World Food Programme (WFP)

The World Food Programme (WFP)-- improve nutrition and build resilience.
It was founded in 1961 by the FAO and UNGA with its headquarters in Rome, Italy.
It is also a member of the United Nations Sustainable Development Group (UNSDG), a coalition of UN agencies
and organizations aimed at fulfilling the Sustainable Development Goals (SDGs).
The WFP assists 88 countries, and has assisted 97 million people (in 2019) which is the largest number since 2012.
Objectives
 WFP focuses on emergency assistance as well as rehabilitation and development aid.

 It works closely with the other two Rome-based UN agencies: FAO and IFAD
 To end hunger by protecting access to food.
 Improving nutrition and achieving food security.
 Supporting the SDG implementation and partnering for its results.
Funding
The WFP has no independent source of funds, it is funded entirely by voluntary donations. governments are the
principal source of funding, Corporates, Individuals

 Emergency food rations during a crisis

 Special food for hungry children in schools.
 Food incentives to encourage poor families to send their girls to school.
 Food as payment for people to rebuild schools, roads and other
infrastructure in the wake of conflicts and natural disasters.
ShareTheMeal is an initiative of the United Nations World Food Programme (WFP).

WFP and India

WFP has been working in India since 1963, with work transitioning from food distribution to technical assistance
since the country achieved self-sufficiency in cereal production. The areas in which WFP mainly assists in India are:
 Transforming the targeted public distribution system.
 Fortification of government distributed food: The pilot project saw rice fortified with iron, which was
distributed in a single district, resulting in a 20 percent drop in anaemia.
 Mapping and monitoring of food insecurity.

Report Released by WFP

 Global Report on Food Crisis.
Award Won: Nobel Prize for Peace 2020 for its efforts to combat hunger, bettering conditions for peace in conflict-
affected areas and preventing the use of hunger as a weapon of war and conflict.

UNESCO
“Since wars begin in the minds of men and women, it is in the minds of men and women that the defences of peace
must be constructed” - UNESCO
Agency of the United Nations (UN). It seeks to build peace through international cooperation in Education, the
Sciences and Culture. member of the United Nations Sustainable Development Group (UNSDG).
UNESCO’s Headquarters are located in Paris.
It has 193 Members and 11 Associate Members and is governed by the General Conference and the Executive
Board.
Three UNESCO member states are not UN members: Cook Islands, Niue, and Palestine.
While three UN member states (Israel, Liechtenstein, United States) are not UNESCO members.

Objectives
UNESCO focuses on a set of objectives such as:
 Attaining quality education for all and lifelong learning
 Mobilizing science knowledge and policy for sustainable development
 Addressing emerging social and ethical challenges
 Fostering cultural diversity, intercultural dialogue and a culture of peace
 Building inclusive knowledge societies through information and communication
 Focuses on global priority areas - “Africa” and “Gender Equality”.
History
  At the end of the conference, UNESCO was founded on 16 November 1945.
 The first session of UNESCO was held in Paris during November-December of 1946.
Areas of Specialization of UNESCO
Education Transforms Lives
 the heart of UNESCO’s mission to build peace, eradicate poverty and drive sustainable development.
 The Organization is the only United Nations agency with a mandate to cover all aspects of education.
 It has been entrusted to lead the Global Education 2030 Agenda through SDG – 4
Protecting Our Heritage and Fostering Creativity
Science for a Sustainable Future: invest in Science, Technology and Innovation (STI), to develop national science
policies, to reform their science systems and to build capacity to monitor and evaluate performance through STI
indicators.
Social and Human Sciences
 UNESCO helps to enable people to create and use knowledge for just and inclusive societies, support
them in understanding each other and working together to build lasting peace.
 It promotes mutual understanding among member states through its intergovernmental Programme
like Management of Social Transformations (MOST), its Youth Programme and the Culture of Peace
and Non-Violence Programme which include initiatives for democracy and global citizenship,
intercultural dialogue, peace-building.
Communication and Information
 UNESCO advances freedom of expression and the safety of journalists, combats online hate speech, as
well as disinformation and misinformation through awareness raising initiatives.
 It also supports universal access to information and knowledge through promoting Open Solutions,
including Open Educational Resources, access for marginalized people, and multilingualism in
Cyberspace.
Global Priorities Of UNESCO - ‘Africa’ and ‘Gender Equality’
Africa
Gender Equality
 UNESCO holds that women and men must enjoy equal opportunities, choices, capabilities, power and
knowledge as equal citizens.
Some of the Important Initiatives of UNESCO
World Heritage Convention and List
 World Heritage Convention -1972 links together the concepts of nature conservation and the
preservation of cultural properties.
 The Convention defines the kind of natural or cultural sites (World Heritage Sites) which can be
considered for inscription on the World Heritage List.
 The States Parties of convention are encouraged to integrate the protection of the cultural and natural
heritage into regional planning programmes, set up staff and services at their sites, undertake scientific
and technical conservation research.
 It explains how the World Heritage Fund is to be used and managed.
 Globally there are 1121 World Heritage sites in the 167 countries. Meanwhile, India has 38 World
Heritage Sites that include 30 Cultural properties, 7 Natural properties and 1 mixed site
Man and the Biosphere (MAB) Programme
 It is an intergovernmental scientific programme that aims to establish a scientific basis for enhancing
the relationship between people and their environments.
 It promotes innovative approaches to economic development that are socially and culturally
appropriate and environmentally sustainable.
 The World Network of Biosphere Reserves currently counts 701 sites in 124 countries all over the
world, including 21 transboundary sites.
 India has 18 Biosphere reserves out of which 11 have been recognized internationally under Man and
Biosphere (MAB) program:
International Geoscience and Global Geoparks Programme (IGGP)
 International Geoscience Programme (IGCP) harnesses the intellectual capacity of a worldwide
network of geoscientists to lay the foundation for our planet’s future, focusing on responsible resource
extraction, natural hazard resilience and preparedness, and adaptability in the era of a changing
climate.
  UNESCO Global Geoparks (UGGp) are laboratories for sustainable development which promote the
recognition and management of Earth heritage, and the sustainability of local communities.

o As of April 2019, there are 147 UNESCO Global Geoparks within 41 Member States,
covering a total area of 288,000 km²
International Hydrological Programme (IHP)
 The Intergovernmental Hydrological Programme (IHP) is the only intergovernmental programme of the
United Nations system devoted to water research and management, and related education and
capacity development
World Water Assessment Programme (WWAP)
International Basic Sciences Programme (IBSP)

Important Reports of UNESCO

UNESCO Science Report
 UNESCO Science Report maps STI governance around world on a regular basis. The report is published
every five years, to mark World Science Day for Peace and Development.
Global Education Monitoring Report
McBride Report of 1980
UNESCO State of the Education Report for India: Children With Disabilities
 The 2019 report is the first edition of the annual report to be published by UNESCO in India.
UNESCO And INDIA
Indian National Commission for Cooperation with UNESCO (INCCU)
 India has been a member of the UNESCO since its inception in 1946.
 UNESCO constitution requires that each Member State should have a principle body that shall work
with the Organization. Thus, in India, Indian National Commission for Cooperation with UNESCO
(INCCU) was commissioned.
 UNESCO has two Offices in India: New Delhi cluster office and MGIEP – the Mahatma Gandhi Institute
of Education for Peace and Sustainable Development.

Regional Comprehensive Economic Partnership: 2012, between ASEAN and Free Trade Agreement (FTA) member
partners.
ASEAN Members
Indonesia
Malaysia
Philippines
Singapore
Thailand
Brunei
Vietnam
Laos
Myanmar
Cambodia

FTA Partners
Australia
China
Japan
New Zealand
South Korea
It aims to cover the trade in goods and services, investment, economic and technical cooperation, intellectual
property and dispute resolution.
History
 Countries in East Asia region have thriving trade and economic relations with each other through free
trade agreements.
 The Association of Southeast Asian Nations (ASEAN) (ASEAN+1 FTAs) has free trade agreements with
six partners namely,
 o The People's Republic of China (ACFTA)
o Republic of Korea (AKFTA)
o Japan (AJCEP)
o India (AIFTA)
o Australia and New Zealand (AANZFTA)
Major FTAs India Signed
 South Asia Free Trade Agreement (SAFTA)
 India-ASEAN Comprehensive Economic Cooperation Agreement (CECA)
 India-Korea Comprehensive Economic Partnership Agreement (CEPA)
 India-Japan CEPA
India and RCEP
 India has dropped out of the RCEP in November 2019 in ASEAN+3 summit, because of the following
reasons:
Widening Trade Deficit.
Tariff elimination due to RCEP could worsen the trade deficit, at $105.2 billion in 2018-19.
Sensitive List.

The objections raised by India:

Base Year for Tariffs.
Auto-Trigger Mechanism: The auto-trigger mechanism is used when there is a sudden surge in imports.
Ratchet Obligations: India wants exemptions on ratchet obligations. A ratchet mechanism means that if a
country signs a trade agreement with another country and removes or reduces tariffs and quotas. It cannot go
back on them and bring in more restrictive measures.
Data Localisation: As part of RCEP, India wants all countries to have the rights to protect data.
Services Sector: India has demanded that the ASEAN countries should open up their services sector so that Indian
professionals and workers can have easier entry into their market.
Rules of Origin: India wants strict rules of origin to prevent Chinese goods from flooding the country through
member countries that may have lower or no duty levels.

The sectors that have shown resistance to the agreement are:

Dairy: Dairy is vital to India, given the place milk and other derivatives hold in Indian households.
Automobile: RCEP could allow a "back-door entry route" for automobile parts from China.
Textile: The free import of polyester fabrics from China, Vietnam, Bangladesh and other countries, which could
lead to cheaper textiles, affecting an already-hit sector.
Steel: The steel industry also has concerns regarding China.
Agriculture: An apex body of planters of tea, coffee, rubber, cardamom and pepper said that RCEP would make
things worse for the sector, which is already experiencing a downturn.

UNICEF
United Nations Children’s Fund (UNICEF) is a special program of the United Nations (UN) devoted to aiding national
efforts to improve the health, nutrition, education, and general welfare of children.
History
 UNICEF was created in 1946 as International Children’s Emergency Fund (ICEF) by UN relief
Rehabilitation Administration to help children affected by World War II.
 UNICEF became a permanent part of the United Nations in 1953.

 It is mandated by the United Nations General Assembly to advocate for the protection of children's
rights, to help meet their basic needs and to expand their opportunities to reach their full potential.
 UNICEF is guided by the Convention on the Rights of the Child, 1989.

 Awarded the Nobel Prize for Peace in 1965 for “promotion of brotherhood among the nations”.
 Headquarters: New York City.

o It works in over 190 countries and territories with 7 regional offices.

The work of the UNICEF includes:

o Child Development and Nutrition;

 o Child Protection;
o Education;
o Child Environment;
o Polio Eradication;
o Reproductive and Child Health;
o Children and AIDS;
o Social Policy, Planning, Monitoring and Evaluation;
o Advocacy and Partnership;
o Behaviour Change Communication;
o Emergency Preparedness and Response.
Structure
 UNICEF is governed by an Executive Board consisting of 36 members that are elected to terms of three
years by United Nations' Economic and Social Council.
 The following countries are home to UNICEF Regional Offices.

o The Americas and Caribbean Regional Office, Panama City, Panama

o Europe and Central Asia Regional Office, Geneva, Switzerland
o East Asia and the Pacific Regional Office, Bangkok, Thailand
o Eastern and Southern Africa Regional Office, Nairobi, Kenya
o The Middle East and North Africa Regional Office, Amman, Jordan
o South Asia Regional Office, Kathmandu, Nepal
o West and Central Africa Regional Office, Dakar, Senegal
 Each region that UNICEF serves is allocated a number of seats on the Executive Board, so all regions
are represented.
 There are also 36 national committees across the globe, which are non-governmental organizations
that help promote the rights of children and fundraise.
Funding
UNICEF is funded exclusively by voluntary contributions, and the National Committees collectively
raise around one-third of UNICEF's annual income.
This comes through contributions from corporations, civil society organizations and more than 6
million individual donors worldwide.
UNICEF and India
 UNICEF began its work in India in 1949 with three staff members and established an office in Delhi
three years later.

o Currently, it advocates for the rights of India’s children in 16 states.

 Nodal Ministries: Ministry of Women and Child Development.
 Work done by UNICEF in India includes:

o Census support, 2011: Gender issues were mainstreamed into the training and
communication strategy for the 2011 Census.

 This helped 2.7 million enumerators and supervisors collect quality

disaggregated data as part of the UNICEF contribution to the joint United
Nations support to the Census.
o Polio Campaign, 2012: Polio cases in India fell from 559 in 2008 to zero cases in 2012.

o Reduction in MMR, 2013:

o Call to Action, 2013: This initiative was launched to reduce under-five mortality.

o Maternal and Child Nutrition, 2013:

o India Newborn Action Plan, 2014:

International Labour Organization

The International Labour Organization (ILO) celebrated its 100th anniversary in 2019.
  It is the only tripartite U.N. agency. It brings together governments, employers and workers of 187
member States, to set labour standards, develop policies and devise programmes promoting decent
work for all women and men.
History of the ILO
 Established in 1919 by the Treaty of Versailles as an affiliated agency of the League of Nations.
 Became the first affiliated specialized agency of the United Nations in 1946.
 Headquarters: Geneva, Switzerland
 Founding Mission: social justice is essential to universal and lasting peace.
 Promotes internationally recognized human and labour rights.
 Received the Nobel Peace Prize in 1969.
Note: The basis of the ILO is the tripartite principle, i.e. the negotiations within the organization are held between
the representatives of governments, trade unions, and member-states’ employers.
Structure of ILO
 International Labour Conference: it sets the International labour standards and the broad policies of
the ILO. It meets annually in Geneva. It is often referred to as an International Parliament of Labour.

o It is also a forum for discussion of key social and labour questions.

 Governing Body: it is the executive council of the ILO. It meets three times a year in Geneva.

o It takes policy decisions of ILO and establishes the programme and the budget, which it
then submits to the Conference for adoption.
o The work of the Governing Body and the Office is aided by tripartite
committees covering major industries.
 International Labour Office: it is the permanent secretariat of the International Labour Organization.

The Functions of the ILO

 Creation of coordinated policies and programs, directed at solving social and labour issues.
 Adoption of international labour standards in the form of conventions and recommendations and
control over their implementation.
 Assistance to member-states in solving social and labour problems.
 Human rights protection (the right to work, freedom of association, collective negotiations, protection
against forced labour, protection against discrimination, etc.).
 Research and publication of works on social and labour issues.
Objectives of the ILO
 To promote and realize standards and fundamental principles and rights at work.
 To create greater opportunities for women and men to secure decent employment.
 To enhance the coverage and effectiveness of social protection for all.
 To strengthen tripartism and social dialogue.
International Labour Standards
 The ILO sets international labour standards with conventions, which are ratified by member states.
These are non-binding.
 In ratifying an ILO convention, a member state accepts it as a legally binding instrument.
ILO Declaration on Fundamental Principles and Rights at Work
 It was adopted in 1998, the Declaration commits member states to respect and promote eight
fundamental principles and rights in four categories. They are:

o Freedom of Association and The Right to collective bargaining (Conventions 87 and 98)
o Elimination of forced or compulsory labour (Conventions No. 29 and No. 105)
o Abolition of child labour (Conventions No. 138 and No. 182)
o Elimination of discrimination in respect of employment and occupation (Conventions No.
100 and No. 111)
Core Conventions of the ILO
 Overall, 135 member States have ratified all eight fundamental conventions. Unfortunately, 48
member states (out of 183 member States), including member states with the highest populations,
have yet to complete ratification of all eight conventions.
 The eight-core conventions of the ILO are:
 o Forced Labour Convention (No. 29)
o Abolition of Forced Labour Convention (No.105)
o Equal Remuneration Convention (No.100)
o Discrimination (Employment Occupation) Convention (No.111)
o Minimum Age Convention (No.138)
o Worst forms of Child Labour Convention (No.182)
o Freedom of Association and Protection of Right to Organised Convention (No.87)
o Right to Organise and Collective Bargaining Convention (No.98)
India and ILO
 India is a founding member of the ILO and it has been a permanent member of the ILO Governing Body
since 1922.
 In India, the first ILO Office was started in 1928. The decades of productive partnership between the
ILO and its constituents has mutual trust and respect as underlying principles and is grounded in
building sustained institutional capacities and strengthening capacities of partners.
 India has ratified six out of the eight-core/fundamental ILO conventions. These conventions are:

o Forced Labour Convention (No. 29)

o Abolition of Forced Labour Convention (No.105)
o Equal Remuneration Convention (No.100)
o Discrimination (Employment Occupation) Convention (No.111)
o Minimum Age Convention (No.138)
o Worst forms of Child Labour Convention (No.182)
 India has not ratified the two core/fundamental conventions, namely Freedom of Association and
Protection of the Right to Organise Convention, 1948 (No. 87) and Right to Organise and Collective
Bargaining Convention, 1949 (No. 98).

o The main reason for non-ratification of ILO conventions No.87 & 98 is due to certain
restrictions imposed on the government servants.

G-7
informal bloc of industrialized democracies—France, Germany, Italy, the United Kingdom, Japan, the United
States, and Canada—that meets annually. takes no mandatory decisions, so the leaders’ declarations at the end
of the summit are not binding.

roots in an informal meeting of the finance ministers of France, West Germany, the U.S, Great Britain, and Japan (the
Group of Five) in the wake of the 1973 oil crisis.

Membership
 France, West Germany, Italy, Japan, the United Kingdom, and the United States formed the Group of
Six in 1975. In 1976, Canada was also invited.
 The European Union has participated fully in the G-7 since 1981 as a "non enumerated" member.

o It is represented by the presidents of the European Council, which represents the EU

member states' leaders, and the European Commission (the E.U.’s executive branch)
 The G-7 was known as the G-8 for several years after the original seven were joined by Russia in 1997.
The group returned to being called G-7 after Russia was expelled as a member in 2014 following the
annexation of the Crimea region of Ukraine.
 There are no formal criteria for membership, but participants are all highly developed democracies.
GDP of G-7 member states makes up nearly 50% of global economy and 10% of world’s population.
 hosted on a rotation basis by the group's members. Host country holds G7 presidency but also sets
agenda for year.
 Invitation to Global leaders are sent by host nation to participate in summit as special invitees.
Countries like China, India, Mexico, and Brazil have attended summit at various occasions.
G-20 was founded in 1999 after Asian financial crisis in 1997-1998, it initially started off as a meeting of finance
ministers and central bank governors.
However, as a response to the financial crisis of 2008, the G-20 was upgraded to head of state level.
 While the G-7 mainly has to do with politics, the G-20 is a broader group that focuses on the global
economy. It’s also known as the “Summit on Financial Markets and the World Economy” and
represents 80% of the global GDP.

FATF
concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by
the G-7 groping in Paris in 1989.
In 2001 its mandate expanded to include terrorism financing.

Outcome of 45th G-7 summit—India participated

 The Summit adopted the G7 Leaders’ Declaration, which focuses on trade, Iran, Libya, Ukraine and
Hong Kong.

Arctic Council
The Arctic Council is the leading intergovernmental forum.
The Arctic Council works as a to deal with issues such as the change in biodiversity, melting sea ice, plastic pollution
and black carbon.
History of Arctic Council
 The formation of Arctic Council can be traced in the establishment of the Arctic Environmental
Protection Strategy (AEPS) in 1991 as a framework for intergovernmental cooperation on
environmental protection initiatives among the Arctic States including Canada, Denmark, Finland,
Iceland, Norway, Sweden, Russia, and the United States.
Formation of the Arctic Council--consensus-based body
 The Arctic Council is a high-level intergovernmental body set up in 1996 by the Ottawa declaration to
promote cooperation, coordination and interaction among the Arctic States together with
the indigenous communities and other Arctic inhabitants.
 The Council has the eight circumpolar countries as member states.
 Arctic Council Secretariat: The standing Arctic Council Secretariat formally became operational in
2013 in Tromsø, Norway.
The Council has members, ad hoc observer countries and "permanent participants"
Denmarks represents Greenland and the Faroe Islands.
 Observer status: It is open to non-Arctic states, along with inter-governmental, inter-parliamentary,
global, regional and non-governmental organizations that the Council determines can contribute to
its work. It is approved by the Council at the Ministerial Meetings that occur once every two years
Observers have no voting rights in the Council.
 As of May 2019, thirteen non-Arctic states have Observer status.

 Germany, 1998
 Netherlands, 1998
 Poland, 1998
 United Kingdom, 1998
 France, 2000
 Spain, 2006
 China, 2013
 India, 2013
  Italy, 2013
 Japan, 2013
 South Korea, 2013
 Singapore, 2013
 Switzerland, 2017
Criterion for Admitting Observers
observers:
Accept and support the objectives of the Arctic Council defined in the Ottawa declaration.
Recognize Arctic State’s sovereignty, sovereign rights and jurisdiction in the Arctic.
Recognize that an extensive legal framework applies to the Arctic Ocean including, notably, the Law of the Sea
(UNCLOS), and that this framework provides a solid foundation for responsible management of this ocean.
India has also accepted the UNCLOS as the governing instrument for the Arctic implying that jurisdiction and
resources of ocean will primarily lay with eight Arctic States.
 Respect the values, interests, culture and traditions of Arctic indigenous peoples.
 Political willingness as well as financial ability to contribute to the work of the Permanent Participants
and other Arctic indigenous peoples.
 Have demonstrated their Arctic interests and expertise relevant to the work of the Arctic Council.
 Have demonstrated a concrete interest and ability to support the work of the Arctic Council.

Decisions of the Arctic Council are taken by consensus among the eight Arctic Council States, with full
consultation and involvement of the Permanent Participants.
 The Chairmanship of the Arctic Council rotates every two years among the Arctic States. The first
country to chair the Arctic Council was Canada (1996-1998). The next country to assume the
Chairmanship will be Iceland (2019-2021).
India and the Arctic
 India launched its first scientific expedition to the Arctic Ocean in 2007 and opened a research base
named "Himadri” at the International Arctic Research Base at Ny-Alesund, Svalbard, Norway in July
2008 for carrying out studies in disciplines like Glaciology, Atmospheric sciences & Biological sciences.
India’s interests in the Arctic region are scientific, environmental, commercial as well as strategic.
 In 2019, India has been re-elected as an Observer to Council.
 India does not have an official Arctic policy and its Arctic research objectives have been centred on
ecological and environmental aspects, with a focus on climate change, till now.
Commercial and Strategic Interests
 The Arctic region is very rich in minerals, and oil and gas. With some parts of the Arctic melting due to
global warming, the region also opens up the possibility of new shipping routes that can reduce
existing distances.
 The Arctic Council does not prohibit the commercial exploitation of resources in the Arctic. It only
seeks to ensure that it is done in a sustainable manner without harming the interests of local
populations and in conformity with the local environment.

South Asian Association for Regional Cooperation (SAARC)

signing of SAARC Charter in Dhaka on 8 December 1985.
 The idea of regional cooperation in South Asia was first raised in November 1980. After consultations,
the foreign secretaries of the seven founding countries—Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan, and Sri Lanka—met for the first time in Colombo in April 1981.

 Afghanistan became the newest member of SAARC at the 13th annual summit in 2005.
 The Headquarters and Secretariat of the Association are at Kathmandu, Nepal.
Principles
 Cooperation within the framework of the SAARC shall be based on:

o Respect for the principles of sovereign equality, territorial integrity, political

independence, non-interference in the internal affairs of other States and mutual
benefit.
o Such cooperation shall not be a substitute for bilateral and multilateral cooperation but
shall complement them.
Members of SAARC—8 members

o Afghanistan
o Bangladesh
o Bhutan
o India
o Maldives
o Nepal
o Pakistan
o Sri Lanka
 There are currently nine Observers to SAARC, namely: (i) Australia; (ii) China; (iii) the European Union;
(iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the United States
of America.
Principal Organs
 Meeting of Heads of State or Government

 Standing Committee of Foreign Secretaries

 Secretariat

o The SAARC Secretariat was established in Kathmandu on 16 January 1987.

o secretary-general is appointed by the Council of Ministers on the principle of rotation,
for a non-renewable tenure of three years.
SAARC Specialized Bodies
 SAARC Development Fund (SDF): Its primary objective is funding of project-based collaboration in
social sectors such as poverty alleviation, development, etc.

o SDF is governed by a Board consisting of representatives from the Ministry of Finance of

the Member States. The Governing Council of SDF (Finance Ministers of MSs) oversees
the functioning of the Board.
 South Asian University

o South Asian University (SAU) is an international university, located in India. Degrees and
Certificates awarded by the SAU are at par with the respective Degrees and Certificates
awarded by the National Universities/ Institutions.
 South Asian Regional Standards Organization

o South Asian Regional Standards Organization (SARSO) has its Secretariat at Dhaka,
Bangladesh.
o It was established to achieve and enhance coordination and cooperation among SAARC
member states in the fields of standardization and conformity assessment and is aimed
to develop harmonized Standards for the region to facilitate intra-regional trade and to
have access in the global market.
 SAARC Arbitration Council

o It is an inter-governmental body having its office in Pakistan is mandated to provide a

legal framework/forum within the region for fair and efficient settlement of commercial,
industrial, trade, banking, investment and such other disputes, as may be referred to it
by the member states and their people.
SAARC and its Importance
 SAARC comprises 3% of the world's area, 21% of the world's population and 3.8% (US$2.9 trillion) of
the global economy.
 Creating synergies: It is the world’s most densely populated region and one of the most fertile areas.
SAARC countries have common tradition, dress, food and culture and political aspects thereby
synergizing their actions.
 Common solutions: All the SAARC countries have common problems and issues like poverty, illiteracy,
malnutrition, natural disasters, internal conflicts, industrial and technological backwardness, low GDP
and poor socio-economic condition and uplift their living standards thereby creating common areas of
development and progress having common solutions.
SAARC Achievements
 SAPTA: South Asia Preferential Trading Agreement for promoting trade amongst the member
countries came into effect in 1995.
 SAFTA: A Free Trade Agreement confined to goods, but excluding all services like information
technology. customs duties of all traded goods to zero by the year 2016.
 SAARC Agreement on Trade in Services (SATIS): SATIS is following the GATS-plus 'positive list'
approach for trade in services liberalization.
 SAARC University: Establish a SAARC university in India, a food bank and also an energy reserve in
Pakistan.

TRAFFIC
 The TRAFFIC, the Wildlife Trade Monitoring Network, is a leading non-governmental organisation
working on wildlife trade in the context of both biodiversity conservation and sustainable
development.
 It is a joint program of WWF and IUCN.
 It was established in 1976.
 Headquarters: Cambridge, United Kingdom
Governance
 The TRAFFIC is governed by the TRAFFIC Committee, a steering group composed of members of
TRAFFIC's partner organizations, WWF and IUCN.
 TRAFFIC also works in close co-operation with the Secretariat of the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (CITES).
 Its staff includes experts from a plethora of backgrounds: biologists, conservationists, academics,
researchers, communicators or investigators, etc.
Functions

TRAFFIC and India

 TRAFFIC operates as a Programme Division of WWF-India, based in New Delhi since 1991.
 Under this programme, TRAFFIC provides training and inputs to a diverse group of officials working
on wildlife enforcement and other related issues.
 Conducting research and providing analysis on wildlife trade and its trends:
 TRAFFIC India’s on-going projects include study on Leopard and Tiger poaching and trade in
India, peacock feather trade, owl trade, dynamics of hunting community, trade in medicinal
plants, bird trade and more.


o TRAFFIC played a key role in bringing together the South Asian countries to form
the South Asia Wildlife Enforcement Network (SAWEN).

CITES
 The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is
an international agreement to which States and regional economic integration organizations adhere
voluntarily.
 CITES was drafted as a result of a resolution adopted in 1963 at a meeting of members of the
International Union for Conservation of Nature (IUCN).

 CITES entered into force in July 1975. Currently there are 183 Parties (include countries or regional
economic integration organizations).
 The CITES Secretariat is administered by UNEP and is located at Geneva, Switzerland.
 Although CITES is legally binding on the Parties, it does not take the place of national laws.

 Appendix I
 o It lists species that are the most endangered among CITES-listed animals and plants.
o Examples include gorillas, sea turtles, most lady slipper orchids, and giant
pandas. Currently 931 species are listed.
o They are threatened with extinction and CITES prohibits international trade in
specimens of these species except when the purpose of the import is not
commercial, for instance for scientific research.
o In these exceptional cases, trade may take place provided it is authorized by the granting
of both an import permit and an export permit (or re-export certificate).
 Appendix II

o It lists species that are not necessarily now threatened with extinction but that may
become so unless trade is closely controlled.
o Most CITES species are listed in this Appendix, including American ginseng, paddlefish,
lions, American alligators, mahogany and many corals. Currently 34,419 species are
listed.
o It also includes so-called "look-alike species", i.e. species whose specimens in trade look
like those of species listed for conservation reasons.
o International trade in specimens of Appendix-II species may be authorized by the
granting of an export permit or re-export certificate.
o No import permit is necessary for these species under CITES (although a permit is
needed in some countries that have taken stricter measures than CITES requires).
 Appendix III

o It is a list of species included at the request of a Party that already regulates trade in
the species and that needs the cooperation of other countries to prevent unsustainable
or illegal exploitation.
o International trade in specimens of species listed in this Appendix is allowed only on
presentation of the appropriate permits or certificates.
 Species may be added to or removed from Appendix I and II, or moved between them, only by the
Conference of the Parties.

o However, species may be added to or removed from Appendix III at any time and by
any Party unilaterally.
 The International Consortium on Combating Wildlife Crime (ICCWC), a consortium of the CITES
Secretariat, INTERPOL (International Criminal Police Organization), the UN Office on Drugs and
Crime, the World Bank and the World Customs Organization has been established to tackle illegal
wildlife trade.

CITES and India

 India, being a CITES Party, actively prohibits the international trade of endangered wild species and
several measures are in place to control threats from invasive alien species (e.g. certificates for
exports, permits for imports, etc.).
 India has proposed to remove rosewood (Dalbergia sissoo) from Appendix II of CITES. The species
grows at a very fast rate and has the capacity to become naturalised outside its native range.

