its headquarters situated in Mandaluyong, Manila, Philippines.
The bank extends its membership to countries within the UN Economic and Social Commission for Asia and the Pacific, as well as non-regional developed nations.
Drawing inspiration from the World Bank, the ADB closely mirrors its structure, featuring a comparable weighted voting system that aligns with the capital subscriptions of its members.
This system ensures proportional representation in decision-making processes.
Furthermore, the ADB holds the distinction of being recognized as an official United Nations Observer.

Governance:

At the apex of the bank's decision-making structure is the Board of Governors, comprising a representative from each member state.
From this assembly, the twelve members of the Board of Directors and their deputies are elected, with the Board of Governors themselves partaking in this selection.
Out of these twelve, eight are chosen from regional members in the Asia-Pacific area, while the remaining four are selected from non-regional members.
The Board of Governors is also responsible for the election of the bank's president, who serves as the chairperson of the Board of Directors and oversees the management of the ADB.
The president's term spans five years and is eligible for re-election.

Objectives and activities:

The Asian Development Bank (ADB) characterizes itself as a social development organization committed to alleviating poverty in Asia and the Pacific through the promotion of inclusive economic growth, environmentally sustainable practices, and regional integration.

Key operational areas include:

Education: While there has been significant progress in primary education enrolment rates in many developing countries in Asia and the Pacific, persistent challenges threaten economic and social growth. The ADB focuses on addressing these challenges.
Environment, Climate Change, and Disaster Risk Management: Recognizing that environmental sustainability is fundamental to economic growth and poverty reduction in the region, the ADB actively engages in initiatives related to overall environmental conservation.
Finance Sector Development: This involves initiatives such as capital market development, support for microfinance, small and medium-sized enterprises, and regulatory reforms to benefit the most vulnerable populations.
Infrastructure: A critical focus area encompasses infrastructure development, spanning transport, communications, energy, water supply, sanitation, and urban development.
Regional Cooperation and Integration: Introduced in 2004, regional cooperation and integration (RCI) is regarded as a longstanding priority. This process fosters stronger connections between national economies.

Financings:

The Asian Development Bank (ADB) extends ‘hard’ loans on commercial terms, primarily directed at middle-income countries in Asia.
It offers ‘soft’ loans to economically disadvantaged countries in the region, characterized by lower interest rates.
The ADB's Private Sector Department (PSOD) possesses the flexibility to provide a diverse array of financial instruments beyond commercial loans, including guarantees, equity, and mezzanine finance, which combines elements of both debt and equity.
Funding for ADB's operations is secured through various channels, notably by issuing bonds on the global capital markets.
Additionally, it relies on financial contributions from member countries, earnings retained from lending activities, and the repayment of loans.

Voting rights:

The Asian Development Bank's top 10 countries, ranked by their significant capital contributions and corresponding voting rights, are as follows:

Japan (100.00)
United States (12.751)
China (12.751)
India (5.437)
Australia (4.913)
Indonesia (4.641)
Canada (4.469)
South Korea (4.315)
Germany (3.747)
Malaysia (2.468)

ADB Strategy 2030:

Within this framework, the ADB commits to sustaining efforts to eliminate extreme poverty while expanding its vision to realize a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
Aligned with major global commitments, the ADB will play a pivotal role in advancing the global infrastructure development agenda, recognizing it as a catalyst for worldwide economic growth.
ADB will broaden its interventions in social sectors such as education, health, and social protection. The institution aims to integrate its expertise across diverse sectors and themes to effectively address complex development challenges.
As a trusted development partner, the ADB will enhance the value it provides to its developing member countries (DMCs) by combining financial support, knowledge dissemination, and fostering partnerships.
It will maintain its role as a reliable financier and catalyst for financial mobilization.

