📑 Topics on this page (Jump to Topic):
📌 1. Bretton Woods Institutions
The Bretton Woods Conference (New Hampshire, USA) in July 1944 created the IMF and the IBRD (World Bank); both are headquartered in Washington, D.C. India is a founding member.
| Body | Main role | Head (October 2026) |
|---|---|---|
| IMF | Short-term help in BoP crises, exchange rate stability, SDR; reports: World Economic Outlook, Global Financial Stability Report | Kristalina Georgieva (Managing Director) |
| World Bank | Long-term development loans, poverty reduction; report: World Development Report | Ajay Banga (President) |
| World Bank Group body | Year | Role |
|---|---|---|
| IBRD | 1944 | Loans to middle-income countries |
| IFC | 1956 | Investment in the private sector |
| IDA | 1960 | Concessional loans to the poorest countries ("soft loan window") |
| ICSID | 1966 | Settles investment disputes — India is not a member |
| MIGA | 1988 | Political risk guarantees on investment |
📌 2. World Trade Organization (WTO)
- Founded 1 January 1995 (Marrakesh Agreement 1994; Uruguay Round); replaced GATT (1947). HQ: Geneva. India is a founding member.
- Director-General: Ngozi Okonjo-Iweala (second term from September 2025). Top body: the Ministerial Conference (at least every two years).
- Key agreements: TRIPS (intellectual property), TRIMS (investment measures), GATS (services), Agreement on Agriculture (AoA).
- AoA "boxes": amber (trade-distorting subsidies, capped), blue (tied to production limits), green (minimal distortion, allowed).
- Most-Favoured-Nation (MFN) principle: a concession given to one member applies to all.
📌 3. Regional Banks & Groupings
| Organisation | Founded | HQ | Note |
|---|---|---|---|
| Asian Development Bank (ADB) | 1966 | Manila | President traditionally from Japan |
| Asian Infrastructure Investment Bank (AIIB) | 2016 (operations) | Beijing | India is the second-largest shareholder |
| New Development Bank (NDB) | 2015 | Shanghai | BRICS bank; first president K. V. Kamath (India) |
| OECD | 1961 | Paris | Group of developed countries; India is not a member (key partner) |
| UNCTAD | 1964 | Geneva | Report: World Investment Report |
| G20 | 1999 | No permanent secretariat | India presided in 2023 (New Delhi summit; African Union became a permanent member) |
| BRICS | 2009 (BRIC) | — | India holds the chair in 2026 |
- World Economic Forum (WEF): Geneva (Cologny); Davos meeting; Global Gender Gap Report.
- Human Development Report — UNDP; World Investment Report — UNCTAD; World Economic Outlook — IMF.
⚠️ Exam Traps:
- Both the IMF and World Bank are in Washington, D.C.; the WTO is in Geneva.
- World Economic Outlook is an IMF report, not a World Bank one.
- India is not a member of ICSID or the OECD.
- NDB is in Shanghai; AIIB in Beijing — do not swap.
💡 Memory Tip: 1944 Bretton Woods → IMF + IBRD; 1995 → WTO; IDA = soft loans; IFC = private sector.
📌 4. Practice MCQs
📝 Practice MCQs (prepared by SF Prep — not PYQs)
Q1. The IMF and World Bank emerged from which conference? Practice
Correct answer: (B)
The July 1944 Bretton Woods Conference agreed to set up the IMF and IBRD.
The July 1944 Bretton Woods Conference agreed to set up the IMF and IBRD.
Q2. Where is the IMF headquartered? Practice
Correct answer: (C)
Both the IMF and World Bank are headquartered in Washington, D.C.
Both the IMF and World Bank are headquartered in Washington, D.C.
Q3. Who is World Bank President as of October 2026? Practice
Correct answer: (C)
Ajay Banga has been World Bank President since June 2023; Georgieva is IMF Managing Director.
Ajay Banga has been World Bank President since June 2023; Georgieva is IMF Managing Director.
Q4. Who publishes the "World Economic Outlook"? Practice
Correct answer: (D)
World Economic Outlook is IMF's flagship report; World Development Report is the World Bank's.
World Economic Outlook is IMF's flagship report; World Development Report is the World Bank's.
Q5. Which World Bank Group body gives concessional loans to the poorest countries? Practice
Correct answer: (A)
The International Development Association (IDA, 1960) is called the "soft loan window".
The International Development Association (IDA, 1960) is called the "soft loan window".
Q6. Which World Bank Group body invests in the private sector? Practice
Correct answer: (B)
The International Finance Corporation (IFC, 1956) invests in the private sector of developing countries.
The International Finance Corporation (IFC, 1956) invests in the private sector of developing countries.
Q7. India is NOT a member of which World Bank Group body? Practice
Correct answer: (A)
India is not a member of the International Centre for Settlement of Investment Disputes (ICSID).
India is not a member of the International Centre for Settlement of Investment Disputes (ICSID).
Q8. When was the WTO established? Practice
Correct answer: (C)
After the Marrakesh Agreement (April 1994) the WTO began on 1 January 1995, replacing GATT.
After the Marrakesh Agreement (April 1994) the WTO began on 1 January 1995, replacing GATT.
Q9. Where is the WTO headquartered? Practice
Correct answer: (D)
The WTO is headquartered in Geneva, Switzerland.
The WTO is headquartered in Geneva, Switzerland.
Q10. The WTO replaced: Practice
Correct answer: (B)
The WTO replaced the General Agreement on Tariffs and Trade (GATT, 1947).
The WTO replaced the General Agreement on Tariffs and Trade (GATT, 1947).
Q11. WTO's TRIPS agreement deals with: Practice
Correct answer: (B)
TRIPS = Trade-Related Aspects of Intellectual Property Rights.
TRIPS = Trade-Related Aspects of Intellectual Property Rights.
Q12. In the WTO Agreement on Agriculture, trade-distorting subsidies fall in which box? Practice
Correct answer: (C)
Amber box = trade-distorting (capped); green = minimal distortion; blue = tied to production limits.
Amber box = trade-distorting (capped); green = minimal distortion; blue = tied to production limits.
Q13. Where is the Asian Development Bank (ADB) headquartered? Practice
Correct answer: (D)
ADB (1966) is headquartered in Manila, the Philippines.
ADB (1966) is headquartered in Manila, the Philippines.
Q14. Where is the New Development Bank (NDB) headquartered? Practice
Correct answer: (A)
The BRICS countries' NDB (2015) is in Shanghai; AIIB is in Beijing.
The BRICS countries' NDB (2015) is in Shanghai; AIIB is in Beijing.
Q15. Who was the first president of the NDB? Practice
Correct answer: (D)
India's K. V. Kamath was the NDB's first president (2015).
India's K. V. Kamath was the NDB's first president (2015).
Q16. What is India's position in the AIIB? Practice
Correct answer: (A)
In the AIIB, China is the largest shareholder and India the second-largest.
In the AIIB, China is the largest shareholder and India the second-largest.
Q17. India is NOT a member of: Practice
Correct answer: (B)
The OECD (Paris) is a group of developed countries; India is a key partner, not a member.
The OECD (Paris) is a group of developed countries; India is a key partner, not a member.
Q18. Who became a permanent member at the 2023 G20 New Delhi summit? Practice
Correct answer: (C)
Under India's presidency the African Union became a permanent G20 member.
Under India's presidency the African Union became a permanent G20 member.
Q19. Who publishes the "World Investment Report"? Practice
Correct answer: (C)
The UN Conference on Trade and Development (UNCTAD, Geneva) publishes it.
The UN Conference on Trade and Development (UNCTAD, Geneva) publishes it.
Q20. The WTO principle under which a concession to one member goes to all is: Practice
Correct answer: (D)
The MFN principle ensures non-discriminatory trade.
The MFN principle ensures non-discriminatory trade.