UPSC Prelims 2010 Q42: Indian Economy – International Institutions & Reports
Which one of the following is not related to United Nations?
- (a) Multilateral Investment Guarantee Agency
- (b) International Finance Corporation
- (c) International Centre for Settlement of Investment Disputes
- (d) Bank for International Settlements
Answer: (d) Bank for International Settlements
Explanation
Which institution is NOT related to the United Nations
Several international financial institutions have varying degrees of formal ties to the UN system.
| Option | Verdict | Reason |
|---|---|---|
| (a) Multilateral Investment Guarantee Agency (MIGA) | Is UN-related | Part of the World Bank Group, which functions as a specialized agency within the UN system |
| (b) International Finance Corporation (IFC) | Is UN-related | Also part of the World Bank Group, with specialized-agency status in the UN system |
| (c) International Centre for Settlement of Investment Disputes (ICSID) | Is UN-related | Also a World Bank Group institution, linked to the UN system |
| (d) Bank for International Settlements (BIS) | NOT UN-related | The BIS is an independent organization of central banks (based in Basel), entirely outside the UN system |
UN-linked vs independent institutions:
| Point | Detail |
|---|---|
| World Bank Group (MIGA, IFC, ICSID) | UN specialized agencies |
| BIS | Independent, a 'central bank for central banks', not UN-linked |
Answer: (d) Bank for International Settlements.
Why each option is right or wrong
- (a) Incorrect. MIGA is part of the World Bank Group, a UN specialized agency.
- (b) Incorrect. IFC is also part of the World Bank Group, UN-linked.
- (c) Incorrect. ICSID is likewise a World Bank Group institution, UN-linked.
- (d) CORRECT. The Bank for International Settlements is an independent central-bank organization, with NO formal UN affiliation.
Key point
MIGA, IFC, and ICSID are all World Bank Group institutions with UN specialized-agency status — the BANK FOR INTERNATIONAL SETTLEMENTS (BIS) is the independent one, entirely outside the UN system.
Remember
Bank for International Settlements (BIS): the independent institution, NOT related to the United Nations, unlike MIGA, IFC, and ICSID.
Common mistakes
- Assuming all major international financial institutions are automatically UN-linked.
- Not knowing the World Bank Group's specific UN specialized-agency status for MIGA, IFC, and ICSID.
- Confusing the BIS (an independent central-bank organization) with a UN body.
Exam tip
World Bank Group institutions (MIGA, IFC, ICSID) = UN-linked. BIS = independent, central-bank-only, no UN tie.
Sources
- United Nations — specialized agencies list
- Bank for International Settlements — Statutes of the Bank for International Settlements