🌐 Chapter 08 · Topic 02 · International Organisations

International Financial Institutions

IMF, World Bank Group, ADB, NDB, AIIB — headquarters, formation, functions, and India’s role.

💰 Bretton Woods Institutions

The Bretton Woods Conference (July 1944, New Hampshire, USA) established the post-WWII international monetary system
Two key institutions created: IMF and World Bank (IBRD)
Both are headquartered in Washington D.C., USA
Both are specialised agencies of the United Nations

💰 IMF — International Monetary Fund

HQ: Washington D.C., USA; Founded: 1944 (Bretton Woods); operational from 1945
Members: 190
Functions: promotes international monetary cooperation; facilitates international trade; provides financial assistance to countries with balance of payments problems; surveillance of global economy
Special Drawing Rights (SDR) — IMF’s reserve asset; basket of 5 currencies: USD, EUR, CNY, JPY, GBP
Managing Director: Kristalina Georgieva (Bulgaria; since 2019)
India’s quota in IMF: approximately 2.75% (India is the 8th largest shareholder)

🏦 World Bank Group

HQ: Washington D.C., USA; Founded: 1944 (Bretton Woods)
The World Bank Group consists of 5 institutions:
- IBRD (International Bank for Reconstruction and Development) — loans to middle-income countries
- IDA (International Development Association) — concessional loans to poorest countries
- IFC (International Finance Corporation) — private sector investment
- MIGA (Multilateral Investment Guarantee Agency) — political risk insurance
- ICSID (International Centre for Settlement of Investment Disputes) — arbitration
President: Ajay Banga (Indian-American; since 2023)
India is one of the largest borrowers from the World Bank

🏦 Other Key Financial Institutions

Institution	HQ	Founded	Members	Key Role
ADB (Asian Development Bank)	Manila, Philippines	1966	68	Development in Asia-Pacific; India is 4th largest shareholder
NDB (New Development Bank)	Shanghai, China	2015	9+	BRICS bank; infrastructure financing; India is founding member
AIIB (Asian Infrastructure Investment Bank)	Beijing, China	2016	109	Infrastructure in Asia; India is 2nd largest shareholder
BIS (Bank for International Settlements)	Basel, Switzerland	1930	63 central banks	“Central bank of central banks”; promotes monetary cooperation
EBRD (European Bank for Reconstruction and Development)	London, UK	1991	71	Development in Eastern Europe and Central Asia

⭐ Ajay Banga — World Bank President: Ajay Banga became the 14th President of the World Bank in June 2023. He is an Indian-American businessman, former CEO of Mastercard. He was nominated by US President Biden. His appointment is significant as he is the first person of Indian origin to lead the World Bank. He has focused on climate change, poverty reduction, and private sector mobilisation.

📌 NDB vs AIIB — Key Differences: Both are multilateral development banks established as alternatives to Western-dominated institutions. NDB (New Development Bank) was established by BRICS nations in 2015 — HQ Shanghai; India is a founding member. AIIB (Asian Infrastructure Investment Bank) was established by China in 2016 — HQ Beijing; India is the 2nd largest shareholder after China. Both focus on infrastructure financing but have different membership and governance structures.

✅ Revision Checklist

✅ Bretton Woods Conference = 1944 = New Hampshire, USA = IMF + World Bank
✅ IMF = Washington D.C. = 1944 = 190 members = Kristalina Georgieva (MD)
✅ SDR = Special Drawing Rights = basket of 5 currencies (USD, EUR, CNY, JPY, GBP)
✅ World Bank Group = 5 institutions = IBRD + IDA + IFC + MIGA + ICSID
✅ World Bank President = Ajay Banga (Indian-American) = since 2023
✅ ADB = Manila = 1966 = 68 members = India 4th largest shareholder
✅ NDB = Shanghai = 2015 = BRICS bank = India founding member
✅ AIIB = Beijing = 2016 = 109 members = India 2nd largest shareholder
✅ BIS = Basel = 1930 = “central bank of central banks”