International Financial Institutions (IFIs) play a pivotal role in the global economy by fostering financial stability, promoting economic development, and facilitating international trade and investment. Comprising a diverse range of organizations, IFIs include the International Monetary Fund (IMF), the World Bank, and regional development banks. These institutions act as crucial pillars of the international financial system, offering financial assistance, policy advice, and technical expertise to member countries. With a mandate to address economic challenges on a global scale, IFIs contribute to poverty alleviation, infrastructure development, and the establishment of sound financial systems. The collaborative efforts of these institutions aim to create a more interconnected and prosperous world by addressing economic imbalances, supporting sustainable development, and mitigating the impacts of financial crises. As key players in the realm of international finance, IFIs continue to shape the economic landscape and influence policies that impact nations across the globe.
During the Bretton Woods Conference in 1944, a decision was made to establish a new monetary order aimed at expanding international trade, promoting international capital flow, and contributing to monetary stability.
International Organisations
- An international organization is characterized as a cooperative forum of sovereign states based on multilateral international agreements and consisting of a relatively stable group of participants.
- The key feature is the presence of permanent organs with specific competencies and powers working towards common goals.
- International Organizations (IOs) perform various functions, including:
- Safeguarding the sovereignty of states and fostering peaceful cooperation among them, despite their diverse social systems.
- Ensuring that competition among individual states remains peaceful.
Bretton Woods Conference
- The Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference, convened delegates from 44 nations from July 1st to 22nd, 1944, in Bretton Woods, New Hampshire, to establish new rules for the post-World War II International Monetary System.
- The two major accomplishments of the conference were:
- The establishment of the International Monetary Fund (IMF).
- The creation of the International Bank for Reconstruction and Development (IBRD), also known as the World Bank.
International Monetary Fund (IMF)
- The International Monetary Fund (IMF) is an intergovernmental organization that oversees the global financial system by monitoring the macroeconomic policies of its member countries, particularly those impacting exchange rates and the Balance of Payments (BOP).
- Headquartered in Washington DC, United States, the IMF was formally established on December 27, 1945, when the first 29 countries signed its Articles of Agreement.
- Currently, the IMF boasts 190 member countries, with the Principality of Andorra becoming the 190th member on October 16, 2020.
- While a specialized agency of the United Nations, the IMF operates under its charter, governing structure, and finances.
- Member representation is determined through a quota system, reflecting their relative size in the global economy.
- The International Monetary Fund produces the Global Financial Stability Report (GFSR), published biannually, providing updates on current economic conditions and global financial markets. Another significant publication by the IMF is the World Economic Outlook.
Organization and Structure
- The IMF is led by a Managing Director who heads the staff and serves as Chairman of the Executive Board, holding the most powerful position within the organization.
- The Managing Director is elected by the Executive Board for a 5-year term. The IMF comprises the Board of Governors, Ministerial Committees, and the Executive Board.
- The Board of Governors includes one Governor and one alternate Governor for each member country, appointed by the respective member countries. This board convenes annually and is responsible for selecting or appointing an Executive Director to the Executive Board.
- The Executive Board consists of 24 Executive Directors representing all 190 member countries in a geographically based roster, with larger economies forming constituencies representing four or more countries.
- Voting power in the IMF is based on a quota system. Each member has basic votes equal to 5.502% of the total votes, plus an additional vote for each Special DrawingRight (SDR) of 100,000 of a member country’s quota.
- In essence, the IMF offers two types of lending: non-concessional loans at regular interest rates and concessional loans provided to low-income countries on favorable terms, with concessional loans currently carrying no interest.
IMF Lending
- IMF loans aim to assist member countries in addressing Balance of Payments (BoP) issues, stabilize their economies, and restore sustainable economic growth.
- In the contemporary context, IMF lending serves three primary purposes:
- Facilitating smooth adjustment to economic shocks, aiding member countries in avoiding disruptive economic adjustments or sovereign defaults, which could have significant costs for the country and possibly others through economic and financial ripple effects (known as contagion).
- Acting as a catalyst for other lenders, unlocking additional financing opportunities.
- Aiding in preventing crises, as a capital account crisis can impose substantial costs on countries and potentially spread contagion to other nations.
IMF Quota
- When a country joins the IMF, it is assigned an initial quota in a range similar to that of existing members with comparable economic size and characteristics.
- IMF’s financial contributions, voting power, and access to financing rely significantly on quota subscriptions, which constitute the majority of the organization’s financial resources.
Special Drawing Rights (SDRs)
- Special Drawing Rights (SDRs) were established by the IMF in 1969 as an international reserve asset to supplement the official reserves of member countries. SDRs serve as an accounting unit for IMF transactions with member countries and a stable asset in a country’s international reserves.
- Their value is determined by a basket of five major international currencies (US dollar, Japanese yen, British pound, euro, and Chinese renminbi), and SDRs can be exchanged for freely usable currencies.
- The inclusion of the Chinese renminbi in the SDR basket took effect on October 1, 2016.
- Calls have emerged to elevate SDRs to the status of global reserve currencies. Understanding the concept of reserve currency is crucial, as it refers to a currency widely held by central banks and financial institutions globally, commonly used in international trade and transactions.
- Being a global reserve currency offers advantages, such as lower import costs and the ability to print more money if necessary.
- For a currency to become a global reserve currency, it must be widely available in the international market, freely convertible, and generally held in the form of government bonds rather than hard cash. Despite China’s growing economic stature, the yuan faces obstacles, including allegations of manipulation, limits on foreign bond holdings, and not being the world’s largest economy.
- Considering alternatives to the US dollar as the global reserve currency is motivated by concerns about recessionary impacts during and after financial crises, potential shrinkage of global liquidity if the US addresses deficits, and the imbalances resulting from the accumulation of dollars by countries like China.
- It’s essential to clarify that the SDR is not a currency but a potential claim on member countries’ currencies. To enhance the international significance of SDRs, annual issuances should increase, and they should become the primary or exclusive means of IMF financing.
IMF Reforms
- IMF Reforms were approved by the Board of Governors on February 17, 2020, concluding the 15th General Review of Quotas. The resolution, with no quota increase, guides the 16th Review to be completed by December 15, 2023.
IMF Member’s (Major Country) Quotas in Descending Order
| Country | Quotas (in %) |
| United States | 17.46 |
| Japan | 6.48 |
| China | 6.41 |
| Germany | 5.60 |
| France | 4.24 |
| United Kingdom | 4.24 |
| Italy | 3.17 |
| Russia | 2.71 |
| Brazil | 2.32 |
| Canada | 2.32 |
| India | 2.76 |
| Saudi Arabia | 2.1 |
- The quotas determine the amount of foreign exchange a member may borrow from the IMF and its voting power on IMF policy matters. Quotas are denominated in SDRs.
Debt Relief
- In addition to concessional loans, some low-income countries are also eligible for debts to be written off under two key initiatives.
- The Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).
India and IMF
- India is a founding member of the International Monetary Fund (IMF), having participated in the Bretton Woods Conference held in New Hampshire, USA in July 1944.
- The Finance Minister serves as the Ex-officio Governor on the Board of Governors of the IMF. India is represented by an Executive Director at the IMF, who also represents three other countries—Bangladesh, Sri Lanka, and Bhutan.
- In the 14th General Review of Quotas, India’s total quota has increased to SDR 2.76% from 2.44%, making it the 8th largest quota-holding country in the IMF.
- Once a debtor to the IMF, India is now a major investor, thanks to its Balance of Payment stability and the rise in foreign currency reserves.
World Bank
- The World Bank Group (WBG) is a collection of five international organizations that provide leveraged loans, primarily to impoverished countries.
- Established on December 27, 1945, following the international ratification of the Bretton Woods Agreements, the World Bank provided the foundation for the Osiander Committee in 1951, responsible for preparing and evaluating the World Development Report.
- Commencing operations on June 25, 1946, the World Bank approved its first loan on May 9, 1947, amounting to $250 million for post-war reconstruction in France—the largest loan issued by the bank to date in real terms.
- The 13th President of the World Bank Group is David Malpass, traditionally an American citizen nominated by the United States.
- As of January 2022, the World Bank has 189 member countries.
- The World Bank itself comprises major organizations, including the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the International Centre for Settlement of Investment Disputes, and the Multilateral Investment Guarantee Agency.
Objectives of the World Bank
- Provide long-term capital to member countries for economic reconstruction and development.
- Encourage long-term capital investment to ensure Balance of Payments equilibrium and balanced development of international trade.
- Promote capital investment in member countries by providing guarantees on private loans or capital investment.
- If capital is not available even after providing a guarantee, the International Bank for Reconstruction and Development (IBRD) provides loans for productive activities under considerate conditions.
- Ensure the implementation of development projects to facilitate a smooth transition from wartime to a peaceful economy.
Functions of the World Bank
- Currently, the World Bank plays a crucial role in providing loans for development projects to member countries, especially underdeveloped ones.
- The bank offers loans for various development projects lasting 5 to 20 years.
- The bank can grant loans to member countries up to 20% of its share in paid-up capital.
- It also provides loans to private investors from member countries under its guarantee, subject to the private investors obtaining permission from their native country. The bank charges 1% to 2% as service charges.
- The World Bank determines the loan quantum, interest rates, and terms and conditions.
- Typically, banks extend loans for specific projects submitted to the bank by member countries.
- The borrowing nation must repay either in reserve currencies or in the currencies in which the loan was sanctioned.
Organizational Structure of the World Bank
- The organization of the bank comprises the Board of Governors, the Board of Executive Directors, the Advisory Committee, the Loan Committee, and the President, along with other staff members.
- The Board of Governors is the supreme policy-making body of the bank.
- The board consists of one Governor and one Alternate Governor appointed for five years by each member country.
- The Board of Executive Directors consists of 21 members, with six appointed by the six largest shareholders (USA, UK, Germany, France, Japan, and India), and the remaining 15 members are elected by the other countries for two years.
India and the World Bank
India is one of the founding members of the World Bank.
- The Aid India Club Consortium was established in 1958 to provide financial assistance to India from the World Bank. It was later renamed the India Development Forum in June 1994.
- The World Bank assists India with loans, advice, study groups, etc.
- The World Bank also plays a role in resolving India-Pakistan river disputes.
- The “Indian Helped Group,” established in developed countries, was formed to advise India on development projects with the recommendation of the World Bank.
IMF vs World Bank
- Both are global institutions, as most countries worldwide are their members. Both aim to strengthen the economies of member nations.
- Differences: The World Bank’s purpose is to promote economic and social progress in developing countries, while the IMF’s purpose is to oversee and maintain an orderly system of payments and receipts between nations.
World Bank Groups
Various World Bank groups include:
International Bank for Reconstruction and Development (IBRD)
- Founded in 1944 to help Europe recover from World War II, the IBRD works with middle-income and creditworthy poorer countries to promote sustainable, equitable, and job-creating growth. It finances investment across all sectors and provides technical support, expertise, and global knowledge transfer.
Ease of Doing Business Index
- The Ease of Doing Business Index, created by Simeon Djankov at the World Bank Group, indicates the ease of business operations and property rights protections in a nation.
- The ranking is based on the average of 10 sub-indices, covering various aspects of business activities. The World Bank discontinued the Ease of Doing Business report from September 2021.
The International Development Association (IDA)
- The International Development Association (IDA) operates as a division of the World Bank, focusing on supporting the world’s most impoverished nations. Established in 1960, its mission is to alleviate poverty by providing interest-free credits and grants for programs that enhance economic growth, diminish inequalities, and enhance living conditions.
- IDA also serves middle-income countries by offering capital investment and advisory services. It stands as a significant source of assistance for the world’s 79 poorest nations, with 39 located in Africa. IDA holds the position as the largest contributor of donor funds for basic social services in the least developed countries, boasting 173 member countries as of June 2021. The loans, known as credits, provided by IDA are on concessional terms, meaning they carry no interest charges, and repayments are extended over 35 to 40 years, including a 10-year grace period.
International Finance Corporation (IFC)
- The International Finance Corporation (IFC), a member of the World Bank Group headquartered in Washington DC, focuses on promoting sustainable private sector investment in developing countries.
- With 184 member countries, IFC shares the primary objective of enhancing the quality of life for people in its developing member nations. It achieves this by financing private sector projects and companies in the developing world, facilitating mobilization of financing in international financial markets for private companies, and providing advice and technical assistance to businesses and governments.
Multilateral Investment Guarantee Agency (MIGA)
- The Multilateral Investment Guarantee Agency (MIGA), another member organization of the World Bank Group, specializes in political risk insurance.
- Established to encourage foreign direct investment in developing countries, MIGA achieves its objectives by insuring investors against political risk, advising governments on attracting investment, disseminating information through online investment information services, and mediating disputes between investors and governments.
- As of June 2021, MIGA comprises 182 member states, with 157 being developing countries and 25 industrialized countries.
Objectives of MIGA
- Raising FDI inflows to developing countries
- Reducing poverty
- Achieving higher economic growth
- Increasing standards of living
International Centre for Settlement of Investment Disputes (ICSID)
- The International Centre for Settlement of Investment Disputes (ICSID), an institution within the World Bank Group based in Washington DC, was established in 1966.
- Operating under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention or Washington Convention), it provides facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.
- As of June 2023, 163 countries had signed the ICSID convention, with India, Brazil, and South Africa not being signatories (members) to ICSID.
United Nations Conference on Trade and Development (UNCTAD)
- The United Nations Conference on Trade and Development (UNCTAD), established in 1964 as a permanent inter-governmental body, serves as the principal organ of the United Nations General Assembly focusing on trade, investment, and development issues. UNCTAD’s goals revolve around maximizing trade, investment, and development opportunities for developing countries, assisting them in integrating into the world economy on an equitable basis.
Objectives of UNCTAD:
- The primary objective of UNCTAD is to formulate policies encompassing all aspects of development, including trade, aid, transport, finance, and technology. Geneva, Switzerland, serves as the permanent secretariat of UNCTAD.
UNCTAD Conferences:
- The highest decision-making body of UNCTAD convenes every four years in a quadrennial conference.
- During these gatherings, member states assess current trade and development issues, engage in discussions on policy options, and formulate global policy responses.
- These conferences, held worldwide, set the organization’s mandate, work priorities, and play a crucial role in building inter-governmental consensus on the state of the world economy and development policies. The conferences are subsidiary organs of the United Nations General Assembly.
UNCTAD World Investment Report:
- UNCTAD annually releases the World Investment Report (WIR), focusing on assessing Foreign Direct Investment (FDI) trends globally.
- The World Investment Report 2022, released in June 2022, ranked India 7th among the top 20 host economies for 2021 in terms of FDI. It highlighted that FDI inflows in India increased from US$ 74,391 million in FY 19-20 to US$ 81,973 million in FY 20-21.
- India received the highest annual FDI inflows of US$ 84,835 million in FY 21-22, surpassing the previous year by US$ 2.87 billion.
Key Findings of the World Investment Report 2022 about India:
- FDI inflows increased from US$ 74,391 million in FY 19-20 to US$ 81,973 million in FY 20-21.
- India received the highest annual FDI inflows of US$ 84,835 million in FY 21-22.
- FDI Equity inflow in Manufacturing Sectors increased by 76% in FY 2021-22.
- Top 5 FDI sourcing nations: Singapore (27.01%), USA (17.94%), Mauritius (15.98%), Netherlands (7.86%), and Switzerland (7.31%).
Global Impact:
- The United States remained the top recipient of FDI ($367 billion), with China ($181 billion) and Hong Kong ($141 billion) retaining second and third positions.
- Among the top 10 host economies, only India experienced a decline in inflows. However, outward FDI from India rose 43% to $15.5 billion in 2021.
- The report highlighted the far-reaching consequences of the war in Ukraine on international investment and economic development, impacting Sustainable Development Goals (SDGs) globally.
World Trade Organization (WTO):
- The WTO, established as an inter-governmental organization regulating international trade, officially commenced on January 1, 1995, under the Marrakesh Agreement. It has 164 members, with Afghanistan joining as the 164th member on July 29, 2016.
- The WTO facilitates trade in goods, services, and intellectual property among participating countries by providing a framework for negotiating trade agreements.
- Headquartered in Geneva, Switzerland, the functions of the WTO include regulating trade agreements, providing a platform for trade negotiations, monitoring trade policies and handling disputes, offering technical assistance, and cooperating with other international or trade organizations.
Structure of WTO:
- The WTO’s organizational structure is delineated across various levels, each serving specific functions:
Ministerial Conference (Highest Level):
- Meets every two years.
- Brings together all WTO members.
General Council (Second Level):
- Highest-level decision-making body in Geneva.
- Regularly convenes to execute WTO functions.
Councils for Trade (Third Level):
- Oversees the workings of GATT, addressing international trade in goods.
Subsidiary Bodies (Fourth Level):
- Various subsidiary bodies operate under councils, addressing specific subjects like agriculture, subsidies, and market access.
Agreement on Agriculture and its Implications:
- The Uruguay Round marked a pivotal moment with the creation of the first multilateral agreement dedicated to the agricultural sector. Key objectives include reforming trade, fostering market-oriented policies, and enhancing predictability and security for both importing and exporting countries.
Key Aspects Covered by the Agriculture Agreement:
- Market Access: Addresses various trade restrictions confronting imports.
- Domestic Support: Encompasses subsidies and programs affecting farmgate prices and farmers’ incomes.
- Export Subsidies: Targets methods to make exports artificially competitive.
- Least Developed Countries: Exempted from commitments to reduce tariffs or subsidies.
- Tariff Cuts: The base level for tariff cuts was determined by the bound rate before January 1, 1995, or the actual rate charged in September 1986 for unbound tariffs when the Uruguay Round began.
Key Agreements of the World Trade Organization:
- General Agreement of Tariffs and Trade (GATT): Originated during the United Nations Conference on Trade and Employment.
- Operated from 1947 to 1994, focusing on negotiating lower customs duty rates and trade barriers.
- Stipulated essential rules, notably non-discrimination.
General Agreement on Trade in Services (GATS):
- Extends principles of freer and fairer trade to service sectors.
- Includes commitments made by WTO members for trade in services.
Trade-Related Aspects of Intellectual Property Rights (TRIPS):
- Established in 1995, providing for both product and process patents.
- Safeguards intellectual property through patents, protecting products and processes used in their creation.
- Patents can be broadly categorized into product patents, safeguarding the end result, and process patents, which protect the underlying technology and manufacturing method. The agreement stipulated a 10-year window for developing countries to enact intellectual property protection laws. Consequently, India aligned itself with the agreement through the Patents (Amendment) Act of 2005, while developed countries were required to implement laws by 1995.
- Under this agreement, patent protection extended for 20 years, and it came into force in 1995 after negotiations under the General Agreement on Tariffs and Trade (GATT).
- Trade-Related Investment Measures (TRIMs) is a WTO agreement safeguarding foreign investments from discrimination in host countries. It prohibits measures violating national treatment and quantitative restrictions outlined in the GATT, with exceptions for certain service-related aspects.
- The Trade Facilitation Agreement, stemming from the Doha Round of Trade Negotiations, came into effect on February 22, 2017, aiming to streamline global trade by reducing barriers, enhancing cooperation on customs compliance, and supporting capacity building. It focuses on expediting the movement and clearance of goods and facilitating cooperation among WTO members.
Non-Agricultural Market Access (NAMA)
- Non-Agricultural Market Access (NAMA) encompasses products outside the scope of the agriculture agreement, including manufacturing, fuels, mining, fish, and forestry products.
- The Uruguay Round significantly improved market access for NAMA products in developed countries, reducing tariff averages and increasing predictability for developing nations.
WTO subsidy
- WTO subsidies are categorized by colored boxes, resembling traffic lights. Green signifies permitted subsidies, amber denotes reductions, and red indicates forbidden subsidies.
- In agriculture, there is no Red Box, while the Amber Box restricts domestic support exceeding agreed levels. The Blue Box allows subsidies tied to programs limiting production, and the Green Box permits fixed payments for environmental programs, decoupled from current production levels.
- Exceptions are provided for developing countries, often referred to as the S&D Box. The Amber Box, covering measures distorting production and trade, exempts 5% for developed countries and 10% for developing countries.
- The Amber box contains subsidies with conditions designed to reduce distortion, and the Blue box includes subsidies that can be increased without limit, as long as payments are linked to production-limiting programs. Direct payments to farmers to reduce production are an example of subsidies in the Blue box.
Dispute settlement process at the WTO
- In the dispute settlement process at the WTO, the Dispute Settlement Body is responsible for settling disputes.
- It consists of all WTO members and has the authority to establish panels of experts to consider cases. The body can accept or reject the panels’ findings or the results of an appeal. It monitors the implementation of rulings and recommendations and can authorize retaliation if a country does not comply with a ruling. Appeals are based on points of law such as legal interpretation and are heard by a permanent seven-member Appellate Body.
Intellectual Property
- The WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was negotiated in the 1986-94 Uruguay Round.
- It introduced intellectual property rules into the multilateral trading system.
- The agreement covers five broad issues, including the application of basic principles of the trading system, adequate protection of intellectual property rights, enforcement of rights in territories, settlement of disputes on intellectual property between WTO members, and special transitional arrangements during the introduction of the new system.
Trade Facilitation Agreement (TFA)
- The Trade Facilitation Agreement (TFA) was adopted by WTO Members in the Bali Ministerial Conference in Indonesia in December 2013.
- It entered into force on February 22, 2017, after ratification by two-thirds of the WTO membership.
- The TFA aims to streamline the strict rules governing international trade by reducing red-tapism and simplifying customs regulations for the cross-border movement of goods, ultimately reducing trade barriers worldwide.
Other important international organizations include:
- World Economic Forum (WEF): An international non-governmental and lobbying organization based in Geneva, Switzerland. It was founded in 1971 and is known for its annual meeting in Davos. The Forum engages political, business, cultural, and other leaders to shape global, regional, and industry agendas.
- Organisation for Economic Co-operation and Development (OECD): An international economic organization founded in 1961, comprising 38 countries. Its goal is to stimulate economic progress and world trade. The OECD serves as a forum for countries committed to democracy and the market economy, facilitating the comparison of policy experiences and coordination of domestic and international policies among its members.
- The Organisation for Economic Co-operation and Development (OECD) was established in 1948 as the Organisation for European Economic Co-operation (OEEC), led by Robert Marjolin of France.
- Its initial purpose was to assist in the administration of the Marshall Plan for the post-World War II reconstruction of Europe.
- Subsequently, the organization expanded its membership beyond European states, and in 1961, it underwent reform and transformation into the Organisation for Economic Co-operation and Development through the Convention on the Organisation for Economic Co-operation and Development.
- The majority of OECD members are high-income economies with a High Human Development Index (HDI), categorizing them as developed countries.
- Notably, Chile is the sole OECD member also belonging to the Group of 77, an organization of developing countries. The OECD’s headquarters are located in Paris, France.
- The OECD collaborates with the Financial Action Task Force (FATF) to combat terrorist financing and money laundering.
The Financial Action Task Force (FATF)
- The Financial Action Task Force (FATF) is an international inter-governmental body responsible for establishing global standards in anti-money laundering and combating the financing of terrorism.
- Formed during the 1989 G-7 Summit in Paris, its secretariat is based at the OECD headquarters in Paris. The FATF comprises 39 member jurisdictions, including 37 countries and 2 GRA regional organizations. India joined as an observer in 2006 and became the 34th full member in 2010. India committed to implementing short, medium, and long-range reforms related to anti-money laundering and the financing of terrorism to secure its membership.
- This membership is crucial for India to enhance its capacity to combat terrorism, terrorist financing, and effectively investigate and prosecute money laundering cases.
The Food and Agriculture Organization
- The Food and Agriculture Organization (FAO), a specialized agency of the United Nations, has been at the forefront of international efforts to combat hunger since its inception in 1948.
- With a longstanding and fruitful partnership with India, the FAO plays a vital role in India’s progress in crops, livestock, fisheries, food security, and natural resource management.
- The FAO supports the Government of India in creating an environment conducive to promoting nutrition-sensitive food systems, agricultural policies, effective interventions, and nutrition education strategies. The FAO consists of 195 members, including 194 countries and the European Union, with headquarters in Rome, Italy, and maintains regional and field offices operating in over 130 countries.
United Nations Industrial Development Organization
- The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations dedicated to assisting countries in economic and industrial development.
- Headquartered at the UN Office in Vienna, Austria, UNIDO has a permanent presence in over 60 countries.
- As of April 2019, UNIDO comprises 170 member states, collectively shaping the organization’s policies, programs, and principles through the biannual General Conference.
- UNIDO is one of two UN specialized agencies where members are categorized into groups, the other being the International Fund for Agricultural Development (IFAD), an international financial institution addressing poverty and hunger in rural areas of developing countries.
SAARC (South Asian Association for Regional Co-operation)
- It was founded in 1985 and dedicated to economic, technological, social and cultural development emphasising collective self-reliance.
- SAARC has eight member countries (Afghanistan. Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
- It promote the welfare of the people of South Asia and to improve their quality of life.
- It strengthen co-operation among themselves in international forums on matters of common interest.
- It was established to contribute to mutual trust, understanding and appreciation of one another’s problems.
- Its secretariat is based in Kathmandu Nepal.
| Summit Dates | Hosts |
| 7th-8th December, 1985 | Dhaka (Bangladesh) |
| 16th-17th November, 1986 | Bangalore (India) |
| 2nd-4th November, 1987 | Kathmandu (Nepal) |
| 29th-31st December, 1988 | Islamabad (Pakistan) |
| 21st-23rd November, 1990 | Male (Maldives) |
| 21st December, 1991 | Colombo (Sri Lanka) |
| 10th-11th April, 1993 | Dhaka (Bangladesh) |
| 2nd-4th May, 1995 | New Delhi (India) |
| 12th-14th May, 1997 | Male (Maldives) |
| 29th-31st July, 1998 | Colombo (Sri Lanka) |
| 4th-6th January, 2002 | Kathmandu (Nepal) |
| 2nd-6th January, 2004 | Islamabad (Pakistan) |
| 12th-13th November, 2005 | Dhaka (Bangladesh) |
| 3rd-4th April, 2007 | New Delhi (India) |
| 1st-3rd August, 2008 | Colombo (Sri Lanka) |
| 28th-29th April, 2010 | Thimphu (Bhutan) |
| 10th-11th November, 2011 | Addu (Maldives) |
| 26th-27th November, 2014 | Kathmandu (Nepal) |
| November, 2016 | Cancelled (Pakistan) |
SAFTA
- The South Asian Free Trade Area (SAFTA) was established on 6th January 2004, during the 12th SAARC summit in Islamabad, Pakistan. The agreement aimed to eliminate import taxes and duties on all goods by the year 2016.
SAPTA
- The South Asian Preferential Agreement (SAPTA) is an Inter-Governmental Group of SAARC nations, initiated on 11th April 1993, and came into force on 7th December 1995.
- SAPTA’s objective is to foster mutual trade and economic cooperation among member states through the exchange of trade concessions.
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
- An international organization involving countries from South Asia and Southeast Asia, BIMSTEC was formed on 6th June, 1997, in Bangkok, originally as BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation).
- Myanmar, Nepal, and Bhutan later joined as full members, leading to the organization being named BIMSTEC. It is headquartered in Dhaka, Bangladesh, with fourteen priority sectors covering various areas of cooperation.
ASEAN (Association of South-East Asian Nations)
- Established in 1967 in Bangkok, Thailand, by Indonesia, Malaysia, Philippines, Singapore, and Thailand, ASEAN currently has 10 members, including Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia as additional to the founding members. It serves as a forum to promote collaboration and mutual assistance on matters of common interest in economic, social, cultural, technical, scientific, and administrative fields.
- It also work towards promoting regional peace and stability through abiding respect for justice and countries of the region and adherence to the the rule of law in the relationship among rinciples of the UN Charter.
| Year | Summit Dates | Location |
| 2010 | October, 2010 | Hanoi, Vietnam |
| 2011 | May, 2011 | Jakarta, Indonesia |
| 2011 | November, 2011 | Bali, Indonesia |
| 2012 | April, 2012 | (Location not specified) |
| 2013 | October, 2013 | TAR (Location not specified) |
| 2014 | May, 2014 | Naypyidaw, Myanmar |
| 2014 | November, 2014 | Naypyidaw, Myanmar |
| 2015 | April, 2015 | Brunei |
| 2015 | November, 2015 | Kuala Lumpur, Malaysia |
| 2016 | April, 2016 | Vientiane, Laos |
| 2017 | November, 2017 | Manila, Philippines |
| 2018 | April, 2018 | Singapore |
| 2019 | June-November, 2019 | Thailand, Vietnam |
| 2020 | November, 2020 | Brunei |
| 2021 | October, 2021 | Virtual (Hosted by Brunei) |
| 2022 | November, 2022 | Phnom Penh, Cambodia |
| 2023 | May, 2023 | Labuan Bajo, Indonesia |
| 2023 | September, 2023 | Jakarta, Indonesia |
Indian Ocean Rim Association for Regional Cooperation
- The Indian Ocean Rim Association (IORA), formerly known as the Indian Ocean Rim Initiative (IORI) and the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), is an international organization comprising 23 states bordering the Indian Ocean.
- The organization was initially established as the Indian Ocean Rim Initiative in Mauritius in March 1995 and formally launched on 6th-7th March 1997 through the conclusion of a multilateral treaty known as the Charter of the Indian Ocean Rim Association for Regional Cooperation.
- The members include Australia, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, South Africa, Sri Lanka, Tanzania, Thailand, United Arab Emirates, Maldives, and Yemen.
BRICS (Brazil-Russia-India-China-South Africa)
- BRICS is the acronym for an association of 5 major emerging national economies: Brazil, Russia, India, China, and South Africa. South Africa joined in 2010. The first BRICS summit was held in Yekaterinburg, Russia, on 16th June 2009, and the term was coined by economist Jim O’Neill.
- To promote cooperation and boost economic growth, the member countries of BRICS established specialized institutions such as the New Development Bank, Reserve Contingency Arrangement, Fiber Optic Cable Network, etc. The 14th BRICS Summit was hosted by China through video conferencing mode in June 2022.
13th BRICS SUMMIT
- This summit was hosted by India through video conferencing mode on 9th September 2021. The theme of the summit was BRICS@15: Intra-BRICS Cooperation for Continuity, Consolidation, and Consensus. At this conference, member countries agreed to work towards four priority areas: Promotion of Multilateralism, Counter-terrorism, Using digital and technological tools for achieving SDGs, and Enhancing people-to-people cooperation. The New Delhi Declaration was adopted by the BRICS leaders.
IBSA (India-Brazil-South Africa)
- It is an international group promoting international cooperation between India, Brazil, and South Africa.
- IBSA was formalized in Brasilia on 6th June 2003. Five IBSA leadership summits have been held so far, with the fifth IBSA Summit taking place in Pretoria on 18th October 2011. It was created to promote South-South cooperation and build consensus on issues of international importance.
BASIC
- The BASIC countries (also Basic countries or BASIC) are a bloc of four large newly industrialized countries – Brazil, South Africa, India, and China, formed by an agreement on 28th November 2009.
- The quartet pledged collective action at the Copenhagen climate summit, even considering a united walkout if their shared minimum stance wasn’t acknowledged by developed nations.
G-15
- The Group of 15 (G-15) is an informal forum established to foster cooperation and contribute insights to other international groups, such as the WTO and the Group of 7. Its headquarters are located in Geneva, Switzerland. The member nations of G-15 are Algeria, Argentina, Brazil, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela, Yugoslavia, and Zimbabwe. G-15 was founded in 1989.
G-20
- The G-20 is an intergovernmental forum consisting of 19 countries and the European Union, addressing major issues related to the global economy, climate change mitigation, and sustainable development.
- The G-20 comprises 20 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, the Republic of Korea, Turkey, the United Kingdom, the United States of America, and the European Union.
- It represents 90% of the global gross national product, 80% of the world’s trade, and two-thirds of the world’s population. The 5th G20 summit was held in Saudi Arabia, and the next summit took place in Italy on October 30-31, 2021.
India and G-20
- India has been a member of the G-20 since its establishment as the Finance Ministers Forum in 1999. Currently, India co-chairs the working group on the G-20 framework for strong, sustainable, and balanced growth with Canada.
- India actively contributes to various thematic issues discussed in the G-20, such as financial sector regulatory reforms, climate change, IFIs (International Financial Institutions) reform, growth and fiscal consolidation, enhancing shareholding in forums such as FSB, IASB, and issues related to Non-Cooperative Jurisdiction (Global Forum, FATF, etc.).
- India holds the Presidency of the G-20 from December 1, 2022, to November 30, 2023. The G-20 Delhi Summit is scheduled to take place in Pragati Maidan, New Delhi, in 2023.
G-7 (Formerly G-8)
- The Group of Seven (G-7) is an informal group of seven advanced developed nations that meets annually to discuss issues related to global finance, security, energy, and world trade. It was established in the 1970s against the backdrop of the global energy crisis and the collapse of the Bretton Woods fixed exchange rate system.
- Russia joined as a member of G-8 in 1994 but was expelled from the organization in 2014 after the annexation of Crimea. G-7 includes the USA, Canada, Germany, Britain, France, Italy, and Japan. G-7 operates without a treaty and has no permanent secretariat.
- It is organized through a rotating annual presidency. The 45th G-7 summit took place in France in August 2019, the 46th summit was canceled, and the 47th summit was held in Britain.
G77
- Comprising 134 developing countries, the G77 is designed to advance its members’ collective economic interests and enhance their joint negotiating capacity within the United Nations. Originally formed with 77 founding members headquartered in Geneva, the group has expanded to include 134 member countries. Cuba holds the chairmanship for 2023, succeeding Pakistan. Established on June 15, 1964, by 77 non-aligned nations, the G77 issued the “Joint Declaration of the Seventy-Seven Countries” at the United Nations Conference on Trade and Development (UNCTAD).
African Development Bank Group
- The African Development Bank Group (AfDB) is a multilateral development finance institution with its headquarters in Abidjan, Ivory Coast, since September 2014.
- Functioning as a financial provider to African governments and private companies investing in the Regional Member Countries (RMC), the AfDB was founded in 1964 by the Organisation of African Unity, the predecessor of the African Union.
- Comprising three entities—the African Development Bank, the African Development Fund, and the Nigeria Trust Fund—the African Development Fund began operations in 1974. India became a member on December 6, 1983, holding 14,813 shares, accounting for 0.224% of the total shares. A total of 81 countries are AfDB members, including 54 regional (African) and 27 non-regional countries.
European Union (EU)
- The European Union is an economic and political union of 27 member states, primarily located in Europe.
- Awarded the 2012 Nobel Peace Prize for its contribution to the advancement of peace, reconciliation, democracy, and human rights in Europe, the EU underwent the 2016 Brexit referendum, resulting in the UK’s decision to leave, officially taking effect in 2020.
Euro
- Established by the provisions of the 1992 Maastricht Treaty, the Euro is the currency used by the institutions of the European Union and serves as the official currency of the Eurozone, consisting of 19 of the 27 EU Member States.
Eurasian Economic Union (EEU)
- In effect since January 2015, the Eurasian Economic Union provides a unique opportunity for cooperation between Western Europe and the Asia-Pacific Region. Current EEU members include Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. Headquartered in Moscow, Russia, the EEU aims to coordinate economic policy, eliminate non-tariff trade barriers, harmonize regulation, and modernize economies.
The Eurasian Development Bank
- The Eurasian Development Bank (EDB), founded in 2006 and headquartered in Almaty, Kazakhstan, plays a crucial role in investing in the development of market economies and supporting Eurasian integration through financing projects, totaling more than $4.5 billion, that contribute to economic growth and trade expansion in its member states.
Organisation of Petroleum Exporting Countries (OPEC)
- Established during the Baghdad Conference from September 10th to 14th, 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, the Organisation of the Petroleum Exporting Countries (OPEC) is a permanent, inter-governmental organisation.
- Initially headquartered in Geneva, Switzerland, OPEC relocated to Vienna, Austria, on September 1st, 1965.
- Current members include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE, and Venezuela.
- OPEC aims to coordinate and unify petroleum policies to ensure fair and stable prices, an efficient supply of petroleum to consuming nations, and a fair return on capital for industry investors.
Asia-Pacific Economic Co-operation (APEC)
- The Asia-Pacific Economic Co-operation (APEC) serves as the premier forum for fostering economic growth, cooperation, trade, and investment in the Asia-Pacific region.
- Operating based on non-binding commitments, open dialogue, and equal respect for all participants, APEC was first proposed by former Australian Prime Minister Bob Hawke in a speech on January 31st, 1989, in Seoul, Korea. With 21 member economies, APEC accounts for approximately 40.5% of the world’s population, 54.2% of world GDP, and about 43.7% of world trade.
- APEC’s goals include reducing trade barriers and tariffs, promoting efficient domestic economies, and increasing exports.
- The Bogor Goals, adopted in 1994, aim for free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies.
Purpose and Goals
- APEC was established in 1989, to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific Comm unity.
- Since, its inception, APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region, creating efficient domestic economies and dramatically increasing exports.
- Key to achieving APEC’s vision are, what are referred to as the Bogor Goals of free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing economies.
- These goals were adopted by leaders at their 1994 meeting in Bogor, Indonesia
Gulf Co-operation Council (GCC)
- Established on May 25th, 1981, the Gulf Co-operation Council (GCC) is a regional, inter-governmental, political, and economic union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Headquartered in Riyadh, Saudi Arabia, the GCC’s objectives include formulating similar regulations across various fields such as religion, finance, trade, customs, tourism, legislation, and administration.
- Industry, mining, agriculture, water, and animal resources
- The establishment of scientific research centers.
- Setting up joint ventures.
- Unified military (Peninsula Shield Force)
Shanghai Cooperation Organisation (SCO)
- An Eurasian political and economic alliance comprising 8 member states – China, Russia, Tajikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, India, and Pakistan. Formed in 2001 with its headquarters in Beijing, the SCO aims to cooperate on issues related to terrorism, separatism, and extremism.
- To achieve this, it established a Regional Anti-Terrorist Structure (RATS) in 2004.
India and SCO
- On June 24, 2016, India and Pakistan signed the memorandum of obligations at Tashkent, initiating the formal process of joining the SCO as full members. On June 9, 2017, India and Pakistan became full members of the Shanghai Cooperation Organisation (SCO).
- India’s primary goal in joining the SCO was to develop ties with the Central Asian nations, four of which are founder-members of the SCO.
- Despite China’s obvious dominance in the SCO, India’s participation serves as a counterbalance.
- The 2022 SCO summit, the 22nd annual summit of heads of state of the Shanghai Cooperation Organisation, took place between September 15th and 16th, 2022, in Samarkand, Uzbekistan.
G-24
- The G-24 is a group of countries that collaborates to coordinate the positions of developing countries on international monetary and financial issues.
- While there are exceptions, the G-24 as a whole comprises many nations with excellent growth potential for investors.
- Established in 1971 at Lima, Peru, the Inter-governmental Group of 24 on International Monetary Affairs and Development, or the Group of 24, is headquartered in Washington DC.
- It operates as a chapter of the G-77 to coordinate developing countries on monetary and development finance issues.
- India, starting in 2012, along with other G-24 member countries, has objected to the withdrawal of measures like the Equalisation Levy (EL).
Asian Clearing Union (ACU)
- The ACU is an organization headquartered in Tehran, Iran, established to promote regional cooperation.
- Founded in 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the ACU aims to facilitate payments among member countries for eligible transactions on a multilateral basis.
- This reduces the use of foreign exchange reserves and transfer costs.
- ACU settlements are done in US dollars, euros, and Japanese yen, among others.
- The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka are members of the ACU.
Financial Stability Board (FSB)
- Established in 2009 following the G-20 London Summit, the FSB includes all G-20 major economies, including India, and is based in Basel, Switzerland.
- It was created to address vulnerabilities and to develop and implement strong regulatory, supervisory, and other policies in the interest of financial stability.
- The G-20 granted the FSB more power in a surveillance role, and it consists of representatives from national financial institutions (like Central Banks, Finance Ministries, Regulatory Institutions) and international financial institutions.
International Labour Organization (ILO)
- The International Labour Organization emerged from the League of Nations through the Treaty of Versailles in 1919.
- It was established to address the growing concern for social reform after World War I and the conviction that any reform should be conducted at an international level.
- It became the first specialized agency of the United Nations (UN) in 1946.
- The ILO has pioneered key aspects of industrial society, such as the eight-hour working day, maternity protection, child labor laws, and a range of policies promoting workplace safety and peaceful industrial relations.
The main objectives of the ILO are outlined below:
- To promote and realize standards and Fundamental Principles and Rights at Work.
- To create greater opportunities for women and men to secure decent employment and income.
- To strengthen tripartism and social dialogue.
- To enhance the coverage and effectiveness of social protection for all.
- The ILO was awarded the Nobel Peace Prize in 1969 for its efforts to improve peace among the classes and promote justice and fair work for the workers.
- The ILO has 187 member states and is headquartered in Geneva, Switzerland.
United Nations Economic and Social Council
- The Economic and Social Council (ECOSOC), one of the six principal organs of the United Nations, under the authority of the General Assembly, coordinates the economic and social work of the United Nations and the UN family of organizations. The council plays a key role in fostering international cooperation for development.
- The council has 54 members, elected by the General Assembly for three-year terms. It meets throughout the year, and during the Ministerial session in July, a high-level meeting of ministers discusses major economic, social, and humanitarian issues.
- The President of the council is elected for a one-year term and chosen from the small or medium-sized states represented on the council at the beginning of each new session. Lachezara Stoeva, Permanent Representative of Bulgaria, was elected as the 77th President of the council on July 25, 2022.
MERCOSUR
- MERCOSUR was formed in 1991 with the objective of facilitating the free movement of goods, services, capital, and people among the four member countries.
- The main objective of MERCOSUR is to bring about the free movement of goods, capital, services, and people among its member states.
- MERCOSUR is a trading bloc in the South American region comprising Argentina, Brazil, Paraguay, and Uruguay.
- This is modeled on the lines of the European Union and is the fourth largest integrated market after the European Union (EU), North American Free Trade Agreement (NAFTA), and Association of South-East Asian Nations (ASEAN).
- For the creation of a Free Trade Area between MERCOSUR and the Republic of India, for a first stage of action aimed at increasing trade, including the mutual granting of tariff preferences.
Bank for International Settlements (BIS)
- Founded in 1930, the Bank for International Settlements (BIS) is one of the oldest international financial organizations.
- Since then, the bank has operated with the objective of fostering international monetary and financial strength.
- The Bank for International Settlements is also called a Bank for all the Central Banks. BIS is a financial organization for profit operation.
- Its services include accounts for interest-bearing deposits and securities, gold and currency transactions, asset management services, and the provision of short-term collateralized loans.
- The governance structure of the bank is outlined in its statutes, with three key decision-making bodies:
- Members of the Central Banks
- Board of Directors
- The Bank’s Management
- Periodically, the BIS has provided financial services to assist Central Banks. BIS is located in Basel, Switzerland. As of January 2022, the Central Banks of 63 countries are members of BIS.
Regional Financial Institutions
Various regional financial institutions include:
New Development Bank (NDB)
- The New Development Bank (NDB), formerly known as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa).
- In September 2021, the NDB admitted Bangladesh, UAE, and Uruguay as its new members. The bank is headquartered in Shanghai, China, and Egypt was added as the fourth new member of BRICS NDB in December 2021.
- The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi. BRICS leaders agreed to set up a development bank at the 5th BRICS summit held in Durban, South Africa, on 27th March 2013.
- On 15th July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which provides for the legal basis of the bank.
- On 11th May 2015, K V Kamath was appointed as the President of the bank. As of June 2021, Marcos Prado Troyuo is the President of NDB.
- The New Development Bank works towards mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral regional financial institutions for global growth and development.
Asian Infrastructure Investment Bank (AIIB)
- The AIIB is a Multilateral Development Bank (MDB) conceived for the 21st century. Chinese President Xi Jinping and Premier Li Keqiang announced the AIIB initiative during their respective visits to Southeast Asian countries in October 2013.
- Representatives from 22 countries signed the October 2014 Memorandum of Understanding (MOU) to establish the AIIB, and Beijing was selected to host bank headquarters.
- By the deadline of 31st March for submission of membership applications, the Prospective Founding Members had increased to 57, and the 4th CNM was organized in Beijing in April 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock. At present (October 2021), the total number of AIIB members is 104.
Asian Development Bank (ADB)
- The Asian Development Bank was established following the recommendations of the United Nations Economic and Social Commission for Asia and the Pacific.
- It was formed to foster economic growth and cooperation in the region of Asia and the Pacific and to contribute to the acceleration of economic development in the developing countries of the region.
- The Asian Development Bank (ADB), an international partnership of 68 member countries, was established in 1966, with its headquarters in Manila, Philippines. India is a founding member.
- The bank is engaged in promoting the economic and social progress of its developing member countries in Asia and the Pacific region.
Its principal functions are as follows:
- To make loans and equity investments for the economic and social advancement of its developing member countries.
- To provide Technical Assistance (TA) for the preparation and execution of development projects and program and advisory services.
- To respond to the requests for assistance in coordinating development policies and plans in developing member countries.
- To respond to the requests for assistance, co-ordinating development policies and plans of developing member countries.
Report published by International Organisation
| International Organisation/Institute | Report |
| IMF | World Economic Outlook Report |
| IMF | Global Financial Stability Report |
| World Bank Group | World Development Report |
| World Bank Group | Global Economic Prospects Report |
| World Bank Group | Commodity Market Outlook |
| World Bank Group | Global Financial Development Report |
| World Bank Group | World Development Indicators |
| WTO | World Trade Statistics Review |
| WTO | World Trade Report |
| World Economic Forum | Travel and Tourism Competitiveness Report |
| World Economic Forum | Inclusive Development Index |
| World Economic Forum | Global Risks Report |
| World Economic Forum | Global Gender Gap Report |
| UNDP | Human Development Report |
| FATF | Global Money Laundering and Terrorist Financing Threat Assessment |
| IFPRI | Global Food Policy Report |
| ОРЕС | World Energy Landscape |
| ОРЕС | World Oil Scenario |
| United Nations Industrial Development Organisation | Industrial Development Report |
| World Intellectual Property Organisation | World Intellectual Property Report |
| World Intellectual Property Organisation | Global Index |
International organisations and their Headquarters
| Organization | Headquarters |
| UNO | New York |
| UNICEF | New York |
| United Nations Populations Cope (UNFPA) | New York |
| UNCTAD | Geneva |
| WHO | Geneva |
| ILO | Geneva |
| International Committee of the Red Cross (ICRC) | Geneva |
| WTO | Geneva |
| World Meteorological Organisation (WMO) | Geneva |
| WIPO | Geneva |
| ISO | Geneva |
| UNESCO | Paris |
| Amnesty International | London |
| FAO | Rome |
| NATO | Brussels |
| Transparency International | Berlin |
| SAARC | Kathmandu |
| ASEAN | |
| АРЕС | Jakarta |
| World Economic Forum | Singapore (Geneva) |
| United Nation Industrial Development Organisation | Vienna |
| OECD | Paris |
| International Atomic Energy Agency (IAEA) | Vienna |
| ОРЕС | |
| IMF | Vienna |
| World Bank | Washington (DC) |
| ICJ | Washington (DC) |
| IFAD | The Hague (Rome) |
Prelims facts
- The ‘Green Index’ has been developed by World bank (UPPSC pre 2014
- International Development Association [UKPSC (Pre) 2014] Which institution has provided loans and grants for the improvement of infrastructure in Indian states? The World Bank [UP Lower 2002]
- The Multilateral Investment Guarantee Agency (MIGA) is related to the preparation and publication of which index? The Ease of Doing Business Index [UKPSC (Pre) 2022, BPSC (Pre) 2016, IAS (Pre) 2016]
- The ‘World Development Report’ is an annual publication of which organization? International Bank for Reconstruction and Development [IAS (Pre) 2002, UPPSC (Mains) 2004]
- What was the earlier name of the Indian Development Forum (IDF)? Aid India Consortium [BPSC (Pre) 2008]
- Which lending agency administers the International Development Association? International Bank for Reconstruction and Development [IAS (Pre) 2010]
- How many countries are members of the World Bank? 189 [UKPSC (Pre) 2016]
- Which bank was established to reconstruct economies damaged during World War II? World Bank [RAS/RTS (Pre) 2016]
- Under which agreement was the International Monetary Fund established? Bretton Woods Agreement [UKPSC (Pre) 2012]
- In which year did India become a member of the International Monetary Fund? 1945 [UPPSC (Mains) 2015]
- The main function of the International Monetary Fund (IMF) is to help solve the Balance of Payments problems of member countries. IMF [IAS (Pre) 1994]
- Which organization prepares the ‘Global Financial Stability Report’? International Monetary Fund [IAS (Pre) 2016]
- What does the term ‘Paper Gold’ refer to? Special Drawing Rights of the IMF [UPPSC (Mains) 2002, 2004]
- Which organization brings out the publication known as ‘World Economic Outlook’? International Monetary Fund [IAS (Pre) 2014, BPSC (Pre) 2020]
- Which organization gives the ‘Crystal Award’ to integrate cultural leaders into its meetings? World Economic Forum [IAS (Pre) 2009]
- Who is the founder of the ‘World Economic Forum’? Klaus Schwab [UPPSC (Pre) 2008]
- Which organization publishes the ‘Global Competitiveness Index’ report? World Economic Forum [UKPSC (Pre) 2016]
- The ‘Travel and Tourism Competitive Index (TTCI)’ is released by which organization? World Economic Forum [UPPSC (Pre) 2020]
- The World Trade Organization (WTO) was established in which year? 1995 [UKPSC (Pre) 2003]
- The central issue in the Doha Round of talks of the World Trade Organization was related to which sector? Issues related to agriculture [UKPSC (Pre) 2010]
- In which year did India become a member of the World Trade Organization (WTO)? 1995 [UP UDA/LDA (Mains) 2006]
- The difference between the government Minimum Support Price (MSP) and market price, which is paid directly to farmers under the WTO, is called what? Blue box subsidies [UP RO/ARO (Pre) 2016]
- Which is known as the third pillar of international economic co-operation? World Trade Organization [UPPSC (Pre) 2008]
- The Dunkel proposal is related to what? Intellectual Property Rights [RAS/RTS (Pre) 1992]
- Where is the headquarters of the European Union located? Brussels [UPPSC (Mains) 2011]
- The term ‘Inner Six’ is related to which organization? European Community Market [CGPSC (Pre) 2019]
- What was formed to promote Social and Cultural Cooperation, Economic Cooperation, and Regional Cooperation? ASEAN (The Association of South-East Asian Nations) [IAS (Pre) 2020]
- Which bank has been established in China by BRICS countries? New Development Bank [UPPSC (Pre) 2017]
- In which year was the International Finance Corporation established? 1956 [IAS (Pre) 2016]
UPSC NCERT Practice Questions
1. Which of the following statements is true for IMF?
(a) It is not an agency of UNO
(b) It can grant loan to any country
(c) It can grant loan to State Governments of India
(d) It can grants loan only to member nations
2. Consider the following statements.
1. IMF and World Bank both are Bretton Wood Heir
2. World Bank provides long-term loan for promoting balance economic development.
3. IMF provides loans to eliminate BoP disequilibrium.
Which of the statements given above are correct?
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) All of these
3. Choose the correct statements regarding th IBRD of the World Bank Group.
1. IBRD gets its money from the capital markets.
2. IBRD is owned and operated for the benefit of its
189 member countries.
Which of the statement(s) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
4. India is the member of the following international organisatio IAS (Pre) 2009
1. Indian Ocean Rim Association for Regional Co-operation.
2. Organisation for Economic Co-operation and Development.
Which of the statement(s) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
5. Match the following
| List I | List II |
| A. WTO | 1. To provide finance to correct equilibrium in Balance of Payments |
| B. IMEF | 2. Generally to forbid the use of quantitative restrictions in trade |
| C. SAARC | 3. Sanction of soft loans |
| D. IDA | 4. To promote cooperation among South Asian countries |
Codes
(a) 12 34
(b) 2 3 4 1
(c) 2 1 4 3
(d) 3 2 4 1
6. In the context of International Trade, Dumping refers to
(a) selling a commodity cheaper in foreign market and costly in domestic market
b) sending cheap goods to developing countries by Developed countries.
(c) free distribution of used products by developed countries in developing countries
(d) All of the above
7. Consider the follow deals in elements.
1. Git-edged market deal on trillion.
2 rud Development Report is an anal turn of UNDP.
Which of the statements) give aye is/are come,
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
8. Consider the following statements.
1. The Eurasian Commission was modelled on the European Commission.
2. The Eurasian Economic west offers unique chand for co-operation between Western Europe and the Asia-Pacific region.
Which of the statements) given above is/are corten?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
9. Special Drawing Rights (SDRs) related to
(a) World Bank
(b) Reserve Bank of India
(c) WTO
(d) International Monetary Fund
10. Which one of the following is not included in th main three pillars of the ‘Agreement on Agriculture’ under the World Trade Organisation?
(a) Market access
(b) Domestic support
(c) Export competition
(d) Anti-dumping and compensatory duties
11. Consider the following pairs.
| Organisation | Location of Headquarters |
| A. Asian Development Bank | 1. Tokyo |
| B. Asia-Pacific Economic Co-operation | 2. Singapore |
| C. Association of South-East Asian Nations | 3. Bangkok |
Which of the above pair(s) is/are correctly matched ?
(a) 1 and 2
(b) Only 2
(c) 2 and 3
(d) Only 3
12. With reference to Trade Related Investment Measure (TRIMs), which of the following statements is/are correct?
1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.
Codes
(a) 1 and 2
(b) Only 2
(c) 1 and 2
(d) 1, 2 and 3
13. Consider the following statements about the European Union.
1. The European Union was known earlier as the European Community
2. The Single European Act (1986) and the Treaty were milestones in its formation.
3. Citizens of European Union countries enjoy many citizenship.
4. Switzerland is a member of the European Union.
Which of the statements given above are correct?
(a) 2 and 4
(b) 1 and 3
(c) 3 and 4
(d) 1, 2 and 3
14. In which one of the following groups are all the four countries members of G-20? IAS (Pre) 2020
(a) Argentina, Mexico, South Africa and Turkey
(b) Australia, Canada, Malaysia and New Zealand
(c) Brazil, Iran, Saudi Arabia and Vietnam
(d) Indonesia, Japan, Singapore and South Korea
15. Which of the following were the aims behind the setting up of the World Trade Organisation (WTO)? IAS (Pse) 1996
1. Promotion of free trade and resource flows across countries.
2. Protection of intellectual property rights.
3. Managing balanced trade between different. countries.
4. Promotion of trade between the former East block countries and the Western world.
Select the correct answer by using the codes given below.
(a) 1, 2, 3 and 4
(b) 1 and 2
(c) 2 and 3
(d) 1 and 4
16. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements.
1. AIIB has more than 80 member nations.
2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia.
Codes
(a) Only 1
(b) 2 and 3
(c) 1 and 3
(d) None of these
17. New Development Bank (NDB) is established by the
(a) ASEAN nations
(b) BRICS nations
(c) G-7 nations
(d) United Nations
Know Right Answer
1 (b)
2 (d)
3 (c)
4 (a)
5 (c)
6 (a)
7 (c)
8 (c)
9 (d)
10 (d)
11 (d)
12 (a)
13 (d)
14 (a)
15 (a)
16 (d)
17 (b)
Frequently Asked Questions (FAQs)
Q: What is the role of the International Monetary Fund (IMF)?
A: The IMF serves as a global financial institution that aims to promote international monetary cooperation and exchange rate stability. Its primary functions include providing financial assistance to member countries facing balance of payments problems, offering policy advice to foster economic stability, and conducting economic research to support sound global economic policies.
Q: How does the World Bank contribute to global development?
A: The World Bank is dedicated to reducing poverty and supporting sustainable development. It provides financial and technical assistance to developing countries for projects and programs that focus on areas such as infrastructure, education, healthcare, and environmental sustainability. The World Bank also offers policy advice and capacity-building support to help nations build a foundation for long-term economic growth and development.
Q: What is the purpose of the Asian Development Bank (ADB)?
A: The Asian Development Bank aims to promote social and economic development in the Asia-Pacific region. It provides financial assistance and technical expertise to its member countries to help them overcome development challenges. The ADB focuses on areas such as poverty reduction, infrastructure development, and regional cooperation. By fostering inclusive and sustainable growth, the ADB contributes to the improvement of living standards and the overall economic well-being of the people in the region.
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