Context:
As leaders gather for G-20 Summit in New Delhi, experts said securing consensus on multilateral development bank (MDB) reforms and adopting rigorous language regarding the phasing down of unabated fossil fuels could enhance India’s leadership role.
About Multilateral Development Bank:
- An international financial institution chartered by two or more countries for the purpose of encouraging economic development in poorer nations.
- They consist of member nations from developed and developing countries.
- MDBs provide loans and grants to member nations to fund projects that support social and economic development.
- MDBs fund infrastructure, energy, education, and environmental sustainability in developing countries.
- While commercial banks seek to make profits on loans and other financial services, the goal of MDBs is to issue grants and low-cost loans to improve the economic conditions of impoverished or developing nations.
- Major multilateral development banks:
- European Investment Bank
- International Bank for Reconstruction and Development, World Bank Group
- Asian Development Bank
- International Development Association, World Bank Group
- Inter-American Development Bank
- European Bank for Reconstruction and Development
- African Development Bank
- Asian Infrastructure Investment Bank
- Islamic Development Bank
- Central American Bank for Economic Integration
- New Development Bank
Source: The Hindu
Previous year question
Regarding the International Monetary Fund, which one of the following statements is correct?
[UPSC Civil Services Exam – 2011 Prelims]
(a) It can grant loans to any country
(b) It can grant loans to only developed countries
(c) It grants loans to only member countries
(d) It can grant loans to the central bank of a country
Answer: (c)
