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International Bank for Reconstruction and Development

 
International Bank for Reconstruction and Development

 
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International Bank for Reconstruction and Development
 
 
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The International Bank for Reconstruction and Development (IBRD) is one of five institutions that comprise the World Bank Group
World Bank Group

The World Bank Group is a family of five international organizations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty....
. The IBRD is an international organization
International organization

An intergovernmental organization is an organization comprised primarily of Sovereignty State , or of other intergovernmental organization. Intergovernmental organizations are often called International_organization, although that term may also include international nongovernmental organization such as international non-profit organizations...
 whose original mission was to finance the reconstruction of nations devastated by World War II
World War II

World War II, or the Second World War , was a global military conflict which involved a Participants in World War II, including all of the great powers, organised into two opposing military alliances: the Allies of World War II and the Axis powers....
. Now, its mission has expanded to fight poverty
Poverty

Poverty is the shortage of common things such as food, clothing, shelter and safe drinking water, all of which determine our quality of life. It may also include the lack of access to opportunities such as education and employment which aid the escape from poverty and/or allow one to enjoy the respect of fellow citizens....
 by means of financing state
State

A state is a political Social contract with effective sovereignty over a geographic area and representing a population. These may be nation states, State or multinational states....
s. Its operation is maintained through payments as regulated by member states. It came into existence on December 27, 1945 following international ratification of the agreements reached at the United Nations Monetary and Financial Conference
United Nations Monetary and Financial Conference

The United Nations Monetary and Financial Conference, commonly known as Bretton Woods conference, was a gathering of 730 delegates from all 44 Allies of World War II at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire to regulate the international monetary and financial order after the conclusion of World War II....
 of July 1 to July 22, 1944 in Bretton Woods, New Hampshire
Bretton Woods, New Hampshire

Bretton Woods is an area within the town of Carroll, New Hampshire, New Hampshire, USA, whose principal points of interest are three leisure and recreation facilities....
.

The IBRD provides loans to governments, and public enterprises, always with a government (or "sovereign") guarantee of repayment subject to .






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The International Bank for Reconstruction and Development (IBRD) is one of five institutions that comprise the World Bank Group
World Bank Group

The World Bank Group is a family of five international organizations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty....
. The IBRD is an international organization
International organization

An intergovernmental organization is an organization comprised primarily of Sovereignty State , or of other intergovernmental organization. Intergovernmental organizations are often called International_organization, although that term may also include international nongovernmental organization such as international non-profit organizations...
 whose original mission was to finance the reconstruction of nations devastated by World War II
World War II

World War II, or the Second World War , was a global military conflict which involved a Participants in World War II, including all of the great powers, organised into two opposing military alliances: the Allies of World War II and the Axis powers....
. Now, its mission has expanded to fight poverty
Poverty

Poverty is the shortage of common things such as food, clothing, shelter and safe drinking water, all of which determine our quality of life. It may also include the lack of access to opportunities such as education and employment which aid the escape from poverty and/or allow one to enjoy the respect of fellow citizens....
 by means of financing state
State

A state is a political Social contract with effective sovereignty over a geographic area and representing a population. These may be nation states, State or multinational states....
s. Its operation is maintained through payments as regulated by member states. It came into existence on December 27, 1945 following international ratification of the agreements reached at the United Nations Monetary and Financial Conference
United Nations Monetary and Financial Conference

The United Nations Monetary and Financial Conference, commonly known as Bretton Woods conference, was a gathering of 730 delegates from all 44 Allies of World War II at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire to regulate the international monetary and financial order after the conclusion of World War II....
 of July 1 to July 22, 1944 in Bretton Woods, New Hampshire
Bretton Woods, New Hampshire

Bretton Woods is an area within the town of Carroll, New Hampshire, New Hampshire, USA, whose principal points of interest are three leisure and recreation facilities....
.

The IBRD provides loans to governments, and public enterprises, always with a government (or "sovereign") guarantee of repayment subject to . The funds for this lending come primarily from the issuing of World Bank bond
Bond (finance)

In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
s on the global capital market
Capital market

The capital market is the market for security , where Corporation and governments can raise longterm funds. It is a market in which money is lent for periods longer than a year....
s—typically $12–15 billion per year. These bonds are rated AAA (the highest possible) because they are backed by member states' share capital, as well as by borrowers' sovereign guarantees. (In addition, loans that are repaid are recycled, or relent.) Because of the IBRD's credit rating, it is able to borrow at relatively low interest rates. As most developing countries have considerably lower credit ratings, the IBRD can lend to countries at interest rates that are usually quite attractive to them, even after adding a small margin (about 1%) to cover administrative overheads.

History

Commencing operations on June 25, 1946, it approved its first loan on May 9, 1947 ($250m to France
France

France , officially the French Republic , is a country whose Metropolitan France is located in Western Europe and that also comprises various Overseas departments and territories of France....
 for postwar reconstruction, in real terms the largest loan issued by the Bank to date).

The IBRD was established mainly as a vehicle for reconstruction of Europe and Japan after World War II, with an additional mandate to foster economic growth in developing countries in Africa, Asia and Latin America. Originally the bank focused mainly on large-scale infrastructure projects, building highway
Highway

A highway is a main road intended for travel by the public between important destinations, such as city and towns. Highway designs vary widely and can range from a two-lane road without margins to a multi-lane, grade separated freeway....
s, airport
Airport

An airport is a location where aircraft such as Fixed-wing aircraft, helicopters, and Non-rigid airship take off and land. Aircraft may also be stored or maintained at an airport....
s, and powerplant
Powerplant

Powerplant can refer to:*An engine and related systems that propels a vehicle, such as an automobile, aircraft, watercraft, or rocket, often referred to as simply engine...
s. As Japan and its European client countries "graduated" (achieved certain levels of income per capita), the IBRD became focused entirely on developing countries. Since the early 1990s the IBRD has also provided financing to the post-Socialist states of Eastern Europe
Eastern Europe

Eastern Europe is a term that applies to the geopolitical region encompassing the easternmost part of the Europe. Throughout history and to a lesser extent today, parts of Eastern Europe has been distinguishable from Western Europe and other regions due to cultural, religious, economic, and historical reasons, even though there i...
 and the republics of the former Soviet Union
Soviet Union

The Union of Soviet Socialist Republics was a Constitution of the Soviet Union socialist state that existed in Eurasia from 1922 to 1991.The name is a translation of the , romanization of Russian Soyuz Sovetskikh Sotsialisticheskikh Respublik, abbreviated ????, SSSR....
. the ibrd is one of the femus bank

See also

  • World Bank Group
    World Bank Group

    The World Bank Group is a family of five international organizations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty....
  • Bretton Woods system
    Bretton Woods system

    The Bretton Woods system of money management established the rules for commerce and finance relations among the world's major developed country in the mid 20th century....


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