International Economic Institutions

1. World Economic Forum — WEF

• The WEF is an independent, international, not-for-profit organisation that promotes public–private cooperation.
• It provides a platform for leaders from governments, businesses, international organisations, civil society and academia to discuss global economic, technological, environmental and geopolitical challenges.
• Its headquarters is in Geneva, Switzerland.
• Its principal annual meeting is generally held in Davos-Klosters, Switzerland, in January.

History

• It was founded by Klaus Schwab in 1971 as the European Management Forum.
• It was renamed the World Economic Forum in 1987 to reflect its growing global scope.

2. World Bank Group — WBG

• The World Bank Group provides finance, knowledge, policy advice and technical assistance for development and poverty reduction.
• Its mission is to end extreme poverty and boost shared prosperity on a liveable planet.
• Its headquarters is in Washington, D.C., United States.
• It comprises five legally distinct but closely affiliated institutions.

Five Institutions of the World Bank Group

1. International Bank for Reconstruction and Development — IBRD
   • Provides loans, guarantees and policy advice to middle-income and creditworthy low-income countries.
2. International Development Association — IDA
   • Provides grants and concessional or low-interest loans to the poorest countries.
   • IBRD and IDA together are commonly called the World Bank.
3. International Finance Corporation — IFC
   • Supports private-sector development through investment, financing and advisory services.
4. Multilateral Investment Guarantee Agency — MIGA
   • Promotes foreign investment in developing countries by providing political-risk insurance and guarantees.
5. International Centre for Settlement of Investment Disputes — ICSID
   • Provides facilities for arbitration and conciliation of international investment disputes.

Relationship with the UN- The World Bank is an autonomous institution linked to the United Nations system through formal cooperation arrangements but retains independent governance and decision-making.

3. International Monetary Fund — IMF

Functions

• The IMF promotes:
  • International monetary cooperation.
  • Exchange-rate and financial stability.
  • Sustainable economic growth.
  • Expansion of international trade.
• It monitors economies, provides policy advice, extends financial assistance to countries facing balance-of-payments difficulties and provides technical assistance and training.
• Its headquarters is in Washington, D.C.
• It presently has 191 member countries.

Quota System

A member’s IMF quota broadly determines:

• Its financial contribution to the IMF.
• Its voting power.
• Its normal access to IMF financing.
• Its share in general allocations of Special Drawing Rights.

The United States is the largest individual quota and voting-power holder, but major decisions are taken through the Board of Governors and Executive Board. The US does not independently control every lending programme.

Relationship with the UN- The IMF is an autonomous specialised agency linked to the United Nations through a formal agreement.

4. World Trade Organization — WTO

• The WTO is an intergovernmental organisation that administers rules governing international trade in:
  • Goods.
  • Services.
  • Trade-related intellectual property.
• It provides a forum for trade negotiations, monitors national trade policies and administers a dispute-settlement system.
• Its headquarters is in Geneva, Switzerland.

History

• The WTO formally commenced operations on 1 January 1995 under the Marrakesh Agreement of 1994.
• It replaced the institutional framework of the General Agreement on Tariffs and Trade, which had operated since 1948.
• Following the accession of Comoros and Timor-Leste in 2024, the WTO has 166 members.

Relationship with the UN

• The WTO is not a UN specialised agency.
• It is an independent international organisation that maintains institutional cooperation with the United Nations and other multilateral bodies.

5. World Intellectual Property Organization — WIPO

• WIPO promotes a balanced and effective international system for protecting intellectual property, including patents, copyrights, trademarks and industrial designs.
• The WIPO Convention was adopted in 1967 and entered into force in 1970.
• It became a specialised agency of the United Nations in 1974.
• It has 194 member states.
• Its headquarters is in Geneva, Switzerland.

Major Functions

• Administers international intellectual-property treaties.
• Operates global systems for filing patents, trademarks and industrial designs.
• Provides dispute-resolution, technical-assistance and capacity-building services.
• Develops international IP data, standards and policy frameworks.

