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?

1. A. I and II only
2. B. II and III only
3. C. I and III only
4. D. I, II and III

Answer: C

Explanation

Statement I is correct. The International Bank for Reconstruction and Development (IBRD) is a global development cooperative that provides loans, guarantees, risk management products, and advisory services primarily to middle-income and creditworthy low-income countries. Statement II is incorrect. The IBRD is part of the World Bank Group, which comprises several institutions (like IDA, IFC, MIGA, ICSID). It works collaboratively with these institutions and various public and private sector entities to reduce poverty and build shared prosperity, not ‘single-handedly’. Statement III is correct. The IBRD was established in 1944 at the Bretton Woods Conference with the initial mandate to finance the reconstruction of war-torn European economies after World War II. Later, its focus shifted to development in developing countries. Therefore, statements I and III are correct. Understanding international financial institutions and their roles is important for UPSC Economy and International Relations.