Ramesh Singh Test : International Economic Organisations And India

(i) maximises the flow of foreign trade and foreign investments, and

(ii) leads to an equitable distribution of the gains from trade among the nations of the World. The evaluation of an IMS is done in terms of adjustment, liquidity and confidence which it manages to wield.

• The International Monetary Fund (IMF) came up in 1944,

• The main functions of the IMF are as given below:

• (i) to facilitate international monetary cooperation;

• (ii) to promote exchange rate stability and orderly exchange arrangements;

• (iii) to assist in the establishment of a multilateral system of payments and the elimination of foreign exchange restrictions, and to assist member countries by temporarily providing financial resources

• IMF reviews members' quotas once in every five years-last done in December 2010—here, India consented for its quota increase.

• Once a member nation has signed the extended fund facility agreement with the IMF, borrowing is made by the member nation- India signed this agreement in fiscal 1981-82.

• India has been borrowing from the IMF due to critical balance of payment (BOP) situations once between 1981–84 (SDR 3.9 billion) and next during 1991 (SDR 3.56 billion).

• All the loans taken from the IMF have been repaid. India is now a contributor to the IMF as it participates in the Financial Transactions Plan (FTP) of the IMF since September 2002—at this time India was in a strong balance of payment situation and a comfortable forex reserves position.

• International Bank for reconstruction and development

• International Development Agency

• International Finance Corporation

• The multilateral investment guarantee agency

• International Centre for settlement of investment disputes

• As part of the Economic Reforms Programme initiated in 1991, the foreign investment policy of the Government of India liberalised and negotiations were undertaken with a number of countries to enter into Bilateral Investment Promotion & Protection Agreement (BIPA) to promote and protect on reciprocal basis investment of the investors.

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  The Government of India has, so far, (as by July 2012) signed BIPAs with 82 countries out of which 72 BIPAs have already come into force and the remaining agreements are in the process of being enforced."

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  The objective of the BIPA is to promote and protect the interests of investors of either country in the territory of another country.