International Relations — Economic Organisations
1. Bank of International Settlements (BIS)
BASIC INFORMATION
- Established: 1930
- Headquarters: Basel, Switzerland
- Jurisdiction: 63 Central Banks
- The Bank for International Settlements is often called the "central bank for central banks" because it provides banking services to central banks around the world.
- The BIS is owned by 63 central banks, representing countries from around the world that together account for about 95% of world GDP.
- Its mission is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.
- RBI (India) engages with BIS.
KNOWLEDGE NUGGET — BIS
- Established: 1930 | Headquarters: Basel, Switzerland
- Known As: "Central bank for central banks"
- Members: 63 central banks (95% of world GDP)
- India: RBI engages with BIS
- Mission: Monetary and financial stability, international cooperation
2. Asian Development Bank (ADB)
BASIC INFORMATION
- Established: 1966
- Headquarters: Manila, Philippines
- Member Countries: 68 countries
- It was started to promote social and economic development in Asia and the Pacific.
- Among its 68 members, 49 are from within Asia and the Pacific and 19 from outside.
- India is a founding member of ADB.
- ADB assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
- ADB's five largest shareholders are:
- Japan and the US (each with 15.6% of total shares)
- China (6.4%)
- India (6.3%)
- Australia (5.8%)
- Recently, senior IAS officer Vikas Sheel was appointed Executive Director of the Asian Development Bank.
KNOWLEDGE NUGGET — ADB
- Established: 1966 | Headquarters: Manila, Philippines
- Members: 68 countries (49 regional + 19 non-regional)
- India: Founding member | 6.3% shareholding
- Top Shareholders: Japan (15.6%), USA (15.6%), China (6.4%), India (6.3%), Australia (5.8%)
- Vikas Sheel: Indian IAS officer appointed as Executive Director
3. Asian Infrastructure and Investment Bank (AIIB)
BASIC INFORMATION
- Established: 2015
- Headquarters: Beijing, China
- Member Countries: 109 countries
- AIIB is a multilateral development bank with an aim to improve socio-economic outcomes in Asia.
- Membership in the AIIB is open to all members of the World Bank or the Asian Development Bank and is divided into regional and non-regional.
- Infrastructure for Tomorrow (i4t) reflects AIIB's firm commitment to green infrastructure with sustainability, innovation and connectivity at its core.
- Shareholders:
- China (26.61% voting shares) in the bank
- India (7.6%)
- Russia (6.01%)
- Germany (4.2%)
- The regional members hold 75% of the total voting power in the bank.
- It has been granted Permanent Observer status in both the UNGA and the Economic and Social Council.
KNOWLEDGE NUGGET — AIIB
- Established: 2015 | Headquarters: Beijing, China
- Members: 109 countries
- Top Shareholders: China (26.61%), India (7.6%), Russia (6.01%), Germany (4.2%)
- Regional Members: Hold 75% of voting power
- UN Status: Permanent Observer in UNGA and ECOSOC
- i4t: Infrastructure for Tomorrow — green infrastructure focus
4. New Development Bank (NDB)
BASIC INFORMATION
- Established: 2014
- Headquarters: Shanghai, China
- Member Countries: BRICS nations and others
- It is a multilateral development bank jointly founded by the BRICS countries.
- Formed at the 6th BRICS Summit in Fortaleza, Brazil in 2014 to support infrastructure and sustainable development efforts in BRICS.
- In 2018, the NDB received observer status in the United Nations General Assembly.
- The first regional office of the NDB was set up in Johannesburg, South Africa.
- In India, regional office is established in Gujarat International Finance Tec-City (GIFT City).
- The Bank has an initial authorized capital of 100 billion dollars and an initial subscribed capital of 50 billion dollars.
- The Bank is governed by a Board of Governors made up of the finance ministers of the five BRICS countries, and a Board of Directors.
- Voting power within the Board is based on each country's shares in the bank.
- Members: Brazil, Russia, India, China, South Africa, Bangladesh, Egypt, United Arab Emirates and Uruguay.
