Official Question UPSC 2025
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?
Solution & Analysis
Answer: C
The International Bank for Reconstruction and Development (IBRD) is the founding institution of the World Bank Group, created during the 1944 Bretton Woods Conference.
•Statement I is Correct: The specific modern mandate of the IBRD is to provide loans, guarantees, and risk management products solely to middle-income and creditworthy low-income countries. (The absolute poorest countries are handled by the IDA).
•Statement II is Incorrect: The IBRD does not operate 'single-handedly'. It is deeply integrated into the World Bank Group, working in tandem with its sister organizations like the International Development Association (IDA) and the International Finance Corporation (IFC) to achieve poverty reduction.
•Statement III is Correct: Historically, its original and primary objective in 1944 was to finance the massive post-war reconstruction of a devastated Europe after World War II, before shifting its focus to global development.