The International Bank for Reconstruction and Development (IBRD) is better known as World Bank...!
The International Bank for Reconstruction and Development (IBRD) was established in 1944 and its headquartered in Washington, D.C., United States and better known as the World Bank. The IBRD is the first of five member institutions that compose the World Bank Group in the world and offer finance to developing countries. The main reason behind the establishment was to support Europe from the devastation of World War II.
The International Bank for Reconstruction and Development (IBRD) is an international financial institution that provide loans to middle-income developing countries Within a few years with the success of this enterprise led to the bank to turn its attention to the developing countries. It became clear that the poorest developing countries needed moderate terms than those that could be offered by the Bank, so they could afford to borrow the capital they needed to grow during the 1950s. In the early 1950’s, reports from the United Nations and the U.S. government supported the foundation of a program to lend to poor countries on concessional value with the backing of multilateral payers.
The idea behind the building of the International Development Association an institution to offer soft loans to developing countries
under the stewardship of President Eugene Black was floated within the Bank.
The major objectives of IBRD are:
- • Providing loans
- • Guarantees risk management products
- • Advisory services to middle-income
- • Creditworthy low-income countries,
- • Coordinating responses to regional and global challenges.
- • To reduce poverty and build shared prosperity
Although the IBRD is owned and managed by its member states but has its own executive leadership and staff which deal its normal business operations. The member of banks governments are shareholders which contribute paid in capital and have the right to vote on its matters.
The IBRD acquires most of its capital by borrowing on international capital markets through bond issues which is in addition to contributions from its member nations.
Thanks for reading!!!