Generalist and specialist neurons

IBRD and its associates institutions as a group are known as world bank

In 1945 it was realized to concentrate on reconstructing the war affected economies

IBRD was established on 5th December 1945 with IMF on the basis of the recommendations of the Bretton wood conference.

That is the reason why IMF& IBRD are called Bretton wood twins.

IBRD started functioning in June 1946

World bank and IMF are complementary institutions

Aims to reduce poverty in middle Income& creditworthy poorer countries by promoting sustainable development

The World Bank group today consist of five closely associated institutions propitiating the role of development in the member nations in different areas. These five are

1) IBRD (International bank for reconstructions and development) 2) IDA (International development association)

3) IFC (International finance corporations)

4) MIGA (Multilateral investment guarantee agency)

5) ICSID (International center for settlement of investment disputes) 6) BIPA (Bilateral investment protection & promotion agreement)

India is a member of four constituents of the world bank group i.e IBRD, IFC, IDA & MIGA

Objective of World Bank are as follows-

1) To provide long run capital to member countries for economic reconstruction & development (for rehabilitate war ruined economies % peace requirement)

2) For assuring balance of payment equilibrium & balanced development of International trade 3) To promote capital Investment

4) To provide guarantee for loans granted to small & large units and other projects member countries

5) To ensure the implementation of development project so as to bring about a smooth transference from a war time to peace economy

Difference between IMF and IBRD are world bank provides long term loans for promoting balanced economic development, while IMF provides short term loans to member countries for eliminating BOP disequilibrium

The eminent world economist George Schultz had suggested in American economic association conference in Jan 1995 for the merger of IMF & world bank

Every country of the IMF automatically becomes the member of world bank

If a country leaving the membership of IMF can continue its membership with world bank if 75% members of their banks give their vote in its favor

Similarities between IMF % WORLD BANK are as follows- 1) Owned & directed by the government of member nations 2) Almost every country on earth is a member of both Institutions 3) Both concern themselves with economic issues 4) Both focus on broadening & strengthening the economies of their member nations 5) Hold joint annual meeting 6) Headquarter is at Washington DC 7) Share joint task forces sessions& research efforts 8) India is a founder member of IBRD 9) The voting rights of member countries is determined on the basis of member country’s share the total Capital of the Banks

Each member has 250 votes plus one additional vote for each 100,000 shares of the capital stock held.

World bank also provides technical services to the member countries for this, bank has established the Economic Development Institute & staff college in Washington

In 1958 bank played an important role in establishing India Aid club for providing special economic assistance to India now its called India Development forum

India borrow from IBRD & IDA

PESTEL- Political, economic, socio-cultural, technological, environment & legal

CAGE- Cultural, administrative, geographic & Economic

Organization structure are Board of governors, executive directors, president act as a chairman of executive directors

World bank provides 30% of total loans to power sector, 30 % to transport sector and remaining 40% to agriculture, fisheries, mining, forestry, Industrial sector, technical assistance, population control, tourism, urbanization drainage etc.

ADB (ASIAN DEVELOPMENT BANK)

It was established in Dec 1966 on the recommendations of ECAFE (European commission for Asia & far east)

Aim of this bank is to accelerate economic & social development in Asia & pacific region

Started its functions on 1st Jan 1967

Headquarter is at Manila Philippines

Georgia is the 67th and newest member having joined ADB effective feb2, 2007

Asian development Bank constituted Asian development fund in 1974 which provides loans to Asian countries on concessional interests rate

OCR- ordinary capital resources

ADB aid to India for Infrastructure, solar power development through PPP (Public private partnership)

ADB is a multilateral development financial institutions

IFC (INTERNATIONAL FINANCIAL CORPORATIONS)

It was established in July 1956

Main objectives were 1) To provide loan to private sector without any government guarantee 2) To co-ordinate capital &

management 3) T induce capitalist countries to invest in developing countries

MIGA (MULTILATERAL INVESTMENT GUARANTEE AGENCY)

It was established on 1st April 1988

Its mission is to promote FDI (foreign direct investment) in to developing countries to help support economic growth, reduce poverty and improve people lives.

