What is International Development Association ?

The International Development Association (IDA) is an affiliate of the World Bank, established in 1960 to assist the world's poorest nations [c2][t3]. Together with the International Bank for Reconstruction and Development (IBRD), it forms the core of the World Bank [c1][c3]. Known as the 'Soft Lending Arm' of the World Bank, IDA provides concessional finance, including interest-free loans (credits) and grants, to countries that lack the creditworthiness to borrow at market rates [c4][t9]. It is owned by 175 member countries and is funded primarily through contributions from richer member governments and transfers from the IBRD and IFC [c1][t2][t8]. IDA focuses on reducing poverty and boosting economic growth by funding essential services like education, health, and infrastructure in low-income countries [c5][t8].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > International Development Association (IDA) > p. 400
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > International Development Association (IDA) > p. 399
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts > p. 523
4. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > International Development Association (IDA) > p. 524
5. [5] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > International Development Association (IDA) > p. 525
6. [6] https://thedocs.worldbank.org/en/doc/f09629025297c215d7e5b97851f50a7d-0340022025/original/IDA-Information-Statement-FY25.pdf
7. [7] https://ida.worldbank.org/en/about