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Economy 12: Important World Organizations

Historical Context: Bretton Woods
The aftermath of global crises led to the formation of key international financial institutions.

A series of major global events, including World War I (1914-1918), the Great Depression (1929-1939), and World War II (1939-1945), devastated the global economy, leading to low production and negative balance of payments for many countries.

The Bretton Woods Conference (July 1944)

To address these issues, a meeting was held from July 1-22, 1944, in Bretton Woods, Washington DC. This meeting, attended by 44 countries including India, was based on a joint plan by J.M. Keynes (UK) and Mr. Dexter White (U.S.).

Initially joined by 29 countries, this conference led to the formation of two key bodies:

  • The World Bank Group: Originally the IBRD (International Bank for Reconstruction and Development), it later combined with the IDA (International Development Association) to form the World Bank. Any country can take a loan from it.
  • IMF (International Monetary Fund): Only member countries can take a loan from the IMF.
List of Important Organizations

IMF (International Monetary Fund)

Established: 1944 (Work started 27 Dec 1945)

HQ: Washington DC

Members: 191 countries

Head: Kristalina Georgieva

World Bank

Established: July 1944

HQ: Washington DC

Members: 189 countries

Head: Ajay Banga

WTO (World Trade Organisation)

Established: 1995

HQ: Geneva, Switzerland

Members: 166

Head: Dr. Ngozi Okonjo-Iweala (Nigerian, First female head)

WHO (World Health Organisation)

Established: 1948

HQ: Geneva, Switzerland

Members: 194

Head: Tedros Adhanom (Ethiopia)

SCO (Shanghai Cooperation Organisation)

Established: 2001

HQ: Beijing, China

Members: 10

Head: Zhang Ming

India and Pakistan joined in 2017.

NDB (New Development Bank / Bank of BRICS)

Established: 2014

HQ: Shanghai, China

Members: 10 (BRICS+)

Head: Dilma Rousseff

BRICS members: Brazil, Russia, India, China, South Africa, Iran, Ethiopia, Egypt, UAE, Indonesia.

ASEAN (Association of South East Asian Nations)

Established: 1967

HQ: Jakarta, Indonesia

Members: 10

Head: Dr. Kao Kim Hourn

India is included in the ASEAN +6 group.

SAARC (South Asian Association for Regional Co-operation)

Established: 1985

HQ: Kathmandu, Nepal

Members: 8

Head: Golan Sarwar

NATO (North Atlantic Treaty Organization)

Established: 1949

HQ: Brussels, Belgium

Members: 32

Head: Mark Rutte

Quad (Quadrilateral Security Dialogue)

Established: 2004

HQ: No HQ

Members: USA, India, Australia, Japan

Head: No Head

G20

Established: 1999

HQ: Presidency-based

Members: 21

Head: Current Presidency

ADB (Asian Development Bank)

Established: 1966

HQ: Manila, Philippines

Members: 69

Head: Masato Kanda

UNESCO

Established: 1946

HQ: Paris, France

Members: 194

Head: Audrey Azoulay

UNICEF

Established: 1946

HQ: New York, USA

Members: 36

Head: Catherine Russel

UNDP

Established: 1965

HQ: New York, USA

Members: 170+

Head: Achim Steiner

International Solar Alliance

Established: 2015

HQ: Gurugram, Haryana, India

Members: 120

Head: Ashish Khanna

Practice Quiz
Test your knowledge!

1. Which two economists are credited with the 'Joint Plan' that led to the Bretton Woods Conference?

Adam Smith and Karl Marx
J.M. Keynes and Mr. Dexter White
Milton Friedman and Amartya Sen
Paul Krugman and Joseph Stiglitz

2. The World Bank is a combination of which two institutions?

IMF and WTO
IBRD and IDA
UNICEF and UNDP
SCO and NDB

3. Who holds the distinction of being the first female head of the WTO?

Kristalina Georgieva
Audrey Azoulay
Catherine Russel
Dr. Ngozi Okonjo-Iweala

4. Which of the following countries is NOT a member of the Quad (Quadrilateral Security Dialogue)?

USA
India
South Korea
Australia

5. Which major international organization has its headquarters in Gurugram, Haryana, India?

SAARC
International Solar Alliance
New Development Bank (NDB)
G20