|IDA Established:||January 1960.|
|IDA Headquarters:||Washington, D.C., United States.|
|IDA Members:||173 Members.|
|IDA Objective:||To provide financial support to the poorest countries with low interest rates.|
|Organization Type:||Financial organization.|
IDA stands for the International Development Association. IDA is part of the World Bank that helps the world’s poorest countries by providing zero to low-interest loans called credits and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions. IDA is one of the largest sources of assistance for the world’s 75 poorest countries and is the single largest source of donor funds for basic social services in these countries.
IDA supports a range of development activities that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions.
During the 1940s and 1950s, low-income developing countries began to realize that they could no longer afford to borrow capital and needed more favourable lending terms than those offered by the International Bank for Reconstruction and Development (IBRD) the original lending arm of the World Bank.
In January 1960, fifteen countries signed the agreement to establish the International Development Association (IDA).
IDA is a multi-issue institution, supporting a range of development activities, like primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms. These interventions pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions.
IDA lends money on concessional terms, which means that IDA credits have a zero or very low-interest charge, and repayments are stretched over 30 to 40 years. These grants are targeted to low-income countries at higher risk of debt distress.
The headquarters of IDA is situated in Washington, D.C., United States.
Currently, IDA comprises 173 member countries which pay contributions every three years as replenishments of its capital. The IDA lends to 75 borrowing countries, over half of which are in Africa.
Membership in the IDA is available to only the countries that are members of the World Bank, particularly the IBRD (International Bank for Reconstruction and Development).
The IDA is governed by the World Bank's Board of Governors which meets annually and consists of one governor from each member country. The Board of Governors look after the lending and operations of the Board of Directors. The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group.