India’s Role in Rebalancing Multilateralism and India’s Multilateralism Policy

Context: This article is based on the news “Goodbye multipolarity; hello bipolarity?” which was published in the Live Mint. India recently discussed with Russia about the importance of rebalancing and the emergence of multilateralism.

Indo-Russian Strategic Talks: Focus on Connectivity and Multilateralism

• Strategic Meeting: India held a meeting with leading representatives of the Russian strategic community and discussed connectivity, multilateralism, big power competition and regional conflicts. 
• Reformed Multilateralism: India called for reformed multilateralism, particularly in light of the polarized nature of the UN Security Council, which faced challenges in maintaining international peace.
• Summit of the Future: It emphasized that the Future Summit, scheduled to be hosted by the United Nations in September next year, should be viewed as a significant opportunity for advocating fairness, and reform multilateralism. 
  • This reform includes the expansion of Security Council memberships. A representative and well-functioning Security Council is needed to fulfil its primary responsibility for the maintenance of international peace and security.

What is Multilateralism?

• Multilateralism involves engaging multiple nations through international organizations and forums based on founding principles such as consultation, inclusion and solidarity. 

Need For Rebalancing Multilateralism

• Global Power Shifting: Shifting power from established players like the US towards rising powers like India,
  • This aligns with India’s aspirations for a greater international role, fostering a more equitable and representative global order.
• Increased geopolitical space for India: The US, facing domestic challenges and strategic rivalry with China, is increasingly focusing on the Indo-Pacific region. 
  • This could free up space for India to exert greater influence in its immediate neighborhood and beyond.
• Economic Opportunities: Rebalancing opens up new pathways for economic cooperation and trade diversification, allowing India to forge stronger partnerships with emerging economies and reduce dependence on China and others.
  • India’s sustained dependency on China remains a concern. During the period FY 2002 to FY 2012, the trade deficit increased from $1.1 billion to $37 billion; which then touched an all-time high of $73 billion in FY 2022.
  • Leading by example, G20 Presidency:  India’s focus on human-centric progress and inclusivity during its G20 presidency set a valuable precedent for future discussions on reforming multilateralism.

Concerns with Multilateralism

• Failure of UNSC to Address Global Issues: The Security Council’s failure to act during the Ukraine conflict and the terror attacks by Hamas in Israel highlight concerns about its effectiveness in addressing global crises. 
  • The Council’s inability to secure a humanitarian ceasefire in the Gaza war due to vetoes by permanent members raised questions about its efficacy in crisis management.
• Fading Impact of Multilateral Institutions: The economic and climate-related disruptions, impacting non-Western nations such as Egypt, are intricately linked to the diminishing influence of multilateral institutions, notably the United Nations.
  • The UN has been criticised for its inability to effectively address global challenges due to issues such as veto powers, lack of its own reforms, and erosion of trust among member states. 
• WTO Appellate Body Crisis: The use of veto power by the US on the appointment of new judges to the WTO appellate body has rendered the WTO’s dispute resolution process ineffective.
  • Similarly, the WTO has struggled to make progress in multilateral trade negotiations, with countries increasingly resorting to bilateral or regional trade deals, undermining the principles of multilateralism.
• Boycott of Multilateral Forums: Chinese President Xi Jinping and Russian President Vladimir Putin did not attend the East Asia Summit in Jakarta highlighting the irreversible threat faced by the multilateral order. 
• Rising China’s Hegemony: Chinese expansionism poses a significant threat in Asia due to its growing military and economic influence, exacerbating tensions in Europe with its steadfast support for Russia.
  • While China is at odds with many Asian neighbors, including Vietnam, the Philippines, India, Japan, and the US, Russia is fighting the West over Ukraine.
• Regulatory Challenges: In the realm of international trade, the World Trade Organization (WTO) has faced difficulties in reaching multilateral agreements due to disparities in regulatory frameworks on issues such as intellectual property rights, labor standards, and environmental regulations. 
  • This has resulted in the proliferation of bilateral and regional trade accords with varying rules and regulations, contributing to regulatory fragmentation and complexity.

