India’s massive demand for natural gas is a result of its easy substitution of liquid fuels such as naphtha, fuel oil, diesel etc. India at present is producing less than 100 million standard cubic meter per day (MMSCMD) and another 50 MMSCMD is imported as liquefied natural gas (LNG) (Fertiliser Statistics, 2011-12, Fertiliser Association of India). As natural gas has competing demands from different sectors of the economy for adequate energy—being a clean fuel, requiring less investment and yielding a number of industrial products, it can easily record an additional usage of 100 MMSCMD or more in the near future. Thus, allocation and price have always been regulated by the Indian government.
There is no doubt that natural gas is the cleanest fuel with its lowest carbon content irrespective of where it is used. Fertiliser, however, uses gas as feedstock unlike power generation where it is burned as fuel. Used as fuel, the carbon in natural gas is converted into carbon dioxide and emitted. But in case of fertiliser (urea) production, both hydrogen and carbon are used, which reduces the emission of green house gas.
While the demand for natural gas has always exceeded the availability for last two decades, there were times when natural gas was flared as waste with no downstream users. At this stage government decided to use the natural gas for production of fertilisers mainly in the western region near the gas resources. Three large fertiliser plants came up in Gujarat and Assam during 1967-1969. The gas available offshore of Western coast including Bombay High (started in late 1970s) was again, first utilised for the making of fertilisers. Five urea plants were commissioned at Rashtriya Chemical and Fertilisers (RCF Thal) and Krishak Bharati Cooperative Limited (KRIBHCO, Hazira) in 1984-85. This helped to reduce flaring of natural gas.
In the 1980s, various expert groups and committees recommended that the best use of natural gas was in the making of fertilisers. Besides it is well understood that fertilisers being a vital input for agriculture its prices should remain affordable to the farmers. Cost of production of urea using domestic gas is, at present, about Rs 10000-12000 per mt and will be affordable to the farmers even without subsidy. The cost of production of urea is high due to use of imported gas and liquid fuels and the government is providing large amounts of subsidy to regulate the prices of fertilisers at levels which can encourage their use.
The Hazira-Vijaipur-Jagdishpur (HVJ) pipeline was planned in order to locate fertiliser plants in areas of consumption. The pipeline, commissioned in 1987, saw the simultaneous sanctioning of six fertiliser plants, three of which were commissioned in 1987-88 while the other three spilled over to the early 1990s. Later, however, with indiscriminate allocation of gas and availability being less than estimates, shortage ensued in the late 1990s. In addition, Oil and Natural Gas Corporation Limited’s (ONGC) gas production started declining and rationing amongst existing consumers resulted in further shortage for the fertiliser plants till imported LNG was made available in 2005. Some relief was also provided by gas from public-private joint venture projects. Also, allocation from Krishna-Godavari basin (KG-D6), supply of which started in March 2009, filled the shortfall. But with consequent drastic reduction in production from KG-D6 fields the shortage of domestic gas continues. In view of this, there are often arguments against giving first priority to the fertiliser sector in the allocation of gas.
It is argued that fertilisers can be imported but power cannot. A few facts can clarify the position. India is the second largest consumer of fertilisers in the world, next to China. About 59 mt fertiliser products were used in 2011-12. Of this only about 16 mt were produced in the country using indigenous raw materials—domestic natural gas and indigenous rock. The balance, either raw material or finished products was imported. Imported raw materials include rock phosphate, sulphur, phosphoric acid, ammonia and LNG, while finished products include urea, diammonium phosphate (DAP), muriate of potash (MoP) and more. Thus India is heavily dependent on imports to the extent that almost 73 per cent of its requirement are met from outside. In such a situation, suppliers being few, India often finds itself facing cartelisation, pushing the procurement prices up further. It does not augur well for a country the size of India to have such a low level of self sufficiency, and it is definitely not desirable to increase our import dependence further.
Urea was the only product for which India had achieved self sufficiency in 2000-01. However today India imports 8 mt of urea out of its consumption of 30 mt in 2012-13 (Annual Review, 2012-13, Fertiliser Association of India). According to estimates available, fertiliser subsidy burden of the Indian government exceeded 1 lakh crore in 2012-13 (ibid.). Therefore, any increase in cost of fertiliser will increase the subsidy further and put extra burden on the exchequer. Alternatively, the prices will have to be raised which will affect the demand and consumption and in effect agricultural production.
Fertiliser plants are at present using a total of 46 MMSCMD of gas. Of this, domestic supply is 31 MMSCMD and balance is imported LNG. It is expected that shortage will increase due to dwindling supply of gas from existing fields of ONGC and KG-D6. Five fuel oil and one naphtha based plants have changed the feed from fuel oil and naphtha to natural gas in 2012-13 with combined investment of more than Rs 5000 crore under policy direction of the government. There is an immediate demand of additional 10-11 MMSCMD of gas in the industry to produce 23 mt of urea at full capacity.
The use of natural gas for production of fertilisers is justified for technical, economical and strategic reasons. If fertiliser production is allowed to fall from the present low level of self sufficiency, due to non availability of gas, fertiliser security and hence food security of the country will be compromised and no country of India’s size can maintain its sovereignty without its food security.
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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.
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.