News 1: FM urges World Bank arm IFC to raise lending to India

Background:

  • Finance Minister Nirmala Sitharaman has urged the World Bank’s private sector investment arm, the International Finance Corporation (IFC), to increase lending to India to more than $2 billion in the next two years and to $3-3.5 billion over the next three-four years.

World Bank:

  • Established: 1945 (Bretton Woods institution)
  • Headquarters: Washington DC
  • Type: International financial institution
  • Members: 189 countries (India is a member)
  • The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organizations owned by the World Bank Group.
  • The World Bank provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
  • Mission: 
    • End extreme poverty within a generation and boost shared prosperity
    • To end extreme poverty, the Bank’s goal is to decrease the percentage of people living with less than $1.90 a day to no more than 3 percent by 2030.
    • To promote shared prosperity, the goal is to promote income growth of the bottom 40 percent of the population in each country.
  • Reports and Indexes: Ease of Doing business index (Shelved after corruption charges), Human Capital Index, World Development Report

IFC:

    • Established: 1956
    • Headquarter: Washington DC
    • Type: Development Financial Institution
    • Member: 185 countries
    • Mission: Advance economic development by encouraging the growth of private enterprise in developing countries.
  • IFC is the largest global development institution focused on the private sector in developing countries.
    • IFC, a member of the World Bank Group, advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries.
  • How IFC leads the way in private sector development?
    • Investing in companies through loans, equity investments, debt securities and guarantees.
    • Mobilizing capital from other lenders and investors through loan participations, parallel loans and other means.
    • Advising businesses and governments to encourage private investment and improve the investment climate.

News 2: No negotiations at the cost of food security

Background:

No negotiation is possible at the cost of food security, Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar said at the ninth session of the governing body of the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) on Monday.

International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA):

  • Signed in 2001 and came in force in 2004

Aim of the treaty:

  • recognizing the enormous contribution of farmers to the diversity of crops that feed the world;
  • establishing a global system to provide farmers, plant breeders and scientists with access to plant genetic materials;
  • ensuring that recipients share benefits they derive from the use of these genetic materials with the countries where they have been originated.
  • The ITPGRFA was signed during the 31st session of the United Nations Food and Agriculture Organisation (FAO) in Rome in November 2001.

Food and Agriculture Organization:

  • Established: 1945
  • Headquarter: Rome, Italy
  • Type: UN specialized agency
  • Aim: Leading international efforts to defeat hunger. Achieve food security for all, Ensuring people have regular access to enough high quality food to lead active, healthy lives
  • It helps governments and development agencies coordinate their activities to improve and develop agriculture, forestry, fisheries, and land and water resources.
  • It also conducts research, provides technical assistance to projects, operates educational and training programs, and collects data on agricultural output, production, and development.
  • Members: 194 countries and the European Union

Programmes:

Codex Alimentarius:

  • FAO and the World Health Organization created the Codex Alimentarius Commission in 1961 to develop food standards, guidelines and texts such as codes of practice under the Joint FAO/WHO Food Standards Programme.
  •  The main aims of the programme are protecting consumer health, ensuring fair trade and promoting co-ordination of all food standards work undertaken by intergovernmental and non-governmental organization.

Globally Important Agricultural Heritage Systems:

  • A GIAHS is a living, evolving system of human communities in an intricate relationship with their territory, cultural or agricultural landscape or biophysical and wider social environment.
  • Located in specific sites around the world, they sustainably provide multiple goods and services, food and livelihood security for millions of small-scale farmers.

GIAHS in India:

  • Koraput traditional agriculture, Odisha
  • Kuttanad below sea level farming system, Kerala

The overall goal of the GIAHS Programme is:

  • to identify and safeguard Globally Important Agricultural Heritage Systems and their associated landscapes, agricultural biodiversity, knowledge systems and culture.
  • Publications: State of the World’s forests, The state of food security and nutrition in the world

News 3: India-Egypt

Background:

  • India and Egypt agreed to further develop military cooperation and focus on joint training, defence co-production and maintenance of equipment. This was agreed as Defence Minister Rajnath Singh called on Egyptian President Abdel Fattah Al-Sisi in Cairo on Monday.
  • They emphasised the need for coproduction and to discuss specific proposals in that regard, the Defence Ministry said. Mr. Singh is on a two-day visit to Egypt.

