International bodies Flashcards
AIIB?
- AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond
- Members:
- 57 founding members
- more than 100 members nw.
- Fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the UK; Japan and USA not members
- Membership in the AIIB is open to all members of the World Bank or the Asian Development Bank and is divided into regional (within Asia and Oceania) and non-regional members.
- Unlike other MDBs AIIB allows for non-sovereign entities to apply for AIIB membership, if their home country is a member. eg China Investment Cooperation is a member
- hqr: Beijing
- commenced operation in 2016
- shareholding and voting rights:
- initial total capital is USD 100 billion divided into 1 million shares of 100 000 dollars each
- China largest: 50Bn; 26% voting share
- Indian 2nd largest 8.4Bn; 7.6% voting share followed by Russia and Germany
- 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.
- 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 with a ceiling for non-regional loans 25%
- first annual meeting of AIIB held in Beijing and third in Mumbai
- India is the largest beneficiary of AIIB financing for infra projects with more than 1Bn$ loan
UN Convention on International Settlement Agreements?
- “UNCISA resulting from Mediation” aka “Singapore Convention on Mediation” adopted by UNGA in Dec 2018
- Features:
- akin to the framework that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (the “New York Convention”)
- provides a uniform and efficient framework for the enforcement of international settlement agreements resulting from mediation and for allowing parties to invoke such agreements
- defines two additional grounds upon which a court may, on its own motion, refuse to grant relief i.e.
- dispute would not be capable of settlement by mediation or
- would be contrary to public policy.
- Benefit: Signing of the Convention will boost the confidence of the investors and shall provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).
Initiatives to promote ADR Mechanisms by GoI?
- to encourage international commercial arbitration in India, to evolve a comprehensive ecosystem of arbitration the Government is establishing the New Delhi International Arbitration Centre (NDIAC) as a statutory body.
- The Commercial Courts Act, 2015, has been further amended and legislative exercise to further amend the Arbitration and Conciliation Act, 1996, is currently underway.
- A new Chapter (IIIA) has been inserted in the Commercial Courts Act, 2015, for mandatory pre-institution mediation and settlement in certain category of cases.
- Union Cabinet has approved the signing of the United Nations Convention on International Settlement Agreements (UNISA) resulting from mediation (“Singapore Convention”)
Global coalition to protect pollinators?
- formed three yrs ago
- to follow up on the findings of IPBES Assessment on Pollinators, Pollination and Food Production, which found that many of the world’s pollinator species are on the decline.
- initiative to form a coalition was taken by the Netherlands in 2016 at the Conference of the Parties–Convention of Biological Diversity held in Mexico.
- The coalition now has 28 signatories including 17 European countries, five from Latin America and the Caribbean and four from Africa. {0 frm Asia thus INDIA NOT A MEMBER}
- In Africa, in chronological order, nations who joined are: Ethiopia, Burundi, Morocco and Nigeria (latest)
- Need:
- as per IUCN, About 16.5 % of vertebrate pollinators are threatened with global extinction
- 75 per cent of food crops in the world and nearly 90 per cent of wild flowering plants depend, at least to some extent, on animal pollination.
- Pollinator-dependent species are major sources of micronutrients, vitamins and minerals to humans.
- Around 5-8% of current global crop production is directly ascribed to animal pollination, which equates to somewhere between 235-577 Bn $
Asian Development Bank?
- ADB is a regional development bank established in 1966, hqrd in Manila, Philippines; aims to promote social and economic development in Asia
- admits the members of the UNESCAP and non-regional developed countries
- modeled closely on WB and has similar weighted voting system
- 31 founding members, including India, nw has 68 members
- largest shareholders:
- Japan and USA- each 15.6%, Japan jst a bit more
- china 6.4%
- India- 6.3%
- australia- 5.8%
- is an official UN observer
- Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs. includes objectives like eradicate extreme poverty. ADB invests in infrastructure, health, public administration system, helping nations to reduce the impact of climate change and to manage natural resources.
T/f: All BRICS members are members of AIIBas well.
F
Brazil and South Africa NOT
aiib supported projects in india?
AIIB has approved financing projects in India in a host of sectors like energy, transport and water including the Bangalore metro rail project (USD 335 million), Gujarat rural roads project (USD 329 million) and Phase 3 of the Mumbai urban transport project (USD 500 million)
Who determines Currency manipulation status internationally?
- US Department of the Treasury publishes a semi-annual report in which the developments in global economic and exchange rate policies are reviewed.
- If a US trade partner meets three assessment criteria, the US labels it a currency manipulator:
- significant bilateral trade surplus with the US is one that is at least $20 billion.
- Second, a material current account surplus is one that is at least 3% of GDP.
- Third, persistent, one-sided intervention reflected in repeated net purchases of foreign currency and total at least 2% of an economy’s GDP over a year.
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Implications of being declared Currency Manipulator:
- When the US Treasury labels a country a currency manipulator – as it has done here with China – the next step would normally be for negotiations to begin between the two countries. America may later impose tariffs
- Under the 1988 Omnibus Foreign Trade and Competitiveness Act, the U.S. will have to negotiate with China or take its case to the International Monetary Fund. Potential penalties by the U.S. include:
- Banning the Overseas Private Investment Corporation — an American government agency that invests in developing countries — from financing China.
