The International Bank for Reconstruction and Development or also known as IBRD for its acronym, is one of the five benches that make up the World Bank. The IBRD is, according to its own creators, the largest development bank in the world. The World Bank is in turn an international organization that acts as a financial assistant in developing countries.
The IBRD or International Bank for Reconstruction and Development acts as a cooperative whose work focuses on development. Representatives of 189 countries participate in the IBRD, of which 25 of them will form the executive direction designated by a vote, in which the value of each vote is represented based on the capital subscribed by each member.
History of the International Bank for Reconstruction and Development
The IBRD was founded in 1944 and began its activities on June 25, 1945. The International Bank for Reconstruction and Development was created with the mission of being an organization capable of providing the necessary financing to carry out the reconstruction of disasters caused in Europe and Japan as a consequence of World War II.
Furthermore, since its inception its secondary objective is to reduce poverty and promote economic growth in the developing countries of Africa, Asia and Latin America. Initially, IBRD focused its efforts on rebuilding the damage caused by the war by financing the construction of roads or power plants.
Subsequently, its work focuses fully on fighting poverty through the finance of various projects, granting loans to governments and public entities. In addition, the IBRD offers technical and financial advice.
The actions of the International Bank for Reconstruction and Development are aimed at countries that, with low or middle income, have sufficient credit capacity.