India – Egypt cooperation:

  • India and Egypt to exchange expertise and best practices in countering the threat of terrorism.
  • The two countries are set to sign a Memorandum of Understanding (MoU) on defence cooperation. Egypt has expressed interest in acquiring military platforms from India. Among other things, the Egypt government is considering the indigenous Light Combat Aircraft (LCA) for its fighter requirement. Defence acquisition by Egypt will give a fillip to exports, increase in revenues and Make in India.
  • India and Egypt are founding members of Non-Aligned Movement.
  • The year 2022 is of particular significance since it marks the 75th anniversary of diplomatic relation between India and Egypt.
  • Wheat export from India: Russia-Ukraine conflict has threatened Egypt with a shortage for wheat, 80% of which is imported from Russia and Ukraine. On 14 April 2022, Egyptian Cabinet announced inclusion of India in the list of accredited countries which can supply wheat to Egypt, thus ending a long pending Non-Tariff Barrier.
  •  Bilateral trade has expanded rapidly in 2021-22, amounting to 7.26 billion registering a 75% increase compared to FY 2020-21. India’s exports to Egypt during this period amounted to US$ 3.74 billion.

News 4: Death penalty: SC moots fair hearing

Background:

  • The Supreme Court on Monday referred to a Constitution Bench the question of how to provide accused in death penalty cases a “meaningful, real and effective” hearing of their mitigating circumstances before a trial judge.
  • A three-judge Bench led by Chief Justice of India U.U. Lalit said the presentation of mitigating factors by an accused to avoid the “extreme penalty of death” was a “valuable right”.

Death penalty case:

  • While the state is given a chance to present aggravating circumstances against the accused throughout the duration of a trial, the accused is given a chance to show mitigating circumstances only after conviction, the court noted.
  • “The accused can scarcely be expected to place mitigating circumstances on the record, for the reason that the stage for doing so is after conviction… This places the convict at a hopeless disadvantage, tilting the scales heavily against him,” Justice S. Ravindra Bhat, who authored the verdict, said.
  • The three-judge Bench said a uniform approach has to be moulded to afford the accused a fair opportunity to present mitigating circumstances at the trial stage before their crime is declared “rarest of rare” and they are sentenced to death.
  • The reference to a larger Bench to examine an issue which has affected the fundamental rights of accused in death penalty cases may signal a move from the top court to veer criminal justice system away from death penalty itself.
  • The judgment is significant as it identifies and seeks to resolve a debate on whether the death penalty, though considered a rarest of rare punishment, is being administered casually by the trial courts.

News 5: IBBI amends norms: Maximum value of co, market linked solutions

Background:

  • Aiming to provide better market-linked solutions for stressed companies, the Insolvency and Bankruptcy Board of India has amended its regulations to allow sale of one or more assets of an entity undergoing insolvency proceedings, besides other charges.
  • The company’s committee of creditors can now examine whether a compromise or an arrangement can be explored for a corporate debtor during the liquidation period.

IBBI (Insolvency and Bankruptcy Board of India):

  • Established: 2016 under the Insolvency and Bankruptcy Code, 2016 (Code)
  • Headquarter: New Delhi
  • It is a key pillar of the ecosystem responsible for implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
  • Regulation: It is a unique regulator: regulates a profession as well as processes. It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities and Information Utilities.
  • It has recently been tasked to promote the development of, and regulate, the working and practices of, insolvency professionals, insolvency professional agencies and information utilities and other institutions, in furtherance of the purposes of the Code. 

 

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  • The United Nations has shaped so much of global co-operation and regulation that we wouldn’t recognise our world today without the UN’s pervasive role in it. So many small details of our lives – such as postage and copyright laws – are subject to international co-operation nurtured by the UN.

    In its 75th year, however, the UN is in a difficult moment as the world faces climate crisis, a global pandemic, great power competition, trade wars, economic depression and a wider breakdown in international co-operation.

    Flags outside the UN building in Manhattan, New York.

    Still, the UN has faced tough times before – over many decades during the Cold War, the Security Council was crippled by deep tensions between the US and the Soviet Union. The UN is not as sidelined or divided today as it was then. However, as the relationship between China and the US sours, the achievements of global co-operation are being eroded.

    The way in which people speak about the UN often implies a level of coherence and bureaucratic independence that the UN rarely possesses. A failure of the UN is normally better understood as a failure of international co-operation.

    We see this recently in the UN’s inability to deal with crises from the ethnic cleansing of the Rohingya Muslims in Myanmar, to civil conflict in Syria, and the failure of the Security Council to adopt a COVID-19 resolution calling for ceasefires in conflict zones and a co-operative international response to the pandemic.

    The UN administration is not primarily to blame for these failures; rather, the problem is the great powers – in the case of COVID-19, China and the US – refusing to co-operate.

