Note4Students:

Relevance: GS II(International Relation)

• Prelims: United Nations and Security Council;
• Mains: Global Order and Challenges; Major International Organizations; United Nations;

Mentor Comments: UPSC has been known to ask questions about ‘how things are at present vs. how things should be ideally’ across subjects like IR, Science and Technology, governance, or Economy. This op-ed is useful for analyzing the recent ongoing dynamics at the geopolitical level which is affecting the power play among the significant multilateral organizations.

So, Let’s Learn.

Why in the News?

Recently, at the 55th regular session of the Human Rights Council, Antonio Guterres (UN Secretary-General), has expressed growing pessimism about the organization’s future due to the “lack of unity” among members of the United Nations Security Council (UNSC).

 Is this the end of the road for the current global order?

1) The Evolution and the shift in Global world order w.r.t United Nations System:

• The UN’s foundation dates back to January 1942 when 26 Allied nations signed the Declaration of the United Nations, endorsing the Atlantic Charter of 1941 that outlined the war aims of the US and UK.
• Evolution of the UN and Power Dynamics:
  • The UN was created to uphold sovereignty and equality among nations through collective security principles but faced challenges within the Security Council due to the dominance of its five Permanent Members.
  • Post-1942 negotiations led to a structure where major Allied powers were granted permanent veto power, resembling early 19th-century European power dynamics.
  • The Bretton Woods Conference in July 1944 established key financial institutions like the IMF, World Bank, and GATT (later WTO) to create an international economic order focused on post-war reconstruction and global trade liberalization.
• Shifts in Power and Economic Order:
  • The creation of the IMF marked a shift in power dynamics as imperial Britain’s debt burden led to the US emerging as a dominant force in global finance.
  • Britain had to relinquish its imperial trade preferences, symbolizing a transition from sterling to dollar dominance in international financial systems

2) Controlling Power Structures:

• Influence of old power structures: The governance of the World Bank and IMF reflects old power structures, with an American heading the World Bank and Europe nominating the IMF head.
• Voting rights: Voting rights in the IMF remain stagnant, favoring major economies like the US, UK, and G-7 nations, giving them significant influence.
  • For Example, currently the percentage voting rights for, say, the original BRICS members (Brazil, Russia, India, China and South Africa) are 2.22, 2.59, 2.63, 6.08, and 0.63. The U.S. alone commands 16.5; add to it the votes of the U.K.
• Special Drawing Rights (SDR): Special Drawing Rights allocation and major reforms require an 85% majority vote, effectively granting the US a powerful veto within the IMF.
  • The IMF maintains global stability by promoting financial stability, offering advice, and providing funds to countries in financial difficulty, as long as they accept conditions set by the leadership of the Fund.

What are the significant challenges in maintaining UN’s role in global governance and international peace and security?

• Global Events and Geopolitical Constraints: The geopolitical constraints on the UN are intensifying, with deep rifts among major powers affecting the organization’s effectiveness in addressing global crises.

• • The 2020s have exposed vulnerabilities within the global system, with events like COVID-19 border closures disrupting cooperation and shared prosperity ideals. Secondly, Russia’s invasion of Ukraine highlighted the disregard for rules by powerful nations, undermining the system’s integrity.

• New Fault Lines and Declining Political Influence: The UN’s political influence is decreasing due to political divisions and resource gaps, requiring new strategies to mobilize its strengths for peace.
  • For Example, presently, the conflict in Gaza revealed divisions between developed and developing nations, questioning support for the UN and exposing underlying tensions over human rights and historical injustices. Further, the crisis in West Asia is pushing the UN to the sidelines as key players challenge its authority, testing their commitment to fundamental UN principles.
• Major-Power Divisions: Divisions among major powers are shrinking the space for multilateral cooperation, impacting the UN’s ability to manage international peace and security.
  • For Example, the China-led Asian Infrastructure Investment Bank (AIIB) aimed to challenge the World Bank but faces resistance, highlighting ongoing power struggles in global governance.
• Security Council Paralysis: The Security Council has been slow and indecisive in reacting to crises, with the Russian invasion of Ukraine posing a serious challenge to international security and highlighting the need for more effective collective solutions.
  • Moreover, developing countries struggled to overcome Security Council vetoes and Bretton Woods Institutions’ voting structures.

 Way Forward:

• Need for an Inclusive Global Cooperation: There is a growing need for more effective and inclusive global cooperation, emphasizing the importance of reforming international financial institutions and strengthening the role of the General Assembly within the UN system.
• Need for Pragmatic Approach: In light of these challenges, there is a consensus on the necessity for flexibility, and adaptability within the UN to navigate complex geopolitical dynamics and effectively address global issues while restoring trust and reigniting global solidarity.

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