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Time has Come to Change the Global
Institutions
Sawraj Singh
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Together,
Russia and
China seem determined to end the Western domination and
America’s status as the only Super power of the World. The global
institutions are
bound to be effected by these developments. |
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 With
the rapid decline of the West and visible rise of the East, time has
come to change the global institutions. All these institutions were
developed in an era when there was unquestionable and unchallenged
domination of the West. Therefore, all the global institutions such
as the IMF, the World Bank and the United Nations reflect domination
of the West. With the change in the World situation, these
institutions are losing their relevance and becoming ineffective.
These institutions should be changed to reflect the new global
realities.
I have been
calling for such a change for the last several years. However, I
was surprised that the British Prime Minister Gordon Brown gave such
a call. While visiting
Brazil and after
listening to a bitter complaint from the Brazilian President Lula De
Silva that the present global crisis was caused by white people with
blue eyes, Brown said that he would support ending a six decade old
Western domination of the IMF and the World Bank. Brown said that
voices of the emerging and developing countries have not been heard
for a long time. He said that the next head of the World Bank need
not be an American or European. He said that the International
Monetary Fund and the World Bank and all the international
institutions must change now to meet the new realities. Brown
recognized that emergence of BRIC (Brazil, Russia, India and China)
as a new power in the recent decades has increased pressure on these
institutions to change. Brown also recognized the growing influence
of the Chinese as well as the Gulf States’ wealth, which have pumped
billions into global markets.
Kevin Rudd, the
Australian Prime Minister, said during a recent visit to
Washington that
time was right to reform the IMF and the World will call on surplus
nations such as China, to bolster the IMF’s resources. Rudd said
that voting rights also need to be reformed. He said that it is
unsustainable that
Europe
has eight times (IMF voting) quota but only 1.7 times the G.D.P.
Just like the
financial institutions, the United Nations should also be changed to
reflect the new realities. The developing countries should have
more say in the UN. So far, the Western countries mostly had their
way. Now the West is losing influence economically as well as
militarily. Therefore, the UN has to be restructured to make it
more effective. Many countries have complained in the past that
America
has not shown much regard for the World opinion and pretty much did
whatever it wanted to do. Similarly, Israel has not shown much
respect for United Nations’ resolutions. This state of affairs will
quickly change because of the change in the balance of power in the
World.
Russia and China
have joined their forces to end the Western hegemony. With Russia
joining the East, the balance of power has also tilted to the East.
Recently, both Russia and China have challenged the American
dominance in the Seas. First, China challenged American Naval ship
which came close to its coast. Now, Russia has asserted its claim
over the Arctic Ocean in a very big way. Russia has announced plans
to setup a military force to protect its interests in the Arctic.
Warmer
temperatures are making access to the
Arctic easier.
This region has huge resources of oil and gas. It is estimated that
it has about 90 billion barrels of oil. The warmer temperatures
have also increased the chances of drilling for this oil. Russia
has put the other countries who claim a stake in the
Arctic,
such as
Canada, Denmark, Norway and the US, on the defensive. In 2007, a
Russian expedition planted a Russian flag on the sea bed beneath the
North Pole.
The Arctic oil
will further enhance
Russia’s control
over Europe’s energy supply. Already Europe is heavily dependent on
the Russian gas. Together, Russia and China seem determined to end
the Western domination and
America’s
status as the only Super power of the World. The global
institutions are bound to be effected by these developments.
1 April 2009
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