    Where states fail to agree, the UN is powerless to act.

    Marking the 75th anniversary of the official formation of the UN, when 50 founding nations signed the UN Charter on June 26, 1945, we look at some of its key triumphs and resounding failures.


    Five successes

    1. Peacekeeping

    The United Nations was created with the goal of being a collective security organisation. The UN Charter establishes that the use of force is only lawful either in self-defence or if authorised by the UN Security Council. The Security Council’s five permanent members, being China, US, UK, Russia and France, can veto any such resolution.

    The UN’s consistent role in seeking to manage conflict is one of its greatest successes.

    A key component of this role is peacekeeping. The UN under its second secretary-general, the Swedish statesman Dag Hammarskjöld – who was posthumously awarded the Nobel Peace prize after he died in a suspicious plane crash – created the concept of peacekeeping. Hammarskjöld was responding to the 1956 Suez Crisis, in which the US opposed the invasion of Egypt by its allies Israel, France and the UK.

    UN peacekeeping missions involve the use of impartial and armed UN forces, drawn from member states, to stabilise fragile situations. “The essence of peacekeeping is the use of soldiers as a catalyst for peace rather than as the instruments of war,” said then UN Secretary-General Javier Pérez de Cuéllar, when the forces won the 1988 Nobel Peace Prize following missions in conflict zones in the Middle East, Africa, Asia, Central America and Europe.

    However, peacekeeping also counts among the UN’s major failures.

    2. Law of the Sea

    Negotiated between 1973 and 1982, the UN Convention on the Law of the Sea (UNCLOS) set up the current international law of the seas. It defines states’ rights and creates concepts such as exclusive economic zones, as well as procedures for the settling of disputes, new arrangements for governing deep sea bed mining, and importantly, new provisions for the protection of marine resources and ocean conservation.

    Mostly, countries have abided by the convention. There are various disputes that China has over the East and South China Seas which present a conflict between power and law, in that although UNCLOS creates mechanisms for resolving disputes, a powerful state isn’t necessarily going to submit to those mechanisms.

    Secondly, on the conservation front, although UNCLOS is a huge step forward, it has failed to adequately protect oceans that are outside any state’s control. Ocean ecosystems have been dramatically transformed through overfishing. This is an ecological catastrophe that UNCLOS has slowed, but failed to address comprehensively.

    3. Decolonisation

    The idea of racial equality and of a people’s right to self-determination was discussed in the wake of World War I and rejected. After World War II, however, those principles were endorsed within the UN system, and the Trusteeship Council, which monitored the process of decolonisation, was one of the initial bodies of the UN.

    Although many national independence movements only won liberation through bloody conflicts, the UN has overseen a process of decolonisation that has transformed international politics. In 1945, around one third of the world’s population lived under colonial rule. Today, there are less than 2 million people living in colonies.

    When it comes to the world’s First Nations, however, the UN generally has done little to address their concerns, aside from the non-binding UN Declaration on the Rights of Indigenous Peoples of 2007.

    4. Human rights

    The Human Rights Declaration of 1948 for the first time set out fundamental human rights to be universally protected, recognising that the “inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world”.

    Since 1948, 10 human rights treaties have been adopted – including conventions on the rights of children and migrant workers, and against torture and discrimination based on gender and race – each monitored by its own committee of independent experts.

    The language of human rights has created a new framework for thinking about the relationship between the individual, the state and the international system. Although some people would prefer that political movements focus on ‘liberation’ rather than ‘rights’, the idea of human rights has made the individual person a focus of national and international attention.

    5. Free trade

    Depending on your politics, you might view the World Trade Organisation as a huge success, or a huge failure.

    The WTO creates a near-binding system of international trade law with a clear and efficient dispute resolution process.

    The majority Australian consensus is that the WTO is a success because it has been good for Australian famers especially, through its winding back of subsidies and tariffs.

    However, the WTO enabled an era of globalisation which is now politically controversial.

    Recently, the US has sought to disrupt the system. In addition to the trade war with China, the Trump Administration has also refused to appoint tribunal members to the WTO’s Appellate Body, so it has crippled the dispute resolution process. Of course, the Trump Administration is not the first to take issue with China’s trade strategies, which include subsidises for ‘State Owned Enterprises’ and demands that foreign firms transfer intellectual property in exchange for market access.

    The existence of the UN has created a forum where nations can discuss new problems, and climate change is one of them. The Intergovernmental Panel on Climate Change (IPCC) was set up in 1988 to assess climate science and provide policymakers with assessments and options. In 1992, the UN Framework Convention on Climate Change created a permanent forum for negotiations.

