Friday, January 20, 2023

G20: An apt chance to push for reforms in multilateral bodies

(India and its allies now have a greater chance to push for necessary reform in the running of the UN and the multilateral institutions. South Africa and Brazil will succeed in taking the G20 Presidency in 2024 and 2025. Of course the relevance of the UN will be determined by its ability to adapt to the realities of today’s world, which is different from what it was 75 years ago.)


New Delhi 


India has always favoured the policy of encouraging multilateralism in the United Nations. India's Presidency in 2023 and the role of the G20 will come into major play as the grouping holds a lot of potential to bring even ground-breaking transformations. There are now growing concerns of the underdeveloped nations. India's strong commitments are a proof of the new ambitions. 


But it ought to be admitted that in the past too, the G20 as a platform witnessed several major successes in multilateralism. In this context, one can promptly recall the saga of 2017 when the G20 Leaders disapproved the US move to 'withdraw' from the Paris Agreement. Thus, despite the US withdrawal, the G20 Leaders stated that the Paris Agreement was irreversible. 


The line was - 'Investing in Climate, Investing in Growth' and this had become the stand of G20 at the Hamburg G20 Climate and Energy Action Plan for Growth. Prior to that one can cite the illustration of 2008 when in the backdrop of the global Economic Crisis, the G20 focused on the enhanced surveillance of the world economy through the IMF and stronger financial sector regulation through the Financial Stability Board.





But it goes without stating that in the contemporary changes, the challenges are many and some of them are immensely complex. In more ways than one the 'limitations' of the multilateral institutions have come to the fore.

In fact, even the United Nations Security Council has largely failed to live up to the primary responsibility of maintaining international peace and security. The ineffectiveness of the system could be seen during the debacle in Afghanistan 

at the hands of the Taliban, the situation in Israel and Palestine or even the Russia-Ukraine conflict.


Even the role of the World Trade Organization (WTO) is seen as increasingly eroding despite the growing trends

of trade wars. 

To list out a few, Multilateralism in the G20 works through a number of organisations like the UN, IMF, ILO, WTO,

World Bank Group and Financial Stability Board (FSB). Of course in some areas good works persist notwithstanding

issues and limitations. The International Labour Organisation (ILO) has continued its ongoing work on women

at work in G20 countries with focus on increasing women's participation in labour markets and improving the quality of women's earnings. The labour market security vis-a-vis women also gets its due attention. 


At the WTO's Ministerial Conference (MC-12), Geneva in June 2022, a fresh lease of life was given to the WTO. 

Consensus reached about securing agreements on relaxing patent regulations to secure vaccine equity, ensuring food security and subsidies to fishering. 


For its part, India has been maintaining a consistent stance on vital sectors. On Oct 13, 2021, when the UN High

Commissioner for Refugees appealed for funds for war-ravaged Afghanistan, Prime Minister Narendra Modi called

on the international community to provide Afghanistan with "immediate and unhindered access to humanitarian assistance".

India's willingness to work with international aid agencies working for displaced Afghans was reiterated. 


At the G20 Finance Ministers meeting in Washington, Finance Minister Nirmala Sitharaman stressed on equitable access

to Covid19 vaccines. India also had supported the Framework on Base Erosion and Profit Sharing that requires

imposition of a 15 percent tax on multinational enterprises. 

   

Now to talk about other international partners. Indonesia held the Presidency of G20 in 2022. This stint was rightly based on the theme, 'Recover Together- Recover Stronger'. The Indonesian Presidency also has said that the world is in need of more collective action and inclusive collaboration among the major developed countries and emerging economies. What will be crucial again to note is that the baton of G20 Presidency has passed from Indonesia to India and it will pass on to South Africa in 2024 and Brazil in 2025. 






Thus, India and some of its natural allies now have a greater chance to push for necessary reform in the running

of the UN and especially the multilateral institutions. In the economic zone, the key roles for these organisations

are decided by 'preferential voting rights' while these are based on the 'voting rights of the nations in the Security Council' when it comes to geopolitical and security. 


It is important to note that India, Brazil and South Africa also have cordial relations among themselves and

with India and also share an important space in the BRICS with Russia and China. A BRICS statement had rightly 

pointed out that the "....success and relevance (of the UN) would be determined by its ability to adapt to the realities 

of today’s world, which is starkly different from what it was at the time of its creation more than 75 years ago".


Others also share this growing perspective.  “We must modernise our multilateral institutions, making them fit for 

purpose and better equipped to deal with the global and cross-generational challenges we face,” notes a joint 

article penned by Jacinda Ardern, Cyril Ramaphosa and Pedro Sánchez, the Prime Minister of New Zealand, 

President of South Africa, and Prime Minister of Spain, respectively.


Thus the general understanding is that real 'solutions' are not coming through the existing mechanisms

and the existing multilateral institutions. 


India has made its intent clear in guiding its Presidency of G20 in 2023. New Delhi wants its presidency to be reform-cum-action-oriented.

External Affairs Minister Dr S Jaishankar has said the UN is locked 'frozen' in a frame up of 1945. Pretty strong words.

This reflects 'New India'.


As it is, the Modi government has been pushing its case for some of the vital global issues.

At the G20 Rome Summit, Prime Minister Modi put forward his vision of 'One Earth-One Health'.

At the Riyadh Summit in 2020, Mr Modi had called for creation of a vast talent pool ensuring that

technology reaches all segments of society, transparency in the system of governance and dealing with

Mother Earth with a spirit of trusteeship. 


In 2023 and beyond, according to V Srinivas, an expert on G20 matters, the platform should "do everything

in its power to keep inflation in range and protect the living standards for vulnerable people".

This underpinning makes a lot of sense as nearly 60 percent of the low income countries are facing

an unbearable debt burden. Of course, "it is likely that the G20 will come together to establish new rules

and timeliness for the common framework", says Srinivas.


For its part, the WHO has also said among other things that the Financial Intermediary Fund for pandemic prevention

and response hosted by the World Bank will have to be truly inclusive and universally accessible.


ends 


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