International Development Association

Description

The International Development Association (IDA), part of the World Bank, 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 continue IDA’s Twentieth Replenishment (IDA-20).

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.
• IDA-20, the most recent replenishment, resulted in a $93 billion financing package and is the largest ever mobilized over IDA’s 61-year history.
• As of June 2022, IDA commitments totaled $37.7 billion, of which $13.2 billion were grants. 73% of the total commitments went to the Africa region.
• “Since 1960, IDA has provided $496 billion to 114 countries.” Commitments steadily increased and averaged around $34.7 billion over the last three years.
• Every $1 in donor contributions translated to over $3 of financing support during the last replenishment.