UPSC Prelims 2005 Q72: Indian Economy – International Institutions & Reports
Consider the following statements :
1. Poverty Reduction and Growth Facility (PRGF) has been established by the International
Development Association (IDA) to provide further assistance to low - income countries facing high
level of indebtedness.
2. Singapore Regional Training Institute (STI) is one of the institutes that provide training in
macroeconomics analysis and policy, and related subjects as a part of programme of the IMF
Institute.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (b) 2 only
Explanation
PRGF and IMF training institutes
| Statement | Verdict |
|---|---|
| 1. PRGF established by IDA | False: PRGF was established by the IMF in 1999 |
| 2. Singapore Regional Training Institute under IMF Institute | True — STI trains officials from Asia-Pacific |
Only statement 2 is correct. The Poverty Reduction and Growth Facility belongs to the IMF, and the Singapore Regional Training Institute is a part of the IMF Institute programme.
Answer: (b) 2 only.
Why each option is right or wrong
- (a) Incorrect. PRGF was an IMF facility, not IDA's.
- (b) CORRECT. Only statement 2 is correct.
- (c) Incorrect. Statement 1 is false.
- (d) Incorrect. Statement 2 is correct.
Key point
PRGF: IMF concessional lending to low-income countries; replaced ESAF in 1999.
Remember
PRGF was set up by the IMF, not by the IDA.
Common mistakes
- Crediting IDA (World Bank) for PRGF.
- Forgetting that the STI is based in Singapore.
- Mixing PRGF with the HIPC initiative of IMF and World Bank.
Exam tip
IMF Institute: training; STI Singapore since 1998.
Sources
- International Monetary Fund — The Poverty Reduction and Growth Facility (PRGF): Factsheet
- International Development Association (World Bank Group) — About IDA