Other Important Organisation: OECD, ADB, NDB, AIIB, EBRD, etc.
Organization for Economic Cooperation and Development(OECD)
- Founded in 1961, the OECD is an intergovernmental economic organization.
- Established to stimulate economic progress and world trade.
- Headquarters: Paris, France.
- Total Members: 36.
- Most OECD members are high-income economies with a very high Human Development Index (HDI), considered developed countries.
- While India is not an OECD member, it is a key economic partner.
- Reports and Indices by OECD: Government at a Glance 2017 report, International Migration Outlook, OECD Better Life Index.
Asian Development Bank (ADB)
- ADB is a regional development bank founded in 1966.
- Objective: To promote social and economic development in Asia and the Pacific.
- Membership: 68 members; 49 from within Asia and the Pacific, 19 outside.
- India is a founding member.
- Functions: ADB assists members and partners by providing loans, technical assistance, grants, and equity investments. Aims to promote social and economic development.
- Shareholders: As of December 31, 2022, ADB’s five largest shareholders are Japan and the US (each with 15.6% of total shares), China (6.4%), India (6.3%), and Australia (5.8%).
- Headquarters: Located in Manila, Philippines.
- ADB Conference 2023:
- Objective:
- Explore ways to integrate spatial transformation/area-centric approach with ECD.
- Strengthen regional cooperation through a broader approach.
- Knowledge sharing on the application of the ECD framework and operational guidelines for investable projects.
- Participation: More than 30 member countries participated.
- India’s Role:
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- India offered its indigenously developed GIS-based technology through knowledge sharing.
- Shared technology with ADB and South Asia Subregional Economic Cooperation (SASEC) countries for enhancing socio-economic planning and regional cooperation.
New Development Bank
- Multilateral Development Bank jointly founded by the BRICS countries (Brazil, Russia, India, China, and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil, in 2014.
- Purpose: Formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies. Aims for faster development through innovation and cutting-edge technology.
- Headquarters: located in Shanghai, China.
- Recognition: In 2018, the NDB received observer status in the United Nations General Assembly, facilitating active cooperation with the UN.
- Objectives: Fostering the development of member countries, Supporting economic growth, Promoting competitiveness and facilitating job creation, and Building a knowledge-sharing platform among developing countries.
- Financial Instruments: Supports public or private projects through loans, guarantees, equity participation, and other financial instruments.
- Major Projects Funded in India: Committed funding to significant infrastructure projects in India, including Mumbai Metro Rail, Delhi-Ghaziabad-Meerut Regional Rapid Transit System, and various renewable energy projects.
- Approved 14 Indian projects amounting to nearly USD 4.2 billion.
- India-NDB Pact (2020): In 2020, India announced a USD 1 billion loan pact with NDB to boost rural employment and infrastructure.
- Achievements:
- Innovations: Innovated in areas such as lending in local currencies to protect borrowing countries from currency fluctuations.
- Accepts parameters for compliance with environmental and social standards designed by borrowers.
- Partnerships: Established partnerships with development banks like CAF (Latin American regional development bank), AIIB (Asian Infrastructure Investment Bank), and the World Bank group.
- Credit Rating: Holds a credit rating of AA+, one short of the maximum.
- Bond Emission: Successfully emitted various bonds, including ‘green bonds’ in 2016. Approved 42 projects in member countries for a total of over USD 12 billion.
- Multilateral development bank with a mission to improve social and economic outcomes in Asia.
- Aims to connect people, services, and markets to impact the lives of billions and build a better future through sustainable infrastructure and other productive sectors.
- Establishment and Headquarters: Established by the AIIB Articles of Agreement (entered into force December 2015).
- Headquartered in Beijing, China, and began operations in January 2016.
- Organs of AIIB:
- Board of Governors: Consists of one Governor and one Alternate Governor appointed by each member country. Governors and Alternate Governors serve at the pleasure of the appointing member.
- Board of Directors: Non-resident Board of Directors responsible for directing the Bank’s general operations.
- Senior Management: Headed by the President, elected for a five-year term and eligible for reelection once.
- International Advisory Panel (IAP): Supports the President and Senior Management on the Bank’s strategies, policies, and general operational issues.
