Question
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?
AI and II only
BII and III only
CI and III only
DI, II and III
Correct Answer: C
Explanation
The
International Bank for Reconstruction and Development (IBRD) is the
lending arm of the World Bank Group, designed to support development in countries that have some repayment capacity.
Statement I is correct. IBRD primarily provides
loans and guarantees to
middle-income countries and
creditworthy low-income countries for infrastructure, institutional reforms, and development projects.
Statement II is incorrect. IBRD does
not function alone. It is part of the broader
World Bank Group ecosystem, working alongside
IDA (for poorest countries),
IFC (private sector),
MIGA, and
ICSID.
Statement III is correct. It was established in
1944 under the Bretton Woods system with the original purpose of
rebuilding Europe after World War II, later expanding to global development.
Thus,
I and III are correct.