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The International Bank for Reconstruction and Development (IBRD)

The International Bank for Reconstruction and Development (IBRD), otherwise known as the World Bank, was established on the 27th December, 1945 following an agreement reached by 44 nations at Bretton Woods in Washington D.C., U.S.A. The IMF was established to give short term loans to member countries to correct their short term balance of payment problems, but the World Bank was established during the same period to give financial assistance to European Countries to carry out construction and development of their war ravaged economies on long term basis, usually twenty-five years.

Member countries contribute capital to the funding of the bank according to their quota, or level of development. The establishment of this bank was to assist the developing countries in obtaining long term loans to carry out durable long-term programmes such as road construction, building of Kanji Dam, schools, hospitals, etc.