The Asian Development Bank's (ADB) support, encompassing public and private sector operations, advisory services, and knowledge initiatives, will be strategically focused on the following key operational priorities:

Addressing Remaining Poverty and Reducing Inequalities: ADB will intensify efforts in human development and social inclusion, addressing non-income dimensions of poverty. Emphasis will be placed on facilitating quality job creation, particularly by small and medium-sized enterprises and inclusive businesses.
Accelerating Progress in Gender Equality: ADB is committed to supporting operations that empower women and girls, actively mainstreaming gender considerations to narrow existing gaps. The goal is for at least 75% of ADB's committed operations to promote gender equality by 2030.
Tackling Climate Change, Building Resilience, and Enhancing Environmental Sustainability: ADB aims to ensure that 75% of its committed operations actively contribute to climate change mitigation and adaptation by 2030.
Making Cities More Liveable: ADB will undertake crosscutting projects to enhance urban health, mobility, gender equality, and environmental sustainability. This involves exploring new funding sources for cities, fostering inclusive urban planning, and integrating climate resilience and disaster risk management.
Promoting Rural Development and Food Security: ADB will support efforts to improve market connectivity and agricultural value chain linkages, boosting both farm and nonfarm incomes. This includes promoting advanced technologies and climate-smart agricultural practices.
Strengthening Governance and Institutional Capacity: ADB will assist in public management reforms to enhance governance, creating an environment conducive to sustainable growth. This involves building resilience, responding to economic shocks, improving service delivery, and enhancing capacity and standards, all while adhering to fiduciary standards and implementing anticorruption measures.
Fostering Regional Cooperation and Integration: ADB will increase support for regional public goods and collective actions to mitigate cross-border risks. This includes strengthening subregional initiatives, enhancing financial sector cooperation, and facilitating knowledge sharing and collaboration.

Implementation:

To implement this strategy effectively, ADB will develop operational plans for each of the seven priority areas, outlining specific engagement approaches and skill requirements.
Country partnership strategies will further refine priorities at the country level.
The work program and budget framework process will be enhanced to align the annual work plan and resourcing with operational priorities.
A new corporate results framework will be established to monitor and measure implementation progress.
A "One ADB" approach will be instituted, consolidating knowledge and expertise across the organization to streamline the implementation of Strategy 2030.

WHO Regional office

Context: The contest between Bangladesh and Nepal for the regional head of the World Health Organization (WHO) has become increasingly heated and contentious.

WHO’s South East Asian Regional Office

One of the six WHO Regions, WHO South-East Asia is home to over a quarter of the world’s population.
It was established in 1948 with headquarters at New Delhi.
The Region is now composed of 11 Member Countries Bangladesh, Bhutan, Democratic People's Republic of Korea, India, Indonesia, Maldives, Myanmar, Nepal, Sri Lanka, Thailand, Timor-Leste.

Priorities:

Measles and rubella elimination;
preventing non-communicable diseases;
reducing maternal, under-five and neonatal mortality;
universal health coverage with a focus on human resources for health and essential medicines;
combating antimicrobial resistance;
scaling up capacities for emergency risk management;
eliminating neglected tropical diseases;
accelerating efforts to end TB.

Regional Committee for South-East Asia

It is WHO’s governing body in the Region.
It is comprised of representatives from the Region’s 11 Member States, as well as Associate Members.
The Regional Committee meets every year to formulate policies and provide oversight for regional programmes.

The process of election for the regional director

The Regional Director is appointed by WHO’s Executive Board in agreement with the WHO Regional Committee for Europe.
The appointment of a Regional Director is for 5 years, and he or she is eligible for reappointment once only.
Any Member State of the Region may propose one or more people for the post of Regional Director.
The Regional Director is elected by secret ballot at a private meeting of the Regional Committee.

Reforms needed for Multilateral Development Banks

Context: As per the Centre for Global Development’s Tracker (CGD), World Bank and six other multilateral banks (MDBs) have made good progress in integrating global challenges like climate change into their agendas, more reforms are needed for better functioning of these institutions.

More information:

The tracker assessed progress at seven multilateral development banks (MDBs) on twenty-eight specific items under five categories:
- using capital more efficiently
- expanding capital
- adding global challenges to their mandates
- mobilising private finance
- making country engagements more efficient.
Results found by the tracker:
- Highly uneven results among the institutions and no single MDB excelled in all reform categories.
- World Bank Group was at some stage of pursuing 96 per cent of the agenda items.
- European Bank for Reconstruction and Development was close behind with 93 per cent.
- Asian Development Bank and the Inter-American Development Group had taken action on half the agenda.
On Climate challenges:
- The US, the World Bank’s biggest shareholder and other countries are pushing the bank and its sister development banks to focus on climate change alongside poverty reduction and development and to take on more risk to expand their lending.
- Developing and emerging economies need $2.4 trillion per year to meet global climate challenges (far exceeding the amount of financing now available).
- As per the CGD, banks had largely recognized the urgency and importance of addressing climate change within the financial sector and all seven MDBs assessed had either included global challenges in their mandates or were in the process of doing so.
In October, 2023, G20 finance ministers and central bank governors at a meeting in Marrakech (Morocco) have taken up recommendations suggested by the second volume of the Independent Expert Group on Strengthening Multilateral Development Banks.

