MCQ Detailed View

The World Bank was established in 1944 during the Bretton Woods Conference, alongside the International Monetary Fund (IMF). Its main purpose was to help rebuild and develop economies, especially in countries affected by World War II. The Bank began its operations in 1946, focusing on funding reconstruction projects and later expanding to support development projects worldwide.

The very first loan issued by the World Bank was granted to France on May 9, 1947. This loan was worth $250 million (USD) and was intended to help France recover from the severe damages caused by World War II. The country needed funds to rebuild infrastructure, revive industry, and stabilize its economy. At that time, much of France’s economy and cities were devastated by the war, making financial assistance vital for its recovery.

The loan came with conditions to ensure that the money was spent effectively. The World Bank monitored the use of funds to make sure they were directed toward rebuilding transportation systems, repairing factories, and restoring essential services. This marked the beginning of the World Bank’s role as a major global financial institution aimed at fostering economic growth and stability.

Since then, the World Bank has provided loans, grants, and technical assistance to many countries around the world. While its early focus was on post-war reconstruction in Europe, it later shifted to development projects in Asia, Africa, and Latin America.

France’s early engagement with the World Bank remains a significant historical moment because it set the precedent for future global financial cooperation.

Key Points:

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  First Loan Date: May 9, 1947

  
  


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  Recipient Country: France

  
  


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  Loan Amount: $250 million (USD)

  
  


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  Purpose: Post–World War II reconstruction

  
  


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  World Bank Founded: 1944, operations began 1946

  
  


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  Historical Significance: First example of international financial assistance for recovery