International Organizations in News: IMF, World Bank and UN

Why it is Important

The current global governance architecture, established post-WWII (Bretton Woods), is increasingly seen as outdated and unrepresentative of the rise of emerging economies like India.

Key points for Prelims

• IMF & World Bank: IMF focuses on macroeconomic stability and balance of payments support; World Bank focuses on long-term developmental loans and poverty reduction.
• UN Security Council (UNSC): Consists of 5 permanent members (P5) with veto power and 10 non-permanent members elected for 2-year terms.
• Voting Shares: IMF voting power is determined by quotas, which developing nations argue are skewed in favor of Western economies.

Mains Relevance

Inability to address geopolitical conflicts, coordinate global debt restructuring, or mobilize adequate climate finance highlights the gridlock in these multilateral bodies.

Way Forward

Reform the UNSC veto system and expand permanent membership (G4 initiative), revise IMF quotas to reflect current economic realities, and strengthen voice of Global South.