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Subject: Global Groupings and Conventions

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

  • BRICS Summits

    Importance for Exams

    Mains : This year is special because India holds chair of the BRICS Summit from February to December. Though the exact outcome of all the Conferences, Meeting, MoUs, Declarations leading to the main Summit is not important, the themes being discussed are independently very important.

    Prelims : All the declarations(Jaipur, Udaipur, etc), places(Khajuraho) where meetings were held and other keywords(like the BRICS Wellness Index) are important from a prelims perspective.

    In News

    The 2016 8th Annual BRICS Summit will be held in Panaji, Goa, from 15th to 16th October. The theme this year is Building Responsive, Inclusive and Collective Solutions. It will be attended by the heads of state/government of the five member states Brazil, Russia, India, China and South Africa.

    Timeline

    September – Events and Outcomes
    1 -2 Sept – BRICS Convention on Tourism, Khajuraho
    2-6 Sept – BRICS film festival
    10-11 Sept – BRICS Wellness Workshop, Bangalore
    The Ministry of AYUSH, in collaboration with Research and Information System for Developing Countries (RIS).
    14 Sept – BRICS Joint Working Group on Counter Terrorism
    16 Sept – BRICS Environment Ministers.
    GOA MoU on setting up of JWG environment-related issues
    14-16 Sept – 3rd BRICS Urbanisation Forum, Visakhapatnam
    17 Sept – MOU on Climate co-operation

     


    August – Events and Outcomes

    1-2 Aug – BRICS Workshop on Strengthening Health Surveillance, Bengaluru
    22 Aug – BRICS Women Parliamentarians’ Forum, Jaipur
    Jaipur Declaration – Enablers for achieving SDG
    22-23 Aug – 2nd meeting of the BRICS Ministers of Disaster Management, Udaipur
    Udaipur Declaration – to enable Disaster Risk Management
  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    Outcome of Paris Climate Summit

    Paris Agreement was recently adopted by 195 countries of UNFCCC, which agreed to take measures to control climate change.

    We had written 4 explainers for a comprehensive coverage and they can be read here – 

    As we move ahead, let’s take a look at this agreement with respect to various dimensions and debates, which are going on in the international sphere.

    When this agreement will enter into force?

    The agreement in Paris will come into effect only after 2020 when the Kyoto Protocol, an existing international mechanism to deal with climate change, comes to an end.

    What is the temperature goal?

    The agreement says that its objective is to keep the global temperature rise below 2 degree Celsius, but pursue efforts to keep it below 1.5 degree Celsius from pre-industrial times.

    It also says that IPCC will come with a special report in 2018 on the impacts of global warming of 1.5 degree Celsius and above pre-industrial levels. <IPCC reports form the scientific basis on which the world is taking climate action>

    Let’s analyse the implications

    • Least Developed Countries (LDCs) and Small Island Developing Countries (SIDCs) were demanding that the rising temperature be kept under 1.5 degree Celsius from pre-industrial times.
    • LDCs fear that cost of adaptation will be high, if the temperature is allowed to risee upto 2 degree Celsius.

    What about Finance and Technology Transfer ?

    Finance

    Developed nations have been asked to provide financial resources, but $ 100 bn mark does not figure in the agreement. $ 100 bn has been shifted to the decision text, which is a list of all decisions taken at the conference.

    Developing countries are also asked to raise financial resources, even as voluntary effort.< This was one of the demands of the developed countries to widen the base of countries who will provide financial resources>

    There has to be a balance between the mitigation and adaptation needs of the developing countries, while allocating financial resources.

    Technology

    The developed countries to abide by their promises to provide technology development and transfer, and capacity building to developing countries.

    Why is it a matter of concern?

    • Paris Agreement is a permanent document, while the decisions of the conference can be modified.
    • This gives a message that developed nations will provide $ 100 bn every year from 2020, but they will not increase it annually, as demanded by developing countries.

    Carbon Neutral, by when?

    The agreement says that, world should peak emissions as soon as possible and achieve a balance between sources and sinks of greenhouse gases (GHGs) in the second half of this century.

    This means that to limit the amount of GHG emitted by human activity to the same levels which can be absorbed naturally such as trees, soil, ocean, etc beginning 2050.

    What happens to INDCs?

    In the run-up to the Paris conference, 186 countries submitted their INDCs, giving information about the climate actions they planned to take until 2025 or 2030. INDCs would henceforth be called only Nationally Determined Contributions.

    Every country needs to communicate NDCs every 5 years. Each NDC has to be progressively more ambitious than the previous one.

    However, NDCs are not legally binding, i.e. the targets set by nations will not be binding under the Paris Climate Agreement. <India, China and South Africa were unwilling to sign up for this condition because they felt that it could hamper economic growth and development>

    What is Global Stocktake?

    • It refers to a proposed a 5-yearly review of the impact of countries climate change actions.
    • It will assess whether the net result of the climate actions being taken was consistent with the goal of keeping the increase in global average temperature from pre-industrial times to within 2 degree Celsius.
    • It is mandatory for every country to participate in the global stocktake, the exercise will not assess whether actions of any individual country are adequate or not.

    The best part of global stocktake is that it will also assess whether developed countries are adequate help to developing countries by providing money and technology.

    Is Differentiation principle at Stake?

    Experts are divided on whether developed countries succeeded in their effort to do away with concept of Common But Differentiated Responsibilities.

    The Paris agreement firmly anchors ‘differentiation’ for developing countries. At many places, differentiation is achieved by having different kind of commitments for developed and developing countries.

