Reformed multilateralism

Source– The post is based on the article “A ground plan for India’s reformed multilateralism” published in The Hindu and “A renewed multilateralism” in the Business Standard on 26th September 2022.

Syllabus: GS2- International Relations

Relevance– About multilateralism

News– The article explains the need for “reformed multilateralism”. It tells the importance of having multilateral institutions. It also explains India’s effort for reformed multilateralism.

United Nations General Assembly meetings are going to take place this month.

The other important events that are taking place next month  are the annual meetings of the World Bank and the International Monetary Fund in Washington and the Conference of the Parties on climate change in Egypt. In November, the G20 summit is being held in Indonesia.

These events are important from the perspective of India’s agenda of “reformed multilateralism”.

What is “reformed multilateralism”?

It calls for reforms in the UNSC. It should be a more inclusive organization that shows contemporary global realities.

It calls for reforming institutions of global governance. They should incorporate institutional accountability and be more representative of developing countries.

What are the weaknesses shown by UN led multilateralism?

COVID19– It shows the weakness of UN led multilateralism. Countries closed their borders and supply chains were disrupted. Vaccines were available to a few countries.

Ukraine war– It has not been successful in preventing wars. Russia-Ukraine conflict is a recent example.

China rise– Its rise and aggression in South China shows the limitation of UN-multilateralism. China’s growing dominance and increasing isolation of Russia and Iran could lead to Chinese led multilateral institutions that excludes west.

China’s control of multilateral organizations is only increasing. The most recent example is the unofficial pressure China exerted on the former UN’s human rights chief. It wanted to stop the release of a report by the UN Human Rights Council on the condition of Uyghurs in China.

What are the major global areas that requires multilateralism?

Digital transition–  It will affect all sectors of the global economy, including manufacturing, and will largely determine the future global distribution of taxes, profits, and wages.

Some countries will seek to retain their technological edge. The recent example is the US trying to restrict the sharing of microchip technology with Chinese manufacturers.

Different jurisdictions will have different approaches to privacy and internet governance. It is important that the multilateralism of the 21st century focuses on preventing the control over data, technology.

India is proposing a third way between the private sector-led US model and the state-dominated model of the People’s Republic of China. The Indian approach is to permit domestic digital innovation and profit-making within a structural framework developed by the state. It seeks to ensure equitable access and a level-playing field.

Climate crisis– The multilateral efforts in this field have largely focused on blaming the historical emitters of the west. This is not the right approach.

There is a need to understand which sectors and companies can handle the threats and opportunities represented associated with global green transitions.

The success for countries across the world on this front will depend on availability of financing for green transition.

Green projects in developing countries suffer from multiple financing constraints. Overall risk appetite for green projects in developing countries is low. Currency fluctuations have kept costs high.

Yet, multilateral development banks have been slow to adapt their lending to this new era. Rather than giving grants to individual governments, MDBs need to start focusing on supporting private investment through new mechanisms.

All the shareholders from the US to China to India agree on the need for such mechanisms. The only opposition is the bureaucrats and management of the MDBs. A recent report to the Indonesian G20 presidency underlined the need to change MDB operating structures in a timely manner.

There is a need for creation of a new green lending-focused multilateral institution.

What are efforts by India for reformed multilateralism?

Mr. Jaishankar’s hosting of a ministerial meeting of the G4 (Brazil, India, Germany and Japan)

There is another high-level meeting of the Indian delegation with the L.69 Group for reforming UNSC.

Beyond the UN, India  participation in plurilateral meetings of the Quad, IBSA, BRICS, CELAC and other trilateral formats, such as India-France-Australia, India-France-the United Arab Emirates and India-Indonesia-Australia underlines India’s search for new frameworks of global governance.