UPSC Prelims 2025 PYQ on International Bank for Reconstruction and Development (IBRD)
Q. 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?
✅ Correct Answer: (c) I and III only
Explanation:
Statement I: Correct. The IBRD primarily provides loans, guarantees, and financial services to middle-income and creditworthy low-income countries to support development and infrastructure projects.
Statement II: Incorrect. The IBRD is part of the World Bank Group, which includes IDA, IFC, MIGA, and ICSID. It does not work “single-handedly” to reduce poverty; efforts are collaborative.
Statement III: Correct. Established in 1944 at the Bretton Woods Conference, the IBRD initially aimed to help Europe rebuild after WWII before expanding its focus to global development.
