International Organisations — UN System, WTO, IMF, World Bank & Multilateral Groupings

The United Nations System

The United Nations was founded on 24 October 1945 (UN Day) with 51 original member states. It currently has 193 member states. The UN Charter was signed on 26 June 1945 in San Francisco and came into force on 24 October 1945. Headquarters: New York City.

Six Principal Organs

UNSC — Permanent Members (P5) and India's Bid

India's Claim for Permanent Seat:

• India is a member of the G4 nations (India, Brazil, Germany, Japan) — formed in 2004 — which collectively advocate for UNSC expansion
• G4 proposal: Expand UNSC from 15 to 25-26 members, with 6 new permanent seats (2 for Africa, 2 for Asia-Pacific, 1 for Latin America, 1 for Western Europe)
• India's bid is supported by 4 of 5 P5 members (France, Russia, UK, US); China opposes
• Uniting for Consensus group (led by Pakistan, Italy, South Korea, Argentina) opposes expansion of permanent seats
• India has served as a non-permanent UNSC member 8 times, most recently in 2021-22

Common Mistake: The "Uniting for Consensus" (UfC) group is NOT the same as the G4. The UfC (also called the "Coffee Club"), led by Pakistan, Italy, South Korea, and Argentina, OPPOSES the expansion of permanent seats. They propose adding only non-permanent seats. Do not confuse these two groups -- UPSC has tested this distinction in both Prelims and Mains.

Key UN Specialised Agencies

World Trade Organization (WTO)

Doha Development Round

• Launched at the 4th Ministerial Conference in Doha, Qatar (November 2001)
• Focus: Agriculture subsidies, market access, services, intellectual property, special and differential treatment for developing countries
• Negotiations stalled repeatedly over agricultural subsidies (US/EU vs developing nations)
• Effectively moribund since 2008; no comprehensive agreement reached
• Key issues: Peace Clause on food stockholding (India's demand), cotton subsidies, NAMA

Dispute Settlement Mechanism

• Often called the "jewel in the crown" of the WTO
• Dispute Settlement Body (DSB) administers the process
• Appellate Body crisis: Since December 2019, the Appellate Body has been non-functional due to US blocking of new appointments — only 2 of 7 positions filled; quorum (3) not met

Exam Tip: The WTO's Dispute Settlement Mechanism is called the "jewel in the crown" of the WTO, but the Appellate Body has been paralysed since December 2019. For Mains, this is a critical point when discussing WTO reform. India benefits from a functional dispute mechanism as it is both complainant and respondent in multiple cases. The Appellate Body crisis effectively means there is no binding final appeal -- panels can issue rulings but losing parties can "appeal into the void."

• India has been a party to numerous disputes, including solar energy, poultry, steel

Fisheries Subsidies Agreement

• Adopted at the 12th Ministerial Conference (MC12) in June 2022
• Entered into force on 15 September 2025 after two-thirds of WTO members deposited instruments of acceptance
• Prohibits subsidies for: illegal, unreported and unregulated (IUU) fishing; fishing of overfished stocks; fishing on unregulated high seas
• Additional disciplines under negotiation; agreement expires if additional rules not adopted by September 2029

International Monetary Fund (IMF)

Special Drawing Rights (SDR)

• International reserve asset created by the IMF in 1969
• SDR basket currencies: US dollar, Euro, Chinese renminbi (added 2016), Japanese yen, British pound
• Not a currency but a claim on freely usable currencies of IMF members

Remember: SDR is NOT a currency -- it is a supplementary international reserve asset. It is a claim on freely usable currencies. The Chinese renminbi was added to the SDR basket in 2016 (effective 1 October 2016), making it 5 currencies. India's quota share is 2.75% (8th largest), but its voting share is 2.63% -- note the difference between quota and voting share, which UPSC has tested.

Quota Reforms

• 16th General Review (December 2023): IMF Board of Governors approved a 50% increase in quotas (SDR 238.6 billion), bringing total quotas to SDR 715.7 billion (approximately USD 960 billion)
• 17th General Review: Work on quota realignment to better reflect members' relative positions in the world economy, with possible approaches due by June 2025
• India and other emerging economies have demanded greater voice and representation

World Bank Group

• Founded: 1944 (Bretton Woods Conference, alongside the IMF)
• HQ: Washington, D.C.
• India was a founding member; India "graduated" from IDA borrowing but remains eligible for IBRD loans

Regional Organisations

ASEAN (Association of Southeast Asian Nations)

European Union (EU)

African Union (AU)

SAARC (South Asian Association for Regional Cooperation)

BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation)

Multilateral Groupings

Comparative Table

AUKUS — Key Details

I2U2 — Key Details

• First joint statement: 14 July 2022
• Focus: Joint investments in water, energy, transportation, space, health, and food security
• Unlike the Quad (defence-focused), I2U2 is primarily economic cooperation

Important for UPSC

Prelims Focus

• UN founding date (24 October 1945), member count (193), principal organs (6)
• UNSC P5 members and veto power
• ICJ location (The Hague); ECOSOC (54 members)
• WTO founding (1995), Doha Round (2001), Fisheries Subsidies Agreement (2022, entered force 2025)
• IMF SDR basket currencies (5); India's quota share (2.75%)
• ASEAN founding (1967, Bangkok), current members (11 with Timor-Leste)
• G4 nations for UNSC reform (India, Brazil, Germany, Japan)
• AUKUS (2021) — Pillar 1 and Pillar 2 distinction
• I2U2 members (India, Israel, UAE, US)

Mains Dimensions

Interview Angles

• Should India push for abolition of the veto in the UNSC?
• Can the WTO's dispute settlement mechanism survive without the Appellate Body?
• Is India right to oppose RCEP while seeking FTAs bilaterally?
• How should India position itself between BRICS and Quad — can it belong to both?
• What is the future of SAARC?