- Key Accomplishments:
- Rapid Growth in Membership: Began operations in 2016 with 57 founding members, expanding to 103 approved members by the end of 2020.
- Represents approximately 79% of the global population and 65% of global GDP.
- Highest Credit Rating: Received AAA ratings with a stable outlook from Standard & Poor’s, Moody’s, and Fitch since 2017.
- Permanent Observer Status in the United Nations: Granted Permanent Observer status in the deliberations of the United Nations General Assembly and the Economic and Social Council in 2018.
- AIIB and India: AIIB has approved more loans for India than any other member.
- China is the biggest shareholder, and India is the second-largest.
- Funded 28 projects in India amounting to USD 6.7 billion.
- Emphasis on green projects and supporting public health initiatives, including infrastructure.
- Approved a USD 356.67 million loan to support the expansion of the Chennai metro rail system in 2021.
- Covid-19 Response: In October 2021, India applied for loans from AIIB and the Asian Development Bank (ADB) to procure 667 million doses of Covid-19 vaccines, with AIIB expected to lend around USD 500 million under ADB’s Asia Pacific Vaccine Access Facility (APVAX) initiative.
- European Central Bank (ECB)
- Central bank for the euro, administering monetary policy within the Eurozone (19 member states of the European Union).
- Objective: Focuses on maintaining price stability and fostering economic stability in the Eurozone.
- Decision-Making Bodies:
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- Governing Council: Main decision-making body of the ECB. Comprises the Executive Board and governors of national central banks from Eurozone countries.
- Executive Board: Handles day-to-day operations. Includes the ECB President, Vice-President, and 4 other members appointed by national governments of Eurozone countries.
- Functions: Interest Rate Setting: Sets interest rates for lending to commercial banks in the Eurozone; Controls money supply and influences inflation.
- Euro Banknotes Production: Authorizes the production of euro banknotes by Eurozone countries.
- Banking System Oversight: Ensures safety and soundness of the European banking system.
- Location: Headquarters located in Frankfurt, Germany.
- Eurozone Countries: Manages monetary affairs for the 19 Eurozone countries within the European Union.
- Euro Banknotes: Responsible for the issuance and circulation of euro banknotes.
- Established in April 1991. Mandated to promote the transition to sustainable, open-market economies and foster innovation.
- Transition Support: Created to aid Eastern European and ex-Soviet countries in transitioning to democracies and developing free-market economies after the fall of communism.
- Headquarters: London.
- Project Financing: Provides project financing primarily for private enterprises, often in collaboration with other commercial lending partners.
- Democratic Principles: Supports countries committed to and applying democratic principles.
- Geographical Focus: Prioritizes support for countries in Central and West Asia, and North Africa.
- Development Goals: Focuses on advancing developmental goals through finance and policy reform.
- Environmental Sustainability: Promotes environmentally sustainable development.
- Gender Equality: Advocates for gender equality in its projects and initiatives.
- Transparency: Commits to full transparency in its operations and decision-making processes.
- Membership: Publicly owned by shareholders in 69 countries.
- India became the 69th shareholder upon joining in July 2018.
Bank for International Settlements (BIS)
- Founded in 1930.
- Membership: Owned by 60 member central banks representing countries globally, including India.
- International Financial Organization: Functions as an international financial organization.
- Central Banks’ Bank: Serves as a bank for central banks.
- Functions through Basel Process: Carries out its work through its meetings, programs, and the Basel Process.
- Headquarters: Located in Basel, Switzerland.
- Global Financial Stability: Hosts international groups through the Basel Process to pursue global financial stability.
- Facilitating Interaction: Facilitates interaction among central banks and other financial institutions.
- Collaborative Initiatives: Collaborates on initiatives related to financial stability, monetary policy, and regulatory frameworks.
Financial Stability Board (FSB)
- Establishment: Established in 2009.
- Under G20 Aegis: Formed under the aegis of G20.
- Global Financial System Monitoring: Monitors and makes recommendations about the global financial system.
- Members: Comprises representatives from various countries, including India.
- India’s Representation: India is an active member of the FSB.
- Plenary Representation: includes high-ranking officials from the Ministry of Finance, RBI, and SEBI.
- Financial System Stability: Focuses on ensuring stability in the global financial system.
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