International Bank for Reconstruction and Development (IBRD)
One of five institutions that make up the World Bank Group, the IBRD is structured something like a cooperative owned and operated for the benefit of its 188 member countries. Founded in 1944, it is the part of the World Bank that works with middle-income and creditworthy poorer countries to promote sustainable, equitable and job-creating growth; to reduce poverty; and to address issues of regional and global concern. IBRD aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services.
IBRD raises most of its funds on the world’s financial markets and has become one of the most established borrowers since issuing its first bond in 1947. Investors see IBRD bonds as a safe and profitable place to put their money and their cash finances projects in middle-income countries. The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients good borrowing terms. IBRD also borrows at attractive rates on the capital markets. IBRD (i) supports long-term human and social development needs that private creditors do not finance; (ii) preserves borrowers’ financial strength by providing support in crisis periods, which is when poor people are most adversely affected; (iii) uses the leverage of financing to pro mote key policy and institutional reforms (such as safety net or anticorruption reforms); (iv) creates a favourable investment climate in order to catalyse the provision of private capital; (v) provides financial support (in the form of grants made available from the IBRD’s net income) in areas that are critical to the well-being of poor people in all countries.
To increase its impact in middle-income countries, IBRD is working closely with the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the International Monetary Fund (IMF) and other multilateral development banks. In the course of its work, IBRD is also striving to capitalize on middle-income countries’ own accumulated knowledge and development experiences and collaborates with foundations, civil society partners and donors in the development community.