India’s Multilateralism Policy

• Cornerstone of India’s foreign policy: India has traditionally been a proponent of multilateralism, emphasising the importance of collective global action to address transnational challenges. 
  • India pursuing its interests at international forums such as the UN by mobilizing developing countries or the global south on platforms such as NAM, G-77, etc.
• Active Member of MultilateraI Fprum : India has been an active member of various multilateral forums, including the United Nations (UN), the World Trade Organisation (WTO), etc.
• Addressing Global Challenges: India has been at the forefront of initiatives to address global challenges such as climate change, sustainable development, and counter-terrorism. 
  • Ex- India has been actively engaged in global climate negotiations and has taken steps to promote renewable energy, reduce carbon emissions, and enhance environmental sustainability. 
  • India has also played a prominent role in advancing the 2030 Agenda for Sustainable Development, with a focus on poverty eradication, healthcare, education, and gender empowerment.
• Reforming Multilateral Institutions : India has also been a vocal advocate for the reform of global institutions to make them more representative and inclusive, reflecting the changing global power dynamics. 
  • Ex-India has called for reforms in global governance institutions, such as the UN Security Council, to make them more inclusive and representative of the current global realities. 
• Advocating Multipolar World: India has promoted a multipolar world order, where power is distributed among multiple centres and no single nation dominates global affairs. 
• Advocating Sovereign Equality: India has been a vocal proponent of the concept of “sovereign equality” among nations, emphasising the importance of mutual respect, non-interference in internal affairs, and the peaceful resolution of disputes.
• Pursuit of Collective Actions: India remains committed to finding collective solutions despite the current crisis in multilateralism. 
  • India has put substantial effort into ensuring that the G20 does not focus on specific issues like Ukraine. 
  • Instead, it aims to secure agreements on various significant matters, such as the modernization of the global tax regime and the reform of multilateral development banks.
• Voice of Global South: It revitalised the principles of multilateralism at G-20 summit by convening first-of-its-kind ‘Voice of the Global South Summit,’ amplifying the voice of the Global South, championed inclusive development, and fought for the empowerment of women.
• The New Delhi Declaration passed during the G-20 summit underscored India’s commitment to climate justice and equity, urging substantial financial and technological support from the Global North.

Rise of Bilateralism and the Formation of New Regional Blocs

• Pursuing Regional Goals: In recent times, countries have shown departure from multilateralism and started aligning along regional lines to pursue their interests. Ex- Rise of Free trade agreements, QUAD, I2U2, etc.
• India’s Stance: India has also pursued bilateral and trilateral deals, such as the India-Japan-US trilateral dialogue and the India-Australia-Japan-US Quadrilateral Security Dialogue (Quad), which are seen as strategic partnerships aimed at balancing China’s rise in the Indo-Pacific region.

Issues with Bilateralism

• Fragmentation of Global Order: While promoting regional integration and cooperation, it can lead to fragmentation, exclusion, and even conflict. 
  • Ex- Rise of regional tensions in various parts of the world, such as the Middle East, Eastern Europe, and the South China Sea. 
  • These regional blocs can potentially dilute the global approach required for addressing global challenges, further marginalising smaller and less powerful nations. 
• Competition Among Regional Groupings: These regional blocs prioritise regional interests and exclude non-member states from their decision-making processes, leading to competition among different regional groupings. 
  • Examples of such regional blocs include the European Union (EU), the Shanghai Cooperation Organization (SCO), and the African Union (AU). 
  • The EU’s emphasis on regional integration and protectionist policies has been criticised for undermining global trade liberalisation efforts. 

Way Forward

• Balancing Bilateralism and Multilateralism:  By combining the direct engagement of bilateral negotiations with the inclusivity and fairness of multilateral forums, a comprehensive and effective approach to dispute resolution can be achieved.
  • This pragmatic and context-specific mix of bilateral and multilateral engagement enables nations to navigate complex disputes, promote cooperation, and work towards long-term stability on the global stage.
• Focusing on re-globalization: It is a more diversified and democratic approach that includes multiple centers of production, moving away from exclusive reliance on China’s factories and Beijing’s political decisions.
• Restructuring of Multilateral System: The multilateral system needs to be restructured from closed to more collaborative, with more trust-building cooperation between regional and global organizations.
  • The UN should establish an official partnership with selected regional organizations, which could include regular meetings between the leaders of members of the UN Security Council and heads of the regional organization.
• Reforming Multilateral Banks: The financial capacity and equitable representation of multilateral development banks (MDBs) needs to be enhanced.
  • This requires multilateral banks to pivot away from their traditional country-focused models and prioritize global public goods investments. 
  • This is crucial for promoting the sustainable advancement of poor and rich countries, enabling inclusive economic growth, and reducing poverty and inequality. 
• Data-governance Frameworks: Multilateral organizations should establish data-governance frameworks and common standards to combat the trend of data localization and foster cross-border data sharing and public-private data collaboration. 
  • They should help governments maintain a strong national statistical system, develop talent, and foster cybersecurity solutions and data-governance policies. 
  • For instance, the UN Development Program and the Office of the UN Secretary-General’s Envoy on Technology are promoting the concept of open technology which aims to enable the development of solutions that are made available for anyone to adapt. 
  • Examples are digital public goods (DPGs), such as open source software, and digital public infrastructure (DPIs), such as payment systems. 

Conclusion:

India’s role in rebalancing multilateralism is significant and holds immense potential. By advocating for reform, leading by example, building strategic partnerships, and addressing its own internal challenges, India can contribute to a more equitable and inclusive global governance system that reflects the Indian ethos of ‘Vasudhaiva Kutumbakam.’

News Source: Live Mint