GLOBAL GOVERNANCE IN DOLDRUMS

 Global Governance has evolved over many centuries shaped by major historical turning points and the rise of global institutions.The treaty of Kadesh (BC1258) and the Treaty of Westphatia (1648) marked  significant moments  by establishing formal international treaties. Treaty of Westphalia marked the end of 30 years of war that devastated  Europe (1618-48)and witnessed the end of rule by religious authority and the  emergence of secular authority rule.Since then  the secular authority  provided the foundation of international relations and the idea and notion of territorial integrity of states- legally equal and Sovereign participation in the global system evolved and prevailed .Similarly organizations like Telegraph Union (1865),and Universal  Postal Union (1865) between Egypt and Hittites also played their role to coordinate the behaviour of transactional actors, facilitating cooperation, resolving disputes and establishing rule of law.The Industrial revolution provided the European nations to succeed with military might and capacity to indulge in territorial expansion.  Imperial powers  motivated by their economic clout sought greater access to external markets and obtained cheaper raw materials to fuel industrialialisation and their  economic development.

GLOBALISATION

Globalisation is the process of connecting world economy closer through the flow of goods, services, investment, technology,  ideas,data and workers.It started around 1870 and extended further -Decades after 2nd world War,reducing restrictions on capital and trade flows expecting benefits of both growth and welfare. The first world war  lasted from  july 28 1914 October to 11th November 2018, fought  between two coalitions of 1. allies-France, UK, Russia, Italy, Japan, and USA and 2.Centoman Empire. After first world war the League of nations was established to facilitate global governance. Quite significantly 19th and 20th centuries witnessed the establishment of most transformative institutions that can achieve multi level governance comprising of local,regional state national or federal Governments and a host of multilateral and international agencies and institutions. When globalisation process broadened  further within geopolitical and regional blocks especially after the fall of "Berlin Wall" it accelerated the pace of  globalisation. According to Gordon Brown former Prime Minister of UK "We lived in a world where Economics dominated  Politics .Now politics is determining  Economics ". Prior to second world War severe economic downturn  in terms of drastic unemployment, poverty, decline of industrial output, global trade widespread failures of banks occuttrf during great depressio  of 1929-33 period.In the post war period major challenges witnessed by economies were - volatile commodity prices in the 1960s,oil price shocks in the 1970s,debt crisis in 1980s , laborious task of transition of former  Centrally planned  Socialist economies  to market  economies in 1990s,global financial crisis and bursting housing boom in USA 2007-2009  largely caused by toxicColllateralised Debt obligatios(CDOs).Later Covid19 pandemic in 2020,Euro zone (Greece ,Ireland, Portugal, Spain  and Italy) debt crisis  between 2009-19.More recently Russian Ukraine war , US reciprocal tariff  wars, and currently uncertain Israel US Iran war where missiles and drones were continuously  flying in the Middle East not only targeting military bases but also strategic energy sectors,,Water desalination   plants and indiscriminately targeting civilians and even helpless school children were not spared.On the other hand mines ,drones and armed fast boats threaten plans for tanker escorts in Straits of Hormuz. Consequent disruption of oil and gas supply at resulting in  elevated prices is likely to spike prices further resulting increase in  public expenditure. Development experience of many countries have shown that, despite promoting economic growth globalisation is inherent with significant contradictions like economic inequality and job insecurity in developed countries and intensive labour exploitation in developing countries.

INTERNATIONAL ORGANISATIONS AND INSTITUTIONS 

After first world war the  League of nations was established on January 10,1920,by the initiatives of the victorious allied powers. But unfortunately the League was abnormally disbanded on April 1946  due to its inability to meet basic objectives. The United Nations Organisation was established with the primary objective of maintaining peace,dignity, and equality on a healthy planet.It is comprised of specialized agencies, funds and programmes.The principal organs of the UN system are  General Assembly, Security Council, Economic and Social  Council, UN Secretariat,  International Court of Justice and Trusteeship Council. United Nations specialized agencies are - Food and Agricultural Organisation (FAO),International Civil Aviation Organisation (ICAO,International Fund for Agricultural Development (IFAD),International Labour Organisation (ILO), International Monetary Fund (IMF),International Maritime Organisation (IMO),International Telecommunication Union (ITU),United Nations Educational Scientific and Cultural Organisation (UNESCO),United Nations Industrial Development Organisation (UNIDO), UN Tourism or World Tourism Organisation,Universal Postal Union (UPU),World Health Organisation (WHO),World Intellectual Property Organisation (WIPO),World  Metereological Organisation (WMO) and the World Bank Group comprising of International Bank for Reconstruction and Development (IBRD),International Development Association (IDA),International Finance   Corporation ( IFC) and Multilateral Investment Guarantee Agency (MIGA) and International Centre for Settlement of Investment Disputes (ICSID ).The  world Bank group institutions work together to provide financing,technical assistance, risk insurance and dispute resolution to governments and private enterprises. Both IMF and World Bank popularly known as  Bretton Woods twins because  they were established based on the decisions taken in the international .Monetary and Financial conference held at Bretton Woods New Hampshire in July 1944 to promote international monetary cooperation to rebuild War torn economies and also to  provide  financial assistance, development funding, along with assistance to achieve exchange rate stability, policy advice on inflation control, macro economic stability and infrastructure development. World Trade Organisation which was established in 1995 unlike it's predecessor General Agreement on Tariff and Tariff has been dealing with global trading system with rules of trade  between nations.Compared to the present WTO, GATT1947 lacked institutional structure. With 164 members including European Union and 23 observer Governments it lowers trade barriers through negotiations and observes the principle of non discrimination. WTO  encourages  good Governance greater transparency, shares Information and knowledge and levels the playing field. Small and weaker countries are able  to get better treatment including in dispute settlement system.

