What is the International Bank for Reconstruction and Development (IBRD)?
Detailed Definition
The International Bank for Reconstruction and Development (IBRD) is a global development cooperative established in 1944 during the Bretton Woods Conference. Its primary aim is to provide financing for post-war reconstruction and development in countries around the world. The IBRD offers loans and loan guarantees to governments for projects or more extensive social purposes to help countries reduce poverty and improve living standards. The funds for these loans are raised through international capital markets, and the IBRD lends on broadly commercial terms.
The IBRD is part of the World Bank Group, which also includes the International Development Association (IDA), the International Finance Corporation (IFC), and other affiliates. The IBRD is owned by the governments of 189 countries (as of 2016), and membership requires being a member of the International Monetary Fund (IMF).
Examples
- Project Financing: IBRD provided loans for infrastructure development projects in Brazil to enhance transportation networks and energy supplies.
- Health Initiatives: The IBRD funded healthcare improvement projects in India to increase access to medical facilities and improve public health.
- Educational Programs: In Kenya, the IBRD supported programs aimed at strengthening the education system and enhancing access to quality education.
Frequently Asked Questions (FAQs)
What is the main purpose of the IBRD?
The IBRD primarily aims to reduce global poverty and improve living standards by providing loans and guarantees for developmental projects and reconstruction efforts in developing countries.
How does the IBRD raise funds?
The IBRD raises funds by issuing bonds in the international capital markets and lending these funds to member countries on commercial terms.
How is the IBRD related to the World Bank Group?
The IBRD is one of five institutions that make up the World Bank Group and works closely with its affiliates, including the International Development Association (IDA) and the International Finance Corporation (IFC).
Who owns the IBRD?
The IBRD is owned by the governments of 189 countries.
Where are the headquarters of the IBRD located?
The IBRD’s headquarters are in Washington, D.C., with additional offices in Paris and Tokyo.
Related Terms with Definitions
- International Development Association (IDA): An affiliate of the World Bank Group that provides interest-free loans and grants to the world’s poorest countries.
- International Finance Corporation (IFC): A member of the World Bank Group focused on private sector development in developing countries by providing investment and advisory services.
- Bretton Woods Conference: A 1944 conference that established the World Bank and the International Monetary Fund (IMF) to promote international economic cooperation post-World War II.
- International Monetary Fund (IMF): An international organization that aims to promote global financial stability, facilitate international trade, and reduce poverty and economic disparity among countries.
Online References
Suggested Books for Further Studies
- The World Bank at Sixty by Devesh Kapur, John Prior Lewis, Richard Charles Webb
- The Fight Against Poverty: Fifty Years of Economic and Social Development at the World Bank - World Bank by World Bank
- Global Development: A Cold War History by Sara Lorenzini
- Multilateral Development Banks: Governance and Finance by Adrian Robert Martin
Accounting Basics: “International Bank for Reconstruction and Development (IBRD)” Fundamentals Quiz
Thank you for exploring our detailed overview of the International Bank for Reconstruction and Development (IBRD). We hope these insights and quiz questions enhance your understanding of international financial institutions and their role in global development.
