The International Development Association (IDA) helps the world’s poorest countries to reduce poverty by providing grants, and zero to low-interest loans to boost economic growth, lessen inequality, and improve living conditions. Here are 10 things you should know:
1. Half a billion people—or two-thirds of the extreme poor—live in the 74 countries that IDA supports. In these countries, IDA is one of the largest sources of development assistance, and the single largest donor fund source for basic social services like education and health.
2. IDA has quickly stepped up to help the poorest countries cope with COVID-19. Since the crisis started, IDA has committed more than $56 billion to save lives, protect jobs, and support inclusive rebuilding.
3. IDA is supporting vaccine roll-out and strengthening health systems to help countries recover from COVID-19 and better prepare for future pandemics. Nearly 70 countries have received IDA financing for vaccines, training health professionals, and hospital equipment.
4. IDA is helping those most affected by climate change. The world’s poorest countries account for less than one-tenth of emissions but are most impacted by climate change and natural disasters. In fiscal year 2021 alone, 60 percent of IDA’s climate financing—went to adaptation and resilience, and IDA helped 62 countries prioritize disaster risk reduction.
5. IDA is responding to the global food crisis by meeting the immediate needs of vulnerable people, while also solving longer-term causes of hunger like climate, conflict, animal diseases and pests, and economic shocks. This includes helping farmers increase crop yields through better weather data and drought-resistant crops.
6. IDA grants and support are helping countries as they