World Health Organization (WHO)

World Health Organization (WHO), the United Nations’ specialized agency for Health was founded in 1948.
 Its headquarters are situated in Geneva, Switzerland.
 There are 194 Member States, 150 country offices, six regional offices.
It began functioning on April 7, 1948 – a date now being celebrated every year as World Health Day.
Objectives
 To act as the directing and coordinating authority on international health work.
 To establish and maintain effective collaboration with the United Nations, specialized agencies,
governmental health administrations, professional groups and such other organizations as may be
deemed appropriate.
 To provide assistance to the Governments, upon request, in strengthening health services.
  To promote cooperation among scientific and professional groups which contribute to the
advancement of health.
Governance
World Health Assembly
 The Health Assembly is composed of delegates representing Members.
 Each Member is represented by not more than three delegates, one of whom is designated by the
Member as chief delegate.
 These delegates are chosen from among persons most qualified by their technical competence in the
field of health, preferably representing the national health administration of the Member.
 The Health Assembly meets in regular annual session and sometimes in special sessions as well.
Functions
 The Health Assembly determines the policies of the Organization.
 It supervises the financial policies of the Organization and reviews and approves the budget.
 It reports to the Economic and Social Council in accordance with any agreement between the
Organization and the United Nations.
The Secretariat
 The Secretariat comprises of the Director-General and such technical and administrative staff as the
Organization may require.
 The Director-General is appointed by the Health Assembly on the nomination of the Board on such
terms as the Health Assembly may determine.
Membership and Associate Membership
 Members of the United Nations may become Members of the Organization.
 Territories or groups of territories which are not responsible for the conduct of their international
relations may be admitted as Associate Members by the Health Assembly.
WHO’s Contribution to World
 The country offices are WHO’s primary contact points with governments.
o They provide technical support on health matters, share relevant global standards and
guidelines, and relay government requests and requirements to other levels of WHO.
o They also inform and follow up with the host government on reports of disease
outbreaks outside the country.
o They provide advice and guidance on public health to other UN agency offices in-country.
 In addition to governments, WHO also coordinates with other UN agencies, donors, non-governmental
organizations (NGOs) and the private sector.
 The benefits of WHO's international health work are reaped by all countries, including the most
developed.
o For example, all nations have benefited from their contributions to the WHO programs
that led to the global eradication of smallpox and to promote better and cheaper ways of
controlling tuberculosis.
 The organization believes that immunization, which prevents the six major communicable diseases of
childhood—diphtheria, measles, poliomyelitis, tetanus, tuberculosis, and whooping cough—should
be available to all children who need it.
o WHO is leading a worldwide campaign to provide effective immunization for all children
in cooperation with the United Nations Children’s Fund (UNICEF).
 During the first decade (1948-58), the WHO focused major attention on specific infectious
diseases afflicting millions of people in the developing countries.
o These included malaria, yaws, tuberculosis, and venereal diseases.
o There was also a high priority for maternal and child health services, for environmental
sanitation (especially safe water), and for standardization of drugs and vaccines.
o In these years, WHO developed close working relationships with other UN agencies.
 The period (1958 to 68) was much influenced by the national liberation in Africa of several former
colonies, which became voting members of the Organization.
o In 1960, the departure from the newly independent Democratic Republic of the Congo of
nearly all foreign doctors created a massive emergency.
 Working with the international Red Cross, WHO recruited 200 physicians
and other health workers, and established a new fellowship program to
enable scores of Congolese “medical assistants” to become fully qualified
doctors.
 o In this period, fellowships for health-personnel development became a major WHO
strategy in almost all countries.
o WHO stimulated and even collaborated with the world chemical industry in the
1960s to develop new insecticides for fighting the vectors of onchocerciasis (“river
blindness”) and for treating schistosomiasis.
o Demonstration that tuberculosis could be effectively treated, without expensive
sanatorium care, was a great breakthrough of the late 1950s.
o Even the mundane standardization of the nomenclature of diseases and causes of death
was an important contribution of WHO to international health communications.
 The third decade (1968–78) of WHO included the great victory of eradicating smallpox from the
earth.
o In 1967, smallpox was still endemic in thirty-one countries, afflicting between 10 and 15
million people.
o The work was done by teams of public health workers in all the countries affected, with
WHO serving as leader, co-ordinator, and inspiration.
o Millions of dollars were saved worldwide by this achievement, which overcame various
national rivalries and suspicions.
o The momentum of this great campaign added strength to another drive, for expanding
the immunization of the world’s children against six once-ravaging diseases: diphtheria,
tetanus, whooping cough, measles, poliomyelitis, and tuberculosis (with BCG vaccine).
o After long hesitation for political reasons, in this period WHO finally entered the field
of family planning by promoting worldwide research and development on human
reproduction.
o New efforts were also put into the control of malaria and leprosy.
o WHO also promoted the training of auxiliary health personnel, such as China’s “barefoot
doctors” and India’s traditional birth-attendants.
 Such training was a sounder investment in most developing countries than
preparing physicians for predominantly urban medical practice.
 The fourth decade (1978–88) was ushered in by a great world conference of WHO and UNICEF in
Alma Ata, a city of the Asiatic part of the Soviet Union.
o In reaction against excessive attention to high-technology, the Alma Ata conference
emphasized the great importance of primary health care, preventive and curative, as
the best approach to national health policy.
 This approach, stressing community participation, appropriate
technology, and intersectoral collaboration, became the central pillar of
world health policy.
o Thirty years after its birth, 134 WHO member-states reaffirmed their commitment to
equality, as embodied in the slogan “Health for All.”
o The provisions of the safe drinking water and adequate excreta disposal for all were the
objectives of the International Drinking Water Supply and Sanitation Decade (1981-
90) proclaimed by the UN General Assembly in 1980 and supported by WHO.
o In this period, every country was encouraged to develop a list of “essential drugs” for use
in all public facilities, instead of the thousands of brand-name products sold in world
markets.
o The WHO’s condemnation of the promotion of artificial infant-formula products in
developing countries also attracted widespread attention.
o The worldwide control of infantile diarrhea with oral rehydration therapy was another
great advance, based on very simple principles.
 Networks: A 1995 outbreak of Ebola virus in the Congo, which raged for three months unbeknownst to
WHO, revealed a startling lack of global public health surveillance and notification systems.
o So in 1997, WHO (in collaboration with Canada) rolled out the Global Public Health
Intelligence Network (GPHIN), which took advantage of information on the Internet to
function as an early warning system for potential epidemics.
o The WHO supplemented this (GPHIN) in 2000 with the Global Outbreak Alert Response
Network (GOARN) to analyze events once they were detected.
  GOARN linked 120 networks and institutes with the data, laboratories,
skills and experience to take action swiftly in a crisis.
 According to the WHO, most of the estimated 500000 maternal deaths each year are preventable
through family planning—to avoid illegal abortions—and hygienic education of traditional birth-
attendants.
 The WHO has also mounted increasing efforts against cancer, which now takes as many lives in the
developing countries as in the affluent ones.
 The fight against tobacco, the largest single cause of preventable death in both men and women, is
part of WHO effort in every country.
 Disseminating the simple rules of diet, exercise, nonsmoking, prudent use of alcohol, and hygienic
working conditions are major objectives of health education in WHO everywhere.
 The worldwide epidemic of AIDS (acquired immune deficiency syndrome) has presented another
challenge to WHO in mounting global efforts to stem the spread of this lethal sexually transmitted
virus disease.
o The WHO is working for the introduction of self-testing so that more people living with
HIV know their status and can receive treatment.
WHO and India
 India became a party to the WHO on 12 January 1948.
 Regional office for South East Asia is located in New Delhi.
 Smallpox
o In 1967 the total number of smallpox cases recorded in India accounted for nearly 65%
of all cases in the world. Of this 26,225 cases died, giving a grim picture of the relentless
fight that lay ahead.
o In 1967, the WHO launched the Intensified Smallpox Eradication Programme.
o With a coordinated effort by Indian government with the World Health Organization
(WHO), smallpox was eradicated in 1977.
 Polio
o India began the battle against the disease in response to the WHO’s 1988 Global Polio
Eradication Initiative with financial and technical help from World Bank.
o Polio Campaign-2012: The Indian Government, in partnership with UNICEF, the World
Health Organization (WHO), the Bill & Melinda Gates Foundation, Rotary International
and the Centers for Disease Control and Prevention contributed to almost universal
awareness of the need to vaccinate all children under five against polio.
o As a result of these efforts, India was removed from the list of endemic countries in
2014.
 It has also been instrumental in the country’s transition from hospital-based to community-based care
and the resultant increase in health posts and centres focusing on primary care.
 The WHO Country Cooperation Strategy – India (2012-2017) has been jointly developed by the
Ministry of Health and Family Welfare (MoH&FW) and the WHO Country Office for India (WCO).
World Health Concerns & WHO
 Air pollution and Climate Change
o Nine out of ten people breathe polluted air every day. In 2019, air pollution is considered
by the WHO as the greatest environmental risk to health.
o Microscopic pollutants in the air can penetrate respiratory and circulatory systems,
damaging the lungs, heart and brain, killing 7 million people prematurely every year from
diseases such as cancer, stroke, heart and lung disease.
o The primary cause of air pollution (burning fossil fuels) is also a major contributor to
climate change, which impacts people’s health in different ways.
 Between 2030 and 2050, climate change is expected to cause 250 000
additional deaths per year, from malnutrition, malaria, diarrhoea and heat
stress.
 Noncommunicable Diseases
o Noncommunicable diseases, such as diabetes, cancer and heart disease, are collectively
responsible for over 70% of all deaths worldwide, or 41 million people.
o The rise of these diseases has been driven by five major risk factors: tobacco use,
physical inactivity, the harmful use of alcohol, unhealthy diets and air pollution.
 o These risk factors also exacerbate mental health issues. The suicide is the second
leading cause of death among 15-19 year-olds.
 Global Influenza Pandemic
o The WHO is constantly monitoring the circulation of influenza viruses to detect potential
pandemic strains: 153 institutions in 114 countries are involved in global surveillance and
response.
 Fragile and Vulnerable Settings
o More than 1.6 billion people (22% of the global population) live in places where
protracted crises (through a combination of challenges such as drought, famine, conflict,
and population displacement) and weak health services leave them without access to
basic care.
 Antimicrobial Resistance
o It is the ability of bacteria, parasites, viruses and fungi to resist modern medicines which
threatens to send us back to a time when we were unable to easily treat infections such
as pneumonia, tuberculosis, gonorrhoea, and salmonellosis.
o The inability to prevent infections could seriously compromise surgery and procedures
such as chemotherapy.
o In 2017, around 600 000 cases of tuberculosis were resistant to rifampicin – the most
effective first-line drugs – and 82% of these people had multidrug-resistant tuberculosis.
o Drug resistance is driven by the overuse of antimicrobials in people, but also in animals,
especially those used for food production, as well as in the environment.
o WHO is working with these sectors to implement a global action plan to tackle
antimicrobial resistance by increasing awareness and knowledge, reducing infection, and
encouraging prudent use of antimicrobials.
 Ebola and Other High-Threat Pathogens
o In 2018, the Democratic Republic of the Congo saw two separate Ebola outbreaks, both
of which spread to cities of more than 1 million people. One of the affected provinces is
also in an active conflict zone.
o WHO’s R&D Blueprint identifies diseases and pathogens that have the potential to cause
a public health emergency but lack effective treatments and vaccines.
 This watchlist for priority research and development includes Ebola,
several other haemorrhagic fevers, Zika, Nipah, Middle East respiratory
syndrome coronavirus (MERS-CoV) and Severe Acute Respiratory
Syndrome (SARS) and disease X, which represents the need to prepare for
an unknown pathogen that could cause a serious epidemic.
 Weak Primary Health Care
o Primary health care is usually the first point of contact people have with their health care
system, and ideally should provide comprehensive, affordable, community-based care
throughout life.
o Yet many countries do not have adequate primary health care facilities. This neglect
may be a lack of resources in low- or middle-income countries, but possibly also a focus
in the past few decades on single disease programmes.
 Vaccine Hesitancy
o It is the reluctance or refusal to vaccinate despite the availability of vaccines – threatens
to reverse progress made in tackling vaccine-preventable diseases.
o Measles, for example, has seen a 30% increase in cases globally. The reasons for this rise
are complex, and not all of these cases are due to vaccine hesitancy.
o However, some countries that were close to eliminating the disease have seen a
resurgence.
o The WHO has identified complacency, inconvenience in accessing vaccines, and lack of
confidence as key reasons underlying hesitancy.
 Dengue
o It is a mosquito-borne disease that causes flu-like symptoms and can be lethal and kill up
to 20% of those with severe dengue, has been a growing threat for decades.
o A high number of cases occur in the rainy seasons of countries such as Bangladesh and
India.
 Now, the dengue season in these countries is lengthening significantly (in
2018, Bangladesh saw the highest number of deaths in almost two
decades),
 and the disease is spreading to less tropical and more temperate countries
such as Nepal, that have not traditionally seen the disease.
o WHO’s Dengue control strategy aims to reduce deaths by 50% by 2020.
 HIV
o The progress made against HIV has been enormous in terms of getting people tested,
providing them with antiretrovirals (22 million are on treatment), and providing access to
preventive measures such as a pre-exposure prophylaxis (PrEP, which is when people at
risk of HIV take antiretrovirals to prevent infection).
o Today, around 37 million worldwide live with HIV.
o Reaching people like sex workers, people in prison, men who have sex with men, or
transgender people is hugely challenging. Often these groups are excluded from health
services.
o A group increasingly affected by HIV are young girls and women (aged 15–24), who are
particularly at high risk and account for 1 in 4 HIV infections in sub-Saharan Africa
despite being only 10% of the population.
o The WHO is working with countries to support the introduction of self-testing so that
more people living with HIV know their status and can receive treatment (or
preventive measures in the case of a negative test result).
WHOs' Organisational Challenges
 The WHO has been dependant on donor funds – mainly from rich countries and foundations like the
Bill and Melinda Gates Foundation – rather than through secured funding from countries.
o As a result, currently 80% of WHO’s funding is tied to programs that donors choose.
Work programs that are vital to WHO’s mandate remain under funded as they clash with
the interests of big donors, especially of rich and developed countries.
o Consequently WHO’s role as a leader in global health has been supplanted by other
intergovernmental bodies such as the World Bank, and increasingly by big foundations.
o The organisation’s efficacy has come under question, especially after its inadequate
performance in containing West Africa’s ebola epidemic of 2014.
o It was because of WHO's insufficient funding, structuring, staffing and bureaucracy.
Asian Infrastructure Investment Bank
 25 Jun 2019

 19 min read
Tags:
 GS Paper - 2
 Important International Institutions
 The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to
improve social and economic outcomes in Asia.
 It is established by the AIIB Articles of Agreement (entered into force Dec. 25, 2015) which is a
multilateral treaty. The Parties (57 founding members) to agreement comprise the Membership of the
Bank.
 It is headquartered in Beijing and began its operations in January 2016.
 The members to Bank have now grown to 97 approved members worldwide. There are 27
prospective members including Armenia, Lebanon, Brazil, South Africa, Greece, etc.
 Fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the United
Kingdom.
 By investing in sustainable infrastructure and other productive sectors in Asia and beyond, it will
better connect people, services and markets that over time will impact the lives of billions and build a
better future.
Goals
 To foster sustainable economic development, create wealth and improve infrastructure connectivity
in Asia by investing in infrastructure and other productive sectors.
 To promote regional cooperation and partnership in addressing development challenges by working
in close collaboration with other multilateral and bilateral development institutions.
  To promote investment in the public and private capital for development purposes, in particular for
development of infrastructure and other productive sectors.
 To utilize the resources at its disposal for financing such development in the region, including those
projects and programs which will contribute most effectively to the harmonious economic growth of
the region;
 To encourage private investment in projects, enterprises and activities contributing to economic
development in the region when private capital is not available on reasonable terms and conditions.
Governance
Board of Governors
 The Board of Governors consists of one Governor and one Alternate Governor appointed by
each member country.

o Governors and Alternate Governors serve at the pleasure of the appointing member. All
the powers of the AIIB are vested in the Board of Governors.
 The Board of Governors may delegate to the Board of Directors any or all its powers, except the
power to:

o admit new members and determine the conditions of their admission;

o increase or decrease the authorized capital stock of the Bank;
o elect the Directors of the Bank and determine the expenses to be paid for Directors and
Alternate Directors and remuneration;
o elect the President, suspend or remove him from office, and determine his
remuneration and other conditions of service;
o approve, after reviewing the auditors’ report, the general balance sheet and the
statement of profit and loss of the Bank;
o amend the 'AIIB Articles of Agreement';
 Annual Meeting

o The first AIIB Board of Governors meeting was held in Beijing, China in 2016.
o The second was held in Jeju, Korea in 2017 and the third was held in Mumbai, India in
2018.
o On July 12-13, 2019 Luxembourg will host AIIB’s first Annual Meeting to be held outside
Asia.

 The theme of the 2019 Annual Meeting is “Cooperation and

Connectivity” in recognition of the economic and social benefits to be
realized through better connectivity within and between countries and
regions, including Europe and Asia.
Board of Directors
 The Board of Directors are composed of twelve members who shall not be members of the Board of
Governors, and of whom:

o nine are elected by the Governors representing regional members; and

o three are elected by the Governors representing non-regional members.
 Directors of the Board are persons of high competence in economic and financial matters.
 Directors represent members whose Governors have elected them as well as members whose
Governors assign their votes to them.
 Board of Directors is a non-resident Board to reduce operating cost.
 It is responsible for the direction of the Bank’s general operations, exercising all powers delegated to
it by the Board of Governors. This includes:

o approving the Bank’s strategy, annual plan and budget;

o establishing policies;
o taking decisions concerning Bank operations;
o and supervising management and operation of the Bank and establishing an oversight
mechanism.
Senior Management
 AIIB staff is headed by the President who is elected by AIIB shareholders for a five-year term and
eligible for reelection once.
 The President is supported by Senior Management which includes five Vice Presidents responsible for:

o policy and strategy

o investment operations, finance
o administration and the corporate secretariat and the General Counsel
o Chief Risk Officer and Chief Programmer Officer
International Advisory Panel (IAP)
 The Bank has established an IAP to support the President and Senior Management on the
Bank’s strategies and policies as well as on general operational issues.
 The President selects and appoints members of the IAP to an initial two-year term, which can be
renewed upon completion.
 The Panel meets at least twice a year, once in tandem with the Bank’s Annual Meeting, and second
time at the Bank’s Headquarters in Beijing.
 Panelists receive a small honorarium and do not receive a salary. The Bank pays the reasonable costs
associated with Panel meetings.
Membership
 Membership in the AIIB is open to all members of the World Bank or the Asian Development
Bank and is divided into regional and non-regional members.

o Regional members are those located within areas classified as Asia and Oceania by
the United Nations.
 Unlike other MDBs (multilateral development bank), the AIIB allows for non-sovereign entities to
apply for AIIB membership, assuming their home country is a member.

o Thus, sovereign wealth funds (such as the China Investment Corporation) or state-owned
enterprises of member countries could potentially join the Bank.
Financial Resources of AIIB
 The AIIB's initial total capital is USD 100 billion divided into 1 million shares of 100 000 dollars each,
with 20% paid-in and 80% callable.

o Paid-Up Share Capital: It is the amount of money that has already been paid by investors
in exchange for shares of stock.
o Called-Up Share Capital: Some companies may issue shares to investors with the
understanding they will be paid at a later date.

 This allows for more flexible investment terms and may entice investors
to contribute more share capital than if they had to provide funds up
front.
 China is the largest contributor to the Bank, contributing USD 50 billion, half of the initial subscribed
capital.
 India is the second-largest shareholder, contributing USD 8.4 billion.
Voting Rights
 China is the largest shareholder with 26.61 % voting shares in the bank followed by India
(7.6%), Russia (6.01%) and Germany (4.2 %).
 The regional members hold 75% of the total voting power in the Bank.
 The AIIB has a governance structure similar to other MDBs (multilateral development bank), with two
key differences:

o it does not have a resident board of executive directors that represents member
countries' interests on a day-to-day basis; and
o the AIIB gives more decision making authority to regional countries and the largest
shareholder, China.
AIIB Lending
  The recipients of AIIB financing may include member countries (or agencies and entities or
enterprises in member territories), as well as international or regional agencies concerned with the
economic development of the Asia-Pacific region.
 The AIIB has signed a co-financing framework agreement with the World Bank and three
nonbinding Memoranda of Understanding (MOU) with:

o the Asian Development Bank (ADB),

o European Bank for Reconstruction and Development (EBRD),
o and the European Investment Bank (EIB).
 The bulk of AIIB’s operations are in South Asia.
 The Bank can lend outside Asia provided that it supports connectivity with Asia or it is for a global
public good and that the loan significantly benefits Asia.

o The ceiling for non-regional loans is 25%.

 The key sectors for the Bank are Energy, Transport, Water and Urban development.
 About two-thirds of the loans approved by the bank have been co-financed with other multilateral
lending institutions, including the World Bank and the ADB.
 The triple-A ratings from Standard & Poor’s, Moody’s and Fitch, reflect the Bank’s commitment to the
highest standards of governance, enhanced transparency and accountability.
 Approved investment operations of AIIB reached USD 7.94 billion in April, 2019.
China’s Motivation for Creating the AIIB
 The creation of the AIIB is part of a broader reorientation of Chinese foreign and international
economic policy that has taken place since Xi Jinping became Chinese Communist Party General
Secretary in 2012 and the President in 2013.
 “One Belt, One Road” (OBOR) Initiative

o It identified 65 countries that will be participating in the initiative, which aims to use
trade promotion, infrastructure development, and regional connectivity, to boost
economic linkages between China and dozens of countries along a land route (the Silk
Road Economic Belt) and a sea route (the 21st Century Maritime Silk Road).
o To realize this vision, China is investing in a range of institutions and
initiatives, including the AIIB, and other funding mechanisms such as the Silk Road
Fund (established in 2014) and the New Development Bank (also known as the BRICS
Bank established in 2014), a collective arrangement with Brazil, Russia, India, and South
Africa.
 China also seeks to influence the emerging structure of regional trade and investment relations.

o By helping to finance OBOR, AIIB may influence these relationships. It may also reinforce
a regional infrastructure that has China as its hub.
o As a result, regional economies may be more inclined to augment trade and investment
relations with China rather than with other economies, such as Japan, South Korea,
Taiwan, and the United States.
AIIB and India
China Factor
 There are various issues between India and China:

o Indian membership in the Nuclear Suppliers Group (China maintains that it will not
support India’s entry until there is a universal formula to accept applications from all
countries that haven’t signed the Non-Proliferation Treaty- indirectly pursuing case for
Pakistan),
o territorial disputes in the Himalayas,
o concerns over the China-Pakistan Economic Corridor’s traversal of disputed territory in
Kashmir.
 India has serious concerns over Chinese foreign policy in its region generally and the OBOR initiative
specifically, regarding Beijing’s attempts to seek influence in its immediate neighborhood with great
interest.
  Despite aforesaid issues between India and China, the AIIB plays a crucial role implicitly in consensus
building process:

o The AIIB has acquired the status of a plurilateral lending initiative, so there is no
problem for either India, or China, in overlooking bilateral differences and working
together at the AIIB.
o India can open up investment opportunities in the region through AIIB.
o By hosting the AIIB’s third annual meeting (2018, Mumbai) under the theme of
“Mobilising Finance for Infrastructure: Innovation and Collaboration”, India has
reiterated its openness to infrastructure collaboration.
Economic Contribution of AIIB
 India is the largest beneficiary of AIIB financing for infrastructure projects. The AIIB has approved five
projects in India. These are —

o Bangalore Metro Rail Project (USD 335 million),

o Transmission System Strengthening Project,
o Gujarat Rural Roads (MMGSY) Project (providing USD329 million through a 13 -year loan
to provide all -weather connectivity to 4,000 villages in the 33 districts of Gujarat state),
o India Infrastructure Fund
o and Andhra Pradesh 24×7 – Power For All project.
 The total loan sanctioned by AIIB to five Indian projects is USD 1.074 billion. This accounts to
almost 28% of the total money the bank has lent to 24 infrastructure projects worldwide. The AIIB
has approved for lending USD 200 million to National Investment and Infrastructure Fund (NIIF).

o NIIF is an Indian-government backed entity established to provide long-term capital to

the country’s infrastructure sector. Its portfolio includes investments in ports and
logistics, real estate and renewables.
 In feb, 2019 the AIIB and the Government of India signed a USD 455 million loan to finance the Andhra
Pradesh Rural Roads Project, which will connect some 3,300 habitations with a population of more
than 250, and benefit around two Million people.
The AIIB Concerns
 The United States has opposed the AIIB and considers AIIB as an unwanted intrusion in the
multilateral financial system.

o Emergence of AIIB, largely funded by China, poses a threat to the monopoly of the
United States on the world's financial system for over half a century
 The world's leading industrialized economies, Japan and the U.S. are not members of the AIIB because
of following expressed concerns:

o There is no certainty that the bank will maintain its rigorous loan-screening practices or
keep its funding operations separate from China's political ambitions.
o Joining the AIIB would require making a huge financial contribution to the entity.
 Asia's infrastructure investment needs are so vast that no single institutional lender can meet that
demand on its own.

o The U.S. government is seemingly intent on pursuing inward-looking policies through
protectionism and trade war.
 The bank is concerned with predicted downward trend in project finance because of slow global
economy and trade war.

o Slowing economies can lead to governments failing to meet contractual

obligations towards AIIB and trade frictions may erode the potential of infrastructure
projects.
 AIIB’s non resident board, inhibits transparency and accountability.
 o It reinforces the perception that the AIIB will be much more centrally controlled by the
Chinese government.
Conclusion
 It is well proved throughout the history of economic growth & development that the creation and
development of robust financial institutions will make market forces more competitive leading
towards comprehensive growth and development of society.
 The AIIB can create own space by contributing to sustained economic growth leading towards
improved living standard of millions of poor people across Asia and other regions.
 The AIIB is still in its evolutionary phase that must be nurtured with democratice principles avoiding
single-country dominance (Chinese dominance) like that of USA in IMF and World Bank.
 India as an emerging economy, can play a vital role in shaping the foundation of AIIB for the cause of
poor people spread across developing countries.
World Trade Organisation (WTO)
 11 Jun 2019

 45 min read
Tags:
 GS Paper - 2
 Important International Institutions
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade
between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading
nations and ratified in their parliaments.
The WTO has 164 members (including European Union) and 23 observer governments (like Iran, Iraq, Bhutan, Libya
etc).
Goals of WTO
 The WTO’s global system lowers trade barriers through negotiation and operates under the principle
of non-discrimination.
o The result is reduced costs of production (because imports used in production are
cheaper), reduced prices of finished goods and services, more choice and ultimately a
lower cost of living.
 The WTO’s system deals with these in two ways.
o One is by talking: countries negotiate rules that are acceptable to all.
o The other is by settling disputes about whether countries are playing by those agreed
rules.
 The WTO can stimulate economic growth and employment.
 The WTO can cut the cost of doing business internationally.
 The WTO can encourage good governance. Transparency — shared information and knowledge —
levels the playing field.
o Rules reduce arbitrariness and opportunities for corruption.
 The WTO can help countries develop: Underlying the WTO’s trading system is the fact that more open
trade can boost economic growth and help countries develop.
o In that sense, commerce and development are good for each other.
o In addition, the WTO agreements are full of provisions that take into account the
interests of developing countries.
 The WTO can give the weak a stronger voice: Small countries would be weaker without the WTO.
Differences in bargaining power are narrowed by agreed rules, consensus decision-making and
coalition building.
o Coalitions give developing countries a stronger voice in negotiations.
o The resulting agreements mean that all countries, including the most powerful, have to
play by the rules. The rule of law replaces might-makes-right.
 The WTO can support the environment and health: The trade is nothing more than a means to an
end. The WTO agreements try to make trade support the things we really want, including a clean and
safe environment, and to prevent governments using these objectives as an excuse for introducing
protectionist measures.
 The WTO can contribute to peace and stability: When the world economy is in turmoil, the
multilateral trading system can contribute to stability.
 o Trade rules stabilize the world economy by discouraging sharp backward steps in policy
and by making policy more predictable. They deter protectionism and increase certainty.
They are confidence-builders.
History
From the early days of the Silk Road to the creation of the General Agreement on Tariffs and Trade (GATT) and the
birth of the WTO, trade has played an important role in supporting economic development and promoting peaceful
relations among nations.
 The General Agreement on Tariffs and Trade (GATT) traces its origins to the 1944 Bretton Woods
Conference, which laid the foundations for the post-World War II financial system and established two
key institutions, the International Monetary Fund (IMF) and the World Bank.
o The conference delegates also recommended the establishment of a complementary
institution to be known as the International Trade Organization (ITO), which they
envisioned as the third leg of the system.
o In Havana in 1948, the UN Conference on Trade and Employment concluded a draft
charter for the ITO, known as the Havana Charter, which would have created extensive
rules governing trade, investment, services, and business and employment practices.
 The Havana Charter never entered into force, primarily because the U.S.
Senate failed to ratify it. As a result, the ITO was stillborn.
o Meanwhile, an agreement as the GATT signed by 23 countries in Geneva in 1947 came
into force on Jan 1, 1948 with the following purposes:
 to phase out the use of import quotas
 and to reduce tariffs on merchandise trade,
 The GATT became the only multilateral instrument (not an institution) governing international trade
from 1948 until the WTO was established in 1995.
 Despite its institutional deficiencies, the GATT managed to function as a de facto international
organization, sponsoring eight rounds (A round is a series of multilateral negotiations) of multilateral
trade negotiations.

Year Place/name Notable Outcomes

1947 Geneva 45,000 tariff cuts - average 35% cut

1949 Annecy Tariff reductions

1951 Torquay Tariff reductions

1956 Geneva Tariff reductions

1960-1961 Geneva Dillon Round Tariff reductions

1964-1967 Geneva Kennedy Round 35% average cut on industrial goods Tariff; C

1973-1979 Geneva Tokyo Round 34% average cut on industrial goods; comm

services trade and inctual property included

1986-1994 Geneva Uruguay Round
institution created.

