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Context: Institutes of global governance are weakening. For instance, the climate crisis is unresolved, vaccines were hoarded by rich countries, and the World Trade Organization is struggling.
How did the institutes of global governance emerge?
After World War II, new institutions of global governance were established – the United Nations and the General Agreement on Tariffs and Trade (GATT), and the World Bank and the International Monetary Fund (IMF).
However, the victors retained their veto power within the United Nations Security Council and also control the World Bank, the IMF, and the WTO.
The developed non-communist powers, the US, the UK, France, Italy, Japan, West Germany, and Canada, formed the G7 in 1976. The European Union was invited to attend in 1977. Russia joined in 1998 – its inclusion was a signal of cooperation between East and West. However, it was thrown out in 2014 after the invasion of Crimea.
After the Asian financial crisis, the G20 was formed in 1999 with the aim to ensure financial stability. Russia is a member, but Western nations want to throw Russia out now. Meanwhile, India will be the chair of G20 from December 2022.
Have the institutions fulfilled their stated goals?
Inequalities have only risen. Countries such as the U.S., are also demanding more “socialism” and less unbounded capitalism.
Free market capitalism is not ideologically compatible with a genuine democracy. All western electoral systems began with the right to vote limited to property owners only. Universal adult franchise is a new phenomenon.
What are the tensions between capitalist and democratic institutions?
Capitalist institutions want to be unfettered by democratic regulations to make it easier to do business. Whereas, Democratic institutions want to rein in the competitive animal spirits, to make it more compassionate.
The simultaneous imposition of free markets and elections has invariably increased inequalities, social tensions, and sectarian conflicts. For example – Iraq and Afghanistan.
What is the need for redistribution of power?
Power accumulated in societies by the principle of “cumulative causation”. Those who already have more power, will not only use the power to improve the world but to also ensure that they remain in power. Those who have power will resist losing it. For instance – anti-colonial movements leading to violence.
Way Forward:
Global governance needs to become genuinely democratic. Countries must be given freedom to evolve their own democracies and economies and not to be dictated by others. Instances of sanctions by global dictators should end. Calling on democratic country like India, to take their side, must also end.
Source: This post is created based on the article “India’s role in a disordered world” published on 11/April/2022 in The Hindu.
