Question

Which one of the following is not related to United Nations?
1. Multilateral Investment Guarantee Agency
2. International Finance Corporation
3. International center for Settlement of Investment Disputes
4. Bank for International Settlements 
5. None of the above/More than one of the above.

Answer 1

Correct Answer - Option 4 : Bank for International Settlements 

The correct answer is Bank for International Settlements.

 

• The Bank for International Settlements (BIS) is an international financial institution that aims to promote global monetary and financial stability through the coordination of global central banks and their monetary policy efforts.
• BIS is an international financial organization owned by 60 member central banks, representing countries from around the world (about 95% of world GDP) including India.
• It fosters international monetary and financial cooperation and serves as a bank for central banks.
• The mission of the BIS 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.
• Its headquarters is in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

 

• The World Bank Group is a multilateral organization headquartered in Washington, D.C., whose members include most of the world’s countries.
• Five institutions make up the World Bank Group to collectively serve as a vital source of financial and technical assistance to developing countries.
  • The International Bank for Reconstruction and Development (IBRD) or World Bank, tackles poverty in middle-income and creditworthy low-income countries. 
  • The International Development Association (IDA) is also part of the World Bank, provides interest-free loans, technical assistance, and policy advice to governments in the world’s poorest countries.
  • The International Finance Corporation (IFC) is the largest global development institution focused exclusively on the private sector.
    • IFC finances investment mobilizes capital in international financial markets and provides advisory services to businesses and governments. 
  • The Multilateral Investment Guarantee Agency (MIGA) promotes foreign direct investment into developing countries.
    • MIGA fulfills this mandate by offering political risk insurance and credit enhancement to investors and lenders. 
  • The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.
• World Bank was founded in 1944 at the UN Monetary and Financial Conference commonly known as the Bretton Woods Conference.
• There is a total of 189 members out of which 188 are UN countries and Kosovo.

• The World Bank is related to the UN, though it is not accountable either to the General Assembly or to the Security Council. 
• Technically the World Bank is part of the United Nations system, but its governance structure is different. 
• Each institution in the World Bank Group is owned by its member governments, which subscribe to its basic share capital, with votes proportional to shareholding.
• Membership gives certain voting rights that are the same for all countries but there are also additional votes that depend on financial contributions to the organization.