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Subject: Global Groupings and Conventions

Important International institutions, agencies and fora- their structure, mandate.

  • China-led RCEP takes off without India

    The Regional Comprehensive Economic Partnership (RCEP), a mega trade bloc comprising 15 countries led by China has come into existence.

    Try answering this:

    Q.Signing the Regional Comprehensive Economic Partnership (RCEP) agreement would have given more substance to India’s Act East policy. Analyse.

    About RCEP

    • Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) between –
    1. The 10 members of ASEAN
    2. Additional members of ASEAN +3 = China, Japan, South Korea
    3. Members with which ASEAN countries have FTA = Australia, New Zealand
    • The group is expected to represent at least 30% of the global GDP and will emerge as the largest free trade agreement in the world.
    • It includes more than 3 billion people, has a combined GDP of about $17 trillion, and accounts for about 40 per cent of world trade.

    India’s reluctance

    • India’s ties with China in recent months have been disturbed by the military tension in eastern Ladakh along the LAC.
    • In the meantime, India has also held a maritime exercise with Japan, Australia, and the United States for the “Quad” that was interpreted as an anti-China move.
    • However, these moves did not influence Japanese and Australian plans regarding RCEP.

     Leverage for China

    • Despite the pandemic, the RCEP is certainly leverage for China and shows the idea of decoupling from China is not a substantive issue in a regional sense.
    • The agreement means a lot for China, as it will give it access to Japanese and South Korean markets in a big way, as the three countries have not yet agreed on their FTA.

  • Shanghai Cooperation Organisation (SCO)

    In an indirect reference to the Chinese infrastructure projects in PoK, our PM has urged members of the Shanghai Cooperation Organisation (SCO) to respect “territorial integrity” and “sovereignty”.

    What is SCO?

    • After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
    • The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
    • The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
    • Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
    • The fight against the “three evils” of terrorism, separatism and extremism has become its mantra. Today, areas of cooperation include themes such as economics and culture.

    Try this PYQ now:

    Q. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?

    (a) United Nations Environment Programme

    (b) World Trade Organization

    (c) ASEAN- India Free Trade Agreement

    (d) G-20 Summits

    India’s entry to the SCO

    • India and Pakistan both were observer countries.
    • While Central Asian countries and China were not in favour of expansion initially, the main supporter — of India’s entry in particular — was Russia.
    • A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
    • From 2009 onwards, Russia officially supported India’s ambition to join the SCO. China then asked for its all-weather friend Pakistan’s entry.

    Tap to read more about SCO

  • What is OPEC+?

    Oil prices jumped by close to 10% for its biggest daily gain in almost six months after news of a highly effective vaccine against COVID-19 and Saudi Arabia’s assurance that an OPEC+ oil output deal could be adjusted to balance the market.

    About OPEC

    • OPEC stands for Organization of the Petroleum Exporting Countries.
    • It is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
    • It is headquartered in Vienna, Austria.
    • OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
    • Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.

    What is OPEC+?

    • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
    • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
    • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

    Why OPEC plus came into existence?

    • When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018.
    • Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.
    • This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including that controlling oil production.
    • For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.
    • For Russia, the formalization of the group helps expand Putin’s influence in the Middle East
    • However, both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.

  • UN Advisory Committee on Administrative and Budgetary Questions (ACABQ)

    In a significant victory for India at the United Nations, Indian diplomat Vidisha Maitra was elected to the U.N. Advisory Committee on Administrative and Budgetary Questions (ACABQ).

    Try this PYQ:

    Which one of the following is not related to the United Nations?
    (a) Multilateral Investment Guarantee Agency
    (b) International Finance Corporation
    (c) International Centre for Settlement of Investment Disputes
    (d) Bank for International Settlements

    About UN- ACABQ

    • It is a subsidiary organ of the General Assembly. The 193-member Assembly appoints members of the Advisory Committee.
    • ACABQ consists of 16 members appointed by the Assembly in their individual capacity.
    • Members are selected on the basis of broad geographical representation, personal qualifications and experience.

    Its functions

    • ACABQ ensures that fund contributions to the U.N. system are put to good effect and that mandates are properly funded.
    • It examines, on behalf of the General Assembly, the administrative budgets of the specialised agencies and proposals for financial arrangements with such agencies; and to consider and report to the General Assembly on the auditors’ reports on the accounts of the UN and of the specialised agencies.

    Why is the seat given to India?

