Topic: Important International institutions, agencies and fora- their structure, mandate.
Q4. “Global financial institutions are increasingly performing security functions in South Asia”. Comment. (10 M)
Difficulty Level: Medium
Reference: IE
Why the question
The recent bailout underscores how the international system continues to accommodate a geopolitically pivotal yet structurally fragile stateKey Demand of the question
The question demands an examination of how global financial institutions are acting beyond economic roles to influence regional security in South Asia and a critical analysis of the issues emerging from this trend.Structure of the Answer:
Introduction
Briefly explain the evolving security role of global financial institutions in politically unstable regions, with South Asia as a case in point.Body
- Highlight ways in which these institutions are increasingly performing security functions in South Asia.
- Analyse key issues arising from this shift, such as credibility loss, moral hazard, and weakened regional frameworks.
- Suggest actionable reforms and institutional mechanisms to ensure neutrality, accountability, and regional consultation.
Conclusion
Call for a balanced approach where financial institutions uphold neutrality while ensuring their instruments support long-term regional stability without becoming tools of power politics.
