International Relations International Institutions GS Paper II

The UN System and Global Economic Institutions

UN organs, Security Council composition and reform, IMF, World Bank Group, WTO, UN agencies and headquarters, AIIB, NDB and FATF for UPSC — with India's role in each.

SyllabusGS II · Important international institutions, agencies and fora — their structure and mandate

By 12 min read Updated Oct 2026 #international-relations#united-nations#unsc-reform

Prerequisites: International Institutions — overview · World History

The Hook: The UN at Eighty

Connect: In the News → Concept

On 24 October 2025, the United Nations marked 80 years since its Charter came into force. The Security Council that the Charter created still has the same five permanent members it had in 1945, while the UN’s membership has grown from 51 to 193. India — a founding member, eight times an elected member of the Council, and among the largest contributors to UN peacekeeping — has called for “reformed multilateralism” for years.

The anniversary raises the question this topic answers: how are the institutions of global governance built, what do they do, and why does India argue they no longer reflect the world they govern?

The Core Concept

The United Nations

  • Charter signed at San Francisco on 26 June 1945; came into force on 24 October 1945 (UN Day).
  • 51 original members — India among them, having signed the Charter in 1945 before independence. Membership today: 193 (South Sudan, admitted in 2011, is the newest). The Holy See and the State of Palestine are non-member observer states.
  • Headquarters: New York; other major offices in Geneva, Vienna and Nairobi.

The six principal organs

OrganCompositionKey facts
General AssemblyAll 193 members, one vote eachImportant questions need a two-thirds majority; resolutions are generally recommendations
Security Council15: 5 permanent (China, France, Russia, UK, US) + 10 non-permanentPrimary responsibility for international peace and security; decisions under Chapter VII are binding
Economic and Social Council (ECOSOC)54 members elected for three yearsCoordinates economic, social and environmental work; consultative status for NGOs
Trusteeship CouncilP5Suspended operations in 1994 after Palau, the last trust territory, became independent
International Court of Justice15 judges, nine-year terms, elected by the GA and SCSeat at The Hague; the only principal organ outside New York
SecretariatHeaded by the Secretary-GeneralAppointed by the GA on the Security Council’s recommendation

Security Council — the rules UPSC tests

  • Non-permanent members are elected by the General Assembly for two-year terms, five each year; a retiring member is not eligible for immediate re-election (Article 23).
  • The Council was enlarged from 11 to 15 members by a Charter amendment that came into force in 1965.
  • Substantive decisions need nine votes including the concurring votes of the permanent members — the veto (Article 27). An abstention by a permanent member is not treated as a veto in practice.
  • Chapter VI — peaceful settlement of disputes; Chapter VII — action with respect to threats to the peace, including sanctions and use of force.
  • India’s terms: 1950–51, 1967–68, 1972–73, 1977–78, 1984–85, 1991–92, 2011–12 and 2021–22 — eight in all.

UNSC reform — who wants what

GroupMembers / backersPosition
G4Brazil, Germany, India, JapanNew permanent and non-permanent seats; support each other’s bids
Uniting for Consensus (“Coffee Club”)Italy, Pakistan, Argentina, South Korea and othersOpposes new permanent seats; prefers more non-permanent or longer-term seats
African Union — Ezulwini Consensus (2005)55 African statesTwo permanent seats with veto and additional non-permanent seats for Africa
L.69Developing countries from Asia, Africa, Latin America and small island states, including IndiaExpansion in both categories

Reform is negotiated through the Intergovernmental Negotiations (IGN) in the General Assembly, which began in 2009. Any reform requires a Charter amendment — two-thirds of the GA and ratification by two-thirds of members, including all five permanent members (Article 108).

The Bretton Woods institutions

Created at the Bretton Woods conference (July 1944) in the United States; India was a founding member of both.

IMFWorld Bank (IBRD)
PurposeGlobal monetary cooperation, exchange stability, short-term balance-of-payments supportLong-term development finance and poverty reduction
HQWashington, DCWashington, DC
VotingBased on quotas (financial contribution) — the US holds enough votes to block decisions needing an 85% majorityBased on shareholding
ToolsSurveillance (Article IV consultations), lending programmes, Special Drawing Rights (created 1969)Loans, grants (through IDA), knowledge products
ConventionManaging Director traditionally EuropeanPresident traditionally American

The World Bank Group — five institutions

InstitutionYearRoleIndia
IBRD1944Loans to middle-income and creditworthy countriesMember
IFC1956Private-sector investmentMember
IDA1960Concessional loans and grants to the poorest countriesMember (former largest borrower; now a donor)
ICSID1966Settlement of investment disputesNot a member
MIGA1988Political-risk insurance for investorsMember

The World Trade Organization

  • Established on 1 January 1995 under the Marrakesh Agreement (April 1994), at the end of the Uruguay Round; it replaced the provisional GATT (1947) framework.
  • HQ Geneva; 166 members as of 2024. Decisions are by consensus.
  • Structure: Ministerial Conference (at least every two years) → General Council (also sits as the Dispute Settlement Body and the Trade Policy Review Body) → councils for goods, services and TRIPS.
  • Dispute settlement crisis: the Appellate Body stopped functioning in December 2019 because appointments of new members were blocked.
  • India’s core positions: a permanent solution for public stockholding for food security (the “peace clause” agreed at Bali, 2013); special and differential treatment for developing countries; protecting small fishers in negotiations on fisheries subsidies; caution on the moratorium on customs duties on electronic transmissions.
graph TD
    A[Ministerial Conference] --> B[General Council]
    B --> C[Dispute Settlement Body]
    B --> D[Trade Policy Review Body]
    B --> E[Council for Trade in Goods]
    B --> F[Council for Trade in Services]
    B --> G[Council for TRIPS]
    C --> H[Panels and Appellate Body]

UN agencies and other bodies — headquarters

BodyHQRemember
ILOGeneva1919 — older than the UN; tripartite (governments, employers, workers); Nobel Peace Prize 1969
WHOGeneva1948; International Health Regulations
ITUGeneva1865 — the oldest UN specialised agency
WIPOGenevaIntellectual property treaties
WMOGenevaWeather and climate; co-founded the IPCC with UNEP (1988)
UNHCRGenevaRefugees; India is not a party to the 1951 Refugee Convention
UNCTADGeneva1964; World Investment Report
FAO, IFAD, WFPRomeFood and agriculture; WFP won the Nobel Peace Prize 2020
UNESCOParisEducation, science, culture; World Heritage List
IAEAVienna1957; “Atoms for Peace”; reports to the GA and the Security Council
UNIDOViennaIndustrial development
UNEPNairobi1972, after the Stockholm Conference
UN-HabitatNairobiHuman settlements
IMOLondonShipping safety and marine pollution
ICAOMontrealCivil aviation
UPUBern1874; postal services
UNICEF, UNDP, UNFPANew YorkChildren; development (Human Development Report); population
FATFParis1989, set up by the G7; anti-money-laundering standards; grey and black lists
InterpolLyonPolice cooperation; India a member since 1949
ICCThe HagueRome Statute 1998, in force 2002; India is not a party
ADBManila1966; India a founding member
AIIBBeijingBegan operations 2016; India is a founding member and the second-largest shareholder
NDBShanghaiBRICS bank; first president K.V. Kamath
ISAGurugramInternational Solar Alliance, launched by India and France in 2015
CDRINew DelhiCoalition for Disaster Resilient Infrastructure, launched by India in 2019

Who publishes which report

ReportPublisher
World Economic Outlook; Global Financial Stability ReportIMF
World Development ReportWorld Bank
Human Development ReportUNDP
World Investment ReportUNCTAD
Emissions Gap ReportUNEP
World Employment and Social OutlookILO
World Migration ReportIOM
Global Gender Gap Report; Global Competitiveness ReportWorld Economic Forum (not a UN body)

India and peacekeeping

India has taken part in UN peacekeeping since the 1950s (the UN Emergency Force in Gaza and Sinai from 1956, the Congo operation in the early 1960s) and is consistently among the largest troop contributors. In 2007, India deployed the UN’s first all-women Formed Police Unit, to Liberia. India argues that troop-contributing countries should have a greater say in how mandates are drafted.

Memory Anchors

Six organs — “GSE TIS”: General Assembly · Security Council · ECOSOC · Trusteeship Council · ICJ · Secretariat.

Geneva cluster — “I Will Wait With Hope, Uncle” → ILO/ITU · WHO · WIPO · WMO · UNHCR · UNCTAD.

Rome trio: FAO, IFAD, WFP — “Food in Rome”.

World Bank Group — “I I I M” → IBRD, IFC, IDA (India is in all three), MIGA (India in) — and ICSID is the one India is out of.

One-line Mains hook: “An institution that reflects 1945 cannot manage the problems of the 2020s — reform is not India’s ambition, it is the UN’s need.”

For Prelims

Facts worth a mark
  • UN Charter: signed 26 June 1945; in force 24 October 1945; India an original member.
  • UNSC: 15 members; non-permanent members serve two years and cannot be immediately re-elected; India has served eight terms (latest 2021–22).
  • ICJ: 15 judges, nine-year terms, The Hague.
  • Trusteeship Council suspended operations in 1994.
  • India is not a member of ICSID; not a party to the Rome Statute (ICC) or the 1951 Refugee Convention.
  • WTO: 1 January 1995; Appellate Body non-functional since December 2019.
  • AIIB HQ Beijing; India is its second-largest shareholder.

For Mains

  • Dimensions: legitimacy (representation of Africa, Latin America, Asia), effectiveness (veto paralysis), equity (IMF quotas, voting shares), development (finance for the Global South), law (dispute settlement, ICJ).
  • Keywords: reformed multilateralism, representativeness, veto paralysis, quota reform, rules-based order, Global South, plurilateralism, institutional fragmentation.
  • Value-addition: Article 108 (amendment procedure) as the hard constraint on UNSC reform; the Ezulwini Consensus; India’s G20 presidency push for multilateral development bank reform; India’s first all-women FPU (2007); the ICJ’s July 2019 judgment in the Kulbhushan Jadhav case (India v. Pakistan), which found that Pakistan had breached the Vienna Convention on Consular Relations.

Common Traps

Trap #1: The ICJ and the ICC
The ICJ (1945) is a principal organ of the UN and settles disputes between States. The ICC (Rome Statute, 1998) is a separate treaty body that tries individuals for genocide, war crimes, crimes against humanity and aggression. Both sit at The Hague. As a UN member India is a party to the ICJ Statute, but it has not joined the Rome Statute.
Trap #2: 'The IAEA is a UN specialised agency'
The IAEA is an independent organisation within the UN family that reports to the General Assembly and the Security Council; it is not a specialised agency like the WHO or FAO. Likewise, the WTO is outside the UN system.
Trap #3: Abstention and the veto
By long practice, an abstention by a permanent member does not block a Security Council decision; only a negative vote is a veto.

In the News

  • January 2025 — the United States announces its withdrawal from the World Health Organization.
  • October 2025 — the United Nations marks 80 years since its Charter entered into force.
  • Follow elections to UN bodies and WTO ministerial outcomes in the monthly current affairs.

Practice

Prelims

UPSC Practice · Prelims GS I Qun-1

With reference to the non-permanent members of the UN Security Council, consider the following statements:

  1. They are elected by the General Assembly for a term of two years.
  2. A retiring member is not eligible for immediate re-election.
  3. India has served as a non-permanent member eight times.

Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 only
  3. C 1 and 3 only
  4. D 1, 2 and 3
Solution

All three are correct. Article 23 provides for two-year terms and bars immediate re-election. India’s eighth term was 2021–22.

Answer: D

UPSC-pattern practice question
UPSC Practice · Prelims GS I Qun-2

India is not a member of which one of the following institutions of the World Bank Group?

  1. A International Development Association
  2. B International Finance Corporation
  3. C International Centre for Settlement of Investment Disputes
  4. D Multilateral Investment Guarantee Agency
Solution

India is a member of the IBRD, IDA, IFC and MIGA but has not joined the ICSID convention, preferring to keep investment disputes under its bilateral investment treaties and domestic law.

Answer: C

UPSC-pattern practice question
UPSC Practice · Prelims GS I Qun-3

Consider the following pairs:

OrganisationHeadquarters
1. International Maritime OrganizationLondon
2. International Civil Aviation OrganizationGeneva
3. UN Environment ProgrammeNairobi
4. Food and Agriculture OrganizationParis

How many of the pairs given above are correctly matched?

  1. A Only one
  2. B Only two
  3. C Only three
  4. D All four
Solution

Pairs 1 and 3 are correct. ICAO is in Montreal, not Geneva; FAO is in Rome, not Paris (Paris hosts UNESCO). Two pairs are correct.

Answer: B

UPSC-pattern practice question

Mains

UPSC Practice · Mains GS II 15 marks · 250 words Qun-m1

“The UN Security Council reflects the world of 1945, not of today.” Examine the case for its reform and the obstacles in the way, with reference to India’s position.

Solution

Introduction: The Security Council’s five permanent members were the victors of the Second World War. UN membership has nearly quadrupled since 1945, yet the permanent membership has not changed and the Council was last enlarged in 1965.

Body:

  • Case for reform: under-representation of Africa, Latin America and much of Asia; veto paralysis on major conflicts; legitimacy and compliance suffer; troop contributors have little say in mandates.
  • India’s case: largest population; major economy; eight elected terms; long peacekeeping record; G20 presidency that brought the African Union in; part of the G4 and L.69.
  • Obstacles: Article 108 needs ratification by all P5; Uniting for Consensus opposes new permanent seats; disagreement on the veto for new members; regional rivalries (Pakistan, Italy, Argentina, China’s stance); slow IGN process without a negotiating text.
  • Way forward: text-based negotiations; interim options (longer-term seats, review clauses); restraint on the veto in mass-atrocity situations; coalition-building with Africa.

Conclusion: Reform is difficult because those who must consent benefit from the status quo. India’s best strategy is to build a coalition broad enough that the cost of resisting reform exceeds the cost of accepting it.

UPSC-pattern practice question

Quick Revision

PointOne-liner
UN CharterSigned 26 June 1945; in force 24 October 1945; 193 members
UNSC15 members; veto under Article 27; enlarged 1965
India in UNSCEight terms; latest 2021–22
ICJ15 judges, 9-year terms, The Hague
Bretton WoodsJuly 1944; IMF and IBRD in Washington
World Bank GroupIBRD, IFC, IDA, ICSID, MIGA — India not in ICSID
WTO1 January 1995; Geneva; Appellate Body stalled since December 2019
Reform groupsG4; Uniting for Consensus; Ezulwini Consensus; L.69
India-led bodiesISA (Gurugram), CDRI (New Delhi)

Key Takeaways

Key Takeaways
  1. Know the structure — organs, composition, voting and headquarters — for Prelims; know the reform debates for Mains.
  2. India is a founding member of the UN and the Bretton Woods institutions but stays out of ICSID, the ICC and the 1951 Refugee Convention.
  3. India’s message across institutions is “reformed multilateralism”: more voice for the Global South, not the dismantling of the system.
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