International Organizations Flashcards
Asian Development Bank (ADB) year, HQ, members, Aims, India
- 1966
- Manilla, Philippines
- 68 shareholding members including 49 from the Asia and Pacific region. Japan holds the largest share in ADB with 15.6%, followed by the U.S.A (15.5%), China (6%), and India (5%).
- Strategy 2030 sets the course for (ADB) to respond effectively to the region’s changing needs. Eradicate extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific hrough an 80% investment in the public sector.
- India is a founding member
Development finance institution for the Asia-Pacific region. Raises capital regularly through the international bond markets, contributions.
Asian Development Bank (ADB) lending facilities
Ordinary Capital Resources (OCR): This is the ADB’s main lending window, providing loans to middle-income countries for development projects.
Asian Development Fund (ADF): This is the concessional lending window of the ADB, providing grants and interest-free loans to the poorest countries in Asia and the Pacific.
Asian Infrastructure Investment Bank (AIIB) year, HQ, members, Aims, India
- 2015
- headquartered in Beijing (China)
- 103 approved Members. China is its biggest shareholder and India is the second-largest.
- India is a Founding Member of AIIB. India also has the largest project portfolio within AIIB.
- multilateral development bank that aims to improve economic and social outcomes in Asia.
International Monetary Fund (IMF) year, HQ, members, Quotas, SDRs
- founded at the Bretton Woods Conference in 1944, aftermath of Great Depression of the 1930s
- headquartered in Washington, DC.
- 190 member countries. Any other state, whether or not a member of the UN, may become a member of the IMF. Membership in the IMF is a prerequisite to membership in the IBRD. Each member contributes a sum of money called a quota subscription.
- Quotas are reviewed every five years and are based on each country’s wealth and economic performance. It is a weighted average of GDP (weight of 50 %)+ Openness (30 %)+ Economic variability (15 %)+ International reserves (5 %). GDP of member country is measured through a blend of GDP—based on market exchange rates (weight of 60 %) and on PPP exchange rates (40 %). Quotas are denominated (expressed) in SDRs.
- Votes comprise one vote per 100,000 special drawing rights (SDR) of quota plus basic votes. SDRs are an international type of monetary reserve created by the IMF. SDR values based on basket of currencies includes the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi (included in 2016).
Functions of IMF
Exchange rate stability, provide financial resources to solve the problem of balance of payment, and promote international Monetary cooperation.
Financial assistance facilities by IMF
- The Rapid Financing Instrument (RFI): It is a lending facility of the International Monetary Fund (IMF) which provides rapid financial assistance. It is available to all member countries facing an urgent balance of payments need.
- The Rapid Credit Facility (RCF) is a concessional policy under which the International Monetary Fund (IMF) provides financial assistance to low-income countries (LICs) facing an urgent balance of payments need. This policy is only available for the nations that come under the Poverty Reduction and Growth Trust (PRGT) .
- Extended Fund Facility (EFF): This is a medium-term program designed to support countries with structural problems that require sustained adjustment efforts.
- Standby Arrangement (SBA): This is a short-term program designed to help countries address temporary balance of payments difficulties.
- Precautionary and Liquidity Line (PLL): This is a preventive line of credit available to countries with strong economic policies and a history of cooperation with the IMF.
- Flexible Credit Line (FCL): This is a preventive line of credit available to countries with exceptionally strong economic policies and a history of cooperation with the IMF without needing implementation of specific economic policies.
- The Extended Credit Facility (ECF) provides medium-term financial assistance to low-income countries (LICs) with protracted balance of payments problems. The ECF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT).
- The Resilience and Sustainability Facility (RSF) provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
- The Stand-by Credit Facility (SCF) provides financial assistance to low-income countries (LICs) with short-term balance of payments needs. The SCF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT).
- The Short-term Liquidity Line (SLL) is a liquidity backstop for members with very strong policy frameworks and fundamentals, who face potential, moderate, short-term liquidity needs because of external shocks that generate balance of payment difficulties.
World Bank year, HQ, members, aims
- 1944- IBRD. Latter later became the World Bank. The World Bank is one of the United Nations’ specialised agencies.
- 189 members. The United States is the largest single shareholder 16%, followed by Japan (7%), Germany (4.4%), the United Kingdom (4.3%), and France (4.3%).
- Promote economic and social progress in developing and poorer countries by helping to raise productivity and providing loans at a very concessional rate.
- HQ- Washington D.C.
World bank groups Five Development Institutions/ WBG
The term “World Bank” generally refers to the IBRD and IDA, which share the same leadership and staff. In contrast, the term “World Bank Group” (WBG) denotes a collection of five distinct but complementary organisations.
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA)
3. International Finance Corporation (IFC).
4. Multilateral Guarantee Agency (MIGA)
5. International Centre for the Settlement of Investment Disputes (ICSID) India is not a member of ICSID.
What are Bretton Woods Institutions?
- 1944 during the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.
- After the Second World War, delegates from 43 countries met to help rebuild the shattered post-war economy
- major outcomes- creation of IMF and World Bank
India and World Bank
- India was one of the 44 original signatories to the agreements arrived at Bretton Woods that established IMF and IBRD
- founding member of the International Finance Corporation (IFC) in 1956 and the International Development Association (IDA) in 1960.
- India became a member of the MIGA in January 1994.
- India is not a member of ICSID
- India is currently classified as a “blend” country, meaning it is transitioning from lower-middle-income to middle-income status, and is eligible for lending from both IDA and IBRD.
World Bank and IMF source and recipients of funding
- WB- A kind of Investment fund where it borrows from one and lends to the other. It also borrows money by selling notes and bonds directly to their member nation’s government, their agencies, and central banks which they lend to other poorer and developing countries. Only to the developing and poorer nations and at a very minimal interest rate. It lends to even the private sector where it feels that assisting them would help improve the living condition of the people.
- It is more like a credit union wherein members have access to a common pool of resources and these resources come from quota subscriptions and contributions from each member according to the size of its economy.Both the wealthy as well as poor nations who experiences a shortage of foreign exchanges or are facing Balance of Payments Crisis.
International Centre for Settlement of Investment Disputes (ICSID) year, function
- 1966
- International arbitration institution under the World Bank Group (WBG). Decisions are binding on the parties, but approaching this institute is voluntary.
Multilateral Investment Guarantee Agency (MIGA)
- 1988 in DC
- provide political risk insurance (guarantees) to investors and lenders against the loss caused by non-commercial (Political) risks, such as currency transfer, expropriation, war and civil disturbance. Thus, it promotes foreign direct investment (by protecting such investments) into developing countries
International Finance Corporation (IFC)
- 1956, DC
- focused exclusively on the private sector. IFC raises capital through bond issuances in International Capital Markets. Ultimately for poverty alleviation.
International Development Association (IDA)
- 1960 DC
- soft loan window of the World Bank, concessional grants and loans to the world’s poorest developing countries, to complement the existing IBRD by lending to developing countries which suffer from the lowest gross national income or from troubled creditworthiness.
- zero or very low interest rate and repayment period stretched over 25 to 40 years, including a 5 to 10 year grace period.
International Bank for Reconstruction and Development (IBRD)
- 1945 DC
- It supports the mission of the World Bank Group (WBG) by offering guarantees, loans, risk management products, and advisory services to creditworthy low-income and middle-income countries, as well as by coordinating responses to global and regional challenges.
Reports of WHO
Global Nutrition Report
Reports of IQAir
World Air Quality Report
Reports of Oxfam International
Global Inequality Crisis Report
Inequality Virus Report
Reports of UNICEF
Levels and Trends in Child Mortality Report
Reports of UNCTAD (United Nations Conference on Trade and Development)
World Investment Report