What are Multilateral Development Banks (MDBs)?

A multilateral development bank (MDB) is an international financial institution established by two or more countries with the primary objective of promoting economic advancement in low income and developing nations.
These MDBs comprise member countries that represent a mix of developed and developing nations.
MDBs extend financial support in the form of loans and grants to their member nations.
Multilateral development banks operate under the framework of international legal principles.

Objectives

While commercial banks primarily aim to generate profits through loans and other financial services, Multilateral Development Banks (MDBs) makes grants and affordable loans to enhance the economic conditions of impoverished or developing nations.
MDBs extend non-concessional financial support to middle-income countries' governments, private sector enterprises in developing countries, and select governments of low-income nations.
MDBs supply concessional aid, including grants and low-interest loans, to low-income country governments.
Focus is on development-oriented goals, such as eradicating extreme poverty and reducing economic disparities.
Provide loans at minimal or no interest rates or issue grants to finance projects in infrastructure, energy, education, environmental sustainability, and other sectors that foster development.

Evolution of MDBs

At the end of World War II, representatives from 44 nations convened in Bretton Woods, USA, to establish a new framework for international cooperation and post-war reconstruction.
This meeting in 1944 gave rise to the establishment of the International Monetary Fund (IMF) and the World Bank Group (WBG).
The World Bank assumed the responsibility of providing financial aid to facilitate the post-war rebuilding and economic progress of underdeveloped nations.
World Bank Group's role has evolved, and presently, it consists of various institutions:
- International Bank for Reconstruction and Development (IBRD), which extends loans to both low- and middle-income countries (LICs and MICs);
- International Development Association (IDA), which provides loans to Low Income Countries;
- International Finance Corporation (IFC), support to the private sector;
- Multilateral Investment Guarantee Agency (MIGA), which encourages private enterprises to invest in foreign countries;
- International Centre for Settlement of Investment Disputes (ICSID) for resolving disputes.

Types of (MDBs):

The first category comprises the largest and most renowned institutions, which offer loans and grants. Example: Inter-American Development Bank (IDB), established in 1959.
The second category of multilateral development banks is formed by the governments of low-income countries, which then collaborate to borrow collectively through the MDB, enabling them to secure more favourable interest rates. Example: Caribbean Development Bank (CDB), established in 1969.

Challenges for multilateral development banks

Within the realm of Multilateral Development Banks (MDBs), the major share of responsibility for extending financial support to emerging and developing economies (EDEs), predominantly rests with the World Bank (WB) system.
The degree of competition and cooperation within the realm of MDBs is currently suboptimal, leaving significant room for improvement, particularly concerning customer service and the ease of borrowing.
Regional MDBs often find their autonomy limited, particularly when their major shareholders overlap, resulting in the formulation of similar policies.
MDB governance and the distribution of country voting shares present considerable challenges when seeking to increase capital. Additionally, criticisms are frequently directed at the bureaucratic procedures within MDBs, which can hinder project implementation and decision-making.
The original purpose of Multilateral Development Banks was to address challenges of the period after Second World War. The contemporary world introduces new concerns related to global public goods, climate change, inequality and pandemics.
Another issue pertains to the absence of adequate representation, influence, and voice for developing countries in the decision-making processes of MDBs. Ensuring transparency, accountability, and legitimacy in their actions and outcomes remains a significant challenge.
MDBs grapple with constraints in their resources as they contend with the increasing demands for development financing. This is particularly evident in areas like climate change mitigation, adaptation, and infrastructure development.
Encouraging private sector investments in development projects poses challenges. MDBs must create an environment conducive to attracting private capital by addressing risks and offering financial incentives for private sector engagement.
MDBs face the challenge of addressing climate change and supporting sustainable development initiatives. This necessitates the incorporation of climate considerations into their policies, strategies, and project financing decisions.

