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15th June 2024 (10 Topics)

G7 Summit

Context

The recent G7 Summit, attended by Prime Minister Narendra Modi, concluded with a commitment to promote infrastructure initiatives like the India-Middle East-Europe Economic Corridor (IMEC). This commitment was part of the G7's efforts to enhance global infrastructure and investment under the Partnership for Global Infrastructure and Investment (PGII).

How countries are seeing IMEC as a ‘significant initiative’?

  • The IMEC is highlighted as a significant initiative aimed at creating extensive road, railroad, and shipping networks connecting Saudi Arabia, India, the United States, and Europe.
  • It aims to foster economic integration across Asia, the Middle East, and Western countries.
  • The G7's endorsement of the IMEC underscores its potential as a transformative project. It aligns with broader initiatives such as the EU Global Gateway and initiatives like the Great Green Wall Initiative and the Mattei Plan for Africa, emphasizing sustainable and inclusive development.
  • Comparison with BRI: Unlike the BRI, which has faced criticism for lack of transparency and respect for national sovereignty, the IMEC is positioned as a collaborative effort among like-minded nations to enhance their strategic influence through transparent and mutually beneficial infrastructure development.

Other key-highlights of the Summit:

  • G7 on China: G7 leaders promised to address what they called harmful business practices by China. They focused on China's economic influence and what they see as unfair markets in areas like electric vehicles, steel, and renewable energy.
  • Ukraine-Russia: The G7 countries reached a preliminary agreement to offer Ukraine $50 billion in loans supported by interest earned from frozen Russian assets. 
  • Other issues: The leaders discussed other major issues such as war in Gaza, Iran, situation in Red Sea, climate change, gender equality.

The G7, while recognized as a significant organization, faces a crucial imperative to evaluate its effectiveness in fulfilling responsibilities amidst recent global crises and conflicts. It is essential to assess how its decisions are perceived on the global stage in this context.

Why Global Influence of International Organisations is in Decline?

  • The current international system, established in the aftermath of World War II, was designed primarily by a specific set of states to promote peace and stability globally. However, its effectiveness in addressing contemporary challenges is increasingly questioned.
  • Conflicts like the Ukraine-Russia war and ongoing issues in the Middle East underscore the inability of international actors to effectively resolve regional conflicts.
  • International organisations are experiencing a decline in global influence because:
    • They have failed to adapt to the realities of a multipolar world emerging in the 21st century.
    • The dominance of a few superpowers and their political agendas has marginalized the voices and concerns of other nations, undermining the credibility and effectiveness of these organisations.
  • There is an urgent call for leading international organisations to take proactive steps in reshaping the global system to meet contemporary challenges.

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