Reforms in the multilateral institutions: A gathering storm over multilateral institutions

News: Indian Prime Minister, while addressing the World Economic Forum annual conference, talked about required reforms in the multilateral institutions to deal with the new world order. Chinese President also talked about the need for reforms to uphold true multilateralism, fairness and justice.

Why are the reforms in the multilateral institutions necessary?

1) Dysfunctional system of economic governance 2) Anachronistic structure in multilateral financial institutions like the World Bank and the IMF 3) Multilateral institutions are mostly designed according to the privileged rich countries like WEF itself showcases the worst kind of capitalism, the monopolistic one, 4) Many countries have recently spoken about the outdated multilateral system.

The 2008 financial crisis and the pandemic have exposed flaws in the dominant model and capitalism.

Global institutions need a greater diversity of perspective and a better-balanced approach if they are to retain relevance this century. India and China spoke on behalf of the developing world. With 40% of the global population, a convergence of Indian and Chinese views is welcome news.

Source: This post is based on the article “A gathering storm over multilateral institutions” published in the Livemint on 20th January 2022.