Global Economic Governance and Development
International Relations
- PYQs8
- Articles1
Background
This concept is central to understanding international relations, India's foreign policy, and economic development challenges. UPSC frequently examines issues related to global inequalities, sustainable development, the role of international bodies, and India's stance on these matters.
Global economic governance refers to the system of institutions, rules, and norms that regulate economic interactions among states and non-state actors, aiming to promote stability, growth, and equity in the world economy. Development aspects often focus on achieving inclusive and sustainable growth, particularly addressing the needs and challenges of developing countries, collectively known as the Global South.
Facts & tables
- Core Principle
- Balanced, shared, and sustainable economic growth for all
- Growth Metric
- Focus on inclusion and well-being beyond mere GDP numbers
- Global South Challenges
- Highlights burdens faced by developing countries due to crises and conflicts
- IFI Role
- Calls for support mechanisms from International Financial Institutions for developing countries
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | International Relations |
| Body | Role |
|---|---|
| International Financial Institutions | Develops support mechanisms |
Prelims angle
Prelims angle: Factual recall
Prelims angle: Institutional roles and functions
- Aims for balanced, shared, sustainable growth.
- Prioritizes inclusion and well-being over GDP.
- Addresses Global South's burdens from crises.
- Calls for IFI support mechanisms for developing countries.
- India's 'Sabka Sath, Sabka Vikas' guiding international engagements.
| Year | Framing tags |
|---|---|
| 2025 | Factual recall, Institutional roles and functions |
| 2025 | Multi-statement analysis, Institutional roles and functions |
| 2023 | Multi-statement analysis, Factual recall |
| 2022 | Statement-based questions, Conceptual understanding |
| 2017 | Factual recall, Definition-based questions |
| 2016 | Statement-based questions, Factual recall |
| 2016 | Factual recall, Institutional roles and functions |
| 2015 | Factual recall, Institutional roles and functions |
Timeline
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Indian Economy
Conceptual area
-
International Relations
Conceptual area
-
Prelims 2015
Factual recall, Institutional roles and functions
-
Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2016
Factual recall, Institutional roles and functions
-
Prelims 2017
Factual recall, Definition-based questions
-
Prelims 2022
Statement-based questions, Conceptual understanding
-
Prelims 2023
Multi-statement analysis, Factual recall
-
Prelims 2025
Factual recall, Institutional roles and functions
-
Prelims 2025
Multi-statement analysis, Institutional roles and functions
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Prime Minister addresses the session on “Reviving a Balanced, Shared and Sustainable Economic Growth for All” at G7 Summit in Evian, France
Global economic governance aims for a stable and equitable world economy, with a focus on inclusive and sustainable growth. India advocates for the Global South, emphasizing support from International Financial Institutions to build economic resilience and address development disparities.
See also
Past papers
2015–2025 · 6 questions
In the news
Prime Minister addresses the session on “Reviving a Balanced, Shared and Sustainable Economic Growth for All” at G7 Summit in Evian, France
Global economic governance aims for a stable and equitable world economy, with a focus on inclusive and sustainable growth. India advocates for the Global South, emphasizing support from International Financial Institutions to build economic resilience and address development disparities.
Try these PYQs
Which one of the following issues the “Global Economic Prospects” report periodically?
The "Global Economic Prospects" report is issued periodically by the World Bank.
It report that examines global economic developments and prospects, with a special focus on emerging markets and developing economies. It is issued twice a year, in January and June.
Consider the following statements about G-20:
1. The G-20 group was originally established as a platform for the Finance Ministers and Central Bank Governors to discuss the international economic and financial issues.
2. Digital public infrastructure is one of India's G-20 priorities.
Which of the statements given above is/are correct?
* Both statements about the G-20 are correct * Statement 1 is correct: The G-20 originated as a forum for Finance Ministers and Central Bank Governors to address global economic and financial issues. It has since expanded its focus to other areas of international cooperation. * Statement 2 is correct: India, as the chair of the G-20 in 2023, prioritised digital public infrastructure as one of its key areas of focus. This included discussions on promoting responsible use of artificial intelligence, bridging the digital divide, and fostering inclusive growth through digitalization.
With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:
1. IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as an observer in IMFC’s meetings.
Which of the statements given above is/are correct?
Statement 1 is Correct: The International Monetary and Financial Committee (IMFC) serves as a vital forum for discussing global economic issues and providing guidance to the International Monetary Fund (IMF). It brings together finance ministers, central bank governors, and other high-level officials from member countries to discuss challenges and opportunities facing the global economy. They also advise the IMF on its policy direction and work program. Statement 2 is Correct: The World Bank, while a separate institution, collaborates closely with the IMF. While not a formal member of the IMFC, the World Bank typically participates as an observer in IMFC meetings. This allows for better coordination and exchange of information between the two institutions on matters of mutual interest, such as global economic stability and development. Hence, option C is the correct answer.
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
I. It provides loans and guarantees to middle income countries.
II. It works single-handedly to help developing countries to reduce poverty.
III. It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
The International Bank for Reconstruction and Development (IBRD) is a key arm of the World Bank Group, originally created for post-war reconstruction and now focused on development in middle-income nations. ✅ Statement I: Correct The IBRD provides loans and guarantees to middle-income and creditworthy low-income countries. ❌ Statement II: Incorrect The IBRD does not work single-handedly; it collaborates with other arms of the World Bank Group like IDA, IFC, etc. ✅ Statement III: Correct It was established in 1944 to help Europe rebuild after World War II.
Which one of the following launched the 'Nature Solutions Finance Hub for Asia and the Pacific'?
Nature-based solutions involve using natural processes to tackle climate change and biodiversity loss, often needing dedicated financial support. ADB launched the Nature Solutions Finance Hub for Asia and the Pacific to fund nature-based solutions for climate and environmental challenges in the region.
Show 3 more PYQs
With reference to the "G20 Common Framework", consider the following statements:
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct ?
Statement 1 is correct. The G20 Common Framework is an initiative endorsed by the G20 together with the Paris Club. It was created in November 2020 to help Low Income Countries (LICs) facing unsustainable debt burdens. Statement 2 is correct. The G20 Common Framework specifically targets Low Income Countries with unsustainable debt. It provides a mechanism for these countries to restructure their debts in a coordinated manner with participation from various creditors, including official bilateral creditors, private creditors, and multilateral institutions. Hence, both statements about the G20 Common Framework are correct.
‘Global Financial Stability Report’ is prepared by the -
The 'Global Financial Stability Report' is prepared by the International Monetary Fund (IMF). The Global Financial Stability Report is a semiannual report published by the IMF that assesses the stability of the global financial system and emerging market financing. It highlights potential risks and vulnerabilities in the financial system and provides policy recommendations to promote financial stability.
The Global Infrastructure Facility is a/an -
The Global Infrastructure Facility (GIF) is a partnership between governments, multilateral development banks, private sector investors, and financiers. The GIF provides comprehensive project support by utilizing the combined expertise of its technical and advisory partners, including commercial banks and institutional investors. This ensures that well-structured and bankable infrastructure projects are brought to market sustainably, meeting the needs of governments and service users. The GIF partnership is overseen by a Governing Council that supervises strategic programming and funds management, as well as the development of operational policies and procedures. Additionally, the Governing Council holds the GIF's management accountable for delivering on objectives and principles. The Governing Council is composed of representatives of funding and technical partners, as well as representatives of emerging markets and developing economies. It is co-chaired by the World Bank Group and a Funding Partner.