    • India has a stellar record of bringing professional auditing experience to the U.N. and contributing outstanding professionals to U.N. bodies.
    • With India’s rising obligations in both assessed as well as voluntary contributions to the U.N., India holds key responsibility of administrative and budgetary management of U.N.

    Significance of the move

    • The victory gives a strong display of support by U.N. member states for India.
    • It comes as India gets ready to sit in the U.N. Security Council as a non-permanent member for a two-year term beginning January 2021.

  • In news: International Labour Organization

    After 35 years, India has assumed the Chairmanship of the Governing Body of International Labour Organization (ILO).

    Try this PYQ:

    Q.The Partnership for Action on Green Economy (PAGE), a UN mechanism to assist countries transition towards a greener and more inclusive economies, emerged at:

    (a) The Earth Summit on Sustainable Development 2002, Johannesburg

    (b) The United Nations Conference on Sustainable Development 2012, Rio de Janeiro

    (c) The United Nations Framework Convention on Climate Change 2015, Paris

    (d) The World Sustainable Development Summit 2016, New Delhi

    About the International Labour Organization

    • The ILO is a UN agency whose mandate is to advance social and economic justice through setting international labour standards.
    • Founded in 1919 under the League of Nations, it is the first and oldest specialised agency of the UN.
    • The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands.
    • The ILO’s international labour standards are broadly aimed at ensuring accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security and dignity.

    About its Governing Body

    • The Governing body is the apex executive body of the ILO which decides policies, programmes, agenda, budget and elects the Director-General.
    • It meets three times a year, in March, June and November.

    Significance for India

    • India will be presiding over the upcoming meeting of the Governing Body to be held in November 2020.
    • India would have the opportunity to interact with the senior officials and social partners of the member states.
    • It will also provide a platform to apprise participants of the transformational initiatives taken by the Government in removing the rigidities of the labour market.

  • What is Blue Dot Network?

    A group of US Senators has written to India asking to join the Blue Dot Network.

    Try this MCQ:

    Q.The Blue Dot Network recently seen in news is a global alliance for:

    a) Beaches Certification

    b) Infrastructure development

    c) 5G connectivity

    d) Patents regulation

    The Blue Dot Network

    • Blue Dot is a US-led collaboration with Australia and Japan that supports private-sector-led infrastructure financing opportunities in response to China’s Belt and Road Initiative (BRI).
    • It was formally announced on 4 November 2019 at the Indo-Pacific Business Forum in Bangkok, Thailand on the sidelines of the 35th ASEAN Summit.
    • It is led by the U.S. International Development Finance Corporation, Japan Bank for International Cooperation, and Department of Foreign Affairs and Trade of Australia.
    • It is expected to serve as a global evaluation and certification system for roads, ports and bridges with a focus on the Indo-Pacific region.

    Fundamental difference between BRI and Blue Dot

    • While the former involves direct financing, giving countries in need immediate short-term relief, the latter is not a direct financing initiative and therefore may not be what some developing countries need.
    • The question is whether Blue Dot offering first-world solutions to third-world countries.
    • Secondly, Blue Dot will require coordination among multiple stakeholders when it comes to grading projects.
    • Given the past experience of Quad, the countries involved in it are still struggling to put a viable bloc. Therefore, it remains to be seen how Blue Dot fares in the long run.

  • Opportunity for India to push for reforms at the UN

    The article analyses the changing geopolitical context against the background of the pandemic. China has been facing some challenges at the UN of late. Multilateralism faces an unprecedented crisis. This context provides an opportunity for India to push for reforms in international institutions. 

    China facing difficulty in elections to UN bodies

    • Recently, India besting China in the elections for a seat on the UN’s Commission on the Status of Women (CSW).
    • Soon after the CSW vote, it lost another election, this time to tiny Samoa for a seat on the UN Statistical Commission.
    • And a couple of days ago, it just about managed to get elected to the UN High Rights Council, coming fourth out of five contestants for four vacancies.
    • Earlier, China’s candidate had lost to a Singaporean in the race for DG World Intellectual Property Organization.

    China’s strengths

    • Taking advantage of its position as a member of the P-5 and as a huge aid giver, China made itself invincible in UN elections.
    • It won among others, the top positions at the Food and Agriculture Organization (FAO), the UN Industrial Development Organization (UNIDO), the International Telecommunication Union (ITU) and the International Civil Aviation Organization (ICAO).

