UPSC Previous Year Question | Prelims GS | 2025

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 reduce poverty. III. It was established to help Europe rebuild after the World War II. Which of the statements given above are correct?

  1. I and II only
  2. II and III only
  3. I and III only
  4. I, II and III

Answer

Correct Answer

I and III only

Explanation

The IBRD lends primarily to creditworthy middle-income and poorer developing countries (I correct) and was established after World War II (Bretton Woods, 1944) originally to help finance the reconstruction of war-torn Europe (III correct). However, IBRD does not work 'single-handedly'; it works alongside other World Bank Group institutions (like IDA, IFC) and partners to reduce poverty, making II incorrect.

Topics: economy, ibrd, world bank