UPSC Prelims 2025 Q35: Indian Economy – International Organizations
- (a) The Asian Development Bank (ADB)
- (b) The Asian Infrastructure Investment Bank (AIIB)
- (c) The New Development Bank (NDB)
- (d) The International Bank for Reconstruction and Development (IBRD)
Answer: (a) The Asian Development Bank (ADB)
Explanation
Nature Finance Hub - Bank Overview:
| Bank | Full Name | HQ | Focus | Launched Nature Hub? |
|---|---|---|---|---|
| ADB | Asian Development Bank | Manila, Philippines | Broad Asia-Pacific development | YES |
| AIIB | Asian Infrastructure Investment Bank | Beijing, China | Infrastructure only | NO |
| NDB | New Development Bank | Shanghai, China | BRICS nations | NO |
| IBRD | International Bank for Reconstruction and Development | Washington DC | World Bank arm, middle-income countries | NO |
ADB launched the Nature Solutions Finance Hub for Asia and the Pacific to mobilize private finance toward nature-based solutions — reversing biodiversity loss, restoring ecosystems, and scaling green investment across the region.
Answer: (a) The Asian Development Bank (ADB).
Why each option is right or wrong
- (a) CORRECT. The Asian Development Bank (ADB) launched the Nature Solutions Finance Hub to channel private capital toward biodiversity protection and ecosystem restoration across Asia and the Pacific.
- (b) Incorrect. AIIB focuses exclusively on physical infrastructure (roads, energy, transport) — it does not run nature-based financing initiatives.
- (c) Incorrect. NDB (New Development Bank) serves BRICS nations for sustainable infrastructure — it did not launch this hub.
- (d) Incorrect. IBRD is the World Bank's arm for middle-income countries — it did not launch the Nature Solutions Finance Hub.
Key point
ADB (Manila) = Nature Solutions Finance Hub, Asia-Pacific. Mobilises private finance for biodiversity and ecosystem restoration.
Remember
ADB (Manila) launched the Nature Solutions Finance Hub for Asia-Pacific. Not AIIB, not NDB.
Common mistakes
- Confusing ADB with AIIB — both are Asia-focused but ADB has a broad development mandate including environment; AIIB focuses on infrastructure only.
- Mixing up NDB (BRICS bank, Shanghai) with ADB (Manila). Different membership, mandate, and geography.
- Forgetting ADB's environmental leadership — it runs multiple climate and biodiversity finance initiatives beyond infrastructure loans.
Exam tip
Dev bank HQ cheatsheet: ADB = Manila. AIIB = Beijing. NDB = Shanghai. World Bank (IBRD) = Washington DC. IMF = Washington DC. Remember Manila = ADB = broadest Asia-Pacific mandate.
Sources
- Asian Development Bank — Nature Solutions Finance Hub Official Launch
- NCERT Class XII — International Organizations (Development Banks)
- ADB Annual Report — Climate and Environment Finance