Reforming Multilateral Development Banks

The independent expert group has proposed a comprehensive triple agenda for Multilateral Development Banks (MDBs). This agenda focuses on three core areas:

Eliminating Extreme Poverty: MDBs should prioritize initiatives aimed at reducing and ultimately eliminating extreme poverty.
Tripling Sustainable Lending Levels by 2030: The report recommends increasing annual sustainable lending levels to $390 billion by the year 2030.
Flexible Funding Mechanisms: MDBs should create flexible funding mechanisms to engage investors actively supporting MDB goals.

The recommendations are:

Encouraging Private Sector Engagement: The report emphasizes the importance of private sector engagement. It suggests that MDBs should break away from limited operational interaction between their private financing arms and their sovereign activities, encouraging a more collaborative approach with the private sector.
Optimizing Balance Sheets and Cooperation: The report underscores the significance of optimizing balance sheets and enhancing cooperation among MDBs. These steps are seen as critical for achieving the objectives of the triple agenda.
Leveraging Private Capital: Currently, MDBs leverage only $0.6 in private capital for every dollar they lend from their own resources. The expert group recommends that MDBs aim to at least double this figure to attract more private investment.
Establishment of a Global Public Goods (GPGs) Funding Mechanism: The report proposes the creation of a funding mechanism for global public goods (GPGs). This innovative mechanism has the potential to unlock an additional annual lending capacity, estimated at a minimum of $20 billion. To achieve this, a flexible legal and institutional framework needs to be established.
Focus on "Country Platforms": G20 expert panel recommends that MDBs shift their focus from individual projects to helping countries build and operationalize "country platforms." These platforms are voluntary country-level mechanisms set out by respective governments to foster collaboration among development partners based on shared strategic vision and priorities.
Co-Creation of Multi-Year Programs: The expert group suggests that MDBs should prioritize programs identified by national governments with a sectoral focus and long-term transformation plans. This approach aligns MDBs more closely with the developmental priorities of individual nations and encourages the co-creation of multi-year programs.
Independent Assessment Mechanism: The expert panel recommends that G20 finance ministers establish a mechanism to advise and independently assess the first-year implementation of the proposed roadmap, ensuring transparency and accountability in the reform process.
Recommendations for Operational Improvements: Several smaller, well-defined improvements are suggested, including board monitoring of new targets, changing procedures, easing the utilization process, improving managerial incentives for small ticket lending, and providing training for giving warranties.
Building Bankable Projects: Countries are encouraged to create bankable projects that can compete for finance on the country platforms. Technical support can help in developing granular asset specifics, measurement, disclosure, and appropriate incentives. Transparency and competition are key factors in reducing the impact of geopolitics in project decisions.
Green Concessional Lending Arm: The report proposes the creation of a green concessional lending arm for the World Bank (WB) with more equitable voting shares, which could make it easier to raise capital for environmentally sustainable projects.

Other Recommendations:

Reform and Incentive Structures, which may involve implementing first loss guarantees, establishing realistic return targets, and improving risk management. Additionally, incentive structures should be designed to foster innovation and adaptability.
Global South Representation to should ensure that the voices and perspectives of the Global South, including countries such as India, are not only heard but also advocated for in decision-making processes. This ensures a more inclusive and equitable approach to their operations.

Artemis Accords

Context: On June 21, India became the 27th signatory to the Artemis Accords, a set of non-binding guidelines that underpin the Artemis programme, a U.S.-led project to return humans to the moon permanently.

About the Artemis Accords

It was announced by NASA (National Aeronautics and Space Administration), the U.S. civil space agency, in 2020.
It is a set of guidelines surrounding the Artemis Program for crewed exploration of the Moon. This agreement is for lunar exploration and beyond, with participation of both international partners and commercial players.
The accords describe a shared vision for principles, grounded in the Outer Space Treaty of 1967 to create a safe and transparent environment. The Outer Space Treaty 1967 laid down the foundational principles for human space exploration which facilitates exploration, science, and commercial activities for all of humanity to enjoy. India ratified the treaty in 1982.
Signatories: 27 countries including India
Non-Signatories: Major space players like Russia, China, The European Space Agency (ESA) as an organisation have not signed on to the accords either, but a number of ESA member states have.

