UPSC Prelims 2017 Q56: Indian Economy – International Institutions & Reports
- (a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.
- (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public - Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.
- (c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private investment.
- (d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.
Answer: (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public - Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.
Explanation
Global Infrastructure Facility (GIF)
Launched by the World Bank Group in October 2014.
It is an open platform that helps governments prepare large infrastructure projects that private money can fund.
| Option | Verdict | Reason |
|---|---|---|
| (a) ASEAN initiative financed by credit from the Asian Development Bank | Incorrect | GIF is global, not an ASEAN initiative |
| (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) | Correct | It mobilises private sector and institutional investor capital |
| (c) Collaboration among the major banks of the world working with the OECD | Incorrect | It is led by the World Bank, not the OECD |
| (d) UNCTAD funded initiative | Incorrect | UNCTAD does not finance infrastructure development |
How GIF works:
| Partner | Role |
|---|---|
| Multilateral development banks | Technical help in project preparation |
| Private and institutional investors | Long-term capital (pension and insurance funds) |
| Governments | Bring the projects |
Answer: (b) World Bank collaboration for infrastructure PPPs.
Why each option is right or wrong
- (a) Incorrect. GIF is not an ASEAN initiative and is not financed by ADB credit.
- (b) CORRECT. GIF is a World Bank platform for structuring complex infrastructure PPPs.
- (c) Incorrect. The OECD and major banks do not run it; the World Bank Group does.
- (d) Incorrect. UNCTAD deals with trade and development, and does not fund this facility.
Key point
Global Infrastructure Facility (2014): World Bank Group platform to prepare and structure complex infrastructure PPPs and bring in private and institutional capital.
Remember
Global Infrastructure Facility = World Bank + PPPs.
Common mistakes
- Confusing GIF with the Asian Infrastructure Investment Bank or ADB.
- Choosing the OECD option because it also mentions private investment.
- Thinking GIF itself lends large sums; it mainly helps prepare projects.
Exam tip
'Facility' plus 'PPP preparation' points to the World Bank Group.
Sources
- World Bank Group — Global Infrastructure Facility
- Global Infrastructure Facility — About the GIF