DEGLOBALISATION 

According to IMF Managing Director Kristalina Georgieva taking inspiration from  J M Keynes main Architect of  IMF  " We cannont have a better world without international cooperation "." Keynes would encourage us to go even further as a global transmission line".for sound economic policies, financial resources, knowledge and the ultimate platform for global economic cooperation".But recent US policies like reciprocal and penal tariff, immigration restrictions including several fold increase in H1-B Visa and immigration quotas restrictions were certainly added to Deglobalisation process.

Theoretically deglobalisation  refers to drastic reduction of interdependence and integration through  tariff and non tariff barriers. In addition to various UN institutions their affiliates IMF, World Bank and WTO, various free trade groupings, agreements,treaties like Maastricht Treaty  and global TNCs or Transnational  corporations  are major players to be brought under multilevel governance. 

LIMITATIONS OF GLOBAL INSTITUTIONS 

Most significant institution capable of intervening in disputes between countries has been the UN Security Council. Unfortunately it's power structures is highly skewed with 5 permanent members China  France,Russia, UK and USA hold veto power.Indiscriminate application of veto power in many times struck at the root of  global peace and prosperity. Beyond veto power unequal global representation, selective and inconsistent action and lack of transparency and accountability are major limitations of UN Security Council. Similarly the World Health Organisation(WHO) was established to provide" state of complete, physical, mental and social well-being"  to all. In practice WHO is constrained by imitations like heavy reliance on voluntary funding and a slow bureaucratic  response to crisis.Under Bretton Woods system while the world Bank was focusing on development assistance to member countries ,International Monetary Fund's task was primarily to maintain balance of Payments and exchange rate stability of member countries. Main limitation of these institutions are the decision making processes are disproportionately skewed towards developed countries and their prescriptions for Structural Adjustment program assistance come under strict conditionalities like privatisation of public services ,trade and investment liberalisation etc.On the Otherhand World Trade Organisation which came into existence in  1995 were  theoretically more democratic and functioning better than GATT1947 in terms of  generally lower tariffs and an effective trade dispute  settlement system,  favouring both developed cand developing countries based on merit of each case and dealing with trade in goods, trade in services and trade in Intellectual Property Rights (TRIPS ). Initially better dispute settlement was witnessed as  in the case of Basmati rice, Neem, Haldi,traditional knowledge etc.Unfortunately  when the decisions of Disputes settlement mechanism became unfavourable to developed countries they started to distort the mechanism through pressure tactics and by not nominating appellate body panel members for dispute settlement etc

REFORMING  GLOBAL GOVERNANCE. 

Experts observed that global governance framework basically comprise of mainly six principles that form the ethical and practical foundations for effective global governance.namely 1.Post Growth and Regenerative design 2.Decentralised authority 3.Radical Transparency,4.Direct Participation,5.Universal human Rights and 6.Environmental Stewardship.f IMF require that instead of applying same policy to all nations uniforrmly depending on the extent of development less developed economies,emerging market economies and others should be provided with most appropriate policies depending on their conditions.Emphasis should be on transparency, responsiveness and inclusiveness and effectiveness of survelience.On the otherhand reforming World Bank requires reducing US dominance from present 15.85% voting power and veto authority.Further adjusting climate finance balance,Capital adequacy,debt transparency,private sector mobilisation as major areas of reform As far as reforming WTO is concerned the most important issue is restoring a transparent binding dispute settlement system.,updating trade rules,for digitial and green economy,and  improving efficiency in negotiatioGLn through plurilateral agreements.They are inevitable to achieve the desired objectives of higher living standards,employment generation,and sustainable development.