Ramesh Singh Test : International Economic Organisations & India - UPSC MCQ

- Statement 1 is correct. The Nairobi Declaration indeed reflects divergence among WTO members on the relevance of reaffirming the Doha Development Agenda (DDA).
- Statement 2 is incorrect. The Buenos Aires Conference (MC11) did not result in a Ministerial Declaration or any substantive outcome, especially not a permanent solution on food security.
- Statement 3 is correct. India hosted a WTO Ministerial Meeting in 2019, focusing on the concerns of developing and least developed countries, and an outcome document was released that outlined various priorities.
Thus, only statements 1 and 3 are correct. Therefore, the correct answer is Option B: 1 and 3 Only.

- Statement 1: The statement is correct. The AIIB was officially launched in 2014 by China with 21 Asian nations as the founding members.
- Statement 2: The statement is incorrect. By March 2019, the AIIB had a total of 93 members from across the world, but the USA, Japan, and Canada have not joined it.
- Statement 3: The statement is correct. India holds the second-highest shareholding in the AIIB after China.
Therefore, the correct answer is Option C: 1 and 3 Only.

- Statement 1: The International Finance Corporation (IFC) indeed provides financing and advice for private-public ventures and projects in partnership with private investors. This is a correct statement.

- Statement 2: The Multilateral Investment Guarantee Agency (MIGA) does offer insurance, also known as guarantees, to foreign private investors against loss caused by non-commercial risks, such as currency transfer, expropriation, war, and civil disturbance. This is a correct statement.

- Statement 3: The International Centre for Settlement of Investment Disputes (ICSID) decisions are binding on the parties once they have agreed to arbitration, and they cannot withdraw their consent unilaterally. Therefore, this statement is incorrect.

Given the correctness of Statements 1 and 2 and the incorrectness of Statement 3, the correct answer is Option B: 1 and 2 Only.

The 10th Ministerial Conference in Nairobi resulted in various outcomes, including the recognition of the Special Safeguard Mechanism (SSM) for agricultural products for developing countries. This mechanism was negotiated by India to ensure that the issue remains on the agenda for future discussions within the WTO. SSM is crucial for protecting developing countries' agricultural sectors from sudden surges in imports or price drops, providing a vital tool for food security and domestic production support.

The International Finance Corporation (IFC) was established as the private arm of the World Bank with the primary objective of lending money to private sector companies of its member nations. It aims to support and finance private-public ventures, providing advice and financial assistance to stimulate economic growth and investment in partnership with private investors.

• Statement 1 is correct: The process of adjustment in the IMS indeed refers to correcting the balance-of-payment (BoP) crises of member nations by minimizing both the cost and time needed for such adjustments.
• Statement 2 is incorrect: Liquidity in the IMS specifically refers to the amount of foreign currency reserves available to settle BoP crises, not the faith in the adjustment mechanism or the retention of the value of foreign reserves.
• Statement 3 is correct: Confidence in the IMS is indeed based on transparent knowledge about the IMS's adjustment mechanisms and the status of foreign reserves.

Thus, the correct statements are 1 and 3. Therefore, the correct answer is Option B: 1 and 3 Only.

The primary objective of the Asian Infrastructure Investment Bank (AIIB) is to finance infrastructure projects in the Asia region, operating more as a commercial bank with nations as shareholders, rather than solely as a development aid institution. By providing financial support for infrastructure development, the AIIB aims to address the region's growing infrastructural needs and promote economic growth and connectivity.

Statement-I correctly describes the World Bank's objectives of poverty reduction and support for development through financial and technical assistance across various sectors. Statement-II aligns with the functions of the International Bank for Reconstruction and Development (IBRD) within the World Bank, emphasizing its focus on providing low-interest loans for human development areas such as agriculture, healthcare, and urban development. Therefore, both statements are accurate, and Statement-II elaborates on the specific activities of the IBRD under the World Bank's umbrella.

1. Nairobi Declaration — First WTO Ministerial Conference hosted by an African nation - Correct. The 10th WTO Ministerial Conference held in Nairobi, Kenya, during 15-19 December 2015, was the first such meeting hosted by an African nation.

2. Buenos Aires Conference — Adoption of a Ministerial Declaration - Incorrect. The 11th Ministerial Conference (MC11) of World Trade Organisation [WTO] in Buenos Aires, Argentina (10-13 December, 2017), ended without a Ministerial Declaration or any substantive outcome.

3. Trade Facilitation Agreement — Ratified by India in April 2016 - Correct. The Trade Facilitation Agreement (TFA) agreed upon by the WTO was indeed ratified by India in April 2016.

4. BRICS Bank — Initial subscribed capital of $50 billion equally shared by the five nations - Correct. The New Development Bank (NDB), also known as the BRICS Bank, has an initial subscribed capital of $50 billion, which is equally shared by the five BRICS nations.

Thus, three out of the four pairs are correctly matched.

The primary function of the World Bank is to reduce poverty and support development in poorer countries by providing financial and technical assistance for various projects in sectors such as infrastructure, education, healthcare, and agriculture. This assistance aims to uplift the living standards and promote sustainable development in these nations.