    Historical background on China’s rise at the UN

    • World War II saw strong U.S.-China collaboration against the Japanese, including U.S. operations conducted from India.
    • Their bilateral ties saw the U.S. include the Chinese in a group of the most important countries for ensuring world peace post- World War II, along with the U.S., the USSR and the U.K.
    • This enlarged into the P-5, with France being added by the UK at the San Francisco conference held in 1945 where the UN charter was finalised.
    • The pure multilateralism of the League of Nations was thus infused with a multipolarity, with the U.S. as the sheet anchor.

    Challenges to multilateralism and the need for reform in the international institutions

    • Multilateralism is under stress due to COVID-19 pandemic and a certain disenchantment with globalisation.
    • At the root is the rise of China and its challenge to U.S. global hegemony.
    • But in the current scenario multilateralism backed by strong multipolarity in the need of the hour.
    • This demands institutional reform in the UN Security Council (UNSC) and at the Bretton Woods Institutions.
    • In this context, it is good that recently India, Germany, Japan and Brazil (G-4) have sought to refocus the UN on UNSC reform.
    • As proponents of reform, they must remain focused and determined even if these changes do not happen easily or come soon.
    • This is also the way forward for India which is not yet in the front row.

    Way forward

    • Earlier in the year, India was elected as a non-permanent member of the UNSC for a two-year term.
    • India will also host the BRICS Summit next year and G-20 Summit in 2022.
    • These are openings for India in collaborating the world in critical areas that require global cooperation especially climate change, pandemics and counter-terrorism.
    • India also needs to invest in the UN with increased financial contributions in line with its share of the world economy and by placing its people in key multilateral positions.

    Consider the question “The UN, which came into existence in different time fails to take into account the realities of the changing world. In light of this, examine the basis of India’s claim to a permanent seat at the UN. What are the challenges to India’s claim.”

    Conclusion

    Against the backdrop of pandemic and subsequent pushback against China at the UN, it is also an opportune moment for India and a Reformed Multilateralism.

  • Collective Security Treaty Organisation (CSTO)

    Russian Navy along with CSTO members has begun military exercises in the central waters of the Caspian Sea north of the Azerbaijani capital Baku.

    Try this MCQ:

    Q.The Collective Security Treaty Organisation (CSTO) sometimes seen in news is an alliance led by:

     

    (a) Russia (b) USA (c) India (d) European Union

    Collective Security Treaty Organization

    • CSTO is an intergovernmental military alliance that was signed on 15 May 1992.
    • In 1992, six post-Soviet states belonging to the Commonwealth of Independent States—Russia, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan—signed the Collective Security Treaty
    • This is also referred to as the “Tashkent Pact” or “Tashkent Treaty”.
    • Three other post-Soviet states—Azerbaijan, Belarus, and Georgia—signed the next year and the treaty took effect in 1994.
    • Five years later, six of the nine—all but Azerbaijan, Georgia, and Uzbekistan—agreed to renew the treaty for five more years, and in 2002 those six agreed to create the CSTO as a military alliance.

  • Five Eyes (FVEY) group of nations

    India joins the UK in drive known as ‘Five Eyes’ group of nations, as a seventh member against encrypted social media messages.

    Map the countries in ‘Five Eyes’ group of nations.

    ‘Five Eyes’ group of nations

    • The Five Eyes (FVEY) is an intelligence alliance comprising Australia, Canada, New Zealand, the United Kingdom and the United States.
    • The origins of the Five Eyes alliance can be traced back to the Atlantic Charter, which was issued in August 1941 to lay out the Allied goals for the post-war world.
    • These countries are parties to the multilateral UK-USA Agreement, a treaty for joint cooperation in signals intelligence.
    • India is among seven countries to back a UK-led campaign against end-to-end encryption of messages by social media giants such as Facebook, which they say hinder law enforcement by blocking all access to them.

    A formal expansion

    • The UK and India joined this group to ensure they do not blind themselves to illegal activity on their platforms, including child abuse images.
    • This marks an expansion of the so-called “Five Eyes” group of nations, a global alliance on intelligence issues, to include India and Japan.

    For a common cause

    • All members claim that end-to-end encryption policies such as those employed by the social media giant erode the public’s safety online.
    • They have made it clear that when end-to-end encryption is applied with no access to content, it severely undermines the ability of companies to take action against illegal activity on their own platforms.
    • It also prevents law enforcement investigating and prosecuting the most serious crimes being committed on these services such as online child sexual abuse, grooming and terrorist content.

