Question

Statement 1: International organisations like the United Nations (UN), International Monetary Fund (IMF), and World Bank were formed to facilitate and preserve democracy around the world.

Statement 2: As of 2015, 10 countries together hold 49% of the voting power in the IMF.

• A. Statement 1 is true, but Statement 2 is false.
• B. Statement 1 is false, but Statement 2 is true.
• C. Both the statements are true.
• D. Both the statements are false.

Answer 1

The correct option is C Both the statements are true.

International organisations like the UN, IMF, and World Bank were formed to facilitate and preserve democracy around the world. However, in practice, they tilt towards richer and powerful nations. For instance, the veto power given to five powerful nations in the UN can block the decision of all other nations. As of 2015, 10 countries together hold 49% of the voting power in the IMF. This leaves the rest of the countries with minimal role in decision making. Establishing democracy at the international level would require major reforms in the working of the IMF, United Nations, and other global bodies.