International Development Association

DEPARTMENT OF THE TREASURY | TITLE V

FY 2023 Recommendation No Less Than:

$1.77 B

FY 2022 Enacted: $1 B

FY 2023 President's Request: $1.43 B

FY 2023 Recommendation No Less Than:

$1.77 B

FY 2022 Enacted: $1 B

FY 2023 President's Request: $1.43 B

Description

Part of the World Bank, the International Development Association (IDA) is overseen by 173 shareholder nations. It reduces poverty by boosting economic growth, reducing inequalities, and improving people’s living conditions. IDA’s work covers infrastructure, basic health services, clean water and sanitation, climate, agriculture, primary education, and business climate improvements.

Use of Funds

IDA provides loans and grants, and IDA loans have a zero or very low interest charge. Funds will complete the third installment of IDA’s 19th Replenishment (IDA-19) and the first installment of IDA’s 20th Replenishment (IDA-20). The first installment of IDA-20 is being brought forward one year to cover for IDA-19 funds committed earlier than anticipated to help countries address the COVID-19 pandemic.

Justification

IDA supports 500 million people or two-thirds of the global extreme poor, and is the main source of concessional finance for the 74 lowest-income countries.
From 1960 to 2020, IDA provided $458 billion for investments in 114 countries, and 37 borrower countries have graduated to middle-income status, with many becoming donors.
IDA contributed $56 billion to countries’ pandemic response and development goals since the beginning of the pandemic.
In the fiscal year ending June 30, 2021:
- IDA commitments totaled $36 billion, of which one-third was provided on grant terms.
- 51.2 million women and children were provided with basic nutrition services.
- 71.5 million people were connected to new or improved electricity service.
- 974.9 million people received essential health services.
The World Bank Group committed to an average of at least 35% of climate finance between 2021 and 2025, with half of that amount supporting adaptation programs up from a target of 28% in 2020.