International Bank for Reconstruction and Development (IBRD)

Definition

The International Bank for Reconstruction and Development (IBRD) is an international financial institution that provides loans and financial assistance to developing countries for development projects aimed at reducing poverty and promoting sustainable economic growth. Established in 1944, the IBRD is part of the World Bank Group and plays a critical role in financing infrastructure projects, social programs, and policy reforms in countries around the globe.

5 Must Know Facts For Your Next Test

1. The IBRD primarily lends to middle-income and creditworthy low-income countries, making it a vital source of funding for a range of development projects.
2. Loans from the IBRD are typically long-term and low-interest, enabling countries to invest in essential infrastructure such as roads, schools, and hospitals.
3. The IBRD also provides technical expertise and policy advice to help countries effectively implement projects and manage their economies.
4. Funding from the IBRD helps countries achieve specific development goals, including improving health care, education, and environmental sustainability.
5. As part of the World Bank Group, the IBRD works in conjunction with other institutions to coordinate efforts in addressing global poverty and promoting development.

Review Questions

• How does the IBRD contribute to poverty alleviation in developing countries through its financial support?
  • The IBRD contributes to poverty alleviation by providing loans and financial assistance specifically designed for development projects that target essential areas such as infrastructure, health care, and education. By offering low-interest loans over long terms, the IBRD enables countries to invest in crucial projects that improve living conditions and stimulate economic growth. This support not only addresses immediate needs but also lays the groundwork for sustainable development and poverty reduction in the long run.
• Discuss the role of technical assistance provided by the IBRD in ensuring the success of its funded projects.
  • Technical assistance from the IBRD plays a significant role in ensuring that funded projects are effectively planned and executed. By offering expertise in areas such as project management, policy formulation, and financial oversight, the IBRD helps countries navigate complex challenges associated with development initiatives. This support increases the likelihood that projects will achieve their intended outcomes, thus maximizing the impact of investment on poverty reduction.
• Evaluate the impact of IBRD funding on achieving sustainable development goals in developing nations.
  • IBRD funding has a profound impact on achieving sustainable development goals (SDGs) by directly supporting projects that address key issues such as poverty reduction, education access, health improvements, and environmental sustainability. By aligning its financial resources with SDGs, the IBRD not only helps countries meet immediate developmental needs but also fosters long-term resilience against economic shocks. This comprehensive approach ensures that development efforts contribute to both current challenges and future sustainability, making IBRD an essential player in global poverty alleviation initiatives.

Related terms

World Bank Group: A group of five international organizations that provide financial and technical assistance to developing countries, aimed at reducing poverty and supporting development.

Development Aid: Financial assistance provided by governments and international organizations to support the economic development of developing countries.

Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, often focused on environmental, social, and economic factors.