International Organisations

📘 CDS Economics · ECC08 📑 CDS Level : High Priority

International Organisations is pure static GK — direct factual questions on HQ, founding year, functions, and India’s role. CDS tests this every year. Know the difference between IMF (short-term BOP support) and World Bank (long-term development), and the newer NDB and AIIB.

📌 CDS Pattern: IMF vs World Bank function • SDRs • AIIB vs NDB • India’s membership • HQ locations • Current heads

1. IMF & World Bank

IMF (International Monetary Fund): Bretton Woods Conference, 1944. Operational since 1945. HQ: Washington D.C., USA. 190 member nations. Function: Maintains international monetary system stability. Provides short-term Balance of Payments support to countries facing external payment crises. Managing Director (MD): Kristalina Georgieva (Bulgaria). India’s ED (Executive Director) has voting rights proportional to quota. SDRs (Special Drawing Rights) = IMF’s reserve asset (basket of USD, EUR, GBP, JPY, CNY).
World Bank (IBRD & IDA): Also from Bretton Woods, 1944. HQ: Washington D.C. 189 members. Function: Long-term development lending for infrastructure, education, health, poverty reduction. IBRD = International Bank for Reconstruction and Development (lends to middle-income countries). IDA = International Development Association (concessional loans to poorest nations). President: Ajay Banga (USA, Indian-origin). India is one of the largest recipients of World Bank loans.

IMF

Short-term BoP support

Bretton Woods 1944; HQ Washington; MD: Georgieva. SDRs = reserve asset

World Bank (IBRD+IDA)

Long-term development lending

HQ Washington; President: Ajay Banga (Indian-origin). India = large borrower

AIIB

Asian infrastructure financing

Est. 2016; HQ Beijing; 109 members; China-led; India = 2nd largest shareholder

NDB (BRICS Bank)

BRICS infrastructure & development

Est. 2014; HQ Shanghai; India = founder; 1st President = KV Kamath (India)

2. AIIB & NDB

AIIB (Asian Infrastructure Investment Bank): Established December 2015 (operational January 2016). HQ: Beijing, China. 109 member nations. China’s initiative to finance Asian infrastructure. India is the 2nd largest shareholder (after China). Seen as alternative to World Bank/ADB. India has been one of the largest AIIB loan recipients.
NDB (New Development Bank): Established 2014 by BRICS nations (Brazil, Russia, India, China, South Africa). HQ: Shanghai, China. Capitalized at USD 100 billion. Focuses on sustainable infrastructure in emerging markets. 1st President: K.V. Kamath (India). Current President: Dilma Rousseff (Brazil). New members: UAE, Bangladesh, Egypt, Uruguay.
ADB (Asian Development Bank): Established 1966. HQ: Manila, Philippines. 68 members. Focuses on Asia-Pacific development. India = one of largest borrowers. Japan and USA = largest shareholders.
WTO: Est. 1995 (replaced GATT 1947). HQ Geneva. 164 members. Regulates international trade. DG: Dr Ngozi Okonjo-Iweala (Nigeria; first woman + first African, since 2021).

📝 CDS PYQInternational Organisations — CDS Pattern

Q1. The IMF was established at which conference, and what is its primary function? (CDS I 2023)

(a) Bretton Woods (1944); long-term development loans (b) Bretton Woods (1944); short-term BoP support and monetary stability (c) UN Conference (1945); trade regulation (d) Bandung Conference (1955); developing country aid

Answer: (b) Bretton Woods Conference (1944); short-term BoP support and international monetary stability
IMF and World Bank were both created at Bretton Woods, New Hampshire, USA in July 1944. IMF = short-term; monetary system stability; BoP crisis lending. World Bank = long-term; development/infrastructure. SDRs = IMF’s reserve asset. Countries facing BoP crises (like Sri Lanka 2022) take IMF bailouts with policy conditions attached.

Q2. The New Development Bank (NDB), known as the BRICS Bank, has its headquarters in: (CDS II 2023)

(a) New Delhi, India (b) Beijing, China (c) Shanghai, China (d) Moscow, Russia

Answer: (c) Shanghai, China
NDB HQ = Shanghai (not Beijing; AIIB is in Beijing). NDB was established in 2014 by BRICS nations. Capital = USD 100 billion. 1st President = KV Kamath (India). Focuses on sustainable infrastructure in emerging markets. India has taken several NDB loans (metro projects, renewable energy). New members include UAE, Bangladesh, Egypt.

Q3. India is the second-largest shareholder of which multilateral institution? (CDS I 2022)

(a) ADB (b) NDB (c) AIIB (d) IMF

Answer: (c) AIIB (Asian Infrastructure Investment Bank)
AIIB: China = largest shareholder (~26%); India = 2nd largest (~7.6%). India has been a large borrower from AIIB for infrastructure projects. AIIB est. 2016 (operational); HQ Beijing. 109 members. India joined despite initial US/Japan reservations about AIIB being a China-led institution.

📝 Rapid Revision — ECC08

🌐 Organisation Quick Facts

IMF: Bretton Woods 1944; Washington; BoP support; SDRs; MD: Georgieva
World Bank: Bretton Woods 1944; Washington; long-term development; President: Ajay Banga
AIIB: 2016; Beijing; India = 2nd largest shareholder
NDB: 2014; Shanghai; BRICS bank; 1st President: KV Kamath
ADB: 1966; Manila; Asia-Pacific development
WTO: 1995; Geneva; DG: Okonjo-Iweala

🚫 CDS Traps

IMF = short-term (NOT World Bank)
NDB HQ = Shanghai (NOT Beijing; AIIB is Beijing)
India = 2nd largest shareholder in AIIB (NOT ADB)
SDRs = IMF reserve asset (NOT World Bank)
ADB HQ = Manila (NOT Tokyo or Singapore)

📝 Mock Tests 🎯 Economics Quiz ✈️ Telegram