India-World Bank Current Affairs - 2020
On June 17, 2020, the Asian Infrastructure Investment Bank (AIIB) approved 750 million USD loan to India. The fund granted is to be used by the GoI to strengthen battle against the impact of COVID-19 on the poor and vulnerable.
The aid was cofinanced by the Asian Development Bank (ADB). The funds are to be used for improving informal sector, safety nets for the needy and strengthen heath care system of the country.
India and AIIB
The total sovereign loans to India that were already approved by AIIB amounts to 3.6 billion USD. This includes the recent emergency response of the bank that amounted to 500 million USD.
The loan allocated is the second for the country under AIIB COVID-19 Crisis Recovery Facility (CRF).
Crisis Recovery Facility
The AIIB does not have an exclusive policy-based financing. The bank is currently extending its support to its members through projects under CRF that are cofinanced either with the World Bank or ADB.
The CRF was set up with an initial investment of 5 billion USD. Later it was doubled to 10 billion USD in order to make sure the funds are available to the member countries to fulfill their financial, economic and public health pressures.
The AIIB has in total approved 4.05 billion USD under CRF. Of this, China received 355 million USD, 750 million USD to Indonesia and Philippines each, 250 million USD to Bangladesh and 500 million USD to Pakistan.
Tags: ADB • AIIB • Emergency Response Plan • India-ADB • India-AIIB
The Private secretary of Prime Minister Modi Rajeev Topno was recently appointed as the Senior Advisor to the Executive Director of World Bank. Also, a joint secretary at the Prime Minister Office (PMO) was appointed to the World Trade Organization as an ambassador
Besides these officers, five other officers have been appointed abroad where they will have major role in economic and trade related decisions. H Atheli has been appointed as advisor to Executive Director of Asian Development Bank.
These appointments are important to India. This is because India is currently grappling with economic crisis and the organizations play an important in deciding trade related activities.
Board of Directors
The World Bank group consists of four separate boards of directors. This includes International Bank of Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA) and Multilateral Investment Guarantee Agency (MIGA). There are 25 Executive directors in all. They elect their president. The president has no voting powers except for the deciding vote of equally divided board.
The voting powers of the member countries are based on the number of shares held by them. The top eight countries with highest voting powers in the world bank are USA, Japan, China, UK, Germany, France, Canada and India.