ICSID (INTERNATIONAL CENTER FOR SETTLEMENT OF INVESTMENT DISPUTES)

It was established on 18th March 1965

Came into force on 14th Oct 1966

The primary purpose is to provide facilities for conciliation & arbitration of international Investment disputes

ICSID is considered to be the leading international arbitration institution devoted to investor state dispute settlement

SAARC (SOUTH EAST ASIAN ASSOCIATION OF REGIONAL CO-OPERATION)

India , Maldives, Pakistan, Bangladesh, Sri-lanka, Bhutan, Nepal and Afghanistan constituted an organization known as SAARC

On the recommendations of Dhaka conference on 7th /8th Dec 1985

Headquarter has been established at Kathmandu, Nepal

Idea of SAARC mooted in 1979 by Zia-Ur-Rahman the then president of Bangladesh

Objectives of SAARC are as follows-

1) To promote the welfare of the peoples of south Asia and to improve their quality of life

2) To accelerate economic growth social progress and cultural development in the region & to provide all individuals the opportunity to live in dignity& to realize their full potential

3) To promote & strengthen collective self- reliance, among the countries of south Asia 4) To contribute to mutual trust, understanding & appreciation of Another’s problem

5) To promote active collaboration and mutual assistance in the economic, social, cultural, technical & scientific fields 6) To strengthen co-operation with other developing countries

7) To strengthen co-operative among themselves in international forums on matters of common interests 8) To co-operate with International& regional organization with similar aims & purposes

16th SAARC summit Thimpu Bhutan 2010- Thimpu silver jubilee declaration towards a green & happy south Asia

Organizational structure are summit meetings of the heads of the state or governor, council of ministers/ foreign ministers, standing committee, technical committee, action committee

17th SAARC summit held in Audacity Maldives 2011 Nov

18th SAARC summit held in Kathmandu Nov 2014 the theme of 18th SAARC summit was deeper integration for peace &

prosperity, focused on enhancing connectivity between the member states for easier transit transport across the region

19th SAARC summit will be held in Islamabad Pakistan in 2016

SAARC important years are –

1) 1990- year for girls 2) 1991- year for house 3) 1992- year for environment 4) 1993- year for handicap 5) 1995- year for poverty removal 6) 1996- year for literacy

7) 1991-2000- decades for girl 8) 2005- year of south Asia tourism 9) 2008- year of good governance

ASEAN (ASSOCITAION OF SOUTH EAST ASIAN NATIONS)

Indonesia, Philippines, Malaysia, Singapore and Thailand constituted this association on 8th August 1967

The object of ASEAN is to promote economic co-operation in south east Asia & also to ensure economic stability in the region

Headquarter is at Jakarta

10 member countries

ASEAN summit motto- one vision, one identity, one community

13th summit of ASEAN 2007 theme One ASEAN at the heart of the dynamic Asia

23rd July 1996 ASEAN gave advisory status to India

Sign blueprint for the proposed ASEAN economic community that will take effect in 2015

ASEAN recent summit- 25th summit at Nay Pyi Taw Myanmar Nov 2014, 24th summit at Nay Pyi Taw Myanmar may 2014, 23rd summit at Brunei Oct 2013, 22nd summit at Brunei April 2013, 21st summit Phnom Penh Cambodia Nov 2012, 20th summit at Phnom Penh Cambodia April 2012

1st summit at Bali , Indonesia Feb 1976

NAFTA (NORTH AMERICA FREE TRADE AREA)

On 12th August 1992 a trilateral agreement between USA, Canada, Mexico took place which declared North American region as Free trade Area

It came in to force on 1st Jan 1994

It was constituted to meet the challenges of EEC (European economic community) and Japanese economic policies

Rule of origin was developed, which implied that the economic resources of the countries in the political region should be utilized for economic development of people belonging to that country only

NAFTA is a free trade area among the United States of America, Canada & Mexico.

This is the largest and most important trading bloc of the world.

In 1989 NAFTA agreement between Canada & USA

NAAEC- North America agreements on environment co-operation

NAALC- North America agreements on labor co-operation

SAFTA (SOUTH ASIAN FREE TRADE AGREEMENT)

12TH summit of SAARC Islamabad 2004 gave rise to SAFTA

It came into force 1st Jan 2006 replacing SAPTA (South Asian preferential trade agreement) which was operative among SAARC countries in 7th summit Dhaka 1993 , operative since Dec 1995

SAFTA Presupposes abolition of all kinds of trade & tariffs restrictions.

EFTA (EUROPEAN FREE TRADE AGREEMENT

It was established at Stockholm on 3rd may 1960

It was established with a view to curtails custom duties & other tariffs among member countries.

Headquarter is at Geneva

IDA (INTERNATIONAL DEVELOPMENT ASSOCIATION)

IDA is an associate institution of world bank known as soft loan window of world bank

It was established on 24th Sep 1960

IDA provides loan to the member countries and no interest is charged on these long term loans

These soft loans are provided to the poor countries of the world

IFAD (INTERNATIONA FUNDS FOR AGRICULTURE DEVELOPMENT)

Established in 1977

India is a member country