Date : 04/10/2023

Relevance: GS Paper 2 - International Relations- United Nations

Keywords: UN Bretton Woods System, WTO, World Bank, IMF, UN Peacekeeping, SDG

Context-

The 78th session of the United Nations (UN) opened with a palpable sense of crisis. The UN Secretary-General expressed concern, describing the world as becoming "unhinged." Meanwhile, UNGA President Dennis Francis of Trinidad and Tobago highlighted a range of pressing issues including War, Climate Change, Debt, Energy and Food Crises, Poverty, and Famine. These crises, he noted, directly affect billions of people worldwide, underscoring the urgent need for action.

Historical Background

• The UN, established after World War II, was originally envisioned as a cornerstone of the post-war order. However, the global landscape has transformed significantly since then.
• Many of today's challenges, for instance, Climate change, were not addressed on a global scale until the Earth Conference in 1992, nearly half a century later.
• The concerns of the Global South, including development and debt, have also gained prominence. While the structure of the UN, including the privileged status of its permanent members, remains essentially unchanged, the world has evolved dramatically.
• Germany and Japan, both once defeated powers, now seek permanent membership in the UN Security Council, along with India.

UN and Bretton Woods System

• The UN, along with the Bretton Woods institutions (IMF and World Bank), formed the pillars of global governance post-World War II. These institutions were designed to address political and financial matters.
• Over time, institutions like the General Agreement on Trade and Tariffs (GATT), later replaced by the World Trade Organization (WTO), were added to address international trade.
• The UN Charter vested primary responsibility for global peace and security in the Security Council, with veto powers granted to permanent members.

Need of UN Reform

• Changing world order: In the 77-year-old history of the UN, the composition of the Security Council has been altered only once.

• I.e., In 1963 when the General Assembly decided to expand the Council from 11 to 15 members, with the addition of four non-permanent seats.
• Since then, the world has changed. The geopolitical relations in the world have altered, the economic responsibilities in the world in countries have also changed.

• Equitable World Order: There is a need for a more equitable world in order to uphold the principles of democracy at the global level.
• Inclusivity: Developing countries like the African countries, need to be made stakeholders in the multilateral institutions and involved in the decision-making process.
• Mitigation of New Threats: With rising protectionism, increased incidents of terrorism and the threat of climate change, the multilateral system must become more resilient and responsive.

UN Reform Challenges

• Efforts to reform the UN Security Council, especially after the Cold War in 1992, have proven inconclusive. Emerging power centers like Germany, Japan, India, and Brazil have sought permanent membership. African nations have proposed the Ezulwini consensus for representation. However, these reform initiatives face opposition, particularly from China, which prefers rotational membership to maintain the status quo.
• Coffee Club is an informal group comprising 40-odd member states, mostly middle-sized states that oppose bigger regional powers grabbing permanent seats, and has been instrumental in holding back reforms to the United Nations Security Council over the past six years.

Climate Concerns

• The UN also hosted a Climate Summit where the Secretary-General warned of an impending "dangerous and unstable world" due to a 2.8-degree temperature rise. He called on major emitters to make extra efforts to cut emissions and wealthy nations to support emerging economies. He proposed an Acceleration Agenda with developed countries reaching net-zero emissions by 2040 and emerging economies by 2050. This represents a substantial reduction in transition time compared to current commitments.
• The UN Secretary-General called for advancing the Sustainable Development Goal (SDG) Stimulus of $500 billion per year to relieve the financial burden on developing and emerging economies. However, funding sources for such initiatives remain a challenge. While the UN's current budget allocation for sustainable growth and development is $1.9 billion, the World Bank's lending commitment for Fiscal 2022 was $70.7 billion.
• Regarding the Loss and Damage Fund, the Secretary-General emphasized the need for all parties to operationalize it at COP28, although the outcome of this call will depend on Member States' decisions during inter-governmental conferences.
• Developed nations have not fulfilled their commitment to provide $100 billion per annum in assistance to developing countries, a shortfall especially concerning climate funds.

Growing Global Rifts

• UNGA speeches revealed stark differences between Western nations and Russia and China. President Biden held Russia responsible for the Ukraine war and expressed support for expanding the Security Council.
• Russian Foreign Minister Lavrov contended that a new world order is emerging, noting that the West has a history of rejecting equality. He pointed out the West's enthusiasm for pushing NATO into the Asia-Pacific region while viewing the expansion of BRICS as a threat.
• He called for a reform of the existing global governance structure and stressed the need for a fair redistribution of voting quotas within the IMF and World Bank, highlighting the financial influence of global South countries, particularly China. However, he did not express great enthusiasm for expanding the Security Council, suggesting that it should be linked to regional representation and involvement in organizations like NAM and OIC.
• China adopted a nuanced stance, addressing its responsibilities in combating global warming and distancing itself from Russia's position on nuclear weapons. However, the speech remained silent on the issue of Security Council expansion.

India's Perspective

• India, transitioning from its non-aligned era to a more globally engaged role, highlighted its membership in various forums like the Quad, BRICS, and I2U2. India has made significant progress in poverty reduction. The Indian External Affairs Minister emphasized the need to reform multilateralism and expand Security Council membership, advocating for India and Japan's inclusion as permanent members.

Conclusion

The 78th UN session has underscored the pressing need for reforms and cooperation in addressing global challenges. While the UN's shortcomings are evident, it is crucial to remember that its effectiveness relies on the actions and commitments of its member states. The world is set to hold the Summit of the Future in 2024, offering an opportunity to assess progress towards existing targets and strengthen the global community's performance.

Source - The Indian Express