Key Principles

The Accords are a single document, signed by each country that commits to the Accords' principles. Bilateral agreements between space agencies for specific operations on the Moon and beyond are expected to reference the Accords and implement them in particular projects.

The provisions:

Cooperative activities under these Accords should be exclusively for peaceful purposes and in accordance with relevant international law.
Commitment to transparency and to share scientific information, consistent with Article XI of the Outer Space Treaty.
Utilising current interoperability standards for space-based infrastructure, and to establish standards when they do not exist or are inadequate.
Take all reasonable efforts to render necessary assistance to personnel in outer space who are in distress.
Specify responsibility for the registration of objects in space.
Publicly share information on their activities and to the open sharing of scientific data.
Preserve outer space heritage, which comprise historically significant human or robotic landing sites, artefacts and spacecraft.
Extraction and utilisation of space resources should be conducted in a manner that is safe and sustainable.
Commit to respect the principle of free access to all areas of celestial bodies by others.
Mitigate space debris and to limit the generation of new, harmful space debris in the normal operations, break-up in operational or post-mission phases, and accidents.

Benefits for India

Enhanced space cooperation among Quad countries: The US, Japan and Australia are already signatories of the accords. Thus, accords could be considered as a natural extension of the Quad’s Critical and Emerging Technologies Working Group. India’s addition to the accords would provide a framework for space cooperation among these Quad countries. India is also collaborating with Japan on a future lunar mission, called LUPEX, to the Moon’s surface.
Attracting more investments: By being a part of the accords, India’s space companies could become part of a global supply chain. This would also help attract investment capital towards Indian space startups.
Opportunities to learn about interplanetary missions and human spaceflight: In the 1960s and 1970s, India took help from western countries such as the US and the UK to better understand sounding-rocket and satellite technologies. The Artemis Accords provide a similar opportunity to learn about interplanetary missions and human spaceflight.
Harbinger of change in space governance: The accords are bilateral agreements and not binding instruments of international law. But, by establishing practice in the area, they could have a significant influence on any subsequent governance framework for human settlements on Mars and beyond.

Challenges that India faces in signing the Artemis Accords

Reinforcing US Hegemony: The US promotion of the accords outside of the “normal” channels of international space law is a cause of consternation for some Countries.
Diplomatic challenges: India has had a traditional partnership with Russia, which recently partnered with China in its International Lunar Research Station (ILRS) initiative. Russia might invite India to join, but on the other hand, growing assertiveness of China is likely to prevent any meaningful association of India with ILRS.
Focus on indigenous programmes may be compromised

Way Ahead

India’s decision to sign the Artemis accords, or for that matter any other bilateral space agreements, should completely be based on the merits of the proposal i.e. whether proposals meet India’s expectations or not. All such decisions could be complemented with following initiatives

Confidence building with the US: Working together on the Chandrayaan-1 and NASA-ISRO Synthetic Aperture Radar (NISAR) missions have helped to build confidence in each other. These could be the stepping stones for India to sign the accords themselves.
Strategic balance with Russia: India’s signing up for the accords must not be equated to severing ties with Russia. India has maintained a balanced relationship with the US as well as Russia in other strategic areas and the same could apply for space after India signs the accords as well.
Pursuing Indigenous programmes: India should encourage the involvement of the private sector in communications and Earth-observation satellites construction and launch and should also outline its priorities for interplanetary and human spaceflight missions and actively pursue them.

The Global South: origins and significance

Context: The unwillingness of many leading countries in Africa, Asia and Latin America to stand with NATO over the war in Ukraine has brought to the fore once again the term “Global South.”

