The current global order — a fraying around many edges

Syllabus: GS-II, Subject: International Relations, Topic: Global issues, Issue: Issues in Global Order

 Global Order: aimed at upholding sovereign equality and collective security among nations

  • Post-World War order initiated with
    • Declaration of the United Nations in 1942
    • endorsement of the Atlantic Charter in 1941.
  • International economic order created by: Bretton Woods Conference (1944) through the establishment of
    • International Monetary Fund (IMF)
    • World Bank (WB)
    • General Agreement on Tariffs and Trade (GATT), later succeeded by World Trade Organization (WTO) in 1994.
  • Key issue with the global order:
  • Bias: The WB and IMF governance structures favor the United States and Europe reflecting old power structures.
  • UN system, based on international treaties, favors original signatories.
  • Efforts to challenge the biased global order
    • the Non-Aligned Movement and
    • G-77,
    • ad hoc groups like OECD, QUAD
    • Asian Infrastructure Investment Bank etc.

The emergence of regional, ad hoc organizations indicates a need for reform in the global order.

+1 Advantage for Mains

 Examples of dominance in global order:

·                     An American citizen always heads the World Bank;

·                     ‘Europe’ (Western Europe, in practice) gets to nominate the head of the IMF.

IMF voting right favor America and Europe:

·                     Voting right of original BRICS members (Brazil, Russia, India, China and South Africa) are 2.22, 2.59, 2.63, 6.08 and 0.63.

·                     Voting right US and European countries The U.S 16.5, U.K. (4.03), Germany (5.31) and the rest of the G-7 percentage approaches 30.

·                     By this USA can effectively reject any reform.


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