NDB MEMBERS
- Founding Members (BRICS): Brazil, Russia, India, China, South Africa
- New Members: Bangladesh, Egypt, United Arab Emirates, Uruguay
KNOWLEDGE NUGGET — NDB
- Established: 2014 | Headquarters: Shanghai, China
- Founded: 6th BRICS Summit, Fortaleza, Brazil (2014)
- Initial Capital: $100 billion authorized, $50 billion subscribed
- First Regional Office: Johannesburg, South Africa
- India Office: GIFT City, Gujarat
- UN Status: Observer status in UNGA (2018)
- Members: Brazil, Russia, India, China, South Africa, Bangladesh, Egypt, UAE, Uruguay
5. Summary: Economic Organisations at a Glance
| Organization | Established | Headquarters | Members | India's Status |
|---|---|---|---|---|
| BIS | 1930 | Basel, Switzerland | 63 Central Banks | RBI engages |
| ADB | 1966 | Manila, Philippines | 68 | Founding Member (6.3%) |
| AIIB | 2015 | Beijing, China | 109 | Member (7.6%) |
| NDB | 2014 | Shanghai, China | 9 | Founding Member |
Key Takeaways for UPSC
- BIS: 1930 | Basel, Switzerland | "Central bank for central banks" | 63 central banks
- ADB: 1966 | Manila, Philippines | 68 members | India is a founding member | 6.3% shareholding
- AIIB: 2015 | Beijing, China | 109 members | India: 7.6% | China: 26.61% | Permanent Observer in UNGA
- NDB: 2014 | Shanghai, China | Founded at 6th BRICS Summit (Fortaleza, Brazil) | Initial capital: $100 billion
- NDB Members: Brazil, Russia, India, China, South Africa, Bangladesh, Egypt, UAE, Uruguay
- NDB India Office: GIFT City, Gujarat | First Regional Office: Johannesburg, South Africa
- ADB Top Shareholders: Japan (15.6%), USA (15.6%), China (6.4%), India (6.3%), Australia (5.8%)
- AIIB Regional Members: Hold 75% of total voting power
High-Yield Interactive UPSC Quiz (Economic Organisations)
Q1. The Bank of International Settlements (BIS) is often called:
Correct Answer: B. The BIS is often called the "central bank for central banks" because it provides banking services to central banks around the world.
Q2. The Asian Development Bank (ADB) was established in which year?
Correct Answer: C. The Asian Development Bank (ADB) was established in 1966 with headquarters in Manila, Philippines.
Q3. India is a founding member of which of the following organisations?
Correct Answer: B. India is a founding member of the Asian Development Bank (ADB), established in 1966.
Q4. The headquarters of the Asian Infrastructure and Investment Bank (AIIB) is located in:
Correct Answer: B. The headquarters of AIIB is located in Beijing, China. It was established in 2015.
Q5. Which country has the highest voting share in the AIIB?
Correct Answer: B. China has the highest voting share in AIIB with 26.61%, followed by India (7.6%), Russia (6.01%), and Germany (4.2%).
Q6. The New Development Bank (NDB) was founded at which BRICS Summit?
Correct Answer: C. The New Development Bank (NDB) was founded at the 6th BRICS Summit in Fortaleza, Brazil, in 2014.
Q7. The first regional office of the NDB was set up in:
Correct Answer: C. The first regional office of the NDB was set up in Johannesburg, South Africa. The India regional office is in GIFT City, Gujarat.
Q8. The NDB's India regional office is located in:
Correct Answer: C. The NDB's India regional office is established in Gujarat International Finance Tec-City (GIFT City), Gujarat.
Q9. The initial authorized capital of the New Development Bank is:
Correct Answer: B. The NDB has an initial authorized capital of 100 billion dollars and an initial subscribed capital of 50 billion dollars.
Q10. Which of the following is NOT a member of the NDB?
Correct Answer: C. Indonesia is NOT a member of the NDB. NDB members include BRICS countries (Brazil, Russia, India, China, South Africa) plus Bangladesh, Egypt, UAE, and Uruguay.