The main function of the International Development Association (IDA) is to provide interest-free or low-interest loans and grants to the world’s 74 poorest countries to support economic growth, reduce poverty, and fund projects in health, education, infrastructure, and climate resilience.
How many countries are IDA?
As of 2026, 74 countries are eligible for IDA financing.
Eligibility hinges on gross national income (GNI) per capita, and for 2026 the cut‑off sits at $1,305. That means 39 nations in Sub‑Saharan Africa, 19 in South and East Asia, plus 16 fragile or conflict‑affected states make the list. Every three years, the World Bank revisits the roster during IDA replenishment cycles, tweaking it to mirror income shifts and how countries perform. World Bank
Who is the president of International Development Association?
The President of the International Development Association is Ajay Banga, who has held the role since 2023.
Now, as ex officio President of IDA, Banga also wears the hat of World Bank Group President. He steers IDA’s strategic direction, negotiates financing with donor nations, and coordinates with the IBRD and other World Bank entities. No separate election is required; the World Bank President automatically assumes the IDA presidency. World Bank
What is IBRD and its functions?
The International Bank for Reconstruction and Development (IBRD) is the original lending arm of the World Bank Group, offering loans and guarantees to middle‑income countries.
Established back in 1944, IBRD raises money in global capital markets and then on‑lends it at market‑based rates to fund infrastructure, education, health, and private‑sector projects. Its net income typically subsidizes IDA’s concessional financing for the world’s poorest nations. While IBRD and IDA share the same president and governance structure, they operate under distinct lending criteria and funding sources. Wikipedia
When was IDA established?
IDA was established on September 24, 1960.
It kicked off with an initial fund of $912.7 million contributed by 15 founding member countries. The first IDA credits were disbursed in 1962 to Sudan and Chile. Since then, IDA has undergone regular replenishment every three years to refresh its resources and broaden eligibility. World Bank
What is the meaning of International Development Association?
The International Development Association (IDA) is the World Bank’s concessional financing window that provides grants and low‑interest loans to the poorest countries.
In most cases, IDA targets nations that can’t afford market‑rate borrowing, aiming to promote equitable growth, improve social services, and boost climate resilience. Although it’s legally part of the World Bank Group, IDA maintains its own budget, voting structure, and reporting framework. Its operations are funded primarily by donor country contributions and periodic replenishments. World Bank
What are IDA eligible countries?
In 2026, a country is IDA‑eligible if its GNI per capita is below $1,305.
The eligibility list comprises 74 nations, with the largest concentrations in Sub‑Saharan Africa (39), South and East Asia (19), and fragile or conflict‑affected contexts (16). Countries that surpass the income threshold may “graduate” to IBRD‑only status, though some retain blend eligibility. The World Bank updates the list annually and publishes it on its IDA portal. World Bank
Do I qualify for IDA grant?
Individuals do not qualify for IDA grants; funding is directed to governments and public agencies in eligible countries.
Honestly, you can’t apply directly, but you might benefit indirectly if you live in an IDA‑eligible nation and take part in government‑run projects. IDA resources support nationwide programs such as cash‑transfer schemes, school feeding, rural electrification, and health‑system strengthening. For personal assistance, explore local safety‑net programs or international NGOs operating in your area. World Bank
What are blend countries?
Blend countries are those that are IDA‑eligible but also creditworthy enough to borrow from IBRD at market rates.
Take India, Nigeria, and Pakistan as examples; they split financing between IDA concessional credits and IBRD loans depending on project needs. Blend status lets governments tap a larger overall envelope of funding by accessing both windows. The World Bank determines blend thresholds each year using income data and creditworthiness indicators. World Bank
Who is eligible for IDA?
Only national governments of IDA‑eligible countries can receive IDA financing.
Eligible entities include central ministries, local governments, and public‑sector agencies that implement IDA‑funded projects. NGOs, private firms, and academic institutions may join as contractors or sub‑recipients, but they don’t receive funds directly from IDA. To engage, monitor procurement notices on the World Bank’s project database and partner with the relevant government authority. World Bank
What is the main role of the World Bank?
The main role of the World Bank is to provide financial and technical assistance to developing countries for poverty reduction and sustainable development.
Typically, it pursues this through two complementary institutions: IBRD, which lends to middle‑income nations, and IDA, which offers concessional terms to the poorest. Beyond financing, the World Bank delivers policy advice, capacity‑building, and global knowledge sharing on topics such as infrastructure, education, health, and climate action. Its work aligns with the Sustainable Development Goals and the twin aims of ending extreme poverty and boosting shared prosperity. World Bank
What is difference between World Bank and IMF?
The World Bank focuses on long‑term development projects and poverty reduction, while the IMF oversees global monetary stability and provides short‑term financial assistance to countries facing balance‑of‑payments crises.
Here’s the thing: the World Bank invests in infrastructure, education, health, and agriculture through loans and grants, aiming for structural transformation over years or decades. By contrast, the IMF offers short‑term loans conditioned on policy adjustments to stabilize exchange rates, rebuild reserves, and restore fiscal sustainability. Both institutions sit in Washington, D.C., share membership, yet their mandates, instruments, and timelines differ substantially. IMFWorld Bank
What are the main objectives of World Bank?
The World Bank’s primary objectives are to end extreme poverty and promote shared prosperity in a sustainable manner.
Specifically, it aims to shrink the share of people living on less than $2.15 a day to below 3 % by 2030, while fostering income growth for the bottom 40 % of earners in each country. It pursues these goals by financing projects that improve infrastructure, education, health, and climate resilience, and by offering policy advice that strengthens institutions and governance. Progress is measured through the World Bank’s World Development Indicators and the Sustainable Development Goals framework. World Bank
What is IDA replenishment?
IDA replenishment is the triennial process in which donor countries pledge new contributions to refill IDA’s funding pool.
After the latest round, representatives from member governments meet every three years to negotiate the size of the next funding cycle, set policy priorities, and agree on grant‑ versus loan‑mix ratios. The most recent replenishment, IDA20, wrapped up in December 2022 and secured a record $93 billion for the 2023‑2026 period. These funds enable IDA to keep offering concessional financing to the world’s poorest nations. World Bank
How is IDA funded?
IDA is funded primarily by contributions from donor countries, supplemented by repayments from past loans and occasional transfers from IBRD net income.
Donor contributions are pledged during replenishment rounds and are typically provided as grant‑like contributions that do not require repayment. Loan repayments from borrower countries, though modest due to low or zero interest, recycle back into the pool for new commitments. IBRD may also transfer a portion of its annual net income to IDA to bolster its concessional capacity. World Bank
What is IDA interest?
IDA loans carry either zero interest or a modest service charge, typically ranging from 0% to 1.25% per year.
For the poorest borrowers, IDA offers interest‑free credits with a 0.75%‑1% service charge to cover administrative costs. Blend or gap‑loan instruments may carry slightly higher rates, but still remain far below market levels. These concessional terms are designed to keep debt sustainable while financing essential development projects. World Bank