 So, the GATT became the only multilateral instrument governing international trade from 1948 until
the WTO was established in 1995.
 The Uruguay Round, conducted from 1987 to 1994, culminated in the Marrakesh Agreement, which
established the World Trade Organization (WTO).
o The WTO incorporates the principles of the GATT and provides a more enduring
institutional framework for implementing and extending them.
o The GATT was concluded in 1947 and is now referred to as the GATT 1947. The GATT
1947 was terminated in 1996 and WTO integrated its provisions into GATT 1994.
  The GATT 1994 is an international treaty binding upon all WTO Members.
It is only concerned with trade in goods.
Why WTO replaced the GATT
 The GATT was only a set of rules and multilateral agreements and lacked institutional structure.
o The GATT 1947 was terminated and WTO preserved its provisions in form of GATT 1994
and continues to govern trade in goods.
 The trade in services and intellectual property rights were not covered by regular GATT rules.
 The GATT provided for consultations and dispute resolution, allowing a GATT Party to invoke GATT
dispute settlement articles if it believes that another Party’s measure caused it trade injury.
o The GATT did not set out a dispute procedure with great specificity resulting in lack of
deadlines, laxity in the establishment of a dispute panel and the adoption of a panel
report by the GATT Parties.
o It made the GATT as a weak Dispute Settlement mechanism.
The WTO and the United Nations (UN)
 Although the WTO is not a UN specialized agency, it has maintained strong relations with the UN and
its agencies since its establishment.
 The WTO-UN relations are governed by the “Arrangements for Effective Cooperation with other
Intergovernmental Organizations-Relations between the WTO and the United Nations” signed on 15
November 1995.
 The WTO Director General participates to the Chief Executive Board which is the organ of
coordination within the UN system.
Governance
Ministerial Conference
 The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets
every two years.
 It brings together all members of the WTO, all of which are countries or customs unions.
 The Ministerial Conference can take decisions on all matters under any of the multilateral trade
agreements.
General Council
 The General Council is the WTO’s highest-level decision-making body located in Geneva, meeting
regularly to carry out the functions of the WTO.
 It has representatives (usually ambassadors or equivalent) from all member governments and has
the authority to act on behalf of the ministerial conference which only meets about every two years.
 The General Council also meets, under different rules, as
o The General Council,
o the Trade Policy Review Body,
o and the Dispute Settlement Body (DSU)
 Three councils, each handling a different broad areas of trade, report to the General Council:
o The Council for Trade in Goods (Goods Council)
o The Council for Trade in Services (Services Council)
o The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
o As their names indicate, the three are responsible for the workings of the WTO
agreements dealing with their respective areas of trade.
o Again they consist of all WTO members.
The Trade Policy Review Body (TPRB)
 The WTO General Council meets as the TPRB to undertake trade policy reviews of Members under the
TPRM and to consider the Director-General's regular reports on trade policy development.
 The TPRB is thus open to all WTO Members.
Dispute Settlement Body (DSU)
 The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between
WTO members.
 Such disputes may arise with respect to any agreement contained in the Final Act of the Uruguay
Round that is subject to the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU).
 The DSB has authority to:
o establish dispute settlement panels,
o refer matters to arbitration,
 o adopt panel, Appellate Body and arbitration reports,
o maintain surveillance over the implementation of recommendations and rulings
contained in such reports,
o and authorize suspension of concessions in the event of non-compliance with those
recommendations and rulings.
Appellate Body
 The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes (DSU).
 The DSB shall appoint persons to serve on the Appellate Body for a four-year term.
 It is a standing body of seven persons that hears appeals from reports issued by panels in disputes
brought by WTO Members.
 The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel, and
Appellate Body Reports, once adopted by the Dispute Settlement Body (DSB), must be accepted by the
parties to the dispute.
 The Appellate Body has its seat in Geneva, Switzerland.
The Council for Trade in Goods (Goods Council)
 The General Agreement on Tariffs and Trade (GATT) covers international trade in goods.
o The workings of the GATT agreement are the responsibility of the Council for Trade in
Goods (Goods Council) which is made up of representatives from all WTO member
countries.
 The Goods Council has following committees dealing with specific subjects: (1) Agriculture, (2) Market
access, (3) Sanitary and Phytosanitary (measures for the control of plant diseases especially in
agricultural crops) Measures, (4) Technical barriers to trade, (5) Subsidies and countervailing
measures, (6) Rule of origin, (7) Anti-dumping measures, (8) Importing licensing, (9)Trade related
Investment Measures, (10) Safeguards, (11) Trade facilitation, (12) Customs valuation.
o These committees consist of all member countries.
The Council for Trade in Services (Services Council)
 It operates under the guidance of the General Council and is responsible for facilitating the operation
of the General Agreement on Trade in Services (GATS) and for furthering its objectives.
 It is open to all WTO members, and can create subsidiary bodies as required.
 Presently, the Council oversees the work of four such subsidiary bodies:
o the Committee on Trade in Financial Services:
 It carries out discussions on matters relating to trade in financial services
and formulate proposals or recommendations for consideration by the
Council.
o the Committee on Specific Commitments,
o the Working Party on Domestic Regulation,
o and the Working Party on GATS Rules
The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
 It monitors implementation of the Agreement on Trade-Related Aspects of Intellectual Property
Rights (the TRIPS Agreement).
 It provides a forum in which WTO Members can consult on intellectual property matters, and carries
out the specific responsibilities assigned to the Council in the TRIPS Agreement.
 The TRIPS Agreement:
o sets the minimum standards of protection for copyrights and related
rights, trademarks, geographical indications (GIs), industrial designs,
patents, integrated circuit layout designs, and undisclosed information.
o establishes minimum standards for the enforcement of intellectual property rights
(IPRs) through civil actions for infringement, actions at the border,
 and at least in regard to copyright piracy and trademark counterfeiting, in
criminal actions.
WTO Ministerial Conferences (MC)
The first Ministerial Conference (i.e. MC1) was held in Singapore in 1996 and the last one (MC11) was organised in
Buenos Aires in 2017. All these MCs have evolved prevailing current global trading system.
Singapore, 9-13 December 1996 (MC1)
 Trade, foreign, finance and agriculture Ministers from more than 120 World Trade Organization
Member governments and from those in the process of acceding to the WTO participated.
  The following four issues termed as the Singapore issues were first brought up on which the
multilateral body could initiate negotiations:
o trade and investment
o trade facilitation
o transparency in government procurement
o trade and competition
Geneva, Switzerland 18-20 May 1998 (MC2)
 The Ministerial Declaration included following work programmes:
o the issues, including those brought forward by Members, relating to implementation of
existing agreements and decisions;
o the future work already provided for under other existing agreements and decisions
taken at Marrakesh;
o possible future work on the basis of the work programme initiated at Singapore;
o Priority areas for the next round of comprehensive negotiations on agriculture include
Market access, Export subsidies etc.
Seattle, USA November 30 – December 3, 1999 (MC3)
 There were two major issues,
o first, whether to start a new comprehensive round of negotiations such as the Uruguay
Round or confine negotiations to the so-called "built in agenda" of agriculture and
services mandated at the last Ministerial.
o Secondly, what should the negotiations encompass, more specifically what should be
included in the agenda of the meeting.
 The meeting was unable to resolve both issues, and ended in stalemate.
 The deliberations were suspended without agreement on a new round of negotiations and without
agreement on a ministerial declaration.
Doha, Qatar 9-13 November 2001 (MC4)
 Agriculture: The special and differential treatment for developing countries shall be an integral part
of all elements of the negotiations to enable developing countries to effectively take account of their
development needs, including food security and rural development.
 Services: The negotiations on trade in services shall be conducted with a view to promoting the
economic growth of all trading partners and the development of developing and least-developed
countries.
o It recognizes the work already undertaken in the negotiations, initiated in January 2000
under Article XIX of the General Agreement on Trade in Services (GATS), and the large
number of proposals submitted by members on a wide range of sectors and several
horizontal issues, as well as on movement of natural persons.
 Market access for non-agricultural products:
o The negotiations shall take fully into account the special needs and interests of
developing and least-developed country participants, including through less than full
reciprocity in reduction commitments, in accordance with the relevant provisions of
Article XXVIII bis of GATT 1994.
 Transparency in government procurement:
o Recognizing the case for a multilateral agreement on transparency in government
procurement and the need for enhanced technical assistance and capacity building in
this area, it agreed that negotiations would take place on the basis of a decision to be
taken, by explicit consensus.
Cancún, Mexico 10-14 September 2003 (MC5)
 The main task was to take stock of progress in negotiations and other work under the Doha
Development Agenda.
Hong Kong, 13-18 December 2005 (MC6)
 The WTO member economies aimed to reach a preliminary agreement on liberalization of farm trade
by reducing subsidies, and address other issues at meeting, aiming for a successful conclusion of the
Doha Round in 2006.
 After an intense talk, WTO Members have produced an interim package for the Doha Round
negotiation:
 o the deadlines for the elimination of agricultural export subsidies (2013) and cotton
export subsidies (2006),
o and also mandates that duty and quota-free access for at least 97% of products
originating from the least developed countries (LDCs) be provided by 2008.
o Regarding non-agricultural market access (NAMA), Members adopted the "Swiss
formula" mandating greater cuts in higher tariffs, and decided that modalities for tariff
reduction be established by April 30, 2006.
 The Swiss Formula (by the Swiss Delegation to the WTO) is a suggested
method for reducing tariff on non-agricultural goods (NAMA) by both
developed and developing countries.
 It makes different coefficients for developed and developing countries.
 Here, tariff-cuts are supposed to be undertaken such that it cuts higher
tariffs more steeply than it cuts lower tariffs.
 This meeting could have been the final step of the Doha trade talks launched in 2001.
Geneva, Switzerland 30 November - 2 December 2009 (MC7)
 The theme of the Conference is “The WTO, the Multilateral Trading System and the Current Global
Economic Environment”.
 Unlike previous Conferences, this meeting was not a Doha Round negotiating session, but rather a
chance for Ministers to reflect on all elements of WTO's work, exchange ideas and extend guidance on
the best way forward in the years to come.
Geneva, Switzerland 15-17 December 2011 (MC8)
 The Conference approved the accessions of the Russian Federation, Samoa and Montenegro.
 It adopted a number of decisions on intellectual property, electronic commerce, small economies,
least developed countries’ accession, a services waiver for least developed countries, and trade policy
reviews.
 It reaffirmed the integrality of special and differential treatment provisions to the WTO agreements
and their determination to fulfil the Doha mandate to review them with a view to strengthening them
and making them more precise, effective and operational.
Bali, Indonesia 3-6 December 2013 (MC9)
 The Conference adopted the “Bali Package”, a series of decisions aimed at:
o streamlining trade,
o allowing developing countries more options for providing food security,
o boosting least-developed countries’ trade and helping development more generally.
 The Bali Package is a selection of issues from the broader Doha Round negotiations.
 The Conference also approved accession of Yemen as a new member of the WTO.
Nairobi, Kenya 15-19 December 2015 (MC10)
 It culminated in the adoption of the "Nairobi Package", a series of decisions on agriculture, cotton and
issues related to least-developed countries (LDCs).
o Agriculture:
 Special Safeguard Mechanism for Developing Country Members;
 Public Stockholding for Food Security Purposes;
 Export Competition;
o Cotton: Stressing the vital importance of cotton to a number of developing
economies and particularly the least-developed amongst them,
 Developed country Members, and developing country Members declaring
themselves in a position to do so, shall grant preferential trade
arrangements in favour of LDCs, as from 1 January 2016, duty-free and
quota-free market access for cotton produced and exported by LDCs.
o LDC issues:
 Preferential Rules of Origin for Least Developed Countries;
 Implementation of Preferential Treatment in Favour of Services and
Service Suppliers of Least Developed Countries;
 and Increasing LDC Participation in Services Trade;
 The decision in Nairobi builds on the 2013 Bali Ministerial Decision on preferential rules of origin for
LDCs.
 The “Nairobi Package” pays fitting tribute to the Conference host, Kenya, by delivering commitments
that will benefit in particular the organization’s poorest members.
Buenos Aires, Argentina 10-13 December 2017 (MC11)
 The Conference ended with a number of ministerial decisions, including on fisheries subsidies and e-
commerce duties, and a commitment to continue negotiations in all areas.
Nur-Sultan, Kazakhstan, 8-11 June 2020 (MC12)
 The WTO members have agreed that the organization’s Twelfth Ministerial Conference (MC12) will
take place in June 2020 in Kazakhstan, which joined the WTO in 2015.
The Doha Round
 The Doha Round is the latest round of trade negotiations among the WTO membership. Its aim is to
achieve major reform of the international trading system through the introduction of lower trade
barriers and revised trade rules.
 The Round is also known semi-officially as the Doha Development Agenda as a fundamental objective
is to improve the trading prospects of developing countries.
 The Round was officially launched at the WTO’s Fourth Ministerial Conference (MC4) in Doha, Qatar,
in November 2001.
 The Doha Ministerial Declaration provided the mandate for the negotiations, including on following
subjects:
o Agriculture: More market access, eliminating export subsidies, reducing distorting
domestic support, sorting out a range of developing country issues, and dealing with
non-trade concerns such as food security and rural development.
o Non-agricultural market access (NAMA): To reduce or as appropriate eliminate tariffs,
including the reduction or elimination of high tariffs, tariff peaks and tariff escalation
(higher tariffs protecting processing, lower tariffs on raw materials) as well as non-tariff
barriers, in particular on products of export interest to developing countries.
o Services: To improve market access and to strengthen the rules.
 Each government has the right to decide which sectors it wants to
open to foreign companies and to what extent, including any restrictions
on foreign ownership.
 Unlike in agriculture and NAMA, the services negotiations are not based on
a “modalities” text. They are being conducted essentially on two tracks:
 (a) bilateral and/or plurilateral (involving only some WTO members)
negotiations
 (b) multilateral negotiations among all WTO members to establish any
necessary rules and disciplines
o Trade facilitation: To ease customs procedures and to facilitate the movement, release
and clearance of goods.
 This is an important addition to the overall negotiation since it would cut
bureaucracy and corruption in customs procedures and would speed up
trade and make it cheaper.
o Rules: These cover anti-dumping, subsidies and countervailing measures, fisheries
subsidies, and regional trade agreements.
 “Clarifying and improving disciplines” under the Anti-Dumping and
Subsidies agreements;
 and to “clarify and improve WTO disciplines on fisheries subsidies, taking
into account the importance of this sector to developing countries.
o The environment: These are the first significant negotiations on trade and the
environment in the GATT/ WTO. They have two key components:
 Freer trade in environmental goods – Products that WTO members have
proposed include: wind turbines, carbon capture and storage
technologies, solar panels.
 Environmental agreements – Improving collaboration with the secretariats
of multilateral environmental agreements and establishing more
coherence between trade and environmental rules.
o Geographical indications (GI): multilateral register for wines and spirits
 Geographical indications are place names (in some countries also words
associated with a place) used to identify products that come from these
places and have specific characteristics (for example, “Champagne”,
“Tequila” or “Roquefort”). Under the TRIPS Agreement, all geographical
 indications have to be protected at least to avoid misleading the
public and to prevent unfair competition (Article 22).
 This is the only intellectual property issue that is definitely part of the Doha
negotiations.
 The objective is to “facilitate” the protection of wines and spirits in
participating countries. The talks began in 1997 and were built into the
Doha Round in 2001.
o Other intellectual property issues: Some members want negotiations on two other
subjects and to link these to the register for wines and spirits. Other members disagree.
Following these two topics are discussed:
 GI “extension”- Extending the higher level of protection for geographical
indications beyond wines and spirits.
 Biopiracy, benefit sharing and traditional knowledge
o Dispute settlement: To improve and clarify the Dispute Settlement Understanding, the
WTO agreement dealing with legal disputes.
 These negotiations take place in special sessions of the Dispute Settlement
Body (DSB).
 With Doha Round seemingly adrift (directionless), the global Great Recession that began in the second
half of 2008 led to fears that the world may face a wave of protectionism that the WTO would be
powerless to prevent. Negotiations continued after the 2008 global financial crisis with low
expectations.
 The 2013 Ministerial Conference (MC9) in Bali, Indonesia, delivered a significant achievement, the
first multilateral agreement since the creation of the WTO.
o This was the Trade Facilitation Agreement (TFA), which aims to speed up customs
procedures and make trade easier, faster, and cheaper.
 The TFA was only a small slice of the larger Doha agenda, but the
successful deal was a cause for optimism.
o The talks also reached an interim agreement (a peace clause) on “public
stockholding” continuing exceptions that allow developing countries to stockpile
agricultural products to protect against food shortages.
 2015 Ministerial Conference Nairobi, Kenya (MC10) focused on a selected number of issues that are
part of the Doha Development Agenda (DDA). Agreement was reached on following DDA issues:
o Stopping the use of subsidies and other schemes unfairly supporting agricultural exports
o Ensuring that food aid for developing countries is given in a way which does not distort
local markets
o Seeking to simplify the conditions that exporters from the poorest countries have to
meet, so that their products benefit from trade agreements (so-called rules of origin)
o Giving more opportunities for businesses from the poorest countries to provide services
in the WTO's 164 member countries
 However, for many observers, Nairobi signalled the end of the Doha talks, a sentiment that intensified
after the 2016 election of Trump.
o President Trump made clear his preference for bilateral trade when he withdrew from
the 12-country Trans-Pacific Partnership (TPP) shortly after taking office.
 In 2017 Ministerial Conference Buenos Aires (MC11), USA reflected the skepticism toward
multilateralism when it blocked agreement on a draft ministerial declaration that would have
“reaffirmed the centrality of the multilateral trading system and the development dimension of the
organisation’s work.”
o Meanwhile, India, which has repeatedly threatened to block WTO
agreements (including the Trade Facilitation Agreement) unless WTO members
conceded to its demands on public stockholding for food security. India also toughened
its stand on new issues including e-commerce and investment facilitation.
o In the end, it was a relief to many that the United States did not actively seek to
dismantle the WTO—as some had feared. But giving up its traditional leadership role
could lead to a similar result, only more slowly.
WTO Contribution to World
  The WTO is one of the three international organisations (the other two are the International Monetary
Fund (IMF) and the World Bank Group) which by and large formulate and co-ordinate world economic
policy. It is playing a crucial role in:
o the international trade,
o global economics,
o and the political and legal issues arising in the international business because of
globalization.
 It has emerged as the world's most powerful institution for reducing trade related barriers between
the countries and opening new markets.
 It cooperates with the IMF and World Bank in terms of making cohesiveness in making global
economic policies.
 Through resolving trade related disputes, the WTO has got the potential to maintain world peace and
bilateral relations between its member countries thorough following negotiations,
consultations and mediations.
 Global trade rules: Decisions in the WTO are typically taken by consensus among all members and
they are ratified by members’ parliaments. This leads to a more prosperous, peaceful and accountable
economic world.
 Trade negotiations: The GATT and the WTO have helped to create a strong and prosperous trading
system contributing to unprecedented growth.
o The system was developed through a series of trade negotiations, or rounds, held
under the GATT. The 1986-94 round – the Uruguay Round – led to the WTO’s creation.
o In 1997, an agreement was reached on telecommunications services, with 69
governments agreeing to wide-ranging liberalization measures that went beyond those
agreed in the Uruguay Round.
o Also in 1997, 40 governments successfully concluded negotiations for tariff-free trade in
information technology products, and 70 members concluded a financial services
deal covering more than 95% of trade in banking, insurance, securities and financial
information.
o In 2000, new talks started on agriculture and services. These were incorporated into a
broader work programme, the Doha Development Agenda, launched at the fourth WTO
Ministerial Conference (MC4) in Doha, Qatar, in November 2001.
o At the 9th Ministerial Conference (MC9) in Bali in 2013, WTO members struck
the Agreement on Trade Facilitation, which aims to reduce border delays by slashing red
tape.
o The expansion of the Information Technology Agreement – concluded at the 10th
Ministerial Conference (MC10) in Nairobi in 2015 – eliminated tariffs on an additional
200 IT products valued at over US$ 1.3 trillion per year.
o Most recently, an amendment to the WTO’s Intellectual Property Agreement entered
into force in 2017, easing poor economies’ access to affordable medicines.
 The same year saw the Trade Facilitation Agreement enter into force.
 WTO agreements:
o The WTO’s rules – the agreements – are the result of negotiations between the
members.
 The current set is largely the outcome of the 1986- 94 Uruguay Round
negotiations, which included a major revision of the original General
Agreement on Tariffs and Trade (GATT).
o Goods: From 1947 to 1994, the GATT was the forum for negotiating lower tariffs and
other trade barriers; the text of the GATT spelt out important rules, particularly non-
discrimination. After 1994, WTO ratified new, comprehensive, integrated GATT as GATT
1994.
WTO and India
 India is a founder member of the General Agreement on Tariffs and Trade (GATT) 1947 and its
successor, the WTO.
o India's participation in an increasingly rule based system in the governance of
international trade is to ensure more stability and predictability, which ultimately would
lead to more trade and prosperity.
  Services exports account for 40% of India's total exports of goods and services. The contribution
of Services to India's GDP is more than 55%.
o The sector (domestic and exports) provides employment to around 142 million people,
comprising 28% of the work-force of the country.
o India's exports are mainly in the IT and IT enabled sectors, Travel and Transport, and
Financial sectors.
o The main destinations are the US (33%), the EU (15%) and other developed countries.
o India has an obvious interest in the liberalisation of services trade and wants
commercially meaningful access to be provided by the developed countries.
o Since the Uruguay Round, India has autonomously liberalised its Services trade regime
across the board.
 Ensuring food and livelihood security is critical, particularly for a large agrarian economy like India.
o India is persistently demanding for a permanent solution on public stockholding
subsidies at WTO.
 At 2013 Ministerial Conference (MC9) in Bali, an interim agreement (a
peace clause) was made on “public stockholding” continuing exceptions
that allow developing countries to stockpile agricultural products to
protect against food shortages.
 India strongly favours extension of higher levels of protection to geographical indications for products
like Basmati rice, Darjeeling tea, and Alphonso mangoes at par with that provided to wines and
spirits under the Trade-related Aspects of Intellectual Property Rights (TRIPS) agreement.
 Developed countries have been putting pressure on inclusion of non-trade issues such as labour
standards, environmental protection, human rights, rules on investment, competition policy in the
WTO agreements.
o India is against any inclusion of non-trade issues that are directed in the long run
at enforcing protectionist measures (based on non-trade issues, the developed
countries like USA and European Union are trying to ban the imports of some goods like
textile, processed food etc.), particularly against developing countries.
WTO Concerns
 In 2001, the WTO membership launched the “Doha Development Agenda” – a massive attempt to
update trading rules. The participating countries spent years trying and failing to reach an agreement.
o A central problem in negotiation was the difficulty of getting well over 150 countries to
reach a consensus.
o In the previous negotiating round (The Uruguay Round, conducted from 1987 to 1994),
potential hold-out countries could be threatened with exclusion from the new WTO.
 That trick could not be repeated once they were already in.
 The 2017 WTO Ministerial Conference (MC11) Buenos Aires ended without any substantial
outcome as consensus failed the 164-member body.
o The USA blocked a permanent solution on government stockholding for food security
purposes, resulting in India’s toughened stand on new issues including e-
commerce and investment facilitation.
 Developed countries led by the US and the European Union sought to find a way out of the deadlock
at the WTO talks by forming large pressure groups on e-commerce, investment facilitation and
MSMEs within the WTO with more than 70 members in each formulation.
o Though WTO is driven by consensus and even a plurilateral agreement needs approval
of all members, the formation of these groups as an attempt to steer WTO away from
its focus on multilateralism.
 It’s fierce defense of ‘Trade Related Intellectual Property’ rights (TRIPs)—patents, copyrights and
trademarks—comes at the expense of health and human lives.
o WTO has protected for pharmaceutical companies’ ‘right to profit’ against governments
seeking to protect their people’s health by providing lifesaving medicines in countries in
areas like sub-saharan Africa, where thousands die every day from HIV/AIDS.
 The U.S.A. has consciously (or not) destroyed the Doha round of trade negotiations process
in formulating excessive demands that no country was prepared to meet.
o The priority of the Obama administration was not to revive a dying WTO
negotiation, but to concentrate on its newly created alternative, the TPP (Trans-Pacific
Partnership), to contain its competitors: Europe and China.
  For years now, the multilateral system for the settlement of trade dispute has been under intense
scrutiny and constant criticism.
o The U.S. has systematically blocked the appointment of new Appellate Body
members (“judges”) and de facto impeded the work of the WTO appeal mechanism.
 Chinese mercantilism (try to influence trade and business, especially by encouraging exports
and putting limits on imports), the USA’s aggressive use of unilateral tariff measures, and
the inability of WTO members to reach consensus on expanding its disciplines to important new
sectors in the modern economy reinforce the critique of the WTO.
WTO Future
Since the WTO is consensus-based, reaching an agreement on reforms among all 164 members is extremely
difficult. One possibility moving forward could be a plurilateral agreement with a group of like-minded countries on
a new set of rules that serve as an addendum (supplement) to the broader WTO.
Conclusion
Today, the world is going through the protectionism, trade war (like USA & China), and Brexit making global
economy squeezed. The role of WTO in future is very crucial to preserve global liberalised economic system evolved
since the end of the 2nd World War.
It is right time when countries like USA giving threat to withdraw from WTO making it dysfunctional, India and other
emerging economies like Brazil, South Africa etc can provide a strong base for strong WTO with saving interests of
developing countries.

United Nations
 28 May 2019

 76 min read
Tags:
 GS Paper - 2
 Important International Institutions
Introduction
The United Nations (UN) is an international organization founded in 1945. It is currently made up of 193 Member
States.
Its mission and work guided by the purposes and principles contained in its founding Charter and implemented by its
various organs and specialised agencies.
Its activities include maintaining international peace and security, protecting human rights, delivering humanitarian
aid, promoting sustainable development and upholding international law.
History of UN Foundation
 In 1899, the International Peace Conference was held in The Hague to elaborate instruments for
settling crises peacefully, preventing wars and codifying rules of warfare.
o It adopted the Convention for the Pacific Settlement of International Disputes and
established the Permanent Court of Arbitration, which began work in 1902. This court
was the forerunner of UN International Court of Justice.
 The forerunner of the United Nations was the League of Nations, an organization conceived in
circumstances of the First World War, and established in 1919 under the Treaty of Versailles "to
promote international cooperation and to achieve peace and security."
o The International Labour Organization (ILO) was also created in 1919 under the Treaty
of Versailles as an affiliated agency of the League.
 The name "United Nations", coined by United States President Franklin D. Roosevelt. A document
called The Declaration by United Nations was signed in 1942 by 26 nations, pledging their
Governments to continue fighting together against the Axis Powers (Rome-Berlin-Tokyo Axis) and
bound them against making a separate peace.
 United Nations Conference on International Organization (1945)
o Conference held in San Francisco (USA), was attended by representatives of 50 countries
and signed the United Nations Charter.
 The UN Charter of 1945 is the foundational treaty of the United Nations, as an inter-governmental
organization.
Components
The main organs of the UN are
 1. the General Assembly,
2. the Security Council,
3. the Economic and Social Council,
4. the Trusteeship Council,
5. the International Court of Justice,
6. and the UN Secretariat.
All the 6 were established in 1945 when the UN was founded.
1. General Assembly
 The General Assembly is the main deliberative, policymaking and representative organ of the UN.
 All 193 Member States of the UN are represented in the General Assembly, making it the only UN
body with universal representation.
 Each year, in September, the full UN membership meets in the General Assembly Hall in New York for
the annual General Assembly session, and general debate, which many heads of state attend and
address.
 Decisions on important questions, such as those on peace and security, admission of new members
and budgetary matters, require a two-thirds majority of the General Assembly.
 Decisions on other questions are by simple majority.
 The President of the General Assembly is elected each year by assembly to serve a one-year term of
office.
 6 Main Committees: Draft resolutions can be prepared for the General Assembly by its six main
committees: (1) First Committee (Disarmament and International Security), (2) Second Committee
(Economic and Financial), (3) Third Committee (Social, Humanitarian, and Cultural), (4) Fourth
Committee (Special Political and Decolonization), (5) Fifth Committee (Administrative and Budgetary),
(6)Sixth Committee (Legal).
o Each Member State may be represented by one person on each Main Committee and
on any other committee that may be established upon which all Member States have the
right to be represented.
o Member States may also assign advisers, technical advisers, experts or persons of
similar status to these committees.
 Other Committees:
o General Committee: It meets periodically throughout each session to review the
progress of the General Assembly and its committees and to make recommendations for
furthering such progress. It is composed of the President of the General Assembly and 21
Vice-Presidents of the Assembly and the Chairmen of the six Main Committees. The five
permanent members of the Security Council serve as Vice-Presidents, as well.
o Credentials Committee: It is mandated to examine the credentials of representatives of
Member States and to report to the General Assembly.
2. Security Council
 It has primary responsibility, under the UN Charter, for the maintenance of international peace and
security.
 The Security Council is made up of fifteen member states, consisting of five permanent members—
China, France, Russia, the United Kingdom, and the United States—and ten non-permanent members
elected for two-year terms by the General Assembly on a regional basis.
 "Veto power" refers to the power of the permanent member to veto (Reject) any resolution of
Security Council.
 The unconditional veto possessed by the five governments has been seen as the most
undemocratic character of the UN.
 Critics also claim that veto power is the main cause for international inaction on war crimes and crimes
against humanity. However, the United States refused to join the United Nations in 1945 unless it was
given a veto. The absence of the United States from the League of Nations contributed to its
ineffectiveness. Supporters of the veto power regard it as a promoter of international stability, a check
against military interventions, and a critical safeguard against U.S. domination.
3. Economic and Social Council (ECOSOC)
 It is the principal body for coordination, policy review, policy dialogue and recommendations on
economic, social and environmental issues, as well as implementation of internationally agreed
development goals.
 It has 54 Members, elected by the General Assembly for overlapping three-year terms.
  It is the United Nations’ central platform for reflection, debate, and innovative thinking on sustainable
development.
 Each year, ECOSOC structures its work around an annual theme of global importance to sustainable
development. This ensures focused attention, among ECOSOC’s array of partners, and throughout the
UN development system.
 It coordinates the work of the 14 UN specialized agencies, ten functional commissions and five regional
commissions, receives reports from nine UN funds and programmes and issues policy
recommendations to the UN system and to Member States.
UN bodies within the purview of the ECOSOC:

 Specialized agencies  Ad hoc bodies

o International labour Organization o Ad Hoc Open-ended Wo
(ILO) Informatics
o Food and Agriculture Organization  Expert bodies composed of governm
of the United Nations (FAO) o Committee of Experts o
o United Nations Educational, Dangerous Goods and o
Scientific and Cultural Organization Harmonized System of C
(UNESCO) Labelling of Chemicals.
o World Health Organization (WHO) o United Nations Group o
o World Bank Group Geographical Names
o International Monetary Fund (IMF)  Expert bodies composed of membe
o International Civil Aviation personal capacity
Organization (ICAO) o Committee for Developm
o International Maritime Organization o Meeting of Experts on t
(IMO) Programme in Public Ad
o International Telecommunication Finance
Union (ITU) o Ad Hoc Group of Expert
o Universal Postal Union (UPU) Cooperation in Tax Matt
o World Meteorological Organization o Committee on Economi
(WMO) Cultural Rights
o World Intellectual Property o Committee on Energy an
Organization (WIPO) Resources for Developm
o International Fund for Agricultural o Permanent Forum on In
Development (IFAD)  Related bodies
o United Nations Industrial o International Narcotics C
Development Organization (UNIDO) o Board of Trustees of the
o World Tourism Organization (WTO) Research and Training In
 Functional commissions Advancement of Wome
o Statistical Commission o Committee for the Unite
o Commission on Population and Population Award
Development o Programme Coordinatio
o Commission for Social Development Joint United Nations Pro
o Commission on Human Rights HIV/AIDS
o Commission on the Status of o Funds and programmes
Women reports to ECOSOC
o Commission on Narcotic Drugs o United Nations Children
o Commission on Crime Prevention o United Nations Confere
and Criminal Justice Development (UNCTAD)
o Commission on Science and o United Nations Develop
Technology for Development Women
o Commission on Sustainable o United Nations Develop
Development (UNDP)
o United Nations Forum on Forests o United Nations Environm
 Regional Commissions (UNEP)
o Economic Commission for Africa o Office of the United Nati
(ECA) Commissioner for Refug
 o Economic and Social Commission o United Nations Populati
for Asia and the Pacific (ESCAP) o United Nations Relief an
o Economic Commission for Europe for Palestine Refugees in
(ECE) (UNRWA)
o Economic Commission for Latin o Office for Drug Control a
America and the Caribbean (ECLAC) Prevention (ODCCP)
o Economic and Social Commission o World Food Programme
for Western Asia (ESCWA) o UN-HABITAT
 Standing Committees
o Committee for Programme and
Coordination
o Commission on Human Settlements
o Committee on Non-Governmental
Organizations
o Committee on Negotiations with
Intergovernmental Agencies
o Committee on Energy and Natural
Resources

4. Trusteeship Council
 It was established in 1945 by the UN Charter, under Chapter XIII.
 Trust territory is a non-self-governing territory placed under an administrative authority by the
Trusteeship Council of the United Nations.
 A League of Nations mandate was a legal status for certain territories transferred from the control of
one country to another following World War I, or the legal instruments that contained the
internationally agreed-upon terms for administering the territory on behalf of the League of Nations.
 United Nations trust territories were the successors of the remaining League of Nations mandates,
and came into being when the League of Nations ceased to exist in 1946.
 It had to provide international supervision for 11 Trust Territories that had been placed under the
administration of seven Member States, and ensure that adequate steps were taken to prepare the
Territories for self-government and independence.
 By 1994, all Trust Territories had attained self-government or independence. The Trusteeship Council
suspended operation on 1 November 1994.
5. International Court of Justice (ICJ)
 The International Court of Justice is the principal judicial organ of the United Nations. It was
established in June 1945 by the Charter of the United Nations and began work in April 1946.
 The ICJ is the successor of the Permanent Court of International Justice (PCIJ), which was established
by the League of Nations in 1920.
6. Secretariat
 The Secretariat comprises the Secretary-General and tens of thousands of international UN staff
members who carry out the day-to-day work of the UN as mandated by the General Assembly and the
Organization's other principal organs.
 The Secretary-General is chief administrative officer of the Organization, appointed by the General
Assembly on the recommendation of the Security Council for a five-year, renewable term.
 UN staff members are recruited internationally and locally, and work in duty stations and on
peacekeeping missions all around the world.
Funds, Programmes, Specialized Agencies and Others
The UN system, also known unofficially as the "UN family", is made up of the UN itself (6 main organs) and many
affiliated programmes, funds, and specialized agencies, all with their own membership, leadership, and budget.
Funds and Programmes
 UNICEF
o The United Nations Children's Fund (UNICEF), originally known as the United Nations
International Children's Emergency Fund, was created by the United Nations General
Assembly in 1946, to provide emergency food and healthcare to children and mothers in
countries that had been devastated by World War II.
 o In 1950, UNICEF's mandate was extended to address the long-term needs of children
and women in developing countries everywhere.
o In 1953, it became a permanent part of the United Nations System, and the words
"international" and "emergency" were dropped from the organization's name, though it
retained the original acronym, "UNICEF".
o Executive Board: A 36-member board establishes policies, approves programs and
oversees administrative and financial plans. The members are government
representatives who are elected by the United Nations Economic and Social Council
(ECOSOC), usually for three-year terms.
o UNICEF relies on contributions from governments and private donors.
o UNICEF's Supply Division is based in Copenhagen (Denmark) and serves as the primary
point of distribution for such essential items as vaccines, antiretroviral medicines for
children and mothers with HIV, nutritional supplements, emergency shelters, family
reunification, and educational supplies.
 UNFPA
o The United Nations Population Fund (UNFPA), formerly the United Nations Fund for
Population Activities, is the United Nations sexual and reproductive health agency.
o Its mission is to deliver a world where every pregnancy is wanted, ‘every childbirth is
safe’ and every young person's potential is fulfilled.
o In 2018, UNFPA launched efforts to achieve three transformative results, ambitions that
promise to change the world for every man, woman and young person:
 Ending unmet need for family planning
 Ending preventable maternal death
 Ending gender-based violence and harmful practices
 UNDP
o The United Nations Development Programme (UNDP) is the UN's global development
network.
o UNDP was established in 1965 by the General Assembly of the United Nations.
o It provides expert advice, training and grants support to developing countries, with
increasing emphasis on assistance to the least developed countries.
o The UNDP Executive Board is made up of representatives from 36 countries around the
world who serve on a rotating basis.
o It is funded entirely by voluntary contributions from member nations.
o UNDP is central to the United Nations Sustainable Development Group (UNSDG), a
network that spans 165 countries and unites the 40 UN funds, programmes, specialized
agencies and other bodies working to advance the 2030 Agenda for Sustainable
Development.
 UNEP
o The United Nations Environment Programme (UN Environment) is a global
environmental authority that sets the global environmental agenda, promotes the
coherent implementation of the environmental dimension of sustainable development
within the United Nations system.
o It was founded by UN General Assembly as a result of the United Nations Conference on
the Human Environment (Stockholm Conference) in June 1972.
o UNEP and World Meteorological Organization (WMO) established Intergovernmental
Panel on Climate Change (IPCC) in 1988 to assess climate change based on the latest
science.
o Since its founding, the UNEP has played a key role for the development of multilateral
environmental agreements (MEAs). The secretariats for the following nine MEAs are
currently hosted by UNEP:
 Convention on Biological Diversity (CBD)
 Convention on International Trade in Endangered Species of Wild Fauna
and Flora (CITES)
 Convention on the Conservation of Migratory Species of Wild Animals
(CMS)
 Vienna Convention for the Protection of the Ozone Layer
  Minamata Convention on Mercury
 Basel Convention on the Control of Trans-boundary Movements of
Hazardous Wastes and Their Disposal
 Stockholm Convention on Persistent Organic Pollutants
 Rotterdam Convention on the Prior Informed Consent Procedure for
Certain Hazardous Chemicals and Pesticides in International Trade
 UN-Habitat
o United Nations Human Settlements Programme (UN-Habitat) is the United Nations
programme working towards a better urban future.
o Its mission is to promote socially and environmentally sustainable human settlements
development and the achievement of adequate shelter for all.
o It was established in 1978 as an outcome of the First UN Conference on Human
Settlements and Sustainable Urban Development (Habitat I) in Vancouver, Canada, in
1976.
o 2nd United Nations Conference on Human Settlements (Habitat II) in Istanbul, Turkey, in
1996, set the twin goals of the Habitat Agenda:
 Adequate shelter for all
 Development of sustainable human settlements in an urbanizing world.
o 3rd United Nations Conference on Housing and Sustainable Urban Development
(Habitat III) was held in 2016 in Quito, Ecuador. It elaborated on Goal-11 of the
Sustainable Development Goals (SDG): "Make cities and human settlements inclusive,
safe, resilient, and sustainable.
 WFP
o World Food Programme (WFP) is the leading humanitarian organization saving lives and
changing lives, delivering food assistance in emergencies and working with communities
to improve nutrition and build resilience.
o The WFP was established in 1963 by the FAO (The Food and Agriculture
Organization) and the United Nations General Assembly.
UN Specialized Agencies
The UN specialized agencies are autonomous organizations working with the United Nations. All were brought into
relationship with the UN through negotiated agreements.
Some existed even before the First World War. Some were associated with the League of Nations. Others were
created almost simultaneously with the UN. Others were created by the UN to meet emerging needs.
Articles 57 and 63 of UN Charter provides provision of creating specialised agencies.
 FAO
o In 1945, Food and Agriculture Organization (FAO) was created In Quebec City, Canada, by
the first session of the newly created United Nations.
o FAO is a specialized agency of the United Nations that leads international efforts to
defeat hunger.
o FAO is also a source of knowledge and information, and helps developing countries in
transition modernize and improve agriculture, forestry and fisheries practices, ensuring
good nutrition and food security for all.
 ICAO
o Under Chicago Convention, the International Civil Aviation Organization (ICAO) was
established in 1944, as a UN specialized agency. It manages the administration and
governance of the Convention on International Civil Aviation (Chicago Convention).
o It provides the principles and techniques of international air navigation and fosters the
planning and development of international air transport to ensure safe and orderly
growth.
 IFAD
o The International Fund for Agricultural Development (IFAD) was established as
an international financial institution in 1977 through United Nations General Assembly
Resolution as one of the major outcomes of the 1974–World Food Conference.
o This conference was organized by the United Nations in response to the food crises of
the early 1970s, when global food shortages were causing widespread famine and
malnutrition, primarily in the Sahelian countries of Africa. It was realized that food
 insecurity and famine were not so much failures in food production but structural
problems relating to poverty.
 ILO
o The International Labour Organization (ILO) is a United Nations agency whose mandate is
to advance social justice and promote decent work by setting international labour
standards.
o It sets international labour standards, promotes rights at work and encourages decent
employment opportunities, the enhancement of social protection and the strengthening
of dialogue on work-related issues.
o As an agency of the League of Nations, it was created in 1919, as part of the Treaty of
Versailles that ended World War I.
o 9 International Labour Conventions and 10 Recommendations which dealt with hours
of work in industry, unemployment, maternity protection, night work for women,
minimum age, and night work for young persons in industry were adopted in less than
two years (by 1922).
o By signing of the United Nation agreement whereby the ILO became the first United
Nations specialized agency in 1946.
o The Organization won the Nobel Peace Prize on its 50th anniversary in 1969 for pursuing
decent work and justice for workers.
o In 1980, the ILO played a major role in the emancipation of Poland from dictatorship by
giving its full support to the legitimacy of the Solidarnosc Union, based on respect for
Convention No. 87 on freedom of association, which Poland had ratified in 1957.
o It emphasised that the future of work is not predetermined: Decent work for all is
possible but societies have to make it happen. It is precisely with this imperative that the
ILO established its Global Commission on the Future of Work as part of its initiative to
mark its centenary in 2019.
 Its job is to undertake an in-depth examination of the future of work that
can provide the analytical basis for the delivery of social justice in the 21st
century.
 IMF
o UN Monetary and Financial Conference (1944, also called Bretton Woods Conference),
Bretton Woods, New Hampshire, United States was held to regulate the international
monetary and financial order after the conclusion of World War II.
 It resulted in foundation of International Monetary Fund (IMF) in 1945.
 World Bank
o UN Monetary and Financial Conference (1944, also called Bretton Woods Conference),
was held to regulate the international monetary and financial order after the conclusion
of World War II. It resulted in foundation of IBRD in 1945. IBRD is the founding institution
of World Bank
 IMO
o The International Maritime Organization (IMO) – is the United Nations specialized agency
with responsibility for the safety and security of shipping and the prevention of marine
and atmospheric pollution by ships.
 ITU
o International Telecommunication Union (ITU) is a specialized agency of the United
Nations (UN) that is responsible for issues that concern information and communication
technologies (ICT). It is the oldest among all the specialised agencies of UN.
o It was founded in 1865 and based in Geneva, Switzerland. It works on the principle
of international cooperation between governments (Member States) and the private
sector (Sector Members, Associates and Academia).
o ITU is the premier global forum through which parties work towards consensus on a
wide range of issues affecting the future direction of the ICT industry.
o It allocates global radio spectrum and satellite orbits, develop the technical standards
that ensure networks and technologies seamlessly interconnect, and strive to improve
access to ICTs to underserved communities worldwide.
 UNESCO
 o United Nations Educational, Scientific and Cultural Organization (UNESCO) was founded
in 1945 to develop the “intellectual and moral solidarity of mankind” as a means of
building lasting peace. It is located in Paris (France).
o In this spirit, UNESCO develops educational tools to help people live as global citizens
free of hate and intolerance.
o By promoting cultural heritage and the equal dignity of all cultures, UNESCO strengthens
bonds among nations.
 UNIDO
o United Nations Industrial Development Organization (UNIDO) promotes industrial
development for poverty reduction, inclusive globalisation and environmental
sustainability.
 WHO
o The World Health Organization (WHO) is the United Nations’ specialized agency for
health.
o It was established in 1948, and is headquartered in Geneva, Switzerland.
o It is an inter-governmental organization and works in collaboration with its Member
States usually through the Ministries of Health.
o The World Health Organization (WHO) is responsible for
 providing leadership on global health matters,
 shaping the health research agenda,
 setting norms and standards,
 providing evidence-based policy options,
 providing technical support to countries,
 and monitoring and assessing health trends.
 UNCTAD
o UNCTAD supports developing countries to access the benefits of a globalized economy
more fairly and effectively. It helps to use trade, investment, finance, and technology as
vehicles for inclusive and sustainable development.
 UNODC
o United Nations Office on Drugs and Crime (UNODC) is a global leader in the fight against
illicit drugs and international crime.
o It was established in 1997 through a merger between the United Nations Drug Control
Programme and the Centre for International Crime Prevention.
o UNODC is mandated to assist Member States in their struggle against illicit drugs, crime
and terrorism.
 UNHCR
o The office of the United Nations High Commissioner for Refugees (UNHCR) was created
in 1950, during the aftermath of the Second World War, to help millions of Europeans
who had fled or lost their homes.
o In 1954, UNHCR won the Nobel Peace Prize for its groundbreaking work in Europe.
o The start of the 21st century has seen UNHCR help with major refugee crises in Africa, the
Middle East and Asia.
o It also uses its expertise to help many internally displaced by conflict and expanded its
role in helping stateless people.
 ESCAP
o United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the
main economic and social development centre of the UN in the region, headquartered in
Bangkok (Thailand) in 1947.
o It responds to the development needs and priorities of the region through its convening
authority, economic and social analysis, normative standard-setting and technical
assistance.
UN Contribution to World
Peace and Security
 Maintaining Peace and Security: By sending peacekeeping and observer missions to the world’s
trouble spots over the past six decades, the United Nations has been able to restore calm, allowing
many countries to recover from conflict.
  Preventing Nuclear Proliferation: For over the five decades, the International Atomic Energy Agency
(IAEA) has served as the world’s nuclear inspector. IAEA experts work to verify that safeguarded
nuclear material is used only for peaceful purposes. To date, the Agency has safeguards agreements
with more than 180 States.
 Supporting Disarmament: UN treaties are the legal backbone of disarmament efforts:
o the Chemical Weapons Convention-1997 has been ratified by 190 States,
o the Mine-Ban Convention-1997 by 162,
o and the Arms Trade Treaty-2014 by 69.
o At the local level, UN peacekeepers often work to implement disarmament agreements
between warring parties.
 Preventing genocide: The United Nations brought about the first-ever treaty to combat genocide—
acts committed with the intent to destroy a national, ethnical, racial or religious group.
o The 1948 Genocide Convention has been ratified by 146 States, which commits to
prevent and punish actions of genocide in war and in peacetime. The UN tribunals for
Yugoslavia and Rwanda, as well as UN-supported courts in Cambodia, have put would-be
genocide perpetrators on notice that such crimes would no longer be tolerated.
Economic Development
 Promoting Development: Since 2000, promoting living standards and human skills and potential
throughout the world have been guided by the Millennium Development Goals.
o The UN Development Programme (UNDP) supports more than 4,800 projects to reduce
poverty, promote good governance, address crises and preserve the environment.
o The UN Children's Fund (UNICEF) works in more than 150 countries, primarily on child
protection, immunization, girls' education and emergency aid.
o The UN Conference on Trade and Development (UNCTAD) helps developing countries
make the most of their trade opportunities.
o The World Bank provides developing countries with loans and grants, and has supported
more than 12,000 projects in more than 170 countries since 1947.
 Alleviating Rural Poverty: The International Fund for Agricultural Development (IFAD) provides low-
interest loans and grants to very poor rural people.
 Focusing on African Development: Africa continues to be a high priority for the United Nations. The
continent receives 36 per cent of UN system expenditures for development, the largest share among
the world’s regions. All UN agencies have special programmes to benefit Africa.
 Promoting Women's Well-being: UN Women is the UN organization dedicated to gender equality and
the empowerment of women.
 Fighting Hunger: The Food and Agriculture Organization of the UN (FAO) leads global efforts to defeat
hunger. FAO also helps developing countries to modernize and improve agriculture, forestry and
fisheries practices in ways that conserve natural resources and improve nutrition.
 Commitment in Support of Children: UNICEF has pioneered to provide vaccines and other aid
desperately needed by children caught in armed conflict. The Convention on the Rights of the Child-
1989 has become law in nearly all countries.
 Tourism: The World Tourism Organization is the UN agency responsible for the promotion of
responsible, sustainable and universally accessible tourism.
o Its Global Code of Ethics for Tourism seeks to maximize the benefits of tourism while
minimizing its negative impact.
 Global Think Tank: The United Nations is at the forefront of research that seeks solutions to global
problems.
o The UN Population Division is a leading source of information and research on global
population trends, producing up-to-date demographic estimates and projections.
o The UN Statistics Division is the hub of the global statistical system, compiling and
disseminating global economic, demographic, social, gender, environment and energy
statistics.
o The United Nations Development Programme’s annual Human Development
Report provides independent, empirically grounded analyses of major development
issues, trends and policies, including the groundbreaking Human Development Index.
 o The United Nations World Economic and Social Survey, the Word Bank’s World
Development Report, the International Monetary Fund's World Economic Outlook and
other studies help policymakers to make informed decisions.
Social Development
 Preserving Historic, Cultural, Architectural and Natural Sites: The UNESCO has helped 137 countries
to protect ancient monuments and historic, cultural and natural sites.
o It has negotiated international conventions to preserve cultural property, cultural
diversity and outstanding cultural and natural sites. More than 1,000 such sites have
been designated as having exceptional universal value - as World Heritage Sites.
 Taking the lead on global issues:
o The first United Nations conference on the environment (Stockholm, 1972) helped to
alert world public opinion on the dangers faced by our planet, triggering action by
governments.
o The first world conference on women (Mexico City, 1985) put women's right, equality
and progress on the global agenda.
o Other landmark events include the first international conference on human rights
(Teheran, 1968), the first world population conference (Bucharest, 1974) and the
first world climate conference (Geneva, 1979).
o Those events brought together experts and policymakers, as well as activists, from
around the world, prompting sustained global action.
o Regular follow-up conferences have helped to sustain the momentum.
Human Rights
 UN General Assembly adopted the Universal Declaration of Human Rights in 1948.
o It has helped to enact dozens of legally binding agreements on political, civil, economic,
social and cultural rights.
o UN human rights bodies have focused world attention on cases of torture,
disappearance, arbitrary detention and other violations.
 Fostering Democracy: The UN promotes and strengthens democratic institutions and practices around
the world, including by helping people in many countries to participate in free and fair elections.
o In the 1990s, the UN organized or observed landmark elections in Cambodia, El Salvador,
South Africa, Mozambique and Timor-Leste.
o More recently, the UN has provided crucial assistance in elections in Afghanistan,
Burundi, the Democratic Republic of the Congo, Iraq, Nepal, Sierra Leone and Sudan.
 Ending Apartheid in South Africa: By imposing measures ranging from an arms embargo to a
convention against segregated sporting events, the United Nations was a major factor in bringing
about the downfall of the apartheid system.
o In 1994, elections in which all South Africans were allowed to participate on an equal
basis led to the establishment of a multiracial Government.
 Promoting Women's Rights: The 1979 UN Convention on the Elimination of All Forms of Discrimination
against Women, ratified by 189 countries, has helped to promote the rights of women worldwide.
Environment
 Climate change is a global problem that demands a global solution. The Intergovernmental Panel on
Climate Change (IPCC), which brings together 2,000 leading climate change scientists, issues
comprehensive scientific assessments every five or six years.
o IPCC was established in 1988 under the auspices of the United Nations Environment
Programme (UNEP) and the World Meteorological Organization for the purpose of
assessing “the scientific, technical and socioeconomic information relevant for the
understanding of the risk of human-induced climate change.
o UN Framework Convention on Climate Change (UNFCCC) provides foundation for UN
members to negotiate agreements to reduce emissions that contribute to climate
change and help countries adapt to its effects. (UNFCCC-1992 is an international
environmental treaty adopted and opened for signature at the Earth Summit in Rio de
Janeiro (Brazil) in 1992.)
o Global Environment Facility, which brings together 10 UN agencies, funds projects in
developing countries.
  Protecting the Ozone Layer: The UNEP and the World Meteorological Organization (WMO) have
been instrumental in highlighting the damage caused to Earth's ozone layer.
o Vienna Convention for the Protection of the Ozone Layer-1985 provided the framework
necessary to create regulatory measures for international reductions in the production
of chlorofluorocarbons. Convention provided foundation for Montreal protocol.
o The Montreal Protocol-1987 is an international environmental agreement with universal
ratification to protect the earth’s ozone layer by eliminating use of ozone depleting
substances (ODS) such as chlorofluorocarbons (CFCs) and halons.
 Kigali amendment (to the Montreal Protocol)-2016: was adopted to phase
down production and consumption of hydrofluorocarbons (HFCs)
worldwide.
 Banning Toxic Chemicals: The Stockholm Convention on Persistent Organic Pollutants-2001 seeks to
rid the world of some of the most dangerous chemicals ever created.
International Law
 Prosecuting War Criminals: By prosecuting and convicting war criminals, the UN tribunals established
for the former Yugoslavia and for Rwanda have helped to expand international humanitarian and
international criminal law dealing with genocide and other violations of international law.
o The International Criminal Court is an independent permanent court that investigates
and prosecutes persons accused of the most serious international crimes—genocide,
crimes against humanity and war crimes—if national authorities are unwilling or unable
to do so.
 Helping to Resolve Major International Disputes: By delivering judgments and advisory opinions,
the International Court of Justice (ICJ) has helped to settle international disputes involving territorial
questions, maritime boundaries, diplomatic relations, State responsibility, the treatment of aliens and
the use of force, among others.
 Stability and Order in the World's Oceans:
o The 1982 UN Convention on the Law of the Sea, which has gained nearly universal
acceptance, provides the legal framework for all activities in the oceans and seas.
o It also includes mechanisms for settling disputes.
 Combating International Crime: The UN Office on Drugs and Crime (UNODC) works with countries
and organizations to counter transnational organized crime by providing legal and technical assistance
to fight corruption, money-laundering, drug trafficking and smuggling of migrants, as well as by
strengthening criminal justice systems.
o It has played a key role in brokering and implementing relevant international Treaties,
such as the UN Convention against Corruption-2005 and the UN Convention against
Transnational Organized Crime-2003.
o It works to reduce the supply of and demand for illicit drugs under the three main UN
conventions on drug control:
 the Single Convention on Narcotic Drugs of 1961 (amended 1972),
 the Convention on Psychotropic Substances-1971,
 and the United Nations Convention against Illicit Traffic in Narcotic Drugs
and Psychotropic Substances-1988
 Encouraging Creativity and Innovation: The World Intellectual Property
Organization (WIPO) promotes the protection of intellectual property rights and ensures that all
countries are in a position to harness the benefits of an effective intellectual property system.
Humanitarian Affairs
 Assisting refugees: Refugees fleeing persecution, violence and war have received aid from the Office
of the UN High Commissioner for Refugees (UNHCR).
o UNHCR seeks long-term or "durable" solutions by helping refugees repatriate to their
homelands, if conditions warrant, or by helping them to integrate in their countries
of asylum or to resettle in third countries.
o Refugees, asylum-seekers and internally displaced persons, mostly women and children,
are receiving food, shelter, medical aid, education, and repatriation assistance from the
UN.
 Aiding Palestinian Refugees: UN Relief and Works Agency for Palestine Refugees in the Near
East (UNRWA), a relief and human development agency, has assisted four generations of Palestinian
refugees with education, health care, social services, microfinance and emergency aid.
  Reducing the Effects of Natural Disasters: The World Meteorological Organization (WMO) has helped
to spare millions of people from the calamitous effects of natural and man-made disasters.
o Its early warning system, which includes thousands of surface monitors, as well as
satellites,
 has made it possible to predict with greater accuracy weather-related
disasters,
 has provided information on the dispersal of oil spills and chemical and
nuclear leaks and has predicted long-term droughts.
 Providing Food to the Neediest: The World Food Programme (WFP) is fighting hunger worldwide,
delivering food assistance in emergencies and working with communities to improve nutrition and
build resilience.
Health
 Promoting Reproductive and Maternal Health: United Nations Population Fund (UNFPA) is promoting
the right of individuals to make their own decisions on the number and spacing of their children
through voluntary family planning programmes.
 Responding to HIV/AIDS: United Nations Programme on HIV/AIDS (UNAIDS) coordinates global action
against an epidemic that affects some 35 million people.
 Wiping Out Polio: Poliomyelitis has been eliminated from all but three countries—Afghanistan,
Nigeria and Pakistan—as a result of the Global Polio Eradication Initiative.
 Eradicating Smallpox: A 13-year effort by the World Health Organization (WHO) resulted in smallpox
being declared officially eradicated from the planet in 1980.
 Fighting Tropical Diseases:
o WHO programme - African Programme for Onchocerciasis Control reduced levels of
river blindness (onchocerciasis) in 10 West African countries while opening up 25 million
hectares of fertile land to farming.
 Guinea-worm disease is on the verge of being eradicated.
 Schistosomiasis and sleeping sickness are now under control.
 Halting the Spread of Epidemics
o Some of the more prominent diseases for which WHO is leading the global response for
some of the more prominent diseases including Ebola, meningitis, yellow fever, cholera
and influenza, including avian influenza.
UN & India
UN Contribution to India
 United Nations agencies, offices, programmes and funds working in India comprise one of the
largest UN field networks anywhere in the world.
 The Asian and Pacific Centre for Transfer of Technology (APCTT):
o APCTT founded in 1977 at New Delhi, is a Regional Institute of United Nations Economic
and Social Commission for Asia and the Pacific (UNESCAP) with a geographic focus of the
entire Asia-Pacific region.
o Centre has focused on three specific areas of activity: technology information;
technology transfer; and innovation management.
 Food and Agriculture Organization (FAO):
o When FAO began its India operations in 1948, its priority was to transform India’s food
and farm sectors through technical inputs and support for policy development.
o Over the years, FAO’s contribution has extended to issues such as access to food,
nutrition, livelihoods, rural development and sustainable agriculture.
o With the Sustainable Development Goals (SDGs), much of FAO’s focus in India will be
on sustainable agricultural practices.
 International Fund for Agricultural Development (IFAD):
o IFAD and the Government of India have achieved significant results investing in
the commercialization of smallholding-agriculture and building small farmers’ capacity
to increase incomes from market opportunities.
o IFAD-supported projects have also provided women with access to financial services,
such as by linking women’s self-help groups with commercial banks.
 International Labour Organization (ILO):
o The first ILO Office in India started in 1928. There are 43 ILO conventions and 1 protocol
ratified by India.
International Organization for Migration (IOM)
 IOM assisted Indian citizens who were among the thousands of people displaced by the Persian Gulf
War (1990s).
 In 2001, IOM’s prompt and effective assistance during the Gujarat earthquake planted the seed of
IOM operations in India as a humanitarian agency.
 In 2007, recognizing India as a major labour-sending and labour-receiving country and its importance
as a remittance-receiving country, IOM began working with migrants on safe and legal migration,
warning them of the risks associated with irregular migration.
 UNESCO - Mahatma Gandhi Institute of Education for Peace and Sustainable Development (MGIEP):
o MGIEP is an integral part of UNESCO, established with generous support from the
Government of India in 2012 in New Delhi.
o The Institute’s global mandate is to transform education policies and practices by
developing innovative teaching and learning methods.
o It works for Sustainable Development Goal (SDG) 4.7 – “education for building peaceful
and sustainable societies across the world”.
o A project 'Rethinking Schooling' was launched by UNESCO-MGIEP with the UNESCO Asia
and Pacific Regional Bureau for Education in 2016-17.
o The first review of SDGs (4.7) by MGIEP, was released in Rethinking Schooling for the
21st century.
 United Nations Entity for Gender Equality and the Empowerment of Women (UN-Women):
o In India, UN-Women’s five priority areas are:
 ending violence against women and girls,
 expanding women’s leadership and participation,
 making gender equality central to national development planning and
budgeting,
 enhancing women’s economic empowerment,
 and engaging women as global peace-builders and negotiators.
o UN Women advocates for greater participation of women in politics and decision-
making, and works with planning bodies such as NITI Aayog to ensure that policies and
budgets reflect the needs of women.
 Joint United Nations Programme on HIV/AIDS (UNAIDS): Its mission is to help prevent new HIV
infections, care for people living with HIV and mitigate the impact of the epidemic.
 United Nations Development Programme (UNDP):
o In the 1950s and 1960s, UNDP helped establish institutions of major national
importance, including space centres and nuclear research laboratories.
o Over the last decade, UNDP has focused on building the resilience of people faced with
the risks of natural disasters and climate change, and of minorities to various forms of
discrimination.
 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP):
o In December 2011, a new South and South-West Asia office of ESCAP was inaugurated in
New Delhi to serve 10 countries in the sub-region.
o As it moves up the development ladder, India has been sharing its experience and
capabilities with fellow developing countries in the region and beyond, using ESCAP’s
platform for this purpose.
 UNESCO
o In India, UNESCO has provided technical support to several premier educational
institutions.
o As part of its World Heritage programme, it has recognized 27 cultural heritage sites in
India, such as the Taj Mahal and the Rock Shelters of Bhimbetka in Madhya Pradesh.
o UNESCO has also played a pioneering role in the development of community radio in
India, having helped to formulate the Community Radio Policy of 2002.
 United Nations Population Fund (UNFPA)
o Currently, UNFPA is placing greater emphasis on policy development and advocacy
reflecting India’s middle-income status.
o It raises awareness about demographic shifts towards older populations and about the
need to harness the opportunities and address the challenges of population ageing.
 United Nations Commission on Human Settlements (UN-Habitat)
o UN-Habitat promotes socially and environmentally sustainable towns and cities with the
goal of providing adequate shelter for all.
o UN-Habitat’s initiatives in India include supporting government projects on sanitation
coverage in urban areas, urban water supply and environmental improvement, and
supporting organizations that empower women’s group and youth groups to fight social
exclusion.
o UN-Habitat "World Cities Report 2016"
 As per Census 2011, 377 million Indians comprising 31.1% of the total
population lived in urban areas.
 This is estimated to have risen to 420 million in 2015.
o UN-Habitat-New Urban agenda (NUA)-2017 addresses Goal-11 of the Sustainable
Development Goals (SDG): "Make cities and human settlements inclusive, safe, resilient,
and sustainable.
o India launched the Atal Mission for Rejuvenation and Urban Transformation (Amrut),
Smart Cities, Hriday (National Heritage City Development and Augmentation Yojana),
and Swachh Bharat prominently allied to the goals of the UN-Habitat-NUA.
 United Nation Children’s Fund (UNICEF)
o In 1954, UNICEF signed an agreement with the Government of India to fund the Aarey
and Anand milk processing plants. In return, free and subsidised milk would be provided
to needy children in the area.
 Within a decade, India had thirteen UNICEF assisted milk processing plants.
 Today, India has become the world’s largest producer of milk.
o Polio Campaign-2012: The Government, in partnership with UNICEF, the World Health
Organization (WHO), the Bill & Melinda Gates Foundation, Rotary International and the
Centers for Disease Control and Prevention contributed to almost universal awareness
of the need to vaccinate all children under five against polio.
 As a result of these efforts, India was removed from the list of endemic
countries in 2014.
o It is also supporting nationwide campaigns on maternal and child nutrition and the
reduction of neonatal mortality and stillbirth rates to single digits by 2030.
 United Nations Industrial Development Organization (UNIDO):
o The programme, Integrated Approach Programme on Sustainable Cities-2017 funded by
the Global Environment Facility and co-implemented by the World Bank and UNIDO.
 World Food Programme (WFP)
o WFP is working to improve the efficiency, accountability and transparency of India’s
own subsidized food distribution system, which brings supplies of wheat, rice, sugar and
kerosene oil to around 800 million poor people across the country.
 World Health Organization (WHO)
o India became a party to the WHO Constitution on 12 January 1948.
 The WHO Country Office for India is headquartered in Delhi with country-
wide presence.
o It has also been instrumental in the country’s transition from hospital-based to
community-based care and the resultant increase in health posts and centres focusing
on primary care.
o The WHO Country Cooperation Strategy – India (2012-2017) has been jointly developed
by the Ministry of Health and Family Welfare (MoH&FW) and the WHO Country Office
for India (WCO).
 United Nations High Commissioner for Refugees (UNHCR)
o India has a long tradition of receiving refugees that goes back centuries.
o UNHCR’s support to India dates back to 1969-1975 when it coordinated aid to Tibetan
refugees as well as refugees from then East Pakistan.
o UNHCR's urban operation is based in New Delhi with a smaller presence in Chennai that
helps Sri Lankan refugees in Tamil Nadu voluntarily repatriate back to Sri Lanka.
o In the absence of a national legal framework for refugees, UNHCR conducts refugee
status determination under its mandate for asylum seekers who approach the Office.
 o The two largest groups of refugees recognized by UNHCR
are Afghans and Myanmar nationals, but people from countries as diverse as Somalia
and Iraq have also sought help from the Office.
 United Nations Military Observer Group in India and Pakistan (UNMOGIP)
o Under the scheme of partition provided by the Indian Independence Act of
1947, Kashmir was free to accede to India or Pakistan. Its accession to India became a
matter of dispute between the two countries and fighting broke out later that year.
o In January 1948, the Security Council adopted resolution 39, establishing the United
Nations Commission for India and Pakistan (UNCIP) to investigate and mediate the
dispute.
o The first team of unarmed military observers, which eventually formed the nucleus of
the United Nations Military Observer Group in India and Pakistan (UNMOGIP), arrived in
the mission area in January 1949 to supervise, in the State of Jammu and Kashmir, the
ceasefire between India and Pakistan and to assist the Military Adviser to UNCIP.
o At the end of 1971, hostilities broke out again between India and Pakistan. UNMOGIP
started along the borders of East Pakistan and were related to the movement for
independence, which had developed in that region and which ultimately led to the
creation of Bangladesh.
o The last report of the Secretary-General to the Security Council on UNMOGIP was
published in 1972.
o Since 1972, India has adopted a non-recognition policy towards third parties in their
bilateral exchanges with Pakistan over the question regarding the state of Jammu and
Kashmir.
 The military authorities of Pakistan have continued to lodge alleged
ceasefire violations complaints with UNMOGIP.
 The military authorities of India have lodged no complaints since January
1972 limiting the activities of the UN observers on the Indian-administered
side of the Line of Control, though they continue to provide necessary
security, transport and other services to UNMOGIP.
 United Nations Office on Drugs and Crime (UNODC)
o UNODC has worked in India over the last 25 years to address drug trafficking in the
context of a constantly evolving drug market, involving an increasing number of drugs
and psychoactive substances.
o It also works with the government to address human trafficking, and the prevention,
treatment and care of persons who use drugs and live with HIV.
 United Nations Conference on Trade and Development (UNCTAD)
o Invest India, the country’s investment promotion body, has won United Nations (UN)
Award for excellence in promoting investments in sustainable development-2018.
 The awards are given annually by UNCTAD since 2002 as part of its
investment promotion and facilitation.
o India’s consistently strong voice for the developing world has made it a major player with
UNCTAD, spanning a multiplicity of economic reforms.
India’s contribution to UN
 India was one of the original members of the League of Nations. As a signatory of the Treaty of
Versailles-1919, India was granted automatic entry to the League of Nations.
o India was represented by her Secretary of State, Edwin Samuel Montagu; the Maharaja
of Bikaner Sir Ganga Singh; Satyendra Prasanno Sinha, Parliamentary Under-Secretary of
State for India.
 India was among the original members of the United Nations that signed the Declaration by United
Nations at Washington, D.C. in 1944. This declaration became the basis of the United Nations (UN),
which was formalized in the United Nations Charter signed by 50 countries in 1945.
 By 1946, India had started raising concerns regarding colonialism, apartheid and racial discrimination.
 India was among the most outspoken critics of apartheid and racial discrimination (discriminatory
treatment of Indians in the Union of South Africa) in South Africa, being the first country to have raised
the issue in the UN in 1946.
 India took an active part in Drafting of the Universal Declaration of Human Rights-1948.
  Its experience with the UN had not always been positive. On Kashmir issue, Nehru's faith in the UN
and adherence to its principles proved costly as UN that was packed with pro-Pakistani partisan
powers.
 Vijaya Lakshmi Pandit was elected the first woman President of the UN General Assembly in 1953.
 India's status as a founding member of the Non-Aligned Movement (NAM) and the Group of 77 (G-
77) cemented its position within the UN system as a leading advocate of the concerns and aspirations
of developing countries and the creation of a more equitable international economic and political
order.
 It involved in conflict with China (1962), two wars (1965, 1971) with Pakistan and entered a period
of political instability, economic stagnation, food shortages and near-famine conditions.
o India's role diminished in the UN which came both as a result of its image and a
deliberate decision by the post-Nehru political leadership to adopt a low profile at the
UN and speak only on vital Indian interests.
 India has been a member of the UN Security Council for seven terms (a total of 14 years), with the
most recent being the 2011–12 term.
 India is a member of G4 (Brazil, Germany, India and Japan), a group of nations who back each other in
seeking a permanent seat on the Security Council and advocate in favour of the reformation of the
UNSC.
o The Russian Federation, United States, United Kingdom and France support India and the
other G4 countries gaining permanent seats.
 India is also part of the G-77.
o The Group of 77 (G-77) was established on 15 June 1964 by seventy-seven developing
countries signatories of the “Joint Declaration of the Seventy-Seven Developing
Countries”.
o It is designed to promote its members' collective economic interests and create an
enhanced joint negotiating capacity in the United Nations.
o Because of the historical significance, the name G-77 has been kept despite the group’s
growth to include more than 130 countries.
 UN peacekeeping missions: From protecting civilians, disarming ex-combatants and helping countries
transition from conflict to peace, India has served the cause of peace.
o At present (2019), India is the third largest troop contributor with 6593 personnel
deployed with UN Peacekeeping Missions (Lebanon, Congo, Sudan and South Sudan,
Golan Heights, Ivory Coast, Haiti, Liberia).
o India has suffered the highest number of fatalities (164 out of close to 3,800 personnel)
among countries that have sent forces to the United Nations peacekeeping mission since
1948.
 Mahatma Gandhi has had a lasting influence on the United Nations. His ideals of non-violence deeply
influenced the United Nations at the time of its inception.
o In 2007, the United Nations declared 2nd October, Mahatma’s Gandhi’s birthday, as
the International day of non-violence.
 In 2014, the UN General Assembly adopted a resolution commemorating 21 June as the International
Yoga Day.
o It recognises the holistic benefits of this timeless practice and its inherent compatibility
with the principles and values of the United Nations.
 Plea for International Equality Day: In 2016, with focus on combating inequalities to achieve
Sustainable Development Goals, B. R. Ambedkar's birth anniversary was observed at the United
Nations for the first time. India has made a plea to declare April 14 as International Equality Day.
UN Challenges & Reforms
UN Administrative & Financial-Resources Challenges
 Development Reform: Sustainable Development Goals (Agenda 2030) will require bold changes to
the UN Development System (UNDS) for the emergence of a new generation of country
teams, centred on a strategic UN Development Assistance Framework and led by an impartial,
independent and empowered resident coordinator.
 Management Reform: To confront global challenges and to remain relevant in a fast-changing world,
United Nations must empower managers and staff, simplifies processes, increases accountability and
transparency and improves on the delivery of our mandates.
 o There are concerns for improving efficiency, avoidance of duplication, and the
minimization of waste in the functioning of the entire UN system.
 Financial Resources: Contributions of the Member States should have, as their fundamental
underpinning, the capacity to pay principle.
o The Member States should pay their contributions unconditionally, in full and on time, as
delays in payments have caused an unprecedented financial crisis in the UN system.
o Financial reforms hold the key to the future of the world body. Without sufficient
resources, the UN's activities and role would suffer.
Peace and Security issues
 Threats to Peace and Security: The range of potential threats to peace and security that UN has to
face, are following-
o poverty, disease, and environmental breakdown (the threats to human security
identified in the Millennium Development Goals),
o conflict between states,
o violence and massive human rights violations within states,
o terrorism threats from organized crime,
o and the proliferation of weapons - particularly WMD, but also conventional.
 Terrorism: Nations that support groups that are widely linked to terrorism, such as Pakistan, are not
held accountable specifically for these actions. To this date, the UN still does not have a clear definition
of terrorism, and they have no plans to pursue one.
 Nuclear Proliferation: In 1970, the nuclear non-proliferation treaty was signed by 190 nations.
Despite this treaty, nuclear stockpiles remain high, and numerous nations continue to develop these
devastating weapons. The failure of the non-proliferation treaty details the ineffectiveness of the
United Nations and their inability to enforce crucial rules and regulations on offending nations.
Security Council reforms
 Composition of Security Council: It has remained largely static, while the UN General Assembly
membership has expanded considerably.
o In 1965, the membership of the Security Council was expanded from 11 to 15. There was
no change in the number of permanent members. Since then, the size of the Council has
remained frozen.
o This has undermined the representative character of the Council. An expanded Council,
which is more representative, will also enjoy greater political authority and legitimacy.
o India has been calling for the reform of the UN Security Council along with Brazil,
Germany and Japan (G-4). The four countries support each others' bids for the
permanent seats in the top UN body.
o Any expansion of permanent members' category must be based on an agreed criteria,
rather than be a pre-determined selection.
 UNSC Veto power: It is often observed that UN's effectiveness and responsiveness to international
security threats depends on judiciously use of the UNSC veto.
o Veto Power: The five permanent members enjoy the luxury of veto power; when a
permanent member vetoes a vote, the Council resolution cannot be adopted, regardless
of international support. Even if the other fourteen nations vote yes, a single veto will
beat this overwhelming show of support.
o There are proposals on future of Veto power:
 limiting the use of the veto to vital national security issues;
 requiring agreement from multiple states before exercising the veto;
 abolishing the veto entirely;
o Any reform of the veto will be very difficult:
 Articles 108 and 109 of the United Nations Charter grant the P5 (5
permanent members) veto over any amendments to the Charter, requiring
them to approve of any modifications to the UNSC veto power that they
themselves hold.
Non-Conventional Challenges
 Since its creation, UN is working with goal of safeguarding peace, protecting human rights, establishing
the framework for international justice and promoting economic and social progress. New challenges,
such as climate change, refugees and population ageing are new fields it has to work.
  Climate Change: From shifting weather patterns that threaten food production, to rising sea levels that
increase the risk of catastrophic flooding, the impacts of climate change are global in scope and
unprecedented in scale. Without drastic action today, adapting to these impacts in the future will be
more difficult and costly.
 Growing population: The world population is projected to increase by more than one billion people
within the next 15 years, reaching 8.5 billion in 2030, and to increase further to 9.7 billion in 2050 and
11.2 billion by 2100.
o The world population growth rate must slow down significantly to avoid reaching
unsustainable levels.
 Population Ageing: It is poised to become one of the most significant social transformations of the
twenty-first century, with implications for nearly all sectors of society, including labour and financial
markets, the demand for goods and services, such as housing, transportation and social protection, as
well as family structures and intergenerational ties.
 Refugees: The world is witnessing the highest levels of displacement on record.
o An unprecedented 65.6 million people around the world have been forced from home by
conflict and persecution at the end of 2016.
o Among them are nearly 22.5 million refugees, over half of whom are under the age of
18.
o There are also 10 million stateless people, who have been denied a nationality and
access to basic rights such as education, healthcare, employment and freedom of
movement.
Conclusion
 Despite having many short-comings, UN has played a crucial role making this human society more civil,
more peaceful & secure in comparison to time of its origin at 2nd World War.
 United Nations, being the world’s largest democratic body of all nations, its responsibility towards
humanity is very high in terms of building democratic society, economic development of people living
in acute poverty, & preserving the Earth’s Ecosystem in concern with Climate Change.
UNFCCC
 14 May 2019

