- It is an international financial institution
- Founded in 1991
- As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.
- Initially focused on the countries of the former Eastern Bloc it expanded to support development in more than 30 countries from central Europe to central Asia.
- Besides Europe, member countries of the EBRD are from five continents (North America, Africa, Asia and Australia), with the biggest shareholder being the United States, so the name is somewhat of a misnomer.
- Headquartered in London, the EBRD is owned by 65 countries and two EU institutions.
- Despite its public sector shareholders, it invests mainly in private enterprises, together with commercial partners.
- Govt has approved India’s membership of EBRD. The shareholders of EBRD have given their nod to India’s candidature to international financial institution.
India has been inducted as 69th member of EBRD.
Significance for India (For Mains):
- The membership of EBRD will enhance India’s international profile and promote its economic interests.
- It will give India access to EBRD’s Countries of Operation and sector knowledge.
- Moreover, it will boost India’s investment opportunities and also improve investment climate in country.
- The membership of EBRD will help to increase scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, energy and Information Technology.
- It will also help India leverage technical assistance and sectorial knowledge of EBRD for benefit of development of private sector.
- The membership of EBRD will also enhance competitive strength of Indian firms and provide enhanced access to international markets in terms of business opportunities, procurement activities, consultancy assignments etc.
- It will open up new vistas for Indian professionals on one hand and give fillip to Indian exports on other.
- It will also have positive impact on employment generating potential due to increased economic activities.
- It will also enable Indian nationals to get employment opportunity in EBRD.