Image Source: Tariene Gaum (ResearchGate)

The term Global South appears to have been first used in 1969 by political activist Carl Oglesby. Writing in the liberal Catholic magazine Commonweal, Oglesby argued that the war in Vietnam was the culmination of a history of northern “dominance over the global south.”
The term ‘First World’ referred to the advanced capitalist nations; the ‘Second World’, to the socialist nations led by the Soviet Union; and the ‘Third World’, to developing nations, many at the time still under the colonial yoke.
The term ‘Global South’ is not geographical. In fact, the Global South’s two largest countries - China and India - lie entirely in the Northern Hemisphere.
Countries in the Global South were mostly at the receiving end of imperialism and colonial rule, with African countries as perhaps the most visible example of this.
However there is an increase in economic might of the countries in global south as it is estimated by 2030 it is projected that three of the four largest economies will be from the Global South — with the order being China, India, the U.S. and Indonesia. Already the GDP in terms of purchasing power of the Global South-dominated BRICS nations — Brazil, Russia, India, China and South Africa — surpasses that of the Global North’s G-7 club.
The economic transformation has brought greater political prominence, as Global South nations assert themselves globally. For example, China brokering deals between Iran and Saudi Arabia, and Brazil's peace plan for Ukraine. This shift has sparked discussions of an "Asian Century" and a "post-Western world."

Importance of South-South Cooperation:

Driving Economic Growth: Countries in the Global South have been major contributors to more than half of the world's economic growth in recent years. This collaboration fuels economic progress and fosters sustainable development.
Increasing Trade: Intra-South trade has reached unprecedented levels, accounting for over a quarter of global trade. This trend strengthens regional economies, enhances market access, and promotes economic integration.
Foreign Direct Investment: Outflows of foreign direct investment from the Global South represent a significant portion of global flows. This investment promotes infrastructure development, creates jobs, and encourages technological advancements.
Poverty Alleviation: Remittances from migrant workers to low- and middle-income countries have played a crucial role in lifting millions of families out of poverty. South-South cooperation enables financial support and sustainable development initiatives for vulnerable communities.
Achieving Sustainable Development Goals: The ambitious 2030 Agenda for Sustainable Development necessitates the ideas, energy, and ingenuity of countries in the Global South. Their active participation and cooperation are indispensable for achieving these goals.

ISSUES IN SOUTH-SOUTH COOPERATION

Power Imbalances and Exploitation: Stronger countries in the Global South sometimes take advantage of weaker partners, undermining the principles of fairness and equitable collaboration. China, in particular, has been criticized for such practices.
Environmental Concerns and Public Health: Certain international oil companies have been accused of disregarding environmental impacts and public health concerns while extracting natural resources. Addressing these issues is crucial for sustainable cooperation.
Misuse of Financial Assistance: Some countries exploit the principle of lack of conditionality by diverting financial assistance intended for socially impactful projects to other purposes. This undermines trust and hampers genuine development efforts.
Non-Interference Limitations: The principle of non-interference can hinder the resolution of local conflicts, as countries like India and China prioritize economic interests over intervention. Balancing economic cooperation and addressing internal conflicts is crucial.
Lacks institutional and Financial Capacity: Global South is not a coherent group and does not have a single shared agenda and the collective institutions created to voice concerns of Global South such as Non-Aligned Movement and New International Economic Order have been largely rendered dysfunctional, this has led to strong regional competition and opposition among countries of global south. Further there is also lack of financial capacity among countries of Global South.
North Dominated Mindset: North-oriented mindset and traditional vertical links with metropoles and the world still dominated by US hegemony.

High Seas Treaty

Context: Context: On June 19, the UN adopted the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) or the High Seas Treaty.

The United Nations has recently adopted the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) or the High Seas Treaty. This historic agreement, the third to be approved under UNCLOS, aims to protect and preserve the marine environment through international cooperation. The process to develop this treaty began in 2002, and after several years of negotiations, it was finally adopted in 2023.

Key Points of the high sea treaty:

Protecting Marine Biodiversity: The treaty addresses pressing issues such as rising sea surface temperatures, overexploitation of marine biodiversity, overfishing, coastal pollution, and unsustainable practices beyond national jurisdictions.
Establishment of Marine Protected Areas: The treaty introduces the establishment of marine protected areas through a "three-quarterly majority vote," ensuring that decisions cannot be blocked by a small number of parties.
Fair Sharing of Benefits: The treaty mandates the fair sharing of benefits from marine genetic resources. It includes a "clear house mechanism" to facilitate the sharing of scientific information and monetary benefits among all parties.
Open Access to Information: Parties to the treaty are required to share and exchange information on marine protected areas, scientific and technical tools, and area-based management tools. This promotes open access to knowledge and collaboration.
Scientific and Technical Body: A Scientific and Technical Body will play a crucial role in conducting environmental impact assessments, creating standards and guidelines, and assisting countries with limited capacity.

