Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD): 

  1. It provides loans and guarantees to middle income countries.   
  2. It works single-handedly to help developing countries to reduce poverty.  
  3. It was established to help Europe rebuild after World War II.    

Which of the statements given above are correct?    

  • I and II only    
  • II and III only    
  • I and III only    
  • I, II and III   

Answer: (c) I and III only 

International Bank for Reconstruction and Development (IBRD)
  • The International Bank for Reconstruction and Development (IBRD) is the world’s largest development bank, operating as the lending arm of the World Bank Group to reduce poverty in middle-income and creditworthy low-income countries.
  • Established in 1944 to rebuild Europe, it now provides loans, risk management, and strategic advisory services to foster sustainable economic growth.
  • Key Features of the IBRD:
    • Ownership: Owned by 189 member countries, which are shareholders.
    • Financing: Funds its lending by issuing bonds in global capital markets rather than relying solely on taxpayer money.
    • Services: Offers financial solutions (loans, guarantees), knowledge, and technical expertise to member nations.
    • Goal: Aims to create a world free of poverty on a livable planet through sustainable development.
    • Headquarters: Located in Washington, D.C., USA. 
  • IBRD works closely with the International Development Association (IDA) to form the World Bank, with IBRD focusing on middle-income nations and IDA providing grants and loans to the lowest-income countries.
  • The IBRD is not the only institution working on poverty reduction. It is one of five institutions that make up the World Bank Group, which includes:
    • IDA (International Development Association) – for the poorest countries
    • IFC (International Finance Corporation) – for private sector development
    • MIGA (Multilateral Investment Guarantee Agency) – for political risk insurance
    • ICSID (International Centre for Settlement of Investment Disputes) – for arbitration
  • Together, these institutions work collaboratively, not “single-handedly,” to reduce poverty and promote development.
International Bank for Reconstruction and Development IBRD