    Developed countries are expected to take the lead on mitigation and support, while developing countries are expected to take actions within the context of their sustainable development and poverty eradication imperatives.

    Let’s see what is the other point of view.

    • All parties have to report NDCs every 5 years.
    • There is no differentiation in reporting, inventory of GHGs and progress made in implementation of NDCs.< Inventory is basically a list of all units which release GHGs>
    • The stocktake is universal for aggregate actions and it will happen in 2023 and every 5 years henceforth.
    • Developed countries are asked to take absolute economy-wide emission reduction targets, while developing countries will enhance mitigation efforts, but are encouraged to move towards economy-wide reduction in the light of national circumstances.

    Published with inputs from Pushpendra 
  • AIIB & The Changing World Order

    The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by China. AIIB is regarded as a rival for the IMF, the World Bank and the Asian Development Bank (ADB) which the AIIB says are dominated by developed countries like the USA and Japan. In this Article We will explain everything about AIIB and also why India has joined it and the likely challenges AIIB will face in future.


    What is AIIB?

    • The ‘AIIB’ is the Asian Infrastructure Investment Bank, a new multilateral development bank first proposed by Xi Jinping in a speech to the Indonesian parliament in October 2013.
    • At the time, Xi explained that ‘to support the process of interconnection and integration of the economic development in the region, China has proposed to build the Asia infrastructure investment bank and provide financial support to infrastructure development in developing countries in the region.’
    • The bank was formally established on October 24, 2014 in a ceremony in Beijing where 21 founding members signed the bill.

    Functions of the AIIB:

    The AIIB has broad functions, similar to other MDBs.  Under its Articles of Agreement, the AIIB’s functions include:

    (i) Promoting public and private investment in the Asia region for development, in particular for infrastructure and other productive sectors;

    (ii) Utilizing the resources at its disposal for financing such development in the region; and

    (iii) Encouraging private investment  that contributes to economic development in the Asia region, in particular in infrastructure and other productive sectors, and supplementing private investment when private capital is not available on reasonable terms and conditions

    source

    Why was AIIB is established when the IMF and World Bank are already there?

    The Asian Infrastructure Investment bank (AIIB), the new kid in the development lender’s neighbourhood is a both the result and reflection of changing political economic equation of an increasing multi polar world. The necessity and the differential design of AIIB can be enumerated as follows:

    #1. Economic

    1. To begin with China is sitting on a huge pile of unutilised cash and is looking for markets to invest it to earn from the otherwise idle money. Funding projects through AIIB is a structured way to do it.
    2. Investment focus of AIIB will be sector and region specific unlike IMFs and ADBs of the world. AIIB specifically will be an financial enabler for sponsoring infrastructure in Asia
    3. With Yuan’s entry in SDR it makes sense to loan Yuan to spread its global availability.
    4. Asian infrastructure development needs huge investment (estimated $ 800 Bn annually) which certainly cannot be supplied by IMF alone.
    5. The boost to Asian Infrastructure provides a market for Chinese firms with excess capacity in cement and steel lying ideal post slowdown.

    #2. Political

    1. Unlike IMF, AIIB does not adopts quota system ie decision making power is not proportionate to contribution, thus it is more democratic. Well, err, China and democracy do not go hand in hand, undeniably Chinese interest will be loudest.
    2. IMF and ADB funding comes with the vested interest of western world like “free” market economy, forced structural reforms, skewed intellectual property rights etc. AIIB’s loan provides an alternative to circumvent western influence during financial emergency.
    3. IMF is increasingly going green with increasing western focus on cleaner and renewable energy (off course with only limited heed to CBDR call), which might not be appealing to nations which are yet to release their quota of developmental pollution. Well, AIIB is here to help.
    4. Presents the benevolent face (most possibly farcical) of the otherwise ruthlessly pragmatic and openly aggressive china.

    Why has India joined the AIIB?

    There are many reasons for it, a few of them being:

    1. India is preparing to start a large number of infrastructure projects, but they’re short of money, so they need help from China. Of course they can get money from ADB or WB, but they also need to find a balance between China and USA.
    2. It’s a great chance to develop economy links between India and China. These two countries both have huge market, and they also keep a rapid growth of economy.
    3. Though AIIB is a Chinese-lead financial institution, India is welcomed to play a important role in it. It’s the reason why the UK, Germany and France all want to be a member of AIIB.
    4. The AIIB gives countries like India and China the historical opportunity to enter and reform a bastion where they have been traditionally denied entry.

    Difference between AIIB and NDB

    source

    Challenges that AIIB may likely face in Future?   

    China will face many challenges in future while implementing the AIIB .The major challenges include:

    1. Non Participation of USA and Japan: The United States and Japan remain non-committal to the AIIB, althoughthat is an improvement from their previous firm opposition. The AIIB will probably function well without the participation of the United States and Japan. But the participation of these two countries is important for China since it will help improve the new bank’s credit rating and give it added legitimacy.
    2. Security issues: Security will be another major challenge. For example, most of the loans which will be given under AIIB would be to projects in central Asia however there is a challenge of who is going to protect so many projects covering so many countries as this region has some of theworld’s most vulnerable and conflict-ridden territory.
    3. Fear of NPA: Many recipient countries in Asia have poor credit, which means many projects may be promising at the beginning but will be difficult to pursue. Agreement and consensus are reached at the top levels of government, but implementation is at the local level. Local governments often do not care about the central government’s policies and do not always cooperate with foreign investors.

    References: