Consider the following statements in respect of the IBRD:

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

UPSC Civil Services Examination (Prelims) 2025 – General Studies Paper I

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?

(a) I and II only

(b) II and III only

(c) I and III only

(d) I, II and III

Answer: (c) I and III only

Statement I is correct – IBRD provides loans to middle-income and creditworthy low-income countries.
Statement II is incorrect – It works with other organizations like IDA (International Development Association), not alone.
Statement III is correct – IBRD was established in 1944 (Bretton Woods Conference) primarily to rebuild Europe after WWII.

Establishment: The International Bank for Reconstruction and Development (IBRD) was established in 1944 at the Bretton Woods Conference and became operational in 1946.
Purpose: It was established to help Europe rebuild after the Second World War, and later expanded its role to support development in other regions.
Headquarters: The headquarters of IBRD is located in Washington, D.C., USA.
Membership: Membership of IBRD is open only to countries that are members of the International Monetary Fund (IMF); it currently has 189 member countries.
World Bank Group: IBRD is the largest and oldest institution of the World Bank Group.
Functions: It provides long-term loans, guarantees, and technical assistance for development projects in middle-income and creditworthy low-income countries.
Funding: IBRD primarily raises funds through borrowing from international capital markets by issuing bonds.

Answer: (c) I and III only