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:
  • Theme: Strengthening Regional Cooperation and Integration through Economic Corridor Development (ECD).
• 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:
• • 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.

Asian Infrastructure Investment Bank (AIIB)

• 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:
• • 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.

European Bank for Reconstruction and Development (EBRD)

• 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.
  • Three seats in its Plenary are represented by the Secretary of Economic Affairs (Ministry of Finance), the Deputy Governor of Reserve Bank of India (RBI), and Chairperson of the Securities and Exchange Board of India (SEBI).
• 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.