Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
It provides loans and guarantees to middle income countries.
It works single-handedly to help developing countries to reduce poverty.
It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct? (UPSC Prelims 2025)

Question

The correct answer is [C] I and III only. The International Bank for Reconstruction and Development (IBRD) is the founding institution of the World Bank Group, and its mandate has evolved significantly since its inception in 1944.

Loans to Middle-Income Countries (Statement I – Correct): The IBRD is the world\'s largest development bank and primarily serves middle-income countries and creditworthy low-income countries. It provides these nations with commercial-grade or slightly concessional loans, guarantees, and advisory services to support sustainable growth and infrastructure.
Collaboration vs. Single-Handed Work (Statement II – Incorrect): The IBRD does not work \"single-handedly.\" It is one of the five closely associated institutions that make up the World Bank Group. It works in tandem with the International Development Association (IDA) (which focuses on the poorest countries), the International Finance Corporation (IFC) (private sector), and others. Furthermore, it collaborates with the IMF, UN agencies, and various NGOs globally.
Post-WWII Reconstruction (Statement III – Correct): As its name suggests, the IBRD was established during the Bretton Woods Conference (1944) with the original mission of financing the reconstruction of European nations devastated by World War II. Its first-ever loan was to France in 1947. Once Europe recovered (partly aided by the Marshall Plan), the Bank shifted its focus toward global poverty alleviation and economic development.
Today, the IBRD raises most of its funds through international capital markets by leveraging its AAA credit rating, allowing it to borrow at low interest rates and pass those savings onto developing member nations

GKToday Admin · Accepted Answer

I and III only The correct answer is [C] I and III only. The International Bank for Reconstruction and Development (IBRD) is the founding institution of the World Bank Group, and its mandate has evolved significantly since its inception in 1944.

Loans to Middle-Income Countries (Statement I – Correct): The IBRD is the world\'s largest development bank and primarily serves middle-income countries and creditworthy low-income countries. It provides these nations with commercial-grade or slightly concessional loans, guarantees, and advisory services to support sustainable growth and infrastructure.
Collaboration vs. Single-Handed Work (Statement II – Incorrect): The IBRD does not work \"single-handedly.\" It is one of the five closely associated institutions that make up the World Bank Group. It works in tandem with the International Development Association (IDA) (which focuses on the poorest countries), the International Finance Corporation (IFC) (private sector), and others. Furthermore, it collaborates with the IMF, UN agencies, and various NGOs globally.
Post-WWII Reconstruction (Statement III – Correct): As its name suggests, the IBRD was established during the Bretton Woods Conference (1944) with the original mission of financing the reconstruction of European nations devastated by World War II. Its first-ever loan was to France in 1947. Once Europe recovered (partly aided by the Marshall Plan), the Bank shifted its focus toward global poverty alleviation and economic development.
Today, the IBRD raises most of its funds through international capital markets by leveraging its AAA credit rating, allowing it to borrow at low interest rates and pass those savings onto developing member nations

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