- Excluding China from U.S. government procurement contracts.
Who were the UNSC members who oversaw Resolution 47 on Kasmir?
- UN Security Council increased the size of the investigating council to include six members along with permanent members of the UNSC.
- Along with the five permanent members, China, France, UK, US & Russia, non-permanent members included
- Argentina,
- Belgium,
- Canada,
- Colombia,
- Syria and
- the Ukrainian Soviet Socialist Republic.
World Bank Group: members? goals?
WB= IBRD + IDA
WBG=WB+ IFC + MIGA + ICSID
goals:
- ending extreme poverty by 2030
- boosting shared prosperity of the poorest 40% of the population in all countries
World Bank Group: history?
- Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference led to creation of the IBRD and IMF. IBRD later came to be known as WB along with other institutions
- Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development
- 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
- 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.
WBG- IBRD?
- only finances sovereign governments directly or projects backed by sovereign governments.
- focuses its services on middle-income countries or countries where the per capita income ranges from $1,026 to $12,475 per year.
- has provided more than $500 billion in loans to alleviate poverty around the world since 1946
WBG-IFC?
- largest global development institution focused exclusively on the private sector in developing countries
- has set two goals for the world to achieve by 2030: end extreme poverty and promote shared prosperity in every country.
- IFC makes loans to businesses and private projects generally with maturities of seven to twelve years.
WBG-IDA?
- helps the world’s poorest countries by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
- 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)
WBG-ICSID?
- established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention)
- ICSID provides for settlement of investor-State disputes by conciliation, arbitration or fact-finding.
- 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
WBG-MIGA?
- its mandate is to promote cross-border investment in developing countries by providing guarantees (political risk insurance and credit enhancement) to investors and lenders.
- provides 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.
WBG: membership?
- To become a member of the IBRD, under the IBRD Articles of Agreement, a country must first join the 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 ICJ
- India was one of the forty-four original signatories to the agreements reached at Bretton Woods that established the IBRD and 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 (Chairman of the WB), 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.
- 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.
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 argue that WB 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.
- 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.
- emergence of challenging institutions like AIIB by China
Role and Significance of UNSC?
- UN’s most powerful body, with “primary responsibility for the maintenance of international peace and security.
- Its powers include
- the establishment of peacekeeping operations,
- the establishment of international sanctions, and
- the authorization of military action through Security Council resolutions.
- It is the only UN body with the authority to issue binding resolutions to member states. Under the UN Charter, all Member States are obligated to comply with Council s decisions.
UNSC Reforms: Key demands?
- categories of membership,
- the question of the veto held by the five permanent members,
- regional representation,
- the size of an enlarged Council and its working methods, and
- the Security Council-General Assembly relationship.
- There is also a proposal to admit more permanent members.
SPECIAL PURPOSE TRUST FUND?
- SPTF is a specific fund housed within the UN Secretariat.
- It has been established to receive, consolidate, manage and account for all contributions and financial transactions of the new Resident Coordinator (RC) system, in a transparent and effective way.
- Funding sources include three streams:
- Voluntary contributions from Member States.
- The doubling of cost-sharing amounts from UN entities who are members of the United Nations development system.
- A 1% levy applied to contributions for UN development-related activities earmarked to a single agency, single programme or project.
UN RESIDENT COORDINATOR?
- UN Resident Coordinator (RC) system encompasses all organizations of the United Nations system dealing with operational activities for development, regardless of their formal presence in the country.
- The RC system aims to bring together the different UN agencies to improve the efficiency and effectiveness of operational activities at the country level.
- Role: Resident Coordinators lead UN country teams in 129 countries and are the designated representatives of the Secretary-General for development operations.
- to receive, consolidate, manage and account for all contributions and financial transactions of the new Resident Coordinator (RC) system, in a transparent and effective way, Special Purpose Trust Fund is Established
significance of BASIC?
- They are a bloc of four large newly industrialized countries – Brazil, South Africa, India and China.
- The signatory nations have a broadly common position on reducing greenhouse gas emissions and raising the massive funds that are needed to fight climate change.
- The BASIC countries constituted one of the parties in the Copenhagen Accord reached with the US-led grouping; the Accord, was, however, not legally binding. The four committed to act jointly at the Copenhagen climate summit, including a possible united walk-out if their common minimum position was not met by the developed nations.
- The BASIC group wields considerable heft purely because of the size of the economies and populations of the member countries.
- findings of the IPCC Special Report on Global Warming make it incredibly clear that the impacts of an already warming world are significant, and that impacts at 2°C are catastrophic compared to those of 1.5°C. Yet, the BASIC ministers recalled the Paris goal of limiting the temperature rise to well under 2°C, and aspiring to limit it to 1.5°C, suggesting their continued pursuit of 2°C as the target temperature limit.
- BASIC countries also contend that NDCs have demonstrated “a high level of ambition in the context of poverty and sustainable development”.
