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?
(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
Correct Answer : (c) I and III only
UPSC Prelims 2025 GS Paper's Solution
Explanation :
Statement I: “It provides loans and guarantees to middle income countries.”
This statement is correct. The International Bank for Reconstruction and Development (IBRD), a part of the World Bank Group, primarily provides loans and guarantees to middle-income and creditworthy low-income countries.
Statement II: “It works single-handedly to help developing countries to reduce poverty.”
This statement is incorrect. The IBRD does not work single-handedly; rather, it collaborates with other institutions, governments, and international organizations to achieve its goals of poverty reduction and sustainable development.
Statement III: “It was established to help Europe rebuild after the World War II.”
This statement is correct. The IBRD was established in 1944 as part of the Bretton Woods system, initially to help European countries rebuild their economies after the devastation of World War II.
Correct answer is option (c).