    Back2Basics: End-to-end encryption

    • End-to-end encryption (E2EE) is a system of communication where only communicating users can read the messages.
    • It is regarded as the most secure way to communicate privately and securely online.
    • By encrypting messages at both ends of a conversation, end-to-end encryption prevents anyone in the middle from reading private communications.
    • In principle, it prevents potential eavesdroppers – including telecom providers, Internet providers, and even the provider of the communication service – from being able to access the cryptographic keys needed to decrypt the conversation.

  • Growing salience of multilateralism

    Multilateralism faces several challenges at the time when it is needed the most. The article highlights the need for more of it in the face of global challenges.

    Lack of international collaboration to deal with Covid

    • As COVID-19 recognises no boundaries, one would have expected that countries with technological and financial capabilities, would agree to pool their resources together to work on an effective and affordable anti-virus vaccine.
    • Instead, there are several parallel national efforts underway even as the World Health Organization (WHO) has put together a Covax alliance for the same purpose.
    •  Active collaboration would have enhanced our collective ability to overcome what has become a public health-cum-economic crisis.
    • But we live in an era when nationalist urges, fuelled by a political opportunism, diminish the appeal of international cooperation.
    • The post-pandemic world will have the awful dilemma of global integration without solidarity.

    Trends in the global order that suggests the need for multilateralims

    1) Global food crisis

    • The World Food Program has been awarded this year’s Noble Peace Prize.
    • The award is sending a message to the world — that we need multilateralism as an expression of international solidarity.
    • According to the WFP, 132 million more people could become malnourished as a consequence of the pandemic.
    • To the 690 million people who go to bed each night on an empty stomach, perhaps another 100 million or more will be added.
    • The Nobel Prize to the WFP will hopefully nudge our collective conscience to come together and relieve this looming humanitarian crisis.

    2) Despite issues, U.N. is still important

    • The United Nations is at the centre of multilateral institutions and processes and kept alive the notion of international solidarity and cooperation.
    • But it suffers from several disabilities due to the fault of its most powerful member countries.
    • They have deprived the UN of resources.
    • They have resisted efforts to institute long-overdue reforms.
    • Its structure no longer reflects the changes in power equations that have taken place and country such as India continues to be denied permanent membership of the Security Council.
    • And yet, the UN is now an essential part of the fabric of international relations for two reasons:
    • 1) The salience of global issues has expanded.
    • 2) The need for multilateral approaches in finding solutions has greatly increased.

    3) Multilateral institutions have become platform for contestation

    • In the network of multilateral institutions, several belong to the UN system, others are inter-governmental, still others may be non-governmental of a hybrid character.
    • This network performs two important tasks:
    • 1) Enable governance in areas which require coordination among nation-states.
    • 2) Set norms to regulate the behaviour of states so as to avoid conflict and to ensure both equitable burden-sharing and, equally, a fair distribution of benefits.
    • While there are multilateral institutions they have become platforms for contestations among their member states.
    • There is recognition of the need to cooperate but this is seen as a compulsion rather than desirable.

    4) Globalisation driven by technology will remain here

    • Globalisation may have stalled, but as we become increasingly digitised, there will be more, not less, globalisation.
    • The pandemic has triggered galloping globalisation in the digital economy.
    • Globalisation is driven by technology and as long as the technology remains the key driver of economic growth, there is no escape from globalisation.
    • In the contemporary world, the line separating the domestic from the external has become increasingly blurred.
    • In tackling domestic challenges deeper external engagement is often indispensable. This is certainly true of climate change.
    • The pandemic originated in a third country but soon raged across national borders.
    • If there had been a robust and truly global early warning system, perhaps it could have been contained.

    5) Interconnectedness of challenges

    • We must also take into account the inter-connectedness among various challenges, for example, food, energy and water security are inter-linked with strong feedback loops.
    • Enhancing food security may lead to diminished water and energy security.
    • It may also have collateral impact on health security.
    •  It is in recognition of these inter-connections that the international community agreed on a set of Sustainable Development Goals (SDGs).
    • The SDGs are cross-domain but also cross-national in character, and hence demand greater multilateral cooperation in order to succeed.

    6) Need for more democratic world

    • The lack of cooperation from even a single state may frustrate success in tackling a global challenge.
    • A fresh pandemic may erupt in any remote corner of the world and spread throughout the globe.
    • Prevention cannot be achieved through coercion, only through cooperation. It is only multilateralism that makes this possible.

    Conclusion

    It is a paradox that precisely at a time when the salience of cross-national and global challenges has significantly increased, nation-states are less willing to cooperate and collaborate in tackling them. So, there is a need for more of multilateralism to deal with the issues of global level.