Contentious Issues:

Marine Genetic Resources: The issue of sharing marine genetic resources was a major point of contention during the treaty negotiations.
Information Sharing: The absence of a provision to monitor information sharing was debated. Some parties proposed a licensing scheme for monitoring, while others argued against it, citing potential hindrance to bioprospecting research.
Language Used in the Treaty: The use of phrases like "promote" or "ensure," particularly regarding the sharing of benefits from marine genetic resources, led to disagreements among the parties.

Opposition to the Treaty:

Opposition from Developed Countries: Several developed countries opposed the treaty, as they support private entities that are involved in advanced marine technology research and development. These entities hold patents related to marine genetic resources.
Russia and China's Position: Russia and China are not in favour of the treaty. Russia withdrew from the final stage of reaching a consensus, arguing that the treaty does not strike a balance between conservation and sustainability.

CRUMBLING WTO

Context: In June 2022, the member-countries of the World Trade Organization (WTO) managed to hammer out a face-saving deal, India played a vital role at the Geneva ministerial conference, thereby keeping faith in trade multilateralism alive.

An important part was resurrecting the WTO’s dispute settlement system (DSS), also called WTO’s ‘crown jewel’, by 2024. Since 2019, the WTO’s two-tiered DSS remains paralysed.
The appellate body, which is the second tier of the WTO’s DSS that hears appeals from WTO panels, is non-functional because the United States, single-handedly, has blocked the appointment of its members.
The U.S. reproaches the appellate body for judicial overreach and exceeding its assigned institutional mandate.
One major problem that the U.S. identifies is that the appellate body, contrary to the text of the WTO’s dispute settlement understanding (DSU), has been creating binding precedents through its decisions.

Issues Under WTO negotiation:

Plurilateral and Multilateral Agreement: Multilateral Agreements are adopted through consensus among all member countries. These agreements are applicable to all members and may include special and differential treatment for poor and developing economies. Examples of multilateral agreements include AoA, GATS, and TRIPS.
Plurilateral agreements, on the other hand, are voluntary agreements between a limited number of WTO member countries. The provisions of these agreements are not applicable to all members. Examples of plurilateral agreements under the WTO include Trade in civil aircraft, Government Procurement, Bovine meat, and Dairy products.
Plurilateral vs. Multilateral Agreements: While multilateral agreements consider the special needs and interests of poor and developing countries, the consensus-driven nature of multilateral negotiations often leads to delays. This has sparked a debate between developed and developing countries on the nature of trade negotiations under the WTO. Developing countries, led by India, oppose plurilateral agreements and advocate for the continuation of the multilateral framework.
Defunct Dispute Settlement Body: Sanctioned strength of Appellate Body (AB) of WTO's Dispute Settlement Mechanism is seven members and these members are appointed through consensus among the member countries.
US Blocking Appointment :The quorum required to decide on disputes is three judges. The US government believes that AB is biased against it and has criticized it for being "unfair". Consequently, US has so far been blocking appointment of members to the Appellate Body (AB) and it is left with only one judge which is below the quorum of three judges needed to hear appeals.

Reasons for WTO Crumbling:

Changing world order: The unipolar world order represented by institutions like the WTO, which favoured the West, is facing challenges due to the rise of developing countries like India and China. Developed countries resort to protectionist policies in trade wars, such as the one between the USA and China, and disputes like the solar dispute between India and the USA.
Process loopholes: The negotiation process, while appearing democratic, lacks transparency in ministerial consensus. Green room discussions exclude the majority of countries, favouring developed countries. Consensus-based decision-making is a root cause of slow reform.
Discriminatory agreements: Some agreements signed under the WTO are considered discriminatory and exclusionary in functioning. For example, the Doha Development Agenda has yet to provide a solution for domestic subsidies.
Flouting TRIPS: Developed countries accuse developing countries of flouting TRIPS, while the latter highlight public health concerns and practices like evergreening of patents by developed country companies.
Dispute Resolution: The costly and lengthy dispute resolution mechanism is mostly used by developed countries, making developing countries victims of the process.

