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World Bank (IBRD) – The Builder! 🏗️

Established: 1944 (Bretton Woods Conference). Twin sister of IMF. HQ: Washington D.C.

Official Name: IBRD (International Bank for Reconstruction and Development).

The Analogy:

  • IMF is a Firefighter (Short term crisis).
  • World Bank is an Architect (Long term development).

Objectives 🎯

  1. Reconstruction: Originally created to rebuild Europe after World War II.
  2. Development: Now focuses on poor countries.
  3. Poverty Reduction: The main goal today. "A World Free of Poverty".

Functions 🛠️

  1. Long Term Loans: For building Dams, Roads, Schools, Hospitals.
  2. Low Interest: Much cheaper than commercial banks.
  3. Grants: Free money for very poor countries.
IMF vs World Bank

IMF: "I have no money to pay for imports today!" (BOP Crisis). World Bank: "I need money to build a bridge that will take 5 years." (Development).

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. IBRD stands for:

International Bank for Rural Development
International Bank for Reconstruction and Development
Indian Bank for Reserve Deposit
None

💡 Final Wisdom: "If you see a sign on a highway saying 'Funded by World Bank', remember: That's IBRD money at work!" 🛣️

Next up: World Bank Group - The Family! 👨‍👩‍👧‍👦

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