MULTILATERAL: NATO Members’ Defense Spending & more – 10th June 2025

Saluton from BA! This is the Rorshok Multilateral Update from the 10th of June twenty twenty-five. A summary of what's going down in the world's major multilateral institutions.

To start things off this week, on Thursday the 5th, the International Monetary Fund or IMF said that U.S. tariffs now pose a tougher test for emerging-market central banks than the COVID downturn did. Today’s shocks from tariffs are uneven, forcing central banks to juggle slowing growth, currency swings, and inflation pressures. While some markets did alright, the unpredictability is triggering worries about weaker currencies and costly borrowing. The head of the fund is arguing that emerging economies are facing a uniquely tricky policy landscape compared to past downturns.

The IMF has limited direct power to help countries reduce the damage that sanctions and trade wars have on them, since they are the result of the decisions of sovereign countries. Still, the fund can help out by providing financial assistance, policy advice, and technical support to affected countries. This can help stabilize economies, maintain essential imports, and support structural reforms to adapt to new trade realities.

Also on Thursday, NATO’s Secretary General announced a new plan to boost military capabilities, with the goal of hitting 5% of the members’ GDP in defense spending. Countries once known for being reluctant to increase their defense spending, like Denmark and the Netherlands, are now pushing hard for more arms. The plan includes ramping up readiness and continuing aid to Ukraine. The alliance still has to formally adopt the agreement and might face opposition from some of its member countries.

Still in news from Europe, on Sunday the 8th, Robert Fico, the Slovak Prime Minister announced that he’ll block any new EU sanctions on Russia that could hurt Slovakia’s interests, following a parliamentary resolution urging more punishments on Russia. He stressed that he wants Slovakia to play a positive role in the EU—but not to the point where it will hurt the country internally. Fico specifically mentioned he'd oppose moves targeting Russian fuel imports for Slovakia’s nuclear plants.

On Thursday the 5th, the U.S. sanctioned four International Criminal Court judges, accusing them of overstepping by targeting U.S. and Israeli nationals without their countries’ approval. The imposition of sanctions, under an executive order, includes penalties such as the freezing of their U.S. assets. Two of the judges had backed investigations into U.S. conduct in Afghanistan, while the other two approved arrest warrants for Israel’s leaders.

Meanwhile, on Tuesday the 3rd, the UN General Assembly picked five new rotating members for the Security Council’s twenty twenty-six–twenty twenty-seven term: Bahrain, the Democratic Republic of the Congo, Liberia, Colombia, and Latvia.

On Friday the 6th, the Food and Agriculture Organization announced that global food prices went down slightly in May, with lower prices for cereals, sugar, and vegetable oils driving the drop. Maize and wheat edged down thanks to strong harvests in Argentina, Brazil, and the U.S., while oilseeds like palm, soy, and sunflower saw declines amid seasonal output growth and soft demand. Sugar also eased based on weaker global demand and expected increases in production.

On the other hand, meat—pushed by beef—and dairy remained steady or climbed due to demand and tight supplies.

The Organization puts out monthly reports on food prices for a few reasons: to monitor global market trends, provide early warnings of food crises, and help policymakers, traders, and humanitarian agencies make informed decisions. These updates track price movements of key foods and ingredients. Tracking this information can predict and help prepare for supply disruptions, demand shifts, and potential inflation risks. This is valuable information, especially for lower-income countries.

In more news from the UN, on Thursday the 5th, the UN Environmental Program marked World Environment Day—highlighting the massive problem of plastic pollution. In a statement, the UN pointed out that globally, we produce about 400 million tonnes of plastic a year, yet only 10% gets recycled. That leaves millions of tonnes ending up in our oceans each year, posing huge risks to wildlife and human health.

On legal updates, on Thursday the 5th, Cambodia announced it would try to involve the International Court of Justice to intervene after a border dispute with Thailand resulted in the death of a Cambodian soldier. Thailand’s Defence Minister, in turn, emphasized its non‑recognition of the court’s jurisdiction since nineteen sixty and called for positive engagement, stressing it is committed to peaceful resolution. Both nations have reinforced troops near the border.

The next day, on Friday the 6th, Malaysia’s Prime Minister arrived in Bangkok to help defuse the rising tension between Thailand and Cambodia. As the chair of the Association of SouthEast Asian Nations, Malaysia is stepping into a mediator role, closely tracking the dialogue.

On the same day, the Organization of American States’ Election Observation Mission praised the peaceful execution of Mexico’s recent judicial election, thanking poll workers and officials for their efforts.

However, the group flagged the low voter turnout—just around 13%—and a large number of blank or invalid ballots. The election was organized quickly and played out amid political tension and legal disputes. It stems from a recent constitutional reform requiring all judges nationwide to be picked by popular vote—a move with no global precedent.

The mission viewed the context as challenging and urged attention to the low engagement and unusual structure of the process.

Shifting gears, on Monday the 9th, the International Labor Organization announced the success of a program it had rolled out on a business training session in Mongolia, working to reach informal workers and self-employed people across five districts in Ulaanbaatar and five distant provinces. They trained twenty-eight facilitators, who led ten three-day sessions for over 200 participants—most of them women. Local tax and social insurance representatives joined in to offer practical guidance.

The program showed progress and success as some trainees registered businesses, filed taxes, and even landed deals like one with Khaan Bank to train their borrowers. Graduates are staying in contact via Facebook, sharing progress and tips as they navigate the formal economy.

In other news, on Tuesday the 3rd, the World Food Program warned that about six million Haitians, half the population of the country, are facing severe hunger, and over a million were displaced due to relentless gang violence. The food situation is dire, especially in Port-au-Prince, where supply chains are breaking down. Places that were once bustling food hubs have instead become zones of desperation.

The Program’s resources are unfortunately drying up just as hurricane season begins, and with its warehouses nearly empty, the agency warns it won’t be able to respond to a disaster unless urgent funding arrives.

Back to Asia: on Tuesday the 3rd, China pledged more than half a million US dollars to support the World Trade Organization’s work to help some of the least developed countries in twenty twenty-five. The contribution backs things like internships, trade policy workshops, and international cooperation.

The World Trade Organization is funded mostly by contributions from its member countries, calculated based on each nation’s share of international trade. This ensures larger trading economies, like China, pay more, while smaller ones contribute less.

For our last story this week, on Thursday the 5th, the secretariat of the Organization for Security and Cooperation in Europe held a regional meeting for Central Asia’s top law enforcement leaders in Tajikistan. The heads of police and security departments from all five Central Asian countries, Kyrgyzstan, Tajikistan, Kazakhstan, Turkmenistan, and Uzbekistan, along with international partners, such as some UN agencies, met to strategize regional efforts against major shared threats like drug trafficking, small arms misuse, and violent extremism.

It is no coincidence that this meeting took place in Tajikistan: the country borders Afghanistan, a major source of narcotics and extremist groups, making it a key transit route for dangerous drugs and radicalization. These threats have strained public health systems through rising addiction and contribute to poverty and unemployment by destabilizing local economies. Tackling them helps protect not only Tajikistan’s development but also broader Central Asian and international security.

Aaand that’s it for this week! Thank you for joining us!

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