Vocabulary

Multilateral

• Pronunciation: /ˌmʌl.tɪˈlæt.ər.əl/
• Definition: Involving three or more parties, especially nations, in negotiations, agreements, or cooperative arrangements.
• Origin: From Latin multi- ("many") + lateralis ("of or belonging to the side"), from latus ("side"); first used in English in the early 17th century (earliest evidence from 1606).

Veto

• Pronunciation: /ˈviː.təʊ/
• Definition: A constitutional right held by an authority to unilaterally reject or block a decision, law, or resolution, thereby preventing its enactment.
• Origin: From Latin vetō ("I forbid"), the first person singular present indicative of vetāre ("to forbid"); originally used by Roman tribunes of the people to oppose measures of the Senate; entered English in the early 17th century (earliest evidence from 1629).

Mandate

• Pronunciation: /ˈmæn.deɪt/
• Definition: An official or authoritative command, order, or commission granted to a person, body, or state to act on behalf of another, or the authority to carry out a policy regarded as given by an electorate.
• Origin: From Latin mandātum ("a charge, order, command"), from mandāre ("to commit to one's charge"), literally "to put into one's hands," from manus ("hand") + -dere ("to put"); first attested in English in 1521.

Key Terms

United Nations Security Council

• Pronunciation: /juːˌnaɪ.tɪd ˈneɪ.ʃənz sɪˈkjʊə.rɪ.ti ˈkaʊn.sɪl/
• Definition: One of the six principal organs of the United Nations, bearing primary responsibility for the maintenance of international peace and security, with the authority to impose binding sanctions, authorise military action, and establish peacekeeping operations. It consists of five permanent members (P5) — China, France, Russia, the United Kingdom, and the United States — each holding veto power over non-procedural decisions, and ten non-permanent members elected by the General Assembly for two-year terms.
• Context: Established by the UN Charter signed on 26 June 1945 in San Francisco and effective from 24 October 1945, succeeding the League of Nations Council. India has served as a non-permanent member eight times (most recently 2021-22) and seeks permanent membership through the G4 grouping (India, Brazil, Germany, Japan, formed 2004), which proposes expanding the UNSC from 15 to 25-26 members with six new permanent seats. India's bid is supported by four of the five P5 members (France, Russia, UK, and the US), but China has not explicitly supported India's candidacy. The Uniting for Consensus (Coffee Club) group — led by Pakistan, Italy, South Korea, and Argentina — opposes expansion of permanent seats altogether.
• UPSC Relevance: GS2 International Relations — Prelims tests P5 members, veto power mechanics, G4 vs Uniting for Consensus (Coffee Club) distinction, and India's eight non-permanent terms. Mains frequently asks "Discuss India's case for a permanent UNSC seat" and "Is the UNSC still fit for purpose?" India's reform argument rests on being the world's most populous country, largest democracy, top-5 economy, and largest troop contributor to UN peacekeeping. The procedural barrier — requiring a two-thirds UNGA majority plus ratification by all P5 — is essential context for answers.

World Trade Organisation

• Pronunciation: /wɜːld treɪd ˌɔː.ɡən.aɪˈzeɪ.ʃən/
• Definition: An intergovernmental organisation headquartered in Geneva, Switzerland, that regulates and facilitates international trade by providing a framework for negotiating trade agreements, a binding dispute settlement mechanism (often called the "jewel in the crown" of the WTO), and rules ensuring trade flows smoothly and predictably among its 166 member states, which represent over 98% of global trade.
• Context: Established on 1 January 1995 under the Marrakesh Agreement signed on 15 April 1994 by 123 nations at the conclusion of the eight-year Uruguay Round, succeeding the General Agreement on Tariffs and Trade (GATT, 1947). India is a founding member. The WTO operates on consensus-based decision-making (one member, one vote) through its highest body, the Ministerial Conference (held every two years). Its key agreements include GATT (goods), GATS (services), TRIPS (intellectual property), and the Agreement on Agriculture. The Appellate Body has been non-functional since December 2019 due to the US blocking new appointments, leaving over 32 panel rulings "appealed into the void" and unenforceable.
• UPSC Relevance: GS2 (International Relations) and GS3 (Economy) — Prelims tests founding year (1995), HQ (Geneva), members (166), key agreements (GATT, GATS, TRIPS, AoA), and dispute settlement mechanism. Mains asks about WTO reform, the Appellate Body crisis (non-functional since 2019), India's stance on public stockholding and the Peace Clause (Bali 2013), the Doha Round (stalled since 2008), and MC13 outcomes (Abu Dhabi, 2024). A cross-cutting topic linking trade policy with food security, agriculture subsidies, and India's FTA strategy.

Current Affairs Connect

Sources: United Nations (un.org), World Trade Organization (wto.org), International Monetary Fund (imf.org), ASEAN Secretariat (asean.org), African Union (au.int), Ministry of External Affairs (mea.gov.in), Press Information Bureau (pib.gov.in)