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International Bank for Reconstruction and Development (IBRD)

Definition

The IBRD is one of five institutions that make up the World Bank Group. Established in 1944, its primary goal is to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable economic growth.

Analogy

Think of the IBRD as a community center that provides resources and support to families (countries) who are trying to improve their living conditions. They offer tools, advice, and financial aid to help these families build a better future.

Related terms

World Bank: An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Economic Development: The process by which a nation improves the economic, political, and social well-being of its people.

Poverty Reduction Strategy Papers (PRSPs): These are documents required by IMF and World Bank before a country can be considered for debt relief within Heavily Indebted Poor Countries initiative.