CH 16 INTERNATIONAL ECONOMIC ORGANISATIONS & INDIA

Flashcards for reviewing key concepts related to the International Monetary System and World Bank structures.

What are the three evaluation criteria used to assess the effectiveness of an International Monetary System?

Adjustment, liquidity, and confidence

Under the Bretton Woods system, which institutions are referred to as the 'twins'?

IMF and World Bank

What is the core purpose of the IMF’s Extended Fund Facility (EFF) agreement?

To allow member countries to borrow for correcting BoP imbalances under structural adjustment

What percentage of India’s IMF quota must be paid in reserve currency?

25%

Which four countries are part of India’s IMF constituency represented by a common Executive Director?

India, Bangladesh, Sri Lanka, and Bhutan

What is the primary mandate of the IMF as per its Articles?

Exchange rate regulation and short-term BoP support

What is India’s current ranking in terms of IMF quota holding after the 2010 reforms?

8th

What Keynesian idea was revived as a response to the 2007–2010 global financial crisis?

Bancor as a supranational reserve currency

What dilemma did Zhou Xiaochuan associate with national currencies being global reserves?

Triffin dilemma

Which IMF financial facility did India sign during the 1981–82 BoP crisis?

Extended Fund Facility

What is the purpose of the IMF’s Financial Transactions Plan (FTP)?

To finance IMF operations through member quotas

Which institution of the World Bank Group is known as its 'soft window'?

International Development Association (IDA)

Which World Bank institution lends exclusively to private sector entities?

International Finance Corporation (IFC)

What is the maximum maturity period for IDA credits?

35-40 years

Why did India stop availing financial support from IDA after 2015?

India graduated from IDA due to improved income levels

Which World Bank body offers insurance against political risks to foreign investors?

Multilateral Investment Guarantee Agency (MIGA)

Why is India not a member of ICSID under the World Bank Group?

To retain sovereign control over foreign investment dispute settlement

In which sectors has ADB primarily lent to India?

Energy, transport, finance, and social infrastructure

What is India’s voting power in ADB as per the 2018 report?

5.363%

What is the significance of the NCTF set up by India in 2016?

To implement the WTO’s Trade Facilitation Agreement (TFA)

What is the official name of the BRICS Bank?

New Development Bank (NDB)

What is the contribution share of China in the BRICS CRA?

41%

Which Indian projects have received NDB funding as of March 2020?

Renewable energy, roads, bridges, green infrastructure

What is India’s shareholding percentage in the AIIB?

8.6794%

What distinguishes AIIB from traditional multilateral development banks like ADB or WB?

Borrowing countries are also principal contributors

What is the voting power of India in the New Development Bank (NDB)?

20%

Which two institutions are part of the BRICS financial architecture?

New Development Bank and Contingent Reserve Arrangement (CRA)

What percentage of the total committed lending by AIIB went to India by March 2020?

24.07%

What is the authorized capital of the New Development Bank?

$100 billion

What is the primary purpose of the BRICS Contingent Reserve Arrangement?

To provide short-term liquidity support in case of BoP crises

What is the capital contribution formula for AIIB’s regional and non-regional members?

75% by regional members, 25% by non-regional members

What is the WTO's dispute settlement body responsible for?

Adjudicating trade disputes among member countries

What is the maximum repayment period for IMF loans under the Stand-By Arrangement (SBA)?

3-5 years

What major reform was introduced in IMF governance through the 2010 quota reform?

Shift in quota shares towards emerging market economies

What is the IMF quota reform that India continues to demand post-2010 reforms?

Further quota and voice increase reflecting economic weight

What is the objective of India’s ‘Look East – Act East’ policy in the context of ADB engagement?

To deepen economic ties with Southeast and East Asia

What condition qualifies a country for IDA support under the World Bank Group?

Low per capita income and lack of creditworthiness

Which financial facility allows IMF to respond to global financial crises with greater speed and flexibility?

Flexible Credit Line (FCL)

What is India’s shareholding percentage in the World Bank’s International Bank for Reconstruction and Development (IBRD)?

2.91%

What limits India’s ability to access the IBRD’s full lending envelope?

Creditworthiness and exposure limits

Which institution serves as the WTO’s executive body between Ministerial Conferences?

General Council

What is the formal name for the WTO’s Trade Facilitation Agreement in India?

National Trade Facilitation Action Plan (NTFAP)

What distinguishes the WTO’s dispute mechanism from the GATT’s?

Binding nature and appellate review

What instrument under the IMF allows multiple members to pool reserves for short-term balance-of-payments support?

Contingent Reserve Arrangement

What is the special status of India in the WTO’s Agreement on Agriculture?

Developing country with access to special and differential treatment

What is the agreed maximum period for WTO dispute resolution including appeal?

15 months

Which WTO principle ensures non-discrimination in trade among members?

Most Favoured Nation (MFN)

Which principle allows a WTO member to grant better treatment to developing countries?

Special and Differential Treatment

What Indian body serves as the nodal agency for WTO negotiations?

Department of Commerce, Ministry of Commerce and Industry

What is the maximum interest-free grace period under IDA credits?

10 years