 14 min read
Recently, 24th meeting of the Conference of the Parties (COP24) to the United Nations Framework Convention on
Climate Change (UNFCCC) concluded in Katowice, Poland.
Origin
 The UNFCCC, signed in 1992 at the United Nations Conference on Environment and Development also
known as the Earth Summit, the Rio Summit or the Rio Conference
 The UNFCCC entered into force on March 21, 1994, and has been ratified by 197 countries.
The WMO and UNEP established the Intergovernmental Panel on Climate Change (IPCC) in 1988, to assess the
magnitude and timing of changes, estimate their impacts, present strategies for how to respond and to provide an
authoritative source of up-to-date interdisciplinary knowledge on climate change.
Objective
 According to Article 2, the Convention’s ultimate objective is “to achieve, stabilization of greenhouse
gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic
interference with the climate system”.
 This objective is qualified in that it “should be achieved within a time frame sufficient to allow
ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and
to enable economic development to proceed in a sustainable manner”.
Institutional Arrangements
 The Conference of the Parties (COP)

o Article 7.2 defines the COP as the “supreme body” of the Convention, as it is its highest
decision-making authority. The climate change process revolves around the annual
sessions of the COP.
 COP President and Bureau
o The office of the COP President normally rotates among the five United Nations regional
groups. The President is usually the environment minister of his or her home country.
 S/he is elected by acclamation immediately after the opening of a COP session. Their role
is to facilitate the work of the COP and promote agreements among Parties.
o The work of the COP and each subsidiary body is guided by an elected Bureau. To ensure
continuity, it serves not only during sessions, but between sessions as well.
 Subsidiary Bodies (SBs)

o The Convention establishes two permanent subsidiary bodies (SBs), namely

the Subsidiary Body for Scientific and Technological Advice (SBSTA), by Article 9, and
the Subsidiary Body for Implementation (SBI), by Article 10. These bodies advise the
COP.
o The SBSTA’s task is to provide the COP “with timely advice on scientific and technological
matters relating to the Convention”.
o The SBI’s task is to assist the COP “in the assessment and review of the effective
implementation of the Convention”
 The Secretariat

o The secretariat, also known as the Climate Change Secretariat, services the COP, the SBs,
the Bureau and other bodies established by the COP.
 Other Bodies

o Other bodies have been set up by the COP to undertake specific tasks. These bodies
report back to the COP when they complete their work
o COP 1 established two ad hoc groups to conduct negotiations on specific issues.
o COP 11 established the “Dialogue” to exchange experiences and analyse strategic
approaches for long-term cooperative action to address climate change.

Timeline of Important Events

1979 First World Climate Conference (WCC)

1988 IPCC established

1990 In November IPCC and second WCC call for global treaty on climate change and in December
UN General Assembly Negotiations on a Framework Convention Begin.

1992 The text of the United Nations Framework Convention on Climate Change is adopted at the
United Nations Headquarters in New York.

1994 UNFCCC enters into force

1995 COP 1 (Berlin, Germany)

1996 August
 The UNFCCC secretariat relocates from Geneva to its current home in
Bonn(Germany), paving the way for the city to become an international
sustainability hub and home to 18 UN organizations.

1997 COP 3 (Kyoto, Japan)

 Kyoto Protocol adopted- The Protocol legally binds developed countries to
emission reduction targets.

1998 Buenos Aires Plan of Action

2001 COP 6-2(second part of 6th COP)
 The COP 6-2 took place from 16 to 27 July 2001 in Bonn, Germany.
 A major breakthrough is achieved at the second part of the sixth Conference of
the Parties meeting in Bonn, with governments reaching a broad political
agreement on the operational rulebook for the 1997 Kyoto Protocol.

2001 COP 7 (Marrakesh, Morocco)

 Resulted in the Marrakesh Accords, setting the stage for ratification of the Kyoto
Protocol. This formalized the agreement on operational rules for International
Emissions Trading, the Clean Development Mechanism and Joint Implementation
along with a compliance regime and accounting procedures.

2002 COP 8 (New Delhi, India) Delhi Declaration. The Delhi Declaration focuses on the development
needs of the poorest countries and the need for technology transfer for mitigating climate
change.

2005 (February 16) Entry of Kyoto Protocol into force with the Russian Federation ratification to the
Kyoto Protocol, sealing its entry into force.

2005 COP11/CMP1 (December)

 The first Meeting of the Parties to the Kyoto Protocol (MOP 1) takes place in
Montreal.

2006 In January the Clean Development Mechanism, a key mechanism under the Kyoto Protocol,
opens for business.
 The CDM is one of the Flexible Mechanisms defined in the Kyoto Protocol that
provides for emissions reduction projects which generate Certified Emission
Reduction units (CERs) which may be traded in emissions trading schemes.

2007 COP13
 Parties agreed on the Bali Road Map and Bali action plan, which charted the way
towards a post-2012 outcome. The Plan has five main categories: shared vision,
mitigation, adaptation, technology and financing.

2008 COP 14, Poznan (Poland)

 The launch of the Adaptation Fund under the Kyoto Protocol and
 The Poznan Strategic Programme on Technology Transfer.

2009 COP15 (Copenhagen)

 Copenhagen Accord drafted. Developed countries pledge up to USD 30 billion in
fast-start finance for the period 2010-2012.

2010 COP 16 (Cancun)

 Resulted in the Cancun Agreements, a comprehensive package by governments
to assist developing nations in dealing with climate change.
 The Green Climate Fund, the Technology Mechanism and the Cancun Adaptation
Framework are established.

2011 COP 17 (Durban)

 Governments commit to a new universal climate change agreement by 2015 for
the period beyond 2020.(Resulted in the Paris Agreement of 2015)
 2012 COP18/CMP8 (Doha)
 The Doha Amendment to the Kyoto Protocol is adopted.
 COP18 also launched a second commitment period of the Kyoto Protocol.

2013 COP19/CMP9 (Warsaw)

 Key decisions adopted include:
o Further advancing the Green Climate Fund and Long-Term Finance,
o The Warsaw Framework for REDD Plus and the Warsaw
International Mechanism for Loss and Damage.

2015 COP 21 (Paris)

 Paris Agreement adopted. It aims:
o To keep global temperatures "well below" 2.0C (3.6F) above pre-
industrial times and "endeavor to limit" them even more, to 1.5C
o Rich countries should help poorer nations by providing "climate
finance" to adapt to climate change and switch to renewable
energy.
o The agreement requires rich nations to maintain a $100bn a year
funding pledge beyond 2020.

2016 COP22 (Marrakech)

 A crucial outcome of the Marrakech climate conference was
o To move forward on writing the rule book of the Paris Agreement.
o Launched the Marrakech Partnership for Climate Action.

2017 COP23, Bonn (Germany)

 Countries continued to negotiate the finer details of how the agreement will work
from 2020 onwards.
 First set of negotiations since the US, under the presidency of Donald Trump,
announced its intention earlier this year to withdraw from the Paris deal.
 It was the first COP to be hosted by a small-island developing state with Fiji taking
up the presidency, even though it was being held in Bonn.

2018 COP 24, Katowice (Poland)

Shortcomings
 Non-inclusive: Most scientists agree the most dangerous environmental air pollutants today are
microscopic particulates that come from car engines and combustion-based power plants, but these
pollutants are largely ignored by the Kyoto Protocol.
 Slow progress: It took a long time for COP to bring Russia to agree into participating in the Kyoto
Protocol. (until 2005)
 UNFCCC failed to persuade USA to ratify the Kyoto protocol thereby keeping one of the largest emitter
of greenhouse gases away from commitments.
 Unsustainable targets: The world reached at almost 1degree Celsius warming post industrialization
and the Paris contributions are not enough to maintain 2 degree Celsius levels.
 Unsatisfactory Response: Many countries argued for a tougher target of 1.5C - including leaders of
low-lying countries that face unsustainable sea levels rises in a warming world.
 Financial Constraints: The agreement requires rich nations to maintain a $100bn a year funding pledge
beyond 2020, which is not enough as highlighted by several pacific island countries.
 Non-binding agreement: The US withdrawal from the 2015 Paris climate agreement, citing, that the
deal punished" the US and would cost millions of American jobs”, has created new barriers and more
pressure on rest of the nations in achieving the targets of Paris agreement.

o As part of the US withdrawal, USA has stopped the payment of the extra $2bn that had
been promised in to the Green Climate Fund.
  No enforcement mechanism: Under the Paris agreement, each country determines, plans, and reports
its own efforts to mitigate global warming. The only penalty for non-compliance is a so-called “name
and shame” — or “name and encourage” — system whereby countries that fall out of compliance are
called out and encouraged to improve.
Achievements
 Kyoto protocol only required wealthy nations to cut emissions, which was a bone of contention;
however this anomaly was corrected with the signing of Paris agreement in 2015.
 UNFCCC initiatives helped create Public awareness regarding climate change, which is much higher
today than in the late 90s.
 Although climate science in the late 90s was certainly strong enough—to negotiate an international
treaty, it is hard to deny that the scientific understanding of the climate crisis has improved
considerably over the past two decades in which UNFCCC played a significant role.
 UNFCCC has enabled planning and implementation of concrete adaptation activities under the
National Adaptations Programme of Action (NAPAs) and the Nairobi work programme.
 UNFCCC helped create innovative ideas in mitigating climate change like the Clean Development
mechanism (CDM) under which developing country’s projects that reduce emissions earn credits that
can be sold to countries or companies with a commitment to reduce emissions.
 Since the establishment of UNFCCC national governments have encouraged and increased cooperation
on the development and transfer of technology.
 UNFCCC efforts support the developing countries in combating climate change by providing a platform
for finance, technology transfers, discussions, global partnerships, etc.
International Criminal Court (ICC)
 30 Apr 2019

 11 min read
Tags:
 GS Paper - 2
 Important International Institutions
About
 Governed by an international treaty called 'The Rome Statute', the ICC is the world’s first permanent
international criminal court.
 It investigates and, where warranted, tries individuals charged with the gravest crimes of concern to
the international community: genocide, war crimes, crimes against humanity and the crime of
aggression.
 Through international criminal justice, ICC aims to hold those responsible for their crimes and to help
prevent these crimes from happening again.
 India is not a party to Rome Statute along with US and China.
 Recently Malaysia has ratified the Rome Statute and became the 124th State party to the ICC.
History
 On 17 July, 1998 Rome Statute was adopted by 120 States in direction of creating a more just world.
 On 1 July, 2002 Rome Statute took effect upon ratification by 60 states, officially establishing the ICC.
Since it has no retroactive jurisdiction, the ICC deals with crimes committed on or after this date.
 After 2010 amendments – the Rome Statute also sets new standards for victims' representation in the
Courtroom, and ensures fair trials and the rights of the defence.
 Today the ‘Rome Statute’ serves as the ICC's guiding legal instrument, which is elaborated in such
other legal texts as the Elements of Crimes, Rules of Procedure and Evidence and more.
Facts and Figures
 Today the ICC has over 900 staff members from approximately 100 States.
 It has 6 official languages: English, French, Arabic, Chinese, Russian and Spanish.
 ICC has 6 field offices: Kinshasa and Bunia (Democratic Republic of the Congo, "DRC"); Kampala
(Uganda); Bangui (Central African Republic, "CAR"); Nairobi (Kenya), Abidjan (Côte d'Ivoire).
 It has 2 working languages: English and French.
 ICC Headquarters at The Hague, the Netherlands.
 There have thus far been 27 cases before the Court, with some cases having more than one suspect.
 16 people have been detained in the ICC detention centre.
 The judges have issued 8 convictions and 3 acquittals.
Organisation Structure
  The Assembly of States Parties provides management oversight for the Court, including electing judges
and the Prosecutor and approving the ICC’s budget.
 Four organs of the ICC
1. Presidency conducts external relations with States, coordinates judicial matters such as
assigning judges, situations and cases to divisions, and oversees the Registry's administrative
work.
2. Judicial Divisions (18 judges in 3 divisions) Pre-Trial, Trial and Appeals – conduct judicial
proceedings
3. Office of the Prosecutor conducts preliminary examinations, investigations, and
prosecutions.
4. Registry conducts non-judicial activities, such as security, interpretation, outreach, support
to Defence and victims' lawyers etc.
 Trust Fund for Victims provides assistance, support and reparations to victims.
 The ICC has field offices in several of the countries in which investigations are being conducted.
 The ICC detention centre is used to hold in safe, secure and humane custody those detained by the
ICC.
 The International Committee of the Red Cross (ICRC) is the Detention Centre's inspecting authority and
as such has unrestricted access and examine, on unannounced visits.
Jurisdiction and Working of Court
 The Rome Statute, grants the ICC jurisdiction over four main crimes:

o The crime of Genocide

o Crimes against Humanity
o War crimes
o Crime of Aggression
 The Court may exercise jurisdiction in a situation where genocide, crimes against humanity or war
crimes were committed on or after 1 July 2002,
 The crimes were committed by a State Party national, or in the territory of a State Party, or in a State
that has accepted the jurisdiction of the Court;
 The crimes were referred to the ICC Prosecutor by the United Nations Security Council
(UNSC) pursuant to a resolution adopted under chapter VII of the UN charter.
 As of 17 July 2018, a situation in which an act of aggression would appear to have occurred could be
referred to the Court by the Security Council, acting under Chapter VII of the United Nations Charter,
irrespective as to whether it involves States Parties or non-States Parties.
 The ICC is intended to complement, not to replace, national criminal systems; it prosecutes cases
only when States do not are unwilling or unable to do so genuinely.
 ICC is not a UN organization but is has a cooperation agreement with the United Nations.
 When a situation is not within the Court’s jurisdiction, the United Nations Security Council can refer
the situation to the ICC granting it jurisdiction. This has been done in the situations in Darfur (Sudan)
and Libya.
Other Facts related to Legal Process
 The ICC does not prosecute those under the age of 18 when a crime was committed.
 Before the Prosecutor can investigate, he/she must conduct a preliminary examination considering
such matters as sufficient evidence, jurisdiction, gravity, complementarity, and the interests of justice.
 When investigating, the Prosecutor must collect and disclose both incriminating and exonerating
evidence.
 The defendant is considered innocent until proven guilty. The burden of proof lies with the Prosecutor.
 During all stages of proceedings (Pre-Trial, Trial and Appeals), the defendant has the right to
information in a language he or she fully understands, thus the ICC proceedings are conducted in
multiple languages, with teams of interpreters and translators at work.
 Pre-Trial judges issue warrants of arrest and ensure there is enough evidence before a case can go to
trial.
 During the Pre-Trial phase, the defendant is referred to as a suspect. Once the case is committed to
trial, since at that point the charges have been confirmed, the defendant is referred to as the accused.
 Trial judges hear the evidence from the Prosecutor, Defence, and the Victims’ lawyers, render a
verdict, and if a person is found guilty, the sentence and decision on reparations.
 Appeals judges render decisions on appeals from the Prosecutor or Defence.
  If a case is closed without a verdict of guilt, it can be reopened if the Prosecutor presents new
evidence.
Limitations
 As a judicial institution, the ICC does not have its own police force or enforcement body; thus, it relies
on cooperation with countries worldwide for support, particularly for making arrests, transferring
arrested persons to the ICC detention centre in The Hague, freezing suspects’ assets, and enforcing
sentences.
 This State cooperation is problematic for several reasons. It means that the ICC acts inconsistently in
its selection of cases, is prevented from taking on hard cases and loses legitimacy.
 It also gives the ICC less deterrent value, as potential perpetrators of war crimes know that they can
avoid ICC judgment by taking over government and refusing to cooperate.
 There is insufficient checks and balances on the authority of the ICC prosecutor and judges.
 ICC has been accused of being a tool of Western imperialism and biased in favour of powerful
countries against weak states.
 ICC cannot impose a death sentence; it can impose lengthy terms of imprisonment of up to 30 years
or life when so justified by the gravity of the cases.
 The ICC court has no retrospective jurisdiction as it can deal only with crimes committed after 1 July
2002 when the 1998 Rome Statute came into force.
 ICC has automatic jurisdiction only for crimes committed on the territory of a state which has ratified
the treaty; or by a citizen of such a state; or when the United Nations Security Council refers a case to
it.
 Procedural and substantive deficiencies leading to delays and frustration, have questioned the efficacy
of the court.
 It also faces scarcity of human resources and funds.
India and ICC
India did not signed the Rome Statute, and thus, is not a member of ICC because of following reasons:
 State sovereignty
 National interests
 Difficulty in collection of evidences
 Problem to find impartial prosecutors
 Crime definition
Way Forward
 States should actively encourage cooperation with ICC and support human rights defenders working
towards international justice and the fulfilment of the ICC’s mandate.
 To enhance its credibility the court needs to broaden its ambit by including more permanent members
of UN and by strengthening of investigations and prosecutions.
 ICC role is very important as international justice can contribute to long ‐term peace, stability and
equitable development in post‐conflict societies.
 Having said so it is also important to know that the ICC actively works to build understanding and
cooperation in all regions through seminars and conferences worldwide.
International Court of Justice (ICJ)
 16 Apr 2019

