What is ida
World Bank group ida The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans 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 74 poorest countries and is the single largest source of donor funds for basic social services in these countries.
IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 30 to 38 years, including a 5- to 10-year grace period. IDA also provides grants to countries at risk of debt distress.
How ida Works
IDA is overseen by its 173 shareholder countries, which comprise the Board of Governors.IDA has historically been funded largely by contributions from the governments of its member countries.
Donor meet every year to review and check the Policy of ida .The loan re-payment process typically consists of four formal meetings held over the course of one year. more than 50 member of donor representative invited to participate in meeting to help ensure that IDA’s policy and financing frameworks are responsive to country needs. topic are of meeting replenishment negotiations,draft replenishment agreement
To be eligible for funds, countries must first meet the following criteria:
- Relative poverty defined as GNI per capita must be below an established threshold (updated annually). In fiscal year 2021, this was $1,185.
- Lack of creditworthiness to borrow on market terms and therefore have a need for concessional resources to finance the country’s development program.
Countries are then assessed to determine how well they implement policies that promote economic growth and poverty reduction. This is done through the Country Policy and Institutional Assessment. This assessment and portfolio performance together constitute the IDA Country Performance Rating. In addition to the rating, population and per capita income also determine IDA allocations.
Work of ida
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 provides an efficient channel for directing development assistance to the poorest countries
Borrower of World Bank ida
Future Plan of ida
Annual commitments have increased steadily and averaged about $25 billion over the last three years (FY18-FY20). Ida Plan to Achieve $40 biilion investment in 2030 .and to enhance living condition in poor country and provide more loan to developing country for financial help. and provide infrastructure such as electricity, education system, health .