International Development Association (IDA)

Association internationale de développement (AID)
Asociación Internacional de Fomento (AIF)

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24 Sep 1960, Washington DC (USA), being affiliated to the International Bank for Reconstruction and Development (IBRD) and together with the IBRD comprising World Bank -- Banque mondiale -- Banco Mundial - although this title is sometimes used to refer to the IBRD alone. Commenced operations Nov 1960. Together with IBRD and its other affiliates, International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), comprises The World Bank Group; through the Group is a specialized agency of United Nations (UN), within United Nations System and linked to United Nations Economic and Social Council (ECOSOC). World Bank organizations are part of what are often referred to as Bretton Woods Institutions (BWIs).


Reduce poverty in the poorest countries and promote sustainable economic development, labour-intensive growth and environmental sustainability by providing finance on terms more flexible and bearing less heavily on the balance of payments of recipient countries than those of conventional loans, thereby supplementing the World Bank's activities.

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Of the US$ 8,100 million lent by IDA in fiscal year 2002, regional distribution was as follows: Sub-Saharan Africa - 47%; South Asia - 32%; East Asia and Pacific - 10%; Europe and Central Asia - 8%; Latin America and the Caribbean - 2%; Middle East and North Africa - 1%. For 2002, lending was aimed at the following sectors: Law, justice and public administration - 20%; Energy and mining - 16%; Health and other social services - 13%; Industry and trade - 10%; Transportation - 11%; Finance - 10%; Agriculture, fishing and forestry - 8%; Education - 8%; Water, sanitation and flood protection - 5%; Information and communication - 1%.

'Loans' - Acts as the concessionary loan affiliate of the World Bank, accounting for a quarter of all World Bank lending. Extends credit to the poorest countries, although some recipients are sufficiently creditworthy to borrow from the IBRD as well. Currently a minimum of 45% has been allocated to Sub-Saharan Africa and a maximum of 30% to China and India combined. In the 1960s, IDA financed mainly infrastructure projects; emphasis in the 1970s was more on programmes directly benefiting the poor. Since the 1980s IDA has become more involved in economic policy change and institutional reform, structural adjustment lending now being about one quarter of all lending, although the majority of credits are still extended for specific investments. IDA thus takes an active role in helping governments undertake structural adjustment to protect and expand human development programmes and alleviate short term costs. Adjustment programmes supported by IDA have generally been accompanied by stabilization programmes supported by the IMF, this collaboration being formalized from 1986 in joint Policy Framework Papers.

Credit is extended to help finance development projects and economic restructuring programmes in member countries, especially the poorest countries. Credits have a 10-year grace period and are made for a term of 35 to 40 years. Unlike IBRD loans, no interest is charged; but to meet the administrative costs of IDA, there is a service charge of 0.75% on amounts withdrawn. Credits are made only to governments or to entities with a government guarantee. Repayments are due in foreign exchange. As the largest single source of multilateral concessional funds, IDA also helps coordinate and mobilize aid from other multilateral organizations and donor countries. It assists in determining a country's investment priorities and in rationalizing allocation of external aid, and takes the lead in consultative group discussions between a country and its donors. Enhanced Heavily Indebted Poor Countries Initiative (HIPC Initiative), set up 1996, enhanced initiative launched Oct 1999, aims to reduce to a sustainable level the external debt of the world's poorest, most heavily indebted countries, placing debt relief within an overall framework of poverty reduction. It is open only to countries eligible for highly concessional assistance from IDA and from the IMF's Poverty Reduction and Growth Facility (PRGF). Special Programme of Assistance for African Countries (SPA), launched 1987, helps low-income, debt-distressed Sub-Saharan countries implementing economic reform programmes, ensuring such programmes are adequately financed and providing a framework for coordination of donor efforts. The 'IDA Debt Reduction Facility' helps ease the burden of commercial debt for poorer countries.

'Poverty Reduction' - Sets up social funds and social action programmes in many countries, particularly addressing chronic poverty through immunization and nutrition programmes, funding primary education costs and financing simple income-generating activities. The 'Country Assistance Strategy (CAS)' is a means of ensuring that the goal of poverty reduction is pursued effectively and tailored to specific country conditions. Debt sustainability for heavily indebted poor countries is an increasing problem; specific additional measures for countries facing such problems and a significant burden of multilateral debt are underway. Social measures to protect the poor have become components of many IDA adjustment loans. IDA supports rural development programmes and projects aiming to increase agricultural productivity and ensure adequate food supplies, finances projects giving special attention to improving women's incomes and status in their communities, and supports population, health and nutrition projects. On the environment, borrowers are assisted in developing their own National Environment Action Plans to identify policy changes, investments and institution building required for environmentally sustainable development. As well as building environmental considerations into project design, many IDA and IDA/IBRD projects have helping the environment or forests as their primary objective. Improvements in infrastructure are still a priority, in particular addressing weaknesses in institutions providing essential services, fostering greater autonomy and insulating them from political interference.


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Relations with Inter-Governmental Organizations

Relations with 49 inter-governmental organizations.
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Relations with Non-Governmental Organizations

Relations with 1 non-governmental organizations.
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Members in 162 countries
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Type II Classification

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Subjects *

  • Society
    • Disadvantaged
  • Commerce
    • Credit
  • International Relations
    • United Nations
  • Development
    • Development
    • Sustainable Development

UN Sustainable Development Goals **

GOAL 1: No PovertyGOAL 8: Decent Work and Economic GrowthGOAL 10: Reduced Inequality



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* Subject classification is derived from the organization names and aims.
** UN SDGs are linked to the subject classification.

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