 16 min read
Tags:
 GS Paper - 2
 Important International Institutions
About
 ICJ was established in 1945 by the United Nations charter and started working in April 1946.
 It is the principal judicial organ of the United Nations, situated at the Peace Palace in The Hague
(Netherlands).
 Unlike the six principal organs of the United Nations, it is the only one not located in New York (USA).
 It settles legal disputes between States and gives advisory opinions in accordance with international
law, on legal questions referred to it by authorized United Nations organs and specialized agencies.
 It has 193 state parties and current President is Ronny Abraham.
Background
  Article 33 of the United Nations Charter lists the negotiation, enquiry, mediation etc. methods for the
pacific settlement of disputes between States. Some of these methods involve the services of third
parties.
 Historically, mediation and arbitration preceded judicial settlement. The former was known in ancient
India and the Islamic world, whilst numerous examples of the latter can be found in ancient Greece, in
China, among the Arabian tribes, in maritime customary law in medieval Europe, and in Papal practice.
 The modern history of international arbitration:
o The first phase is generally recognized as dating back from the so-called Jay Treaty of
1794 between the United States of America and Great Britain.
o The Alabama Claims arbitration in 1872 between the United Kingdom and the United
States marked the start of a second, even more decisive, phase.
o The Hague Peace Conference of 1899, convened on the initiative of the Russian Czar
Nicholas II, marked the beginning of a third phase in the modern history of international
arbitration.
 With respect to arbitration, the 1899 Convention provided for the creation of permanent machinery,
known as the Permanent Court of Arbitration, established in 1900 and began operating in 1902.
 The Convention also created a permanent Bureau, located in The Hague, with functions
corresponding to those of a court registry or secretariat, and laid down a set of rules of procedure to
govern the conduct of arbitrations.
 Various plans and proposals submitted between 1911 and 1919, both by national and international
bodies and by governments, for the establishment of an international judicial tribunal, which
culminated in the creation of the Permanent Court of International Justice (PCIJ) as an integral part of
the new international system set up after the end of the First World War.
 In 1943, China, the USSR, the United Kingdom and the United States issued a joint declaration
recognizing the necessity “of establishing at the earliest practicable date a general international
organization, based on the principle of the sovereign equality of all peace-loving States, and open to
membership by all such States, large and small, for the maintenance of international peace and
security”.
 Subsequently, G.H. Hackworth (United States) committee was entrusted with preparing a draft
Statute for the future international court of justice in 1945.
 The San Francisco Conference while keeping committee recommendations in mind decided against
compulsory jurisdiction and in favour of the creation of an entirely new court, which would be a
principal organ of the United Nations, on the same footing as the General Assembly, the Security
Council, the Economic and Social Council, the Trusteeship Council and the Secretariat.
 The PCIJ met for the last time in October 1945 and resolved to transfer its archives and effects to
the new International Court of Justice, which, like its predecessor, was to have its seat at the Peace
Palace.
 In April 1946, the PCIJ was formally dissolved, and the International Court of Justice, meeting for the
first time, elected as its President Judge José Gustavo Guerrero (El Salvador), the last President of the
PCIJ.
Structure
 The Court is composed of 15 judges, who are elected for terms of office of nine years by the United
Nations General Assembly and the Security Council. These organs vote simultaneously but separately.
 In order to be elected, a candidate must receive an absolute majority of the votes in both bodies.
 In order to ensure a measure of continuity, one third of the Court is elected every three years and
Judges are eligible for re-election.
 ICJ is assisted by a Registry, its administrative organ. Its official languages are English and French.
 The 15 judges of the Court are distributed in following regions:
1. Three from Africa.
2. Two from Latin America and Caribbean.
3. Three from Asia.
4. Five from Western Europe and other states.
5. Two from Eastern Europe.
 Unlike other organs of international organizations, the Court is not composed of representatives of
governments. Members of the Court are independent judges whose first task, before taking up their
duties, is to make a solemn declaration in open court that they will exercise their powers impartially
and conscientiously.
  In order to guarantee his or her independence, no Member of the Court can be dismissed unless, in
the unanimous opinion of the other Members, he/she no longer fulfils the required conditions. This
has in fact never happened.
Indian Judges at the ICJ
 Judge Dalveer Bhandari: Member of the Court since 27 April 2012
 Raghunandan Swarup Pathak: 1989-1991
 Nagendra Singh: 1973-1988
 Sir Benegal Rau: 1952-1953
Jurisdiction and Functioning
 ICJ acts as a world court with two fold jurisdiction i.e. legal disputes between States submitted to it by
them (contentious cases) and requests for advisory opinions on legal questions referred to it by
United Nations organs and specialized agencies (advisory proceedings).
 Only States which are members of the United Nations and which have become parties to the Statute of
the Court or which have accepted its jurisdiction under certain conditions, are parties to contentious
cases.
 States have no permanent representatives accredited to the Court. They normally communicate with
the Registrar through their Minister for Foreign Affairs or their ambassador accredited to the
Netherlands.
 When they are parties to a case before the Court they are represented by an agent. Since international
relations are at stake, the agent is also as it were the head of a special diplomatic mission with powers
to commit a sovereign State.
 The judgment is final, binding on the parties to a case and without appeal (at the most it may be
subject to interpretation or, upon the discovery of a new fact, revision).
 By signing the Charter, a Member State of the United Nations undertakes to comply with the decision
of the Court in any case to which it is a party.
 A State which considers that the other side has failed to perform the obligations incumbent upon it
under a judgment rendered by the Court may bring the matter before the Security Council, which is
empowered to recommend or decide upon measures to be taken to give effect to the judgment.
 The procedure described above is the normal procedure. However, the course of the proceedings may
be modified by incidental proceedings.
 ICJ discharges its duties as a full court but, at the request of the parties, it may also establish ad
hoc chambers to examine specific cases.
 Advisory proceedings before the Court are only open to five organs of the United Nations and 16
specialized agencies of the United Nations family or affiliated organizations.
 Opinions provided by the court in advisory proceedings are essentially advisory and not binding.
Kulbhushan Jadhav Case
 Kulbhushan Jadhav was arrested in March 2016 by Pakistani security forces in Balochistan province
after he reportedly entered from Iran.
 He was sentenced to death by a Pakistani military court on the charges of espionage and terrorism in
April 2017.
 India has always maintained that Kulbhushan Jadhav is not a spy, and that Pakistan should provide
counsellor access to him as his case pertains to abduction from the Iranian territory.
 In May 9, 2018, ICJ has stayed his death sentence after India had moved a petition before the UN body
to seek justice for him, alleging violation of the Vienna Convention on Consular Relations by Pakistan.
 During the latest hearing in the case on February, 2019, India said Pakistan's continued custody of
Indian national Kulbhushan Jadhav without any consular access should be declared "unlawful" as it was
an egregious violation of the Vienna Convention.
 Harish Salve, who is representing India and Kulbhushan Jadhav in the ICJ, said Pakistan was using the
issue of Kulbhushan Jadhav as a "propaganda tool" without even following the due proper procedure.
Limitation on the Functioning of ICJ
 ICJ suffers from certain limitations, these are mainly structural, circumstantial and related to the
material resources made available to the Court.
 It has no jurisdiction to try individuals accused of war crimes or crimes against humanity. As it is not a
criminal court, it does not have a prosecutor able to initiate proceedings.
 It differs from the Courts which deal with allegations of violations of the human rights conventions
under which they were set up, as well as applications from States at which courts can entertain
applications from individuals, that is not possible for the International Court of Justice.
  The jurisdiction of the International Court of Justice is general and thereby differs from that of
specialist international tribunals, such as the International Tribunal for the Law of the Sea (ITLOS).
 The Court is not a Supreme Court to which national courts can turn; it does not act as a court of last
resort for individuals. Nor is it an appeal court for any international tribunal. It can, however, rule on
the validity of arbitral awards.
 The Court can only hear a dispute when requested to do so by one or more States. It cannot deal with
a dispute on its own initiative. Neither is it permitted, under its Statute, to investigate and rule on acts
of sovereign States as it chooses.
 The ICJ only has jurisdiction based on consent, not compulsory jurisdiction.
 It does not enjoy a full separation of powers, with permanent members of the Security Council being
able to veto enforcement of cases, even those to which they consented to be bound.
Way Forward
 The International Court of Justice is endowed with both a privileged institutional status and procedural
instruments whose potential is frequently underestimated.
 The International Court of Justice is a component, not only of the machinery for the peaceful
settlement of disputes created by the Charter but also of the general system for the maintenance of
international peace and security it established.
 The Court’s contribution to the institutional law of the United Nations was threefold. Its jurisprudence
had helped to consolidate the Organization’s role and place in the international legal order by
clarifying its legal status as an international organization and the scope of powers with which it was
entrusted.
 Its decisions had also shed light, within the institution itself, on the functioning and responsibilities of
the Organization’s principal organs and on those functions’ limits.
 Moreover, the Court had pronounced itself in texts adopted by the General Assembly, thereby
strengthening the cooperation in the promotion and development of international peace.
 Recently, the Court had the opportunity to reiterate that finding in its opinion on the Legal
Consequences of the Construction of a Wall in the Occupied Palestinian Territory, which had been
delivered in 2004.
 The Court had recalled that, although the Security Council had primary responsibility for the
maintenance of international peace and security under Article 24 of the Charter, its responsibility was
not exclusive.
 Turning to "Crimes against humanity", while the Rome Statute regulated "vertical relationships"
between the International Criminal Court and its States Parties, it did not prescribe any obligations
regarding adoption of national laws on such crimes or inter-State cooperation.
 The current work would create "horizontal relationships" among States and regulate inter-State
cooperation, strengthening the international community’s efforts to prevent those crimes.
European Union
 09 Apr 2019

 25 min read
Tags:
 GS Paper - 2
 Important International Institutions
The European Union is a group of 28 countries that operate as a cohesive economic and political block.
19 of these countries use EURO as their official currency. 9 EU members (Bulgaria, Croatia, Czech Republic, Denmark,
Hungary, Poland, Romania, Sweden, and the United Kingdom) do not use the euro.
The EU grew out of a desire to form a single European political entity to end centuries of warfare among European
countries that culminated with World War II and decimated much of the continent.
The EU has developed an internal single market through a standardised system of laws that apply in all member
states in matters, where members have agreed to act as one.
Goals
 Promote peace, values and the well-being of all citizens of EU.
 Offer freedom, security and justice without internal borders
 Sustainable development based on balanced economic growth and price stability, a highly competitive
market economy with full employment and social progress, and environmental protection
 Combat social exclusion and discrimination
 Promote scientific and technological progress
  Enhance economic, social and territorial cohesion and solidarity among EU countries
 Respect its rich cultural and linguistic diversity
 Establish an economic and monetary union whose currency is euro.
History
 After World War II, European integration was seen as a cure to the excessive nationalism which had
devastated the continent.
 In 1946 at the University of Zurich, Switzerland, Winston Churchill went further and advocated
the emergence of a United States of Europe.
 In 1952, European Coal and Steel Community (ECSC) was founded under Treaty of Paris (1951) by 6
countries called Six (Belgium, France, Germany, Italy, Luxembourg and the Netherlands) to renounce
part of their sovereignty by placing their coal and steel production in a common market, under it.

o European Court of Justice (called "Court of Justice of the European Communities" until
2009) was also established in 1952 under Paris Treaty.
 European Atomic Energy Community (EAEC or Euratom) is an international organisation established
by the Euratom Treaty (1957) with the original purpose of creating a specialist market for nuclear
power in Europe, by developing nuclear energy and distributing it to its member states while selling
the surplus to non-member states.

o It has same members as the European Union and is governed by the European
Commission (EC) and Council, operating under the jurisdiction of the European Court of
Justice.
 European Economic Community (EEC) was created by the Treaty of Rome (1957). The Community's
initial aim was to bring about economic integration, including a common market and customs union,
among its founding members (Six).

o It ceased to exist by Lisbon Treaty-2007 and its activities were incorporated in EU.
 Merger Treaty (1965, Brussels) in which an agreement was reached to merge the three communities
(ECSC, EAEC, and EEC) under a single set of institutions, creating the European Communities (ECs).

o The Commission and Council of the EEC were to take over the responsibilities of its
counterparts (ECSC, EAEC) in other organisations.
 The ECs initially expanded in 1973 when Denmark, Ireland, the United Kingdom became members.
Greece joined in 1981, Portugal and Spain following in 1986.
 Schengen Agreement (1985) paved the way for the creation of open borders without passport
controls between most member states. It was effective in 1995.
 Single European Act (1986): enacted by the European Community that committed its member
countries to a timetable for their economic merger and the establishment of a single European
currency and common foreign and domestic policies.
 The Maastricht Treaty-1992 (also called the Treaty on European Union) was signed on 7 February
1992 by the members of the European Community in Maastricht, Netherlands to further European
integration. It received a great push with the end of the Cold War.

o European Communities (ECSC, EAEC, and EEC) incorporated as European Union.

o European citizenship was created, allowing citizens to reside in and move freely
between Member States.
o A common foreign and security policy was established.
o Closer cooperation between police and the judiciary in criminal matters was agreed.
o It paved the way for the creation of a single European currency – the euro. It was the
culmination of several decades of debate on increasing economic cooperation in Europe.
o It established the European Central Bank (ECB).
o It enabled people to run for local office and for European Parliament elections in the EU
country they lived in.
 A monetary union was established in 1999 and came into full force in 2002 and is composed of 19 EU
member states which use the euro currency. These are Austria, Belgium, Cyprus, Estonia, Finland,
France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal,
Slovakia, Slovenia, and Spain.
  In 2002, Treaty of Paris (1951) expired & ECSC ceased to exist and its activities fully absorbed by the
European Community (EEC).
 The Treaty of Lisbon 2007:
o European Community (now composed only of EEC, EAEC, as ECSC already ceased in
2002) was ceased and its activities incorporated in EU.
o EAEC is only remaining community organization legally distinct from the European Union
(EU), but has the same membership, and is governed by many of the EU's institutions.
 Euro Crisis: The EU and the European Central Bank (ECB) have struggled with high sovereign debt and
collapsing growth in Portugal, Ireland, Greece and Spain since the global financial market collapse of
2008. Greece and Ireland received financial bailouts from the community in 2009, which were
accompanied by fiscal austerity. Portugal followed in 2011, along with a second Greek bailout.
o Multiple rounds of interest rate cuts and economic stimulus failed to resolve the
problem.
o Northern countries such as Germany, the United Kingdom and the Netherlands
increasingly resent the financial drain from the south.
 In 2012, the EU received the Nobel Peace Prize for having "contributed to the advancement of peace
and reconciliation, democracy, and human rights in Europe.
 Brexit: In 2016, a referendum (called Brexit) was held by U.K. government, and the nation voted to
leave the EU. Now the process is under UK Parliament for formal withdrawal from EU.
Governance
 European Council:

o It is a collective body that defines the European Union's overall political direction and
priorities.
o It comprises of the heads of state or government of the EU member states, along with
the President of the European Council and the President of the European Commission.
o The High Representative of the Union for Foreign Affairs and Security Policy also takes
part in its meetings.
o Established as an informal summit in 1975, the European Council was formalised as an
institution in 2009 upon the entry into force of the Treaty of Lisbon.
o The decisions of its summits are adopted by consensus.
 European Parliament: It is the only parliamentary institution of the European Union (EU) that
is directly elected by EU citizens aged 18 years or older. Together with the Council of the European
Union (also known as the 'Council'), it exercises the legislative function of the EU.

o European Parliament does not possess as much legislative power as its member
countries’ parliaments do.
 Council of the European Union: It is part of the essentially bicameral EU legislature (the other
legislative body being the European Parliament) and represents the executive governments (Minister)
of the EU's member states.

o In the Council, government ministers from each EU country meet to discuss, amend and
adopt laws, and coordinate policies. The ministers have the authority to commit their
governments to the actions agreed on in the meetings.
 European Commission (EC): It is an executive body of the European Union, responsible for proposing
legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business
of the EU.

o The Commission operates as a cabinet government, with 28 members of the

Commission. There is one member per member state. These members are proposed by
member countries and European Parliament gives final approval on them.
o One of the 28 members is the Commission President proposed by the European Council
and elected by the European Parliament.
o The Commission is divided into departments known as Directorates-General (DGs) that
can be likened to departments or ministries is headed by a director-general who is
responsible to a commissioner.
 o High Representative (HR) of the Union for Foreign Affairs and Security Policy is
appointed by the European Council by voting and The President of the EC must be in
agreement with the decision. HR is charged with shaping and carrying out the EU's
foreign, security and defence policies.
 European Court of Auditors (ECA): It investigates the proper management of finances within both the
EU entities and EU funding provided to its member states.

o It can refer unresolved issues to the European Court of Justice to arbitrate on any alleged
irregularities.
o ECA members are appointed by the Council, after consulting the Parliament, for
renewable 6-year terms.
 The Court of Justice of the European Union (CJEU): It interprets EU law to make sure it is applied in
the same way in all EU countries, and settles legal disputes between national governments and EU
institutions.

o It can also be approached by individuals, companies or organisations to take action

against an EU institution, if they feel their rights are infringed under EU system.
o Each judge and advocate general is appointed jointly by national
governments (member country).
o It is located in Luxembourg.
 The European Central Bank (ECB): It is the central bank for the euro and administers monetary policy
within the Euro zone, which comprises 19 member states of the European Union.

o Governing Council – It is the main decision-making body of ECB. It consists of the

Executive Board plus the governors of the national central banks from euro zone
countries.
o Executive Board – It handles the day-to-day running of the ECB. It consists of the ECB
President and Vice-President and 4 other members appointed by national governments
of euro zone countries.
o Sets the interest rates at which it lends to commercial banks in the euro zone, thus
controlling money supply and inflation.
o Authorises production of euro banknotes by euro zone countries.
o Ensures the safety and soundness of the European banking system.
o It is located in Frankfurt (Germany).
 The European system of financial supervision (ESFS): It was introduced in 2010. It consists of:

o the European Systemic Risk Board (ESRB)

o 3 European supervisory authorities (ESAs):
 the European Banking Authority (EBA)
 the European Securities and Markets Authority (ESMA)
 the European Insurance and Occupational Pensions Authority (EIOPA)
Functions
 EU’s law and regulation is meant to create a cohesive economic entity of its countries, so that goods
can flow freely across the borders of its member nations, without tariffs, with the ease of one
currency, and the creation of one enlarged labour pool, which creates a more efficient distribution
and use of labour.
 There is a pooling of financial resources, so that member nations can be "bailed out" or lent money for
investment.
 Union's expectations in areas such as human rights and the environment have political
implications for member countries. Union can exact a heavy political cost such as severe cutbacks and
an austerity budget on its members as a condition of giving aid.
 This is a great experiment, really, in cooperation amongst nations, who wish to be economically
unified, ceding as little political and national power as possible.
 Trade
 o Free trade among its members was one of the EU's founding principles. This is possible
thanks to the single market. Beyond its borders, the EU is also committed to liberalising
world trade.
o The European Union is the largest trade block in the world. It is the world's biggest
exporter of manufactured goods and services, and the biggest import market for over
100 countries.
 Humanitarian aid

o The EU is committed to helping victims of man-made and natural disasters worldwide

and supports over 120 million people each year.
o EU and its constituent countries is the world's leading donor of humanitarian aid.
 Diplomacy and security

o The EU plays an important role in diplomacy and works to foster stability, security and
prosperity, democracy, fundamental freedoms and the rule of law at international level.
Challenges & Reforms
 It is no longer self-evident that all old member states will stay in the Union. The Treaty of Lisbon gave
the members the right to leave the EU. The financial crisis has hit Greece so hard that many people
have predicted for a long time that the country will exit from the Union.
 Layoffs, redundancies and migration of jobs to countries where labour is cheap affect the daily lives of
European citizens. The EU is expected to find solutions to economic problems and employment.
 There is also demand for standard labour agreements on terms of employment and working
conditions that would apply across Europe and even worldwide. As a member of the World Trade
Organisation, the European Union is in a position to influence developments worldwide.
 EU is a global leader in the development of Key Enabling Technologies (KETs). However, EU’s record in
translating this knowledge advantage into marketable products and services doesn't match this. KETs-
related manufacturing is decreasing in the EU and patents are increasingly being exploited outside the
EU.
 Europe is experiencing a renaissance of national sovereignty supported by a nationalistic turn of
public opinion and represented by parties on both ends of the political spectrum. Popular disaffection
toward EU membership is fuelled by the contemporaneous occurrence of two shocks, the economic
and the migration crises.
 USA, by withdrawing from the Paris climate change deal, by pulling out of the Joint Comprehensive
Plan of Action (JCPOA) on Iran’s nuclear programme, and by attacking the integrity of the
international trading system through the unilateral imposition of tariffs, has called into question
Europeans’ formerly unshakeable faith in diplomacy as a way to resolve disagreements and to protect
Europe.
 European leaders now fear that the transatlantic security guarantee will centre not on alliances and
common interests but purchases of American technology and materiel.
 Like the United States, the EU has been forced to reconsider its relationship with a more assertive
Russia with implications for European security and stability. The EU has sought to support Ukraine's
political transition, condemned Russia's annexation of Crimea in March 2014, and strongly urged
Russia to stop backing separatist forces in eastern Ukraine.

o Democratic regression in Ukraine combined with a hardening attitude in Moscow

imposes constraints on the Ukrainian government’s freedom of maneuver in pursuing its
European Union membership.
 Brexit: EU has imposed too many rules on business and charged billions of pounds a year in
membership fees for little in return.

o The EU added eight eastern European countries in 2004, triggering a wave of

immigration that strained public services. In England and Wales, the share of foreign-
born residents had swelled to 13.4 percent of the population by 2011, roughly double
the level in 1991.
o Brexit supporters wanted Britain to take back full control of its borders and reduce the
number of people coming here to live and/or work.
 o They argued that the EU is morphing into a super-state that increasingly impinges on
national sovereignty. Britain has global clout without the bloc, they said, and can
negotiate better trade treaties on its own.
o Withdrawal from the EU is governed by Article 50 of the Treaty on European Union.
o A deal between UK & EU that gives it control over immigration and also preferential
access to the EU’s tariff-free single market of 500 million people (UK), the economic
backbone of the world’s largest trading bloc is rejected by Germany & other EU leaders.
EU & India
 The EU works closely with India to promote peace, create jobs, boost economic growth and enhance
sustainable development across the country.
 As India graduated from low to medium income country (OECD 2014), the EU-India cooperation also
evolved from a traditional financial assistance type towards a partnership with a focus on common
priorities.
 At the 2017 EU-India Summit, leaders reiterated their intention to strengthen cooperation on the
implementation of the 2030 Agenda for Sustainable Development and agreed to explore the
continuation of the EU-India Development Dialogue.
 The EU is India's largest trading partner, accounting for €85 billion (95 billion USD) worth of trade in
goods in 2017 or 13.1% of total India trade, ahead of China (11.4%) and the USA (9.5%).
 The EU's share in foreign investment inflows to India has more than doubled from 8% to 18% in the
last decade, making the EU the first foreign investor in India.
 EU foreign direct investment stocks in India amounted to €73 billion in 2016, which is significant but
way below EU foreign investment stocks in China (€178 billion).
 INDIA-EU Bilateral Trade and Investment Agreement (BTIA): It is a Free Trade Agreement between
India and EU, which was initiated in 2007. Even after a decade of negotiations, India and EU have failed
to resolve certain issues which have led to a deadlock.

o "Data Secure" status not granted by EU affecting prospects of India’s IT-enabled exports.
o Presence of non-tariff barriers on Indian agricultural products in the form of sanitary
and phyto-sanitary(SPS) measures which are too stringent and enable the EU to bar
many Indian agricultural products from entering its markets.
o EU wants India to liberalise accountancy and legal services. India denies on the ground
of already shortage of jobs.
o EU demands tax reduction on wines and spirits but in India these are regarded as ‘sin
goods’ and the states which derive huge revenue from liquor sales would be reluctant to
cut taxes.
o Reduction of taxes on automobiles not acceptable to India as its own automobile
industry would not be able to match the competition from EU automobiles.
o India has rejected an informal attempt by the European Union (EU) to work towards
a global investment agreement at the World Trade Organisation (WTO)-level that would
incorporate a contentious Investor-State Dispute Settlement (ISDS) mechanism which
will allow corporations to take sovereign governments to international arbitration. The
ISDS mechanism permits companies to drag governments to international
arbitration without exhausting the local remedies and claim huge amounts as
compensation citing losses they suffered due to reasons, including policy changes.
o The non-tariff barriers in pharmaceuticals that EU has imposed include requirement of
WTO—Good Manufacturing Practice certification, import bans, antidumping measures
and pre-shipment inspection among others.
o India has cancelled most individual bilateral investment agreements with EU member
states on grounds that they were outdated. By doing this India is putting pressure on EU
to sign BTIA on favouring terms.
Conclusion
Evolution of EU has roots in looking for an integration of divided Europe because of excessive nationalism over a long
period of time which also witnessed two world wars. It has played an important role in improving economic
conditions and raising living standard of people in weaker members of group.

International Monetary Fund (IMF)

 Star marking (1-5) indicates the importance of topic for CSE
 26 Mar 2019

 19 min read
Tags:
 GS Paper - 3
 Important International Institutions
The International Monetary Fund (IMF) is an organization of 189 member countries, each of which has
representation on the IMF's executive board in proportion to its financial importance, so that the most powerful
countries in the global economy have the most voting power.
Objective
 Foster global monetary cooperation
 Secure financial stability
 Facilitate international trade
 Promote high employment and sustainable economic growth
 And reduce poverty around the world
History
 The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, New
Hampshire, United States, in July 1944.
 The 44 countries at that conference sought to build a framework for economic cooperation to avoid a
repetition of the competitive devaluations that had contributed to the Great Depression of the 1930s.
 Countries were not eligible for membership in the International Bank for Reconstruction and
Development (IBRD) unless they were members of the IMF.
 IMF, as per Bretton Woods agreement to encourage international financial cooperation, introduced a
system of convertible currencies at fixed exchange rates, and replaced gold with the U.S. dollar (gold at
$35 per ounce) for official reserve.
 After the Bretton Woods system (system of fixed exchange rates) collapsed in the 1971, the IMF has
promoted the system of floating exchange rates. Countries are free to choose their exchange
arrangement, meaning that market forces determine the value of currencies relative to one
another. This system continues to be in place today.
 During 1973 oil crisis, IMF estimated that the foreign debts of 100 oil-importing developing countries
increased by 150% between 1973 and 1977, complicated further by a worldwide shift to floating
exchange rates. IMF administered a new lending program during 1974–1976 called the Oil Facility.
Funded by oil-exporting nations and other lenders, it was available to nations suffering from acute
problems with their balance of trade due to the rise in oil prices.
 IMF was one of the key organisations of the international economic system; its design allowed the
system to balance the rebuilding of international capitalism with the maximisation of national
economic sovereignty and human welfare, also known as embedded liberalism.
 The IMF played a central role in helping the countries of the former Soviet bloc transition from central
planning to market-driven economies.
 In 1997, a wave of financial crises swept over East Asia, from Thailand to Indonesia to Korea and
beyond. The International Monetary Fund created a series of bailouts (rescue packages) for the most-
affected economies to enable them to avoid default, tying the packages to currency, banking and
financial system reforms.
 Global Economic Crisis (2008): IMF undertook major initiatives to strengthen surveillance to respond
to a more globalized and interconnected world. These initiatives included revamping the legal
framework for surveillance to cover spill-overs (when economic policies in one country can affect
others), deepening analysis of risks and financial systems, stepping up assessments of members’
external positions, and responding more promptly to concerns of the members.
Functions
 Provides Financial Assistance: To provide financial assistance to member countries with balance of
payments problems, the IMF lends money to replenish international reserves, stabilize
currencies and strengthen conditions for economic growth. Countries must embark on structural
adjustment policies monitored by the IMF.
 IMF Surveillance: It oversees the international monetary system and monitors the economic and
financial policies of its 190 member countries. As part of this process, which takes place both at the
 global level and in individual countries, the IMF highlights possible risks to stability and advises on
needed policy adjustments.
 Capacity Development: It provides technical assistance and training to central banks, finance
ministries, tax authorities, and other economic institutions. This helps countries raise public revenues,
modernize banking systems, develop strong legal frameworks, improve governance, and enhance the
reporting of macroeconomic and financial data. It also helps countries to make progress towards
the Sustainable Development Goals (SDGs).
Governance
 Board of Governors: It consists of one governor and one alternate governor for each member country.
Each member country appoints its two governors.
o It is responsible for electing or appointing executive directors to the Executive Board.
o Approving quota increases, Special Drawing Right allocations,
o Admittance of new members, compulsory withdrawal of member,
o Amendments to the Articles of Agreement and By-Laws.
o Board of Governors is advised by two ministerial committees, the International
Monetary and Financial Committee (IMFC) and the Development Committee.
o Boards of Governors of the IMF and the World Bank Group normally meet once a year,
during the IMF–World Bank Annual Meetings, to discuss the work of their respective
institutions.
 Ministerial Committees: The Board of Governors is advised by two ministerial committees,
o International Monetary and Financial Committee (IMFC): IMFC has 24 members, drawn
from the pool of 190 governors, and represents all member countries.
 It discusses the management of the international monetary and financial
system.
 It also discusses proposals by the Executive Board to amend the Articles of
Agreement.
 And any other matters of common concern affecting the global economy.
o Development Committee: is a joint committee(25 members from Board of Governors
of IMF & World Bank), tasked with advising the Boards of Governors of the IMF and the
World Bank on issues related to economic development in emerging market and
developing countries.
 It serves as a forum for building intergovernmental consensus on critical
development issues.
 Executive Board: It is 24-member Executive Board elected by the Board of Governors.
o It conducts the daily business of the IMF and exercises the powers delegated to it by the
Board of Governors & powers conferred on it by the Articles of Agreement.
o It discusses all aspects of the Fund’s work, from the IMF staff's annual health checks of
member countries' economies to policy issues relevant to the global economy.
o The Board normally makes decisions based on consensus, but sometimes formal votes
are taken.
o Votes of each member equal the sum of its basic votes (equally distributed among all
members) and quota-based votes. A member’s quota determines its voting power.
 IMF Management: IMF’s Managing Director is both chairman of the IMF’s Executive Board and head
of IMF staff. The Managing Director is appointed by the Executive Board by voting or consensus.
 IMF Members: Any other state, whether or not a member of the UN, may become a member of the
IMF in accordance with IMF Articles of Agreement and terms prescribed by the Board of Governors.
o Membership in the IMF is a prerequisite to membership in the IBRD.
o Pay a quota subscription: On joining the IMF, each member country contributes a
certain sum of money, called a quota subscription, which is based on the country’s
wealth and economic performance (Quota Formula).
 It is a weighted average of GDP (weight of 50 percent)
 Openness (30 percent),
 Economic variability (15 percent),
 International reserves (5 percent).
  GDP of member country is measured through a blend of GDP—based on
market exchange rates (weight of 60 percent) and on PPP exchange rates
(40 percent).
 Special Drawing Rights (SDRs) is the IMF’s unit of account and not a
currency.
1. The currency value of the SDR is determined by summing the
values in U.S. dollars, based on market exchange rates, of a SDR
basket of currencies
2. SDR basket of currencies includes the U.S. dollar, Euro, Japanese
yen, pound sterling and the Chinese renminbi (included in
2016).
3. The SDR currency value is calculated daily (except on IMF
holidays or whenever the IMF is closed for business) and the
valuation basket is reviewed and adjusted every five years.
 Quotas are denominated (expressed) in SDRs.
 SDRs represent a claim to currency held by IMF member countries for
which they may be exchanged.
o Members’ voting power is related directly to their quotas (the amount of money they
contribute to the institution).
o IMF allows each member country to choose its own method of determining the
exchange value of its money. The only requirements are that the member no longer base
the value of its currency on gold (which has proved to be too inflexible) and inform other
members about precisely how it is determining the currency’s value.
IMF and India
 International regulation by IMF in the field of money has certainly contributed towards expansion of
international trade. India has, to that extent, benefitted from these fruitful results.
 Post-partition period, India had serious balance of payments deficits, particularly with the dollar and
other hard currency countries. It was the IMF that came to her rescue.
 The Fund granted India loans to meet the financial difficulties arising out of the Indo–Pak conflict of
1965 and 1971.
 From the inception of IMF up to March 31, 1971, India purchased foreign currencies of the value of Rs.
817.5 crores from the IMF, and the same have been fully repaid.
 Since 1970, the assistance that India, as other member countries of the IMF, can obtain from it has
been increased through the setting up of the Special Drawing Rights (SDRs created in 1969).
 India had to borrow from the Fund in the wake of the steep rise in the prices of its imports, food, fuel
and fertilizers.
 In 1981, India was given a massive loan of about Rs. 5,000 crores to overcome foreign exchange crisis
resulting from persistent deficit in balance of payments on current account.
 India wanted large foreign capital for her various river projects, land reclamation schemes and for the
development of communications. Since private foreign capital was not forthcoming, the only
practicable method of obtaining the necessary capital was to borrow from the International Bank for
Reconstruction and Development (i.e. World Bank).
 India has availed of the services of specialists of the IMF for the purpose of assessing the state of the
Indian economy. In this way India has had the benefit of independent scrutiny and advice.
 The balance of payments position of India having gone utterly out of gear on account of the oil price
escalation since October 1973, the IMF has started making available oil facility by setting up a special
fund for the purpose.
 Early 1990s when foreign exchange reserves – for two weeks’ imports as against the generally
accepted 'safe minimum reserves' of three month equivalent — position were terribly unsatisfactory.
Government of India's immediate response was to secure an emergency loan of $2.2 billion from the
International Monetary Fund by pledging 67 tons of India's gold reserves as collateral security. India
promised IMF to launch several structural reforms (like devaluation of Indian currency, reduction in
budgetary and fiscal deficit, cut in government expenditure and subsidy, import liberalisation,
industrial policy reforms, trade policy reforms, banking reforms, financial sector reforms, privatization
of public sector enterprises, etc.) in the coming years.
 The foreign reserves started picking up with the onset of the liberalisation policies.
  India has occupied a special place in the Board of Directors of the Fund. Thus, India had played
a creditable role in determining the policies of the Fund. This has increased the India’s prestige in the
international circles.
IMF‘s Criticism
 IMF’s governance is an area of contention. For decades, Europe and the United States have
guaranteed the helm of the IMF to a European and that of the World Bank to an American. The
situation leaves little hope for ascendant emerging economies that, despite modest changes in 2015,
do not have as large an IMF voting share as the United States and Europe.
 Conditions placed on loans are too intrusive and compromise the economic and political sovereignty
of the receiving countries. 'Conditionality' refers to more forceful conditions, ones that often turn the
loan into a policy tool. These include fiscal and monetary policies, including such issues as banking
regulations, government deficits, and pension policy. Many of these changes are simply politically
impossible to achieve because they would cause too much domestic opposition.
 IMF imposed the policies on countries without understanding the distinct characteristics of the
countries that made those policies difficult to carry out, unnecessary, or even counter-productive.
 Policies were imposed all at once, rather than in an appropriate sequence. IMF demands that
countries it lends to privatize government services rapidly. It results in a blind faith in the free market
that ignores the fact that the ground must be prepared for privatization.
IMF Reforms
 IMF Quota: a member can borrow up to 200 percent of its quota annually and 600 percent
cumulatively. However, access may be higher in exceptional circumstances.
 IMF quota simply means more voting rights and borrowing permissions under IMF. But it is
unfortunate that IMF Quota’s formula is designed in such a way that USA itself has 17.7% quota which
is higher than cumulative of several countries. The G7 group contains more than 40% quota where as
countries like India & Russia have only 2.5% quota in IMF.
 Due to discontent with IMF, BRICS countries established a new organization called BRICS bank
to reduce the dominance of IMF or World Bank and to consolidate their position in the world as BRICS
countries accounts for 1/5th of WORLD GDP and 2/5th of world population.
 It is almost impossible to make any reform in the current quota system as more than 85% of total
votes are required to make it happen. The 85% votes does not cover 85% countries but countries
which have 85% of voting power and only USA has voting share of around 17% which makes it
impossible to reform quota without consent of developed countries.
 2010 Quota Reforms approved by Board of Governors were implemented in 2016 with delay because
of reluctance from US Congress as it was affecting its share.
 Combined quotas (or the capital that the countries contribute) of the IMF increased to a combined SDR
477 billion (about $659 billion) from about SDR 238.5 billion (about $329 billion). It increased 6%
quota share for developing countries and reduced same share of developed or over represented
countries.
 More representative Executive Board: 2010 reforms also included an amendment to the Articles of
Agreement established an all-elected Executive Board, which facilitates a move to a more
representative Executive Board.
 The 15th General Quota Review (in process) provides an opportunity to assess the appropriate size and
composition of the Fund’s resources and to continue the process of governance reforms.
World Bank Group
 12 Mar 2019

 25 min read
Tags:
 GS Paper - 2
 Important International Institutions
 International Treaties & Agreements
 Effect of Policies & Politics of Countries on India's Interests
 Groupings & Agreements Involving India and/or Affecting India's Interests
 With 189 member countries, the World Bank Group is a unique global partnership: five
institutions working for sustainable solutions that reduce poverty and build shared prosperity in
developing countries.
  The Bank Group works with country governments, the private sector, civil society organizations,
regional development banks, think tanks, and other international institutions on issues ranging from
climate change, conflict, and food security to education, agriculture, finance, and trade.
A Group of Institutions
Together, the International Bank for Reconstruction and Development (IBRD) and International Development
Association (IDA) form the World Bank, which provides financing, policy advice, and technical assistance to
governments of developing countries. While the World Bank Group consists of five development institutions.
 International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants.
 International Development Association (IDA) provides low- or no-interest loans to low-income
countries.
 The International Finance Corporation (IFC) provides investment, advice, and asset management to
companies and governments.
 The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as
war.
 The International Centre for the Settlement of Investment Disputes (ICSID) settles investment-
disputes between investors and countries.
All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared
prosperity of the poorest 40% of the population in all countries.
History
 The Bretton Woods Conference, officially known as the United Nations Monetary and Financial
Conference, was a gathering of delegates from 44 nations that met from July 1 to 22, 1944 in Bretton
Woods, New Hampshire (USA), to agree upon a series of new rules for international financial and
monetary order after the conclusion of World War II.
 The two major accomplishments of the conference were the creation of the International Bank for
Reconstruction and Development (IBRD) and International Monetary Fund (IMF).
 Founded in 1944, the International Bank for Reconstruction and Development (IBRD) — soon called
the World Bank — has expanded to a closely associated group of five development institutions.
 Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted
from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical
grids, irrigation systems, and roads.
 With the founding of the International Finance Corporation (IFC) in 1956, the institution became able
to lend to private companies and financial institutions in developing countries.
 Founding of the International Development Association (IDA) in 1960 put greater emphasis on
the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank
Group’s primary goal.
 International Centre for Settlement of Investment Disputes (ICSID) founded
in 1966 settles investment disputes between investors and countries.
 Multilateral Investment Guarantee Agency (MIGA) founded in 1988 insures lenders and investors
against political risk such as war.
International Bank for Reconstruction and Development (IBRD)
 Following the recovery from World War II, the International Bank of Reconstruction and Development
broadened its mandate to increasing global economic growth and eliminating poverty.
 The Bank only finances sovereign governments directly or projects backed by sovereign governments.
 Today, the IBRD focuses its services on middle-income countries or countries where the per capita
income ranges from $1,026 to $12,475 per year. These countries, like Indonesia, India, and Thailand,
are often home to fast-growing economies that attract a lot of foreign investment and large
infrastructure building projects.
 At the same time, middle-income countries are home to 70% of the world’s poor people, as the
benefits of this economic growth are unevenly distributed across their populations.
 Governance of IBRD:
o IBRD Boards of Governors: The Boards of Governors consist of one Governor and one
Alternate Governor appointed by each member country. The office is usually held by the
country's minister of finance, governor of its central bank. The Board of Governors
delegates most of its authority over daily matters such as lending and operations to the
Board of Directors.
o IBRD Board of Directors: The Board of Directors consists of currently 25 executive
directors and is chaired by the President of the World Bank Group. Executive Directors
 are appointed or elected by the Governors. Executive Directors select the World Bank
President, who is the Chairman of the Board of Directors. Executive Directors
are authorised for daily matters such as lending and operations.
 IBRD raises most of its funds in the world's financial markets. This has allowed it to provide more
than $500 billion in loans to alleviate poverty around the world since 1946, with its shareholder
governments paying in about $14 billion in capital.
 IBRD has maintained a triple-A rating since 1959. This high credit rating allows it to borrow at low
cost and offer middle-income developing countries access to capital on favourable terms — helping
ensure that development projects go forward in a more sustainable manner.
 IBRD earns income every year from the return on its equity and from the small margin it makes on
lending. This pays for World Bank operating expenses, goes into reserves to strengthen the balance
sheet, and provides an annual transfer of funds to IDA, the fund for the poorest countries.
International Finance Corporation (IFC)
 IFC is the largest global development institution focused exclusively on the private sector in
developing countries. The Bank Group has set two goals for the world to achieve by 2030: end
extreme poverty and promote shared prosperity in every country.
 It is a private-sector arm of the World Bank Group, to advance economic development by investing in
for-profit and commercial projects for poverty reduction and promoting development.
 IFC is also a leading mobilizer of third-party resources for projects.
 Governance of IFC
o IFC Boards of Governors: The Boards of Governors consist of one Governor and one
Alternate Governor appointed by each member country. The office is usually held by the
country's minister of finance, governor of its central bank. The Board of Governors
delegates most of its authority over daily to the Board of Directors.
o IFC Board of Directors: The Board of Directors consists of executive directors and is
chaired by the President of the World Bank Group. Executive Directors are appointed or
elected by the Governors. Voting power on issues brought before them is weighted
according to the share capital each director represents. The directors meet regularly to
review and decide on investments and provide overall strategic guidance to IFC
management.
 IFC raises virtually all funds for lending activities through the issuance of debt obligations in
international capital markets. Our borrowings are diversified by country, currency, source, and
maturity in order to provide flexibility and cost-effectiveness.
 Since first being rated in 1989, IFC has been rated triple-A every year by Standard and Poor's and by
Moody's. Our high credit rating is essential for maintaining our ability to access markets globally and to
maintain our low cost of funding.
 IFC makes loans to businesses and private projects generally with maturities of seven to twelve years.
It determines a suitable repayment schedule and grace period for each loan individually to meet
borrowers' currency and cash flow requirements. It may provide longer-term loans or extend grace
periods if a project is deemed to warrant it.
 It does not have a policy of uniform interest rates for its investments. The interest rate is to be
negotiated in each case in the light of all relevant factors, including the risks involved and any right
to participation in profits, etc.
 Through its Global Trade Finance Program, the IFC guarantees trade payment obligations of more
than 200 approved banks in over 80 countries to mitigate risk for international transactions. The
Global Trade Finance Program provides guarantees to cover payment risks for emerging market
banks regarding promissory notes, bills of exchange, letters of credit, bid and performance
bonds, supplier credit for capital goods imports, and advance payments.
 IFC attempts to guide businesses toward more sustainable practices particularly with regards to
having good governance, supporting women in business, and proactively combating climate change.
International Development Association (IDA)
 IDA is the part of the World Bank that helps the world’s poorest countries. Overseen by 173
shareholder nations, IDA aims to reduce poverty by providing loans (called “credits”) and grants for
programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
 IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in
Africa, and is the single largest source of donor funds for basic social services in these countries.
  IDA supports a range of development activities that pave the way toward equality, economic growth,
job creation, higher incomes, and better living conditions. IDA's work covers primary education,
basic health services, clean water and sanitation, agriculture, business climate improvements,
infrastructure, and institutional reforms.
 Governance of IDA:
o IDA Boards of Governors: The Boards of Governors consist of one Governor and one
Alternate Governor appointed by each member country. The office is usually held by the
country's minister of finance, governor of its central bank. The Board of Governors
delegates most of its authority over daily matters such as lending and operations to the
Board of Directors.
o IDA Board of Directors: The Board of Directors consists of executive directors and is
chaired by the President of the World Bank Group. Executive Directors are appointed or
elected by the Governors.
 IDA lends money on concessional terms. This means that IDA credits have a zero or very low-interest
charge and repayments are stretched over 30 to 38 years, including a 5- to 10-year grace period. IDA
also provides grants to countries at risk of debt distress.
 To borrow from the IDA's concessional lending programs, a country's gross national income (GNI) per
capita must not exceed $ 1,145 (the fiscal year 2019).
 IDA also provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC)
Initiative and the Multilateral Debt Relief Initiative (MDRI).
International Centre for Settlement of Investment Disputes (ICSID)
 ICSID was established in 1966 by the Convention on the Settlement of Investment Disputes between
States and Nationals of Other States (the ICSID Convention). The ICSID Convention is a multilateral
treaty formulated by the Executive Directors of the World Bank to further the Bank’s objective of
promoting international investment.
 States have agreed on ICSID as a forum for investor-State dispute settlement in most international
investment treaties and in numerous investment laws and contracts.
 Bilateral investment treaties (BITs) are proliferating, many such treaties contain text
that refers present and future investment disputes to the ICSID.
 ICSID provides for settlement of disputes by conciliation, arbitration or fact-finding.
 Governance of ICSID
o Administrative Council:
 One representative of each Member State, and one vote per State.
 Adopts ICSID arbitration, conciliation and fact-finding rules.
 Adopts an annual budget and approves annual report.
 Elects Secretary-General and Deputy Secretaries-General.
 Each State designates persons to a list of arbitrators and conciliators.
o Secretariat:
 Led by Secretary-General. Provides technical and administrative support to
proceedings.
 Offers training and technical assistance to governments and the public.
 Contributes to the development of investment law through publishing and
outreach.
o ICSID Panel of Arbitrators and Panel of Conciliators:
 Each ICSID Member State may designate four persons to each Panel.
o Conciliation Commission or Arbitral Tribunal: an Arbitral tribunal or Conciliation
Commission is constituted by Secretary-General. In most instances, the tribunals consist
of three arbitrators: one appointed by the investor, another appointed by the
State, and the third, presiding arbitrator appointed by agreement of both parties.
 Each case is considered by an independent Conciliation Commission or Arbitral Tribunal, after hearing
evidence and legal arguments from the parties. A dedicated ICSID case team is assigned to each case
and provides expert assistance throughout the process.
 An ICSID award according to Article 53 of the ICSID Convention is final and binding and immune from
appeal or annulment, other than as provided in the ICSID Convention.
Multilateral Investment Guarantee Agency (MIGA)
  MIGA is a member of the World Bank Group and its mandate is to promote cross-border investment in
developing countries by providing guarantees (political risk insurance and credit enhancement) to
investors and lenders.
 MIGA was created to complement public and private sources of investment insurance against non-
commercial risks (currency inconvertibility and transfer restriction; government expropriation; war,
terrorism, and civil disturbance; breaches of contract; and the non-honouring of financial obligations)
in developing countries.
 MIGA convention that defined its core mission was submitted to the Board of Governors of the
IBRD in 1985 and went into establishing MIGA as the newest member of the World Bank Group in
1988.
 The Convention can be amended by the Council of Governors of MIGA.
 The agency opened for business as a legally separate and financially independent entity. Membership
was open to all IBRD members.
 Governance of MIGA
o Council of Governors: MIGA is governed by its Council of Governors which represents its
member countries. The Council of Governors holds corporate authority, but primarily
delegates such powers to MIGA's Board of Directors.
o MIGA Board of Directors: The Board of Directors consists of directors and votes on
matters brought before MIGA. Each director's vote is weighted in accordance with the
total share capital of the member nations that the director represents.
 MIGA aims to promote foreign direct investment into developing countries to support economic
growth, reduce poverty and improve people’s lives.
World Bank Group Membership
 To become a member of the Bank, under the IBRD Articles of Agreement, a country must first join the
International Monetary Fund (IMF).
 Membership in IDA, IFC, and MIGA are conditional on membership in IBRD.
 Membership in ICSID is available to IBRD members, and those which are a party to the Statute of the
International Court of Justice (ICJ), on the invitation of the ICSID Administrative Council by a vote of
two-thirds of its members.
World Bank Group and India
 India was one of the forty-four original signatories to the agreements reached at Bretton Woods that
established the International Bank for Reconstruction and Development (IBRD) and the International
Monetary Fund (IMF).
 It was also one of the founding members of the IFC in 1956 and the IDA in 1960. India later became a
member of the MIGA in January 1994.
 India is not a member of ICSID. India claimed ICSID Convention is not fair, convention's rules for
arbitration leaned towards the developed countries. In ICSID, the Chairman of the Centre is the
Chairman of the World Bank. The Chairman appoints the arbitrators. If the arbitration award is not
satisfactory, then the aggrieved party would appeal to a panel, which will also be constituted by the
ICSID. There is no scope for a review of the award by an Indian court, even if the award is
against public interest.
 IBRD lending to India commenced in 1949 with a loan to the Indian railways; the first investment by
the IFC in India took place in 1959, and by IDA in 1961 (a highway construction project).
 During the 1950s, the IBRD was India's sole source of World Bank borrowings.
 By the end of the decade, India's mounting debt problems became an important factor in the launch of
the IDA, the soft loan affiliate of the World Bank (WB) group.
 By the end of the 1960s, the United States, until then India's largest source of external resources,
sharply cut its bilateral aid program. Since then, the WB emerged as the most important source of
official long-term finance.
 During the 1960s and 1970s, the IDA accounted for nearly three-fourths of all WB lending to India and,
in turn, India was by far the largest recipient of IDA funds, accounting for more than two-fifths of all its
lending.
 The subsequent decade, with China joining the WB in 1980 and accordingly entering its own claims to
limited IDA resources, the worsening economic fortunes of Africa, and India's better performance, saw
a sharp decline in India's share in IDA.
  Instead, its share of IBRD lending grew sharply in the 1980s, buoyed by its improving credit-
worthiness and the Indian government's waning inhibitions with regard to non-concessional
borrowing.
 During the 1980s, while the WB shifted its emphasis to stress policy reforms and greater economic
liberalization, it continued to lend to poorly governed public sector institutions in India and was
muted in its criticism of India's closed economy.
 The lending portfolio changed sharply after the 1991 macroeconomic crisis. In the immediate
aftermath, India became one of the last important WB borrowers to partake of structural adjustment
lending, which supported policy reforms in finance, taxation, and the investment and trade regime.
 India is currently classified as a “blend” country — defined as one in transition from lower middle-
income to middle-income — and is creditworthy for lending from both IDA and IBRD.
 India is the largest IBRD client of the World Bank. Between 2015 and 2018, the World Bank lent around
$10.2 billion to India.
 The World Bank Group (WBG) has approved a $25-30 billion commitment plan for India for the period
2019-22.
 MIGA Performance Standards are environmental and social standards which help to structure and
implement sustainable projects. For Indian market, one of the options is a breach of contract
insurance which MIGA would offer to investors. In case the government doesn’t perform its
obligation, under the contract arrangement, then MIGA can come and cover that risk for investment.
World Bank Reforms
 Some critics have pointed out that the World Bank really caters to the agenda of World Capitalism in
the garb of its “Structural Adjustment Programme’ (SAP) and continues to be dominated by rich
countries. SAP is a set of "free market" economic policy reforms imposed on developing countries by
the World Bank as a condition for receipt of loans.
 It is argued SAP policies have increased the gap between rich and poor in both local and global terms.
 The emerging new economic powers, particularly India and China, and some other Asian and Latin
American countries of the world should be given due place and role..
 The leadership succession debate should be used to create space for reflection on the purpose of the
multilateral body, the substantive role it should play in the future, the need to strengthen inclusive
multilateralism, and the actions needed to bolster the position of emerging economies and
developing countries.
 Failure of World Bank to adapt to the changing world order may see rising economies going their own
way.
o Eg. Establishment of the Asia Infrastructure Investment Bank (AIIB) by China.
o Such a development would signify the emergence of multi-polarity without
multilateralism, and create a climate of conflicting interests and values among a diverse
group of countries.
 Deep reforms of the World Bank are necessary as part of rethinking the current world order, and giving
rising powers and developing countries a meaningful voice in this institution.
BRICS
 22 Jan 2019

 13 min read
Tags:
 GS Paper - 2
 Important International Institutions
 International Treaties & Agreements
 Groupings & Agreements Involving India and/or Affecting India's Interests
 Regional Groupings
 BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil,
Russia, India, China and South Africa.
 The BRICS Leaders’ Summit is convened annually.
Structure
 BRICS does not exist in form of organization, but it is an annual summit between the supreme leaders
of five nations.
 The Chairmanship of the forum is rotated annually among the members, in accordance with the
acronym B-R-I-C-S.
  BRICS cooperation in the past decade has expanded to include an annual programme of over 100
sectoral meetings.
Salient Features
 Together, BRICS accounts for about 40% of the world’s population and about 30% of the GDP (Gross
Domestic Product), making it a critical economic engine.
 It’s an emerging investment market and global power bloc.
Genesis
 The acronym "BRICS" was initially formulated in 2001 by economist Jim O'Neill, of Goldman Sachs, in a
report on growth prospects for the economies of Brazil, Russia, India and China – which together
represented a significant share of the world's production and population.
 In 2006, the four countries initiated a regular informal diplomatic coordination, with annual meetings
of Foreign Ministers at the margins of the General Debate of the UN General Assembly (UNGA).
 This successful interaction led to the decision that the dialogue was to be carried out at the level of
Heads of State and Government in annual Summits.
Timeline
 The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as
reform of the global financial architecture.
 South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym
BRICS. South Africa subsequently attended the Third BRICS Summit in Sanya, China, in March 2011.
Objectives
 The BRICS seeks to deepen, broaden and intensify cooperation within the grouping and among the
individual countries for more sustainable, equitable and mutually beneficial development.
 BRICS takes into consideration each member’s growth, development and poverty objectives to ensure
relations are built on the respective country’s economic strengths and to avoid competition where
possible.
 BRICS is emerging as a new and promising political-diplomatic entity with diverse objectives, far
beyond the original objective of reforming global financial institutions.
Areas of Cooperation
1. Economic Cooperation
 There are rapidly growing trade and investment flows between BRICS countries as well as economic
cooperation activities across a range of sectors.
 Agreements have been concluded in the areas of Economic and Trade Cooperation; Innovation
Cooperation, Customs Cooperation; strategic cooperation between the BRICS Business Council ,
Contingent Reserve Agreement and the New Development Bank.
 These agreements contribute to realisation of the shared objectives of deepening economic
cooperation and fostering integrated trade and investment markets.
2. People-to-People exchange
 BRICS members have recognised the need for strengthening People-to-People exchanges and to foster
closer cooperation in the areas of culture, sport, education, film and youth.
 People-to-People exchanges seek to forge new friendships; deepen relations and mutual
understanding between BRICS peoples in the spirit of openness, inclusiveness, diversity and mutual
learning.
 Such People to people exchanges include the Young Diplomats Forum, Parliamentarian Forum, Trade
Union Forum, Civil BRICS as well as the Media Forum.
3. Political and Security Cooperation
 BRICS member political and security cooperation is aimed at achieving peace, security, development
and cooperation for a more equitable and fair world.
 BRICS provides opportunities for sharing policy advice and exchanges of best practices in terms of
domestic and regional challenges as well as advancing the restructuring of the global political
architecture so that it is more balanced, resting on the pillar of multilateralism.
 BRICS is utilised as a driver for South Africa’s foreign policy priorities including the pursuit of
the African Agenda and South-South Cooperation.
4. Cooperation Mechanism
Cooperation among members is achieved through:
 Track I: Formal diplomatic engagement between the national governments.
 Track II: Engagement through government-affiliated institutions, e.g. state-owned enterprises and
business councils.
  Track III: Civil society and People-to-People engagement.
Impacts of BRICS on global institutional reforms
 The main reason for co-operation to start among the BRICs nation was the financial crises of 2008. The
crises raised doubts over sustainability of the dollar-dominated monetary system.
 The BRICs called for the “the reform of multilateral institutions in order that they reflect the structural
changes in the world economy and the increasingly central role that emerging markets now play”.
 BRICs managed to push for institutional reform which led to International Monetary Fund (IMF) quota
reform in 2010. Thus the financial crises had momentarily reduced western legitimacy and briefly let
the BRICs countries become “agenda setters” in multilateral institutions.
New Development Bank
 NDB is headquartered in Shanghai.
 At the Fourth BRICS Summit in New Delhi (2012) the possibility of setting up a new Development Bank
was considered to mobilize resources for infrastructure and sustainable development projects in BRICS
and other emerging economies, as well as in developing countries.
 During the Sixth BRICS Summit in Fortaleza (2014) the leaders signed the Agreement establishing the
New Development Bank (NDB).
 Fortaleza Declaration stressed that the NDB will strengthen cooperation among BRICS and will
supplement the efforts of multilateral and regional financial institutions for global development thus
contributing to sustainable and balanced growth.
 NDB’s key areas of operation are clean energy, transport infrastructure, irrigation, sustainable urban
development and economic cooperation among the member countries.
 The NDB functions on a consultative mechanism among the BRICS members with all the member
countries possessing equal rights.
Contingent Reserve Arrangement
 Considering the increasing instances of global financial crisis, BRICS nations signed BRICS Contingent
Reserve Arrangement (CRA) in 2014 as part of Fortaleza Declaration at Sixth BRICS summit.
 The BRICS CRA aims to provide short-term liquidity support to the members through currency swaps to
help mitigating BOP crisis situation and further strengthen financial stability.
 The initial total committed resources of the CRA shall be one hundred billion dollars of the United
States of America (USD 100 billion).
 It would also contribute to strengthening the global financial safety net and complement existing
international arrangements (IMF).
Challenges
 The marked dominance of big three Russia-China-India is challenge for the BRICS as it moves ahead. To
become a true representative of large emerging markets across the world, BRICS must become pan-
continental. Its membership must include more countries from other regions and continents.
 The BRICS will need to expand its agenda for increasing its relevance in the global order. As of now,
climate change and development finance, aimed at building infrastructure dominate agenda.
 As BRICS moves forward foundational principles of BRICS i.e. respect for sovereign equality and
pluralism in global governance are liable to be tested as the five member countries pursue their own
national agendas.
 The military standoff between India and China on the Doklam plateau, which has effectively brought to
an end the naive notion that a comfortable political relationship is always possible amongst the BRICS
members.
 China’s efforts to co-opt nation states, which are integral to its Belt and Road Initiative, into a broader
political arrangement has potential to cause conflict among BRICS members especially China and India.
Importance for India
 India can benefit from collective strength of BRICS by way of consultation and cooperation on
economic issues of mutual interests, as well as topical global issues, such as, international terrorism,
climate change, food and energy security, reforms of global governance institutions, etc.
 India remains engaged with the other BRICS countries on its NSG membership.
 The NDB will help India to raise and avail resources for their infrastructure and sustainable
development projects. The NDB has approved its first set of loans, which included a loan of US$ 250
million in respect of India for Multitranche Financing Facility for Renewable Energy Financing Scheme’.
Way Forward
 BRICS did well in its first decade to identify issues of common interests and to create platforms to
address these issues.
  For BRICS to remain relevant over the next decade, each of its members must make a realistic
assessment of the initiative's opportunities and inherent limitations.
 BRICS nations need to recalibrate their approach and to recommit to their founding ethos. BRICS must
reaffirm their commitment to a multi-polar world that allows for sovereign equality and democratic
decision making by doing so can they address the asymmetry of power within the group and in global
governance generally.
 They must build on the success of the NDB and invest in additional BRICS institutions. It will be useful
for BRICS to develop an institutional research wing, along the lines of the OECD, offering solutions
which are better suited to the developing world.
 BRICS should consider a BRICS-led effort to meet their commitments under the Paris Agreement on
climate change and the UN's sustainable development goals. This could include e.g. setting up a BRICS
energy alliance and an energy policy institution.
 NDB in partnership with other development finance institutions could be a potent vehicle to finance
progress towards the sustainable development goals amongst the BRICS members.
 Idea of setting up a BRICS Credit Rating Agency (BCRA) as proposed by India, opposed to Western
agencies like Standard & Poor’s, Moody’s etc can be on BRICS future agenda.
G20
 15 Jan 2019

 9 min read
Tags:
 GS Paper - 2
 Global Groupings
 Important International Institutions
 Groupings & Agreements Involving India and/or Affecting India's Interests
Why in News?
 Meeting of the Leaders’ of the G-20 Nations, in Buenos Aires, Argentina.
What is G20?
 The G20 is an informal group of 19 countries and the European Union, with representatives of the
International Monetary Fund and the World Bank.
 The G20 membership comprises a mix of the world’s largest advanced and emerging economies,
representing about two-thirds of the world’s population, 85% of global gross domestic product, 80% of
global investment and over 75% of global trade.
Origin
 1997-1999 ASIAN Financial Crisis: This was a ministerial-level forum which emerged after G7 invited
both developed and developing economies. The finance ministers and central bank governors began
meeting in 1999.
 Amid 2008 Financial Crisis the world saw the need for a new consensus building at the highest political
level. It was decided that the G20 leaders would begin meeting once annually.
 To help prepare these summits, the G20 finance ministers and central bank governors continue to
meet on their own twice a year. They meet at the same time as the International Monetary Fund and
The World Bank.
How G20 Works?
 The work of G20 is divided into two tracks:
o The finance track comprises all meetings with G20 finance ministers and central bank
governors and their deputies. Meeting several times throughout the year they focus on
monetary and fiscal issues, financial regulations, etc.
o The Sherpa track focuses on broader issues such as political engagement, anti-
corruption, development, energy, etc.
 Each G20 country is represented by its Sherpa; who plans, guides,
implements, etc. on behalf of the leader of their respective country.
(Indian Sherpa, at the G20 in Argentina, 2018 was Shri Shaktikanta Das)
G20 Members
 The members of the G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India,
Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the
United Kingdom, the United States, and the European Union.
 Spain as a permanent, non-member invitee, also attends leader summits.
Structure and Functioning of G20
 The G20 Presidency rotates annually according to a system that ensures a regional balance over time.
 For the selection of presidency, the 19 countries are divided into 5 groups, each having no more than 4
countries. The presidency rotates between each group. Every year the G20 selects a country from
another group to be president.
India is in Group 2 which also has Russia, South Africa, and Turkey.
 The G20 does not have a permanent secretariat or Headquarters. Instead, the G20 president is
responsible for bringing together the G20 agenda in consultation with other members and in response
to developments in the global economy.
 TROIKA: Every year when a new country takes on the presidency (in this case Argentina 2018),
it works hand in hand with the previous presidency (Germany, 2017) and the next presidency (Japan,
2019) and this is collectively known as TROIKA. This ensures continuity and consistency of the group’s
agenda.
Cooperation
 In Toronto in 2010, leaders declared it to be the premier forum for global economic co-operation.
 The work of G20 members is supported by several international organisations that provide policy
advice. These organisations include:
o The Financial Stability Board (FSB). The FSB, which was established by G20 leaders
following the onset of the global financial crisis,
o The International Labour Organization (ILO).
o The International Monetary Fund (IMF).
o The Organisation for Economic Co-operation and Development (OECD)
o United Nations (UN)
o World Bank
o The World Trade Organization (WTO)
 The G20 also regularly engages with non-government sectors. Engagement groups from business
(B20), civil society (C20), labour (L20), think tanks (T20) and youth (Y20) are holding major events
during the year, the outcomes of which will contribute to the deliberations of G20 leaders.
Issues Addressed by G20
 The G20 focuses on a broad agenda of issues of global importance, although, issues pertaining to the
global economy dominate the agenda, additional items have become more important in recent years,
like:
o Financial markets
o Tax and fiscal policy
o Trade
o Agriculture
o Employment
o Energy
o Fight against corruption
o Advancement of women in job market
o 2030 agenda for Sustainable development
o Climate Change
o Global Health
o Anti-terrorism
o Inclusive entrepreneurship
India's Priorities in G20 Summits
 Checking tax evasion to fight corruption
 Choking terror funds
 Cutting the cost of remittances
 Market access for key drugs
 Reforms in the World Trade Organisation to improve its functioning
 “Full implementation” of the Paris Agreement
Achievements
 Flexible: With only 20 members, the G20 is agile enough to make prompt decisions and to adapt to
new challenges.
  Inclusive: The inclusion every year of invited countries, international organizations and civil society
organization through engagement groups allow for a broader and more comprehensive perspective
when assessing global challenges and building consensus to address them.
 Coordinated action: The G-20 has also played a crucial role in strengthening the international financial
regulatory system, including better coordination across countries.
 Facilitated an increase in lending from multilateral development banks of US$235 billion at a time
when private sector sources of finance were diminished.
 Major achievements of the G20 include quick deployment of emergency funding during the 2008
global financial crisis.
 It also works for reforms in international financial institutions by improving oversight of national
financial institutions. Such as G20 driven reforms to the international tax system, through the
G20/OECD Base Erosion and Profit Shifting (BEPS) project and implementation of tax transparency
standards.
 G20 played a critical role in the ratification of the Trade Facilitation Agreement, with the WTO
estimating it could contribute up to somewhere between 5.4 and 8.7% to global GDP by 2030 if the
agreement were fully implemented.
 Better Communication: G20 bring World’s top developed and developing countries together to bring
consensus and reasoning into decision making through discussion.
Challenges
 No Enforcement mechanism: The G20’s toolkit ranges from simple exchanges of information and best
practices to agreeing common, measurable targets, to coordinated action. None of this is achieved
without consensus, nor is it enforceable, except for the incentive of peer review and public
accountability.
 Not legally binding: the decisions are based on discussions and consensus which culminates in the
form of declarations. These declarations are not legally binding. It’s just an advisory or consultative
group of 20 members.
Way Forward
 The G20 cannot be a panacea for the world’s problems. But over the past 10 years, the G20 has been
an important forum for international cooperation.
 Effective global governance, like the G20, is essential as rising powers seek opportunities to influence
and contribute to the global order.
East Asia Summit
 08 Jan 2019

 13 min read
What is East Asia-Summit?
 The East Asia Summit (EAS) established in 2005 is a forum of 18 regional leaders for strategic dialogue
and cooperation on the key political, security, and economic challenges facing the Indo-Pacific region.
Genesis
 The concept of an East Asia Grouping was first promoted in 1991 by the then Malaysian Prime
Minister, Mahathir bin Mohamad.
 The first summit was held in Kuala Lumpur, Malaysia on 14 December 2005.
 Kuala Lumpur Declaration: EAS is an “open forum” for dialogue on strategic, political, and economic
issues in order to promote peace, economic prosperity, and regional integration in East Asia.
 India is a founding member of the East Asia Summit.
Membership
 The EAS comprises the ten member states of the Association of Southeast Asian Nations (ASEAN) –
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and
Vietnam – along with 8 members Australia, China, Japan, India, New Zealand, the Republic of Korea,
Russia and the United States.
 The EAS membership represents around 54% of the world’s population and accounts for 58% of global
GDP.
 The EAS is an ASEAN-centred forum; it can only be chaired by an ASEAN member.
EAS Chair
 The chair of ASEAN is also the chair of the EAS. The role of the ASEAN chair rotates annually between
the ten ASEAN member states.
 Current chair: 2018 Singapore
  Future chair: 2019 Thailand
Areas of Cooperation
 Environment and Energy
 Education
 Finance
 Global Health Issues and Pandemic Diseases
 Natural Disaster Management
 ASEAN Connectivity
India endorses regional collaboration in all six priority areas.
Institutional Mechanisms
 EAS Foreign Ministers' Meeting
Potential
 EAS, representing nearly 50 per cent of the world’s population and over 20 per cent of global trade, is
a mega gathering and is a testimony to the rise of Asia.
 EAS is a region of strong and fast growing economies. It is considered the third pole of world
economy after the US and Europe. Its four major economic players namely Japan, China, India and
Korea are among the twelve largest ranking global economies.
 Financial and monetary cooperation between ASEAN+6 or EAS countries could be an area of fruitful
cooperation in view of the fact that their combined foreign exchange reserves exceed $ 3 trillion. Steps
can be taken towards creating an Asian financial architecture that would facilitate partial mobilisation
of these reserves for narrowing the development gaps in Asia.
Challenges
 China-Japan rift casts a big shadow over the EAS and also potential rivalry between China-India, as
China sees India as competitor not just for investments and markets but also for political and security
reasons.
 The second area of tension in EAS relates to the question of institutionalization and institution
building. The position adopted at the summit clearly makes EAS a ASEAN driven organization.
 The third area of tension is about streamlining the agenda. EAS has adopted a very wide agenda and it
may not be possible to work effectively on all the parts of the agenda. There is a general understanding
that the economic agenda will be pursued more vigorously as compared to cultural
and political/security agenda. Within the economic agenda also, there are indications that the trade
matters will be taken up on priority towards building pan-Asian free trade area.
 The fourth area of tension in the EAS is its relationship with other regional organizations functioning
in the region, such as ASEAN, APEC and various other sub-regional groups. The boundary between
ASEAN and EAS is hazy and even confusing. If the purpose of the EAS is to encourage ASEAN
community building, then what is ASEAN meant for and what independent identity ASEAN or EAS can
retain vis-à-vis each other.
 The growing number of minilateral alignments among the more militarily capable regional powers and
vast differences in their military budgets undermines the objectives of regional peace, security and
prosperity.
Significance of EAS vis-a-vis APEC
 Similar to EAS, statements and declarations of APEC are not binding. Even though this increases the
members’ willingness to be active in the process, it decreases the real importance of any outcomes.
 EAS can be more significant as it is majorly Asia specific (except for US and Russia) whereas APEC
includes countries such as Mexico, Chile, Argentina, and the European Union, and hence it is difficult if
not impossible for APEC to concentrate on issues that are specific to East Asia.
 APEC is more likely to continue to be an Asia-Pacific institution, emphasizing economic and political
cooperation across the Pacific Ocean, including between Asia and the United States, Canada, Australia,
New Zealand, and Russia. It is better characterized as a “trans-Pacific,” rather than “inter-Asian,”
process.
Significance for India
 For India it acts as an alternative to the APEC in which India doesn’t enjoy the membership.
 India’s membership to the EAS is a recognition of its fast growing economic and political clout.
 Act East policy of India: In order to build multi-faceted relations with ASEAN and other multilateral
nations and strengthen bilateral relations India has emphasised upon its L Act East Policies for which
EAS will prove crucial.
  During the 2008 economic crisis, the EAS as a group grew at considerably higher rates than the average
growth in developed countries. Deeper integration with the EAS members, therefore, helped sustain
India’s external sector as an engine of growth.
 China’s assertiveness in the South China Sea and the nature of its growing investments has led the
ASEAN countries to view India as a potential power that could balance a rising China.
 India’s strength lies in service sector and information-technology and Japan has a sound capital base.
Thus there are complementarities in trade and production structures of the EAS members.
 India is also keen on monetary integration of the EAS region and cooperation in the energy sector.
India’s infrastructural sector will need investments of more than US$500bn in the coming 4 to 5 years.
The East Asian countries are already involved in India’s infrastructural sector and they can take further
advantage of the opportunity available.
 Trade: South China Sea is a busy waterway through which half of India's trade passes, hence for
freedom of passage in the international waters, this area becomes crucial.
 For implementation of connectivity projects, such as the India-Myanmar-Thailand trilateral highway,
and building new trade and transport linkages with all the EAS member states, the summit gains
significance.
 There are prospects of the Indian private sector being involved in defence production and supplies
which will greatly improve India’s defence diplomacy in the region. India has also conducted naval
exercises with almost all the EAS members and is actively participating in counter-terrorism efforts
under the ASEAN, ARF and BIMSTEC frameworks of sub-regional 40 groupings.
 India’s deep cultural and civilizational links with the EAS countries are widely known. India can play a
major role in cultural and people to people cooperation with the region, which can reinforce the
economic momentum for community building.
th
13 East Asia Summit
 The 13th East Asia Summit was held on November 15, in Singapore. The Meeting was chaired by Prime
Minister of the Republic of Singapore - H.E. Lee Hsien Loong.
 The summit was attended by Heads of State/Government of EAS members and secretary general of
ASEAN.
Features
 The Summit members welcomed the adoption of the Manila Plan of Action to advance the Phnom
Penh Declaration on the EAS Development Initiative (2018-2022) with the inclusion of maritime
cooperation as a new area of cooperation.
 There was an initiative to promote natural gas in improving energy security in EAS countries,
recognising its role in the transition to low-emissions economies.
 It recognised that marine debris pollution is a global concern and hence EAS Leaders’ Statement on
Combating Marine Plastic Debris was adopted.
 The summit reiterated its commitment to work together in the area of 'education' through aligning
EAS cooperation with the ASEAN Work Plan on Education.
 The summit mentioned implementation of the Master Plan on ASEAN Connectivity (MPAC) 2025, to
achieve integration of the community.
 The summit highlighted regional and international issues:
o South China Sea – for promoting peace, security, stability, safety and freedom of
navigation in South China Sea and to implement Code of Conduct in the South China Sea.
o Korean Peninsula – The summit urged North Korea to complete denuclearisation and its
pledge to refrain from further nuclear and missile tests.
o Counter-Terrorism – It condemned terrorist attacks in recent months that had caused
significant loss of life. Also adopted the EAS Leaders’ Statement on Countering Terrorism.
o Regional Economic Integration – The summit welcomed the progress made in Regional
Comprehensive Economic Partnership (RCEP) negotiations in 2018 and emphasised
economic inclusiveness.
Way Forward
 Though India is not a part of the TPP negotiations, it is an important part of the RCEP negotiation
process and has much to offer to the EAS and also gain in return, especially in areas like maritime
security, terrorism, non-proliferation, irregular migration. Hence, this growing partnership represents a
win-win equation for both India and the EAS.
 East Asia is the world’s most dynamic economic region as well as one of its most challenging security
environments. Maintaining regional integrity through cultural connectivity is crucial. The other
 initiatives could include creation of an Asian currency unit as a unit of account to facilitate intra-
regional trade and production networking.
 While the region is facing similar regional issues the EAS platform has wide capacity do discuss
deliberately upon these issues and drawing balanced solutions in order to benefit equitably.
 India’s participation in EAS symbolises its continued commitment to strengthening engagement with
Asean member states and with the wider Indo-Pacific region which has ramifications for RCEP, India’s
Act east policy and its stature as global power significant in Indo Pacific.
ASEAN
 27 Nov 2018

 10 min read
What is ASEAN?
 The Association of Southeast Asian Nations is a regional organization which was established to
promote political and social stability amid rising tensions among the Asia-Pacific’s post-colonial states.
 The motto of ASEAN is “One Vision, One Identity, One Community”.
 8th August is observed as ASEAN Day.
 ASEAN Secretariat – Indonesia, Jakarta.
Member Nations
 Indonesia
 Malaysia
 Philippines
 Singapore
 Thailand
 Brunei
 Vietnam
 Laos
 Myanmar
 Cambodia
Genesis of ASEAN
 1967 – ASEAN was established with the signing of the ASEAN Declaration (Bangkok Declaration) by its
founding fathers.
o Founding Fathers of ASEAN are: Indonesia, Malaysia, Philippines, Singapore and
Thailand.
 1990s – Membership doubled after the changing conditions in the region following the end of the
Vietnam War in 1975 and the Cold War in 1991.
o Addition of Brunei (1984), Vietnam (1995), Laos and Myanmar (1997), and Cambodia
(1999).
 1995 – Members signed a deal to create a nuclear-free zone in Southeast Asia.
 1997 – Adoption of ASEAN Vision 2020.
 2003 – Bali Concord II for the establishment of an ASEAN Community.
 2007 – Cebu Declaration, to accelerate the establishment of ASEAN Community by 2015.
 2008 – ASEAN Charter comes into force and becomes a legally binding agreement.
 2015 – Launch of ASEAN Community.
o ASEAN Community is comprised of three pillars:
 ASEAN Political-Security Community
 ASEAN Economic Community
 ASEAN Socio-Cultural Community
Objectives
 To accelerate economic growth, social progress and cultural development for a prosperous and
peaceful community of Southeast Asian Nations.
 To promote regional peace and stability through abiding respect for justice and the rule of law and
adherence to the principles of the United Nations Charter.
 To promote active collaboration and mutual assistance on matters of common interest in the
economic, social, cultural, technical, scientific and administrative fields.
 To collaborate more effectively for the greater utilisation of agriculture and industries, the expansion
of their trade, the improvement of transportation and communications facilities and the raising of the
living standards of peoples.
  To promote Southeast Asian studies.
 To maintain close and beneficial cooperation with existing international and regional organisations.
The ASEAN fundamental principles, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of
1976
 Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity
of all nations.
 The right of every State to lead its national existence free from external interference, subversion or
coercion.
 Non-interference in the internal affairs of one another.
 Settlement of differences or disputes by peaceful manner.
 Renunciation of the threat or use of force.
 Effective cooperation among themselves.
Institution Mechanism
 Chairmanship of ASEAN rotates annually, based on the alphabetical order of the English names of
Member States.
 ASEAN Summit: The supreme policy making body of ASEAN. As the highest level of authority in ASEAN,
the Summit sets the direction for ASEAN policies and objectives. Under the Charter, the Summit meets
twice a year.
 ASEAN Ministerial Councils: The Charter established four important new Ministerial bodies to support
the Summit.
o ASEAN Coordinating Council (ACC)
o ASEAN Political-Security Community Council
o ASEAN Economic Community Council
o ASEAN Socio-Cultural Community Council
 Decision Making: The primary mode of decision-making in ASEAN is consultation and consensus.
However, the Charter enshrines the principle of ASEAN-X – This means that if all member states are in agreement, a
formula for flexible participation may be used so that the members who are ready may go ahead while members
who need more time for implementation may apply a flexible timeline.
ASEAN-led Forums
 ASEAN Regional Forum (ARF): Launched in 1993, the twenty-seven-member multilateral grouping was
developed to facilitate cooperation on political and security issues to contribute to regional
confidence-building and preventive diplomacy.
 ASEAN Plus Three: The consultative group initiated in 1997 brings together ASEAN’s ten members,
China, Japan, and South Korea.
 East Asia Summit (EAS): First held in 2005, the summit seeks to promote security and prosperity in the
region and is usually attended by the heads of state from ASEAN, Australia, China, India, Japan, New
Zealand, Russia, South Korea, and the United States. ASEAN plays a central role as the agenda-setter.
Strengths & Opportunities
 ASEAN commands far greater influence on Asia-Pacific trade, political, and security issues than its
members could achieve individually.
 Demographic dividend – It constitutes 3rd largest population in the world, of which more than half is
below thirty years of age.
 Economic:
o 3rd largest market in the world - larger than EU and North American markets.
o 6th largest economy in the world, 3rd in Asia.
o Free-trade agreements (FTAs) with China, Japan, South Korea, India, Australia and New
Zealand.
o Fourth most popular investment destination globally.
o ASEAN’s share of global exports has also risen, from only 2 percent in 1967 to 7 percent
by 2016, indicating the rising importance of trade to ASEAN’s economic prospects.
o The ASEAN Single Aviation Market and Open Skies policies have increased its transport
and connectivity potential.
 ASEAN has contributed to regional stability by building much-needed norms and fostering a neutral
environment to address shared challenges.
Challenges
 Regional imbalances in the economic and social status of its individual markets.
  Gap between rich and poor ASEAN member states remains very large and they have a mixed record
on income inequality.
 While Singapore boasts the highest GDP per capita—nearly $53,000 (2016), Cambodia’s
per capita GDP is the lowest at less than $1,300.
 Many regional initiatives were not able to be incorporated into national plans, as the less
developed countries faced resource constraints to implement the regional
commitments.
 The members’ political systems are equally mixed with democracies, communist, and authoritarian
states.
 While the South China Sea is the main issue exposing the organization’s rifts.
 ASEAN has been divided over major issues of human rights. For example, crackdowns in Myanmar
against the Rohingyas.
 Inability to negotiate a unified approach with regards to China, particularly in response to its
widespread maritime claims in the South China Sea.
 The emphasis on consensus sometimes becomes the a chief drawback – difficult problems have been
avoided rather than confronted.
 There is no central mechanism to enforce compliance.
 Inefficient dispute-settlement mechanism, whether it be in the economic or political spheres.
India and ASEAN
 India's relationship with ASEAN is a key pillar of her foreign policy and the foundation of Act East
Policy.
 India has a separate Mission to ASEAN and the EAS in Jakarta.
 India and ASEAN already has 25 years of Dialogue Partnership, 15 years of Summit Level interaction
and 5 years of Strategic Partnership with ASEAN.
 Economic Cooperation:
o ASEAN is India's fourth largest trading partner.
o India's trade with ASEAN stands at approx. 10.6% of India's overall trade.
o India's export to ASEAN stands at 11.28% of our total exports. The ASEAN-India Free
Trade Area has been completed.
o ASEAN India-Business Council (AIBC) was set up in 2003 to bring key private sector
players from India and the ASEAN countries on a single platform.
 Socio-Cultural Cooperation: Programmes to boost People-to-People Interaction with ASEAN, such as
inviting ASEAN students to India, Special Training Course for ASEAN diplomats, Exchange of
Parliamentarians, etc.
 Funds: Financial assistance has been provided to ASEAN countries from the following Funds:
o ASEAN-India Cooperation Fund
o ASEAN-India S&T Development Fund
o ASEAN-India Green Fund
 Delhi Declaration: To identify Cooperation in the Maritime Domain as the key area of cooperation
under the ASEAN-India strategic partnership.
 Delhi Dialogue: Annual Track 1.5 event for discussing politico-security and economic issues between
ASEAN and India.
 ASEAN-India Centre (AIC): To undertake policy research, advocacy and networking activities with
organizations and think-tanks in India and ASEAN.
 Political Security Cooperation: India places ASEAN at the centre of its Indo-Pacific vision of Security
and Growth for All in the Region.
Shanghai Cooperation Organisation (SCO)
 20 Nov 2018

 7 min read
What is SCO?
 SCO is a permanent intergovernmental international organisation.
 It’s a Eurasian political, economic and military organisation aiming to maintain peace, security and
stability in the region.
 It was created in 2001.
 The SCO Charter was signed in 2002, and entered into force in 2003.
  It is a statutory document which outlines the organisation's goals and principles, as well as its structure
and core activities.
 The SCO's official languages are Russian and Chinese.
Genesis
 Prior to the creation of SCO in 2001, Kazakhstan, China, Kyrgyzstan, Russia and Tajikistan were
members of the Shanghai Five.
 Shanghai Five (1996) emerged from a series of border demarcation and demilitarization talks which
the four former Soviet republics held with China to ensure stability along the borders.
 Following the accession of Uzbekistan to the organisation in 2001, the Shanghai Five was renamed the
SCO.
 India and Pakistan became members in 2017.
Membership
1. Kazakhstan
2. China
3. Kyrgyzstan
4. Russia
5. Tajikistan
6. Uzbekistan
7. India
8. Pakistan
Observer states
 Afghanistan
 Belarus
 Iran
 Mongolia
Dialogue Partner
 Azerbaijan
 Armenia
 Cambodia
 Nepal
 Turkey
 Sri Lanka
Objectives
 Strengthening mutual trust and neighbourliness among the member states.
 Promoting effective cooperation in -politics, trade & economy, research & technology and culture.
 Enhancing ties in education, energy, transport, tourism, environmental protection, etc.
 Maintain and ensure peace, security and stability in the region.
 Establishment of a democratic, fair and rational new international political & economic order.
Guiding Principle – Based on Shanghai Spirit
 Internal policy based on the principles of mutual trust, mutual benefit, equality, mutual consultations,
respect for cultural diversity, and a desire for common development.
 External policy in accordance with the principles of non-alignment, non-targeting any third country,
and openness.
Structure of the Shanghai Cooperation Organisation
 Heads of State Council – The supreme SCO body which decides its internal functioning and its
interaction with other States & international organisations, and considers international issues.
 Heads of Government Council – Approves the budget, considers and decides upon issues related
economic spheres of interaction within SCO.
 Council of Ministers of Foreign Affairs – Considers issues related to day-to-day activities.
 Regional Anti-Terrorist Structure (RATS) – Established to combat terrorism, separatism and
extremism.
 SCO Secretariat – Based in Beijing to provide informational, analytical & organisational support.
Operations
 Initially, the SCO focused on mutual intraregional efforts to curb terrorism, separatism and extremism
in Central Asia.
 In 2006, SCO’s agenda widened to include combatting international drug trafficking as a source of
financing global.
  In 2008, SCO actively participated in bringing back stability in Afghanistan.
 At the same time, the SCO took up a variety of economic activities:
o In 2003, SCO member states signed a 20-year Programme of Multilateral Trade and
Economic Cooperation for the establishment of a free trade zone within the territory
under the SCO member states.
Strengths of SCO
 The SCO covers 40%of the global population, nearly 20% of the global GDP and 22% of the world’s land
mass.
 The SCO has a strategically important role in Asia due to its geographical significance - this enables it to
control the Central Asia and limit the American influence in region.
 SCO is seen as counterweight to the North Atlantic Treaty Organisation.
Challenges for SCO
 The SCO security challenges includes combating terrorism, extremism and separatism;; drug and
weapons trafficking, illegal immigration, etc.
 Despite being geographically close, the rich diversity in member’s history, backgrounds, language,
national interests and form of government, wealth and culture makes the SCO decision making
challenging.
Importance for India
 India’s membership of SCO can help in achieving regional integration, promote connectivity and
stability across borders.
Security
 India through RATS can improve its counterterrorism abilities by working toward intelligence sharing,
law enforcement and developing best practices and technologies.
 Through the SCO, India can also work on anti-drug trafficking and small arms proliferation.
 Cooperation on common challenges of terrorism and radicalisation.
Energy
 India being an energy deficient country with increasing demands for energy, SCO provides it with an
opportunity to meet its energy requirements through regional diplomacy.
o Talks on the construction of stalled pipelines like the TAPI (Turkmenistan-Afghanistan-
Pakistan-India) pipeline; IPI (Iran-Pakistan-India) pipeline can get a much needed push
through the SCO.
Trade
 SCO provides direct access to Central Asia – overcoming the main hindrance in flourishing of trade
between India and Central Asia.
 SCO acts as an alternative route to Central Asia.
 Economic Ties - Central Asian countries provids India with a market for its IT, telecommunications,
banking, finance and pharmaceutical industries.
Geopolitical
 Central Asia is a part of India's Extended Neighbourhood – SCO provides India an opportunity to
pursue the “Connect Central Asian Policy”.
 Helps India fulfil its aspiration of playing an active role in its extended neighbourhood as well as
checking the ever growing influence of China in Eurasia.
 Platform for India to simultaneously engage with its traditional friend Russia as well as its rivals, China
and Pakistan.
Challenges of SCO Membership for India
 Pakistan’s inclusion in SCO poses potential difficulties for India.
 India’s ability to assert itself would be limited and it may have to play second fiddle since China and
Russia are co-founders of SCO and its dominant powers.
 India may also have to either dilute its growing partnership with the West or engage in a delicate
balancing act - as SCO has traditionally adopted an anti-Western posture.
BIMSTEC
 27 Oct 2018

 8 min read
Tags:
 GS Paper - 2
 Important International Institutions
  Groupings & Agreements Involving India and/or Affecting India's Interests
 Regional Groupings
 India and its Neighbourhood
What is BIMSTEC?
 The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a
regional multilateral organisation.
 Its members lie in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous
regional unity.
 Out of the 7 members,
o Five are from South Asia –
o
 Bangladesh
 Bhutan
 India
 Nepal
 Sri Lanka
o Two are from Southeast Asia –
 Myanmar
 Thailand
 BIMSTEC not only connects South and Southeast Asia, but also the ecologies of the Great Himalayas
and the Bay of Bengal.
 It mainly aims to create an enabling environment for rapid economic development; accelerate social
progress; and promote collaboration on matters of common interest in the region.
Genesis of BIMSTEC
 This sub-regional organization came into being in 1997 through the Bangkok Declaration.
 Initially, it was formed with four Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri-
Lanka and Thailand Economic Cooperation).
 It became renamed ‘BIMST-EC’ in 1997, following the inclusion of Myanmar.
 With the admission of Nepal and Bhutan in 2004, the name of the grouping was changed to ‘Bay of
Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation’ (BIMSTEC).
Objectives
 Creating an enabling environment for the rapid economic development of the sub-region.
 Encouraging the spirit of equality and partnership.
 Promoting active collaboration and mutual assistance in the areas of common interests of the member
countries
 Accelerating support for each other in the fields of education, science, and technology, etc.
Principles of BIMSTEC
 Sovereign Equality
 Territorial Integrity
 Political Independence
 No-interference in Internal Affairs
 Peaceful Co- existence
 Mutual Benefit
 Constitute an addition to and not be a substitute for bilateral, regional or multilateral cooperation
involving the Member States.
Potential
 Bridge between South and South East Asia and represents a reinforcement of relations among these
countries.
 Platform for intra-regional cooperation between SAARC and ASEAN members.
 Home to around 1.5 billion people that constitute around 22% of the global population.
 With a combined gross domestic product (GDP) of 2.7 trillion economy, BIMSTEC Member States have
been able to sustain an average 6.5% economic growth trajectory in the last five years.
 A fourth of the world’s traded goods cross the bay every year.
 Important Connectivity Projects:
o Kaladan Multimodal Project – links India and Myanmar.
o Asian Trilateral Highway - connecting India and Thailand through Myanmar.
 o Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement - for seamless flow of
passenger and cargo traffic.
Significance for India
 Allows India to pursue three core policies:
o Neighborhood First - primacy to the country’s immediate periphery;
o Act East - connect India with Southeast Asia; and
o Economic development of India’s northeastern states – by linking them to the Bay of
Bengal region via Bangladesh and Myanmar.
 Allows India to counter China’s creeping influence in countries around the Bay of Bengal due to the
spread of its Belt and Road Initiative.
 A new platform for India to engage with its neighbors with South Asian Association for Regional
Cooperation (SAARC) becoming dysfunctional because of differences between India and Pakistan.
Areas of Cooperation
 Trade and Investment
 Technology
 Energy
 Transportation and Communication
 Tourism
 Fisheries
 Agriculture
 Cultural Cooperation
 Environment and Disaster Management
 Public Health
 People-to-People Contact
 Poverty Alleviation
 Counter Terrorism and Transnational Crime
 Climate Change
Institutional Mechanisms
 BIMSTEC Summit – highest policymaking body in BIMSTEC process and is comprised of heads of
state/government of member states.
 Ministerial Meeting – second apex policy-making forum of BIMSTEC attended by the External/Foreign
Ministers of Member States.
 Senior Officials’ Meeting – represented by Senior Officials of Foreign Ministries of the Member States.
 BIMSTEC Working Group – attended by Ambassadors of BIMSTEC Member Countries to Bangladesh or
their representatives on a monthly basis at the BIMSTEC Secretariat in Dhaka.
 Business Forum & Economic Forum – the two important forums to ensure active participation of
private sector.
Challenges
Though largely devoid of bilateral tensions, as is the case in SAARC, BIMSTEC does not seem to have made much
progress.
 Inconsistency in Meetings: BIMSTEC planned to hold summits every two years, ministerial meetings
every year, but only four summits have taken place in 20 years upto 2018.
 Neglect by member states: It seems that India has used BIMSTEC only when it fails to work through
SAARC in the regional setting and other major members like Thailand and Myanmar are focused more
towards ASEAN than BIMSTEC.
 Broad Focus Areas: The focus of BIMSTEC is very wide, including 14 areas of cooperation like
connectivity, public health, agriculture etc. It is suggested that BIMSTEC should remain committed to
small focus areas and cooperate in them efficiently.
 Bilateral Issues between Member Nations: Bangladesh is facing one of the worst refugee crisis of
Rohingyas from Myanmar who are fleeing prosecution in the state of Rakhine in Myanmar. There is a
border conflict between Myanmar and Thailand.
 No FTA: BIMSTEC FTA was negotiated in 2004, talks on it are yet to be concluded.
 BCIM: The formation of another sub-regional initiative, the Bangladesh-China-India-Myanmar (BCIM)
Forum, with the proactive membership of China, has created more doubts about the exclusive
potential of BIMSTEC.
Utility SAARC vs BIMSTEC
 SAARC BIMSTEC

1. Interregional organisation connecting South Asia and So

1. A regional organisation looking into South Asia
2. Established in 1997 in the post-Cold War.
2. Established in 1985 during the cold war era.
3. Members maintain reasonably friendly relations.
3. Member countries suffer for mistrust and suspicion.
4. Core objective is the improvement of economic cooper
4. Suffers from regional politics.
countries.
5. Asymmetric power balance.
5. Balancing of power with the presence of Thailand and I
6. Intra-regional trade only 5 percent.
6. Intra-regional trade has increased around 6 precent in a

Way forward
 Since the BIMSTEC region is notable for its diversity, the member states need to build on the regional
synergies and work towards utilising the available resources in the most optimal manner.
 This would help build a stronger and a more dynamic BIMSTEC.