    However, despite an international scientific body in the IPCC, and 165 signatory nations to the climate treaty, global greenhouse gas emissions have continued to increase.

    Under the Paris Agreement, even if every country meets its greenhouse gas emission targets we are still on track for ‘dangerous warming’. Yet, no major country is even on track to meet its targets; while emissions will probably decline this year as a result of COVID-19, atmospheric concentrations of greenhouse gases will still increase.

    This illustrates a core conundrum of the UN in that it opens the possibility of global cooperation, but is unable to constrain states from pursuing their narrowly conceived self-interests. Deep co-operation remains challenging.

    Five failures of the UN

    1. Peacekeeping

    During the Bosnian War, Dutch peacekeeping forces stationed in the town of Srebrenica, declared a ‘safe area’ by the UN in 1993, failed in 1995 to stop the massacre of more than 8000 Muslim men and boys by Bosnian Serb forces. This is one of the most widely discussed examples of the failures of international peacekeeping operations.

    On the massacre’s 10th anniversary, then UN Secretary General Kofi Annan wrote that the UN had “made serious errors of judgement, rooted in a philosophy of impartiality”, contributing to a mass murder that would “haunt our history forever”.

    If you look at some of the other infamous failures of peacekeeping missions – in places such as Rwanda, Somalia and Angola – ­it is the limited powers given to peacekeeping operations that have resulted in those failures.

    2. The invasion of Iraq

    The invasion of Iraq by the US in 2003, which was unlawful and without Security Council authorisation, reflects the fact that the UN is has very limited capacity to constrain the actions of great powers.

    The Security Council designers created the veto power so that any of the five permanent members could reject a Council resolution, so in that way it is programmed to fail when a great power really wants to do something that the international community generally condemns.

    In the case of the Iraq invasion, the US didn’t veto a resolution, but rather sought authorisation that it did not get. The UN, if you go by the idea of collective security, should have responded by defending Iraq against this unlawful use of force.

    The invasion proved a humanitarian disaster with the loss of more than 400,000 lives, and many believe that it led to the emergence of the terrorist Islamic State.

    3. Refugee crises

    The UN brokered the 1951 Refugee Convention to address the plight of people displaced in Europe due to World War II; years later, the 1967 Protocol removed time and geographical restrictions so that the Convention can now apply universally (although many countries in Asia have refused to sign it, owing in part to its Eurocentric origins).

    Despite these treaties, and the work of the UN High Commission for Refugees, there is somewhere between 30 and 40 million refugees, many of them, such as many Palestinians, living for decades outside their homelands. This is in addition to more than 40 million people displaced within their own countries.

    While for a long time refugee numbers were reducing, in recent years, particularly driven by the Syrian conflict, there have been increases in the number of people being displaced.

    During the COVID-19 crisis, boatloads of Rohingya refugees were turned away by port after port.  This tragedy has echoes of pre-World War II when ships of Jewish refugees fleeing Nazi Germany were refused entry by multiple countries.

    And as a catastrophe of a different kind looms, there is no international framework in place for responding to people who will be displaced by rising seas and other effects of climate change.

    4. Conflicts without end

    Across the world, there is a shopping list of unresolved civil conflicts and disputed territories.

    Palestine and Kashmir are two of the longest-running failures of the UN to resolve disputed lands. More recent, ongoing conflicts include the civil wars in Syria and Yemen.

    The common denominator of unresolved conflicts is either division among the great powers, or a lack of international interest due to the geopolitical stakes not being sufficiently high.  For instance, the inaction during the Rwandan civil war in the 1990s was not due to a division among great powers, but rather a lack of political will to engage.

    In Syria, by contrast, Russia and the US have opposing interests and back opposing sides: Russia backs the government of the Syrian dictator Bashar al-Assad, whereas the US does not.

    5. Acting like it’s 1945

    The UN is increasingly out of step with the reality of geopolitics today.

    The permanent members of the Security Council reflect the division of power internationally at the end of World War II. The continuing exclusion of Germany, Japan, and rising powers such as India and Indonesia, reflects the failure to reflect the changing balance of power.

    Also, bodies such as the IMF and the World Bank, which are part of the UN system, continue to be dominated by the West. In response, China has created potential rival institutions such as the Asian Infrastructure Investment Bank.

    Western domination of UN institutions undermines their credibility. However, a more fundamental problem is that institutions designed in 1945 are a poor fit with the systemic global challenges – of which climate change is foremost –  that we face today.