Importance of WTO:

WTO regulates 98% of global trade flows and has reduced the average value of tariffs by 85% since 1942.
Trade as a share of GDP has grown from 24% in 1960 to 60% in 2015, fuelling economic growth, creating jobs, and increasing household incomes worldwide.
WTO's rules-based system brings openness, transparency, and stability to international trade.
Trade acts as a powerful tool for inclusive growth by reducing poverty and opening opportunities for small firms, women, farmers, and fishermen.

Way Forward:

Plurilateral Negotiations: The WTO should transition to plurilateral negotiations, allowing like-minded countries to discuss specific issues and form rules accordingly.
Services: As services occupy two-thirds of global GDP, efforts should be made to establish a global trade policy that addresses higher barriers compared to goods. GATS should be more open and transparent.
Consultation Committee: Countries should consider varying levels of development and form a consultation committee to address concerns effectively.
Agriculture Agreements: Agreements on agriculture should be restructured to cater to the concerns of developing countries.
Collective Bargaining: Like-minded countries such as the G33 African community should increase their collective bargaining power to demand favourable provisions in agreements related to agriculture, services, and intellectual property rights.
Mindset Change: The USA and EU should recognize the larger role played by the WTO in their growth and the maintenance of an open system.

India's Potential Engagement with NATO Plus

Context: This article discusses the potential benefits and fallouts for India in joining the NATO Plus framework.

About NATO Plus

“NATO plus” refers to a security arrangement of NATO and the five treaty allies of the U.S. i.e. Australia, New Zealand, Japan, Israel, and South Korea as members — to enhance “global defence cooperation” and win the “strategic competition with the Chinese Communist Party”.
Interestingly, the term ‘NATO Plus’ is not an officially recognised or established concept within NATO itself, but has been used in discussions and debates regarding the potential expansion of the alliance.
The inclusion of these countries as members would require a complex process of negotiation and assessment of their compatibility with NATO’s principles, obligations, and defence commitments.
While NATO’s earlier target was the Soviet Union and now Russia, the focus of NATO Plus is clearly on containing China. Therefore, considering its disputes with China, India remains a missing link in the framework.

Benefits for India in Joining NATO Plus:

Security Umbrella: India's participation in NATO Plus would offer a security umbrella, enhancing protection and deterrence against potential threats in the Indo-Pacific region.
Access to Advanced Technologies: Joining NATO Plus could grant India access to advanced military technologies, intelligence-sharing platforms, and interoperability with other member states. This would bolster India's defence capabilities and modernization efforts.

Potential Fallouts:

Geopolitical Consequences: India's inclusion in NATO Plus could strain its strategic partnership with Russia and annoy China. India's collaboration with Russia has been crucial in dealing with regional security challenges and moderating China's stance. Joining NATO Plus may crumble this solidified strategic partnership.
Impact on Regional Security: Aligning with a U.S.-led alliance system may limit India's freedom of action and hinder the pursuit of an independent policy towards China. It may complicate India's security in the region and provide a potential justification for further military build-up along the India-China border.
Impact on Strategic Autonomy: India's longstanding policy of strategic autonomy would be at stake as joining NATO Plus would require aligning defense and security policies with the alliance's objectives and strategies. This could strain relationships with other countries and regional organizations that value India's independent stance.
Diversion of Focus: NATO's broader geopolitical agenda spanning Eurasia to the Indo-Pacific may divert attention and resources away from India's pressing regional dynamics, such as border disputes, terrorism, and regional conflicts. Therefore, India may not receive significant assistance from NATO in addressing these challenges.

Way Forward:

Prioritize Regional Dynamics: India should focus on addressing its own unique set of traditional and non-traditional security challenges, including border disputes, terrorism, and regional conflicts.
Emphasize Quad Engagement: India's involvement in the Quad, comprising India, Japan, Australia, and the U.S., presents a more promising avenue for countering China's influence in the Indo-Pacific region. Collaborative efforts within the Quad framework align better with India's regional priorities.
Maintain Strategic Autonomy: India should continue to uphold its policy of strategic autonomy, allowing flexibility in engaging with various nations and blocs based on its own interests. This approach ensures India's ability to navigate regional dynamics while safeguarding its independence.
Strengthen Regional Cooperation: India should prioritize building stronger partnerships and cooperation with neighbouring countries and regional organizations to address common challenges collectively. This approach fosters regional stability and maintains India's regional influence.