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

“The World Bank includes two institutions IBRD and IDA: International Bank for Reconstruction and Development (IBRD) • IBRD was established in 1944 as one of the Bretton Wood Institutions to help Europe rebuild after World War II.• But as Europe rapidly rebuilt its economies, IBRD shifted its focus towards middle income and credit worthy poorer countries to promote sustainable, equitable and job creating growth, reduce poverty and address issues of regional and global importance.• IBRD was established to function as self-sustaining business and provide loans and advice to middle income and creditworthy poor countries. Its resources are used exclusively for the benefit of the members.• IBRD raises most of its funds from the world financial/capital markets.”

“• It lends money to government of middle income countries and creditworthy LICs. ۵• It provides long-term loans in large volumes, with longer maturity and low rate of ۰ interest.• It promotes key policy and institutional reforms such as safety net or anti-corruption a reforms.• It helps preserve borrowers' financial strength (by supporting them during their o. financial crisis).”

“The following is a comparison between the World Bank and IMF: Objective: | Objective: • World Bank:  Reconstruction of war affected countries (achieved) To promote development to raise standard of living in developing countries (& LDC also) To eliminate poverty To promote investment in developing countries by providing finance, technical assistance (related to development programmes, environment and infrastructure) and guarantees; IMF:  To promote international monetary cooperation (facilitate payments transactions) To assist member countries to overcome Balance of Payment problems To ensure exchange rate stability To ensure balanced international trade To minimize restrictions on convertibility of currencies Surveillance (it reviews economic policies of member countries and assess risks especially financial risks) Provides technical assistance like training to officials, related to banking, finance, BoP Policy advice to governments and Central Banks based on analysis of economic trends and cross-country experiences. • World Bank: Source of Funds: Share capital (subscribed by member countries based on share in GDP) Issuance of bonds in international financial markets (main source of funds); IMF: Source of Funds: Quota (subscribed by member countries) (main source of funds) o 25% in Gold or foreign currency o 75% in Domestic currency Borrowings from specific countries • World Bank: Lending Usually long term loans of 25 to 30 years to developing and LDC countries Usually concessional loans without condition Lends for both policy reforms and projects; IMF: Lending Usually conditional short-term loans to all member countries to reform those things which resulted in crisis Usually non concessional loans Lends for only policy reforms and not for specific projects • World Bank: Votes: Votes = Basic votes + 1 vote for each Share (1 share = $ One lakh); IMF: Votes: Votes = Basic votes + 1 vote for each Quota of SDR one lakh • World Bank: Basic votes are equally allotted to all member countries; IMF: Basic votes are equally allotted to all member countries”