The International Development Association (IDA) is the part of the World Bank that seeks to help the poorest countries of the world. International Development Association was established in the year 1960. It aims to trim down poverty by providing loans & grants for various programs that enhance economic growth, improve living conditions of people and reduce inequalities.
International Development Association complements the original lending arm of the World Bank — the International Bank for Reconstruction & Development (IBRD). International Bank for Reconstruction & Development was recognized to function as a self - sustaining business & provides loans & guidance to credit-worthy and middle-income poor countries. Same staff and headquarters are shared by IBRD & IDA. They assess projects with the same meticulous standards.
What IDA does?
The poorest countries of the world are frequently not capable to draw adequate capital to sustain their vital development needs & therefore rely on official aid flows as a critical source of funding. IDA is a multi-issue institution, sustaining a range of development activities, for instance basic health services, primary education, clean water & sanitation, agriculture, environmental safeguards, business climate improvements, institutional reforms and infrastructure. These projects pave the way toward economic growth, equality, job creation, better living conditions and higher incomes.
For the period July 1, 2014–June 30, 2017 (IDA17), the operations of IDA placed a special prominence on 4 thematic areas: