International Organisations

📘 AFCAT Economics · ECA05

AFCAT tests the basic purpose and HQ of each major international economic organisation. Direct, factual recall questions. Five organisations, five facts each.

📌 AFCAT Pattern: WTO function • IMF vs World Bank • AIIB and NDB basics • HQ locations • India’s role

Key International Economic Organisations

WTO (World Trade Organisation): Established 1 Jan 1995 (replaced GATT 1947). HQ: Geneva, Switzerland. 164 members. Function: regulate and liberalise international trade; settle trade disputes. DG: Dr Ngozi Okonjo-Iweala (Nigeria; first woman + first African).
IMF (International Monetary Fund): Bretton Woods 1944; HQ Washington D.C. Function: maintain international monetary stability; provide short-term BoP emergency support. SDRs = reserve asset. MD: Kristalina Georgieva (Bulgaria).
World Bank: Bretton Woods 1944; HQ Washington D.C. Function: long-term development loans (infrastructure, poverty reduction, education, health). IBRD + IDA. President: Ajay Banga (Indian-origin, USA). India = major recipient.
AIIB (Asian Infrastructure Investment Bank): 2016; HQ Beijing; 109 members; China-led; India = 2nd largest shareholder. Finances Asian infrastructure projects.
NDB (New Development Bank): 2014; HQ Shanghai; BRICS bank; India = founding member; 1st President: KV Kamath (India). Sustainable infrastructure in emerging markets.

IMF

Short-term BoP support

Washington; Georgieva; SDRs

World Bank

Long-term development loans

Washington; Ajay Banga (Indian-origin)

AIIB

Asian infrastructure

Beijing 2016; India 2nd shareholder

NDB

BRICS bank

Shanghai 2014; 1st President: KV Kamath

📝 AFCAT PYQInternational Organisations — AFCAT Pattern

Q1. The primary function of the IMF is to: (AFCAT I 2023)

(a) Fund long-term infrastructure projects (b) Regulate international trade disputes (c) Maintain international monetary stability and provide short-term BoP support (d) Finance Asian infrastructure

Answer: (c) International monetary stability and short-term BoP support
IMF = Bretton Woods 1944; Washington D.C. Provides emergency loans to nations facing BoP crises (e.g., Sri Lanka 2022, Pakistan frequently). Conditions attached = structural adjustment programmes. World Bank = long-term development (Option a). WTO = trade disputes (Option b). AIIB = Asian infrastructure (Option d).

Q2. The WTO replaced which organisation in 1995? (AFCAT II 2022)

(a) IMF (b) GATT (c) World Bank (d) ADB

Answer: (b) GATT (General Agreement on Tariffs and Trade, 1947)
GATT focused only on trade in goods (tariff reduction). WTO expanded to goods + services (GATS) + intellectual property (TRIPS) + investment (TRIMS). WTO also has formal Dispute Settlement Body (DSB). HQ Geneva. 164 members. India = founding member of both GATT (1947) and WTO (1995).

Q3. Ajay Banga, who is of Indian origin, is the President of which international organisation? (AFCAT I 2024)

(a) IMF (b) ADB (c) NDB (d) World Bank

Answer: (d) World Bank
Ajay Banga (born in Pune; naturalized US citizen) was elected World Bank Group President in June 2023. Former CEO of Mastercard. First person of Indian descent to head the World Bank. World Bank HQ: Washington D.C. By convention, World Bank President = nominated by USA; IMF MD = nominated by Europe.

📝 Rapid Revision — ECA05

🌐 HQs & Functions

IMF: Washington; short-term BoP; Georgieva
World Bank: Washington; long-term dev; Ajay Banga
WTO: Geneva 1995; replaced GATT; Okonjo-Iweala
AIIB: Beijing 2016; India 2nd largest shareholder
NDB: Shanghai 2014; BRICS; KV Kamath (1st president)

🚫 AFCAT Traps

IMF = short-term; World Bank = long-term
NDB HQ = Shanghai (NOT Beijing)
World Bank = Ajay Banga (Indian-origin)
WTO replaced GATT (NOT IMF)
ADB HQ = Manila, Philippines (NOT Tokyo)

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