6. Organisation for Economic Co-operation and Development — OECD

• The OECD is an intergovernmental organisation that produces data, policy analysis and international standards to promote stronger, fairer and more sustainable economies.
• Its work covers taxation, trade, education, employment, governance, climate change, investment and development.
• Its headquarters is in Paris, France.

Membership and India

• The OECD has 38 member countries.
• India is not an OECD member but is one of its five Key Partners, along with Brazil, China, Indonesia and South Africa.
• India participates in selected OECD committees, policy dialogues and initiatives.

History

• The OECD was established in 1961, succeeding the Organisation for European Economic Co-operation.
• The OEEC was established in 1948 to coordinate European economic recovery and the distribution of assistance under the Marshall Plan.
• The United States and Canada joined the broader organisation when the OECD replaced the OEEC

Health, Nutrition, Food and Agriculture Institutions

7. World Health Organization — WHO

• WHO is the UN specialised agency responsible for international public health.
• It coordinates responses to health emergencies, sets global health standards, supports disease prevention and strengthens national health systems.
• It is governed by 194 member states through the World Health Assembly.
• Its headquarters is in Geneva, Switzerland.

History

• The WHO Constitution entered into force on 7 April 1948, after receiving the required 26 ratifications.
• The date is observed annually as World Health Day.
• WHO succeeded and integrated the functions of earlier international health bodies, including the League of Nations Health Organization.

8. Food and Agriculture Organization — FAO

• FAO is a specialised UN agency that leads international efforts to eliminate hunger and achieve food security.
• It works to improve:
  • Nutrition.
  • Agricultural productivity.
  • Sustainable agrifood systems.
  • Rural livelihoods.
• It provides a neutral forum for governments to negotiate agreements and develop food and agricultural policies.
• It has 194 members—193 countries and the European Union.
• It was established in 1945 and is headquartered in Rome, Italy.

9. International Fund for Agricultural Development — IFAD

• IFAD is both an international financial institution and a specialised agency of the United Nations.
• It focuses on reducing rural poverty and hunger in developing countries.
• It finances programmes relating to:
  • Smallholder agriculture.
  • Rural infrastructure.
  • Financial inclusion.
  • Climate-resilient farming.
  • Market access.
• It was established in 1977 as a major outcome of the 1974 World Food Conference.
• Its headquarters is in Rome, Italy.

10. International Food Policy Research Institute — IFPRI

• IFPRI is an international research organisation that produces evidence-based policy solutions to reduce poverty, hunger and malnutrition.
• It was established in 1975.
• Its research covers food security, nutrition, agricultural markets, food prices, climate change and rural development.
• It is a CGIAR Research Centre, not a UN body or specialised agency.
• Its headquarters is in Washington, D.C.

Other Important International Institutions

11. International Atomic Energy Agency — IAEA

• The IAEA promotes the safe, secure and peaceful use of nuclear science and technology.
• It also applies safeguards and verification measures to ensure that civilian nuclear material is not diverted to military purposes.
• It was established on 29 July 1957, following the “Atoms for Peace” initiative.
• Its headquarters is in Vienna, Austria.

Relationship with the UN

• The IAEA is not a specialised UN agency.
• It is an independent international organisation related to the UN through a special agreement.
• It reports annually to the UN General Assembly and, where appropriate, to the Security Council, particularly concerning safeguards non-compliance and international peace and security.

12. International Labour Organization — ILO

• The ILO promotes social justice, internationally recognised labour rights and decent work.
• It is the only tripartite UN agency, bringing together representatives of governments, employers and workers.
• Its principal functions include:
  • Setting international labour standards.
  • Promoting decent employment.
  • Expanding social protection.
  • Strengthening social dialogue.
• It presently has 187 member states and is headquartered in Geneva, Switzerland.

History

• The ILO was established in 1919 under the Treaty of Versailles.
• It was initially associated with the League of Nations.
• In 1946, it became the first specialised agency associated with the newly created United Nations.
• Its permanent secretariat is called the International Labour Office.

India and the ILO

• India has been a founding member since 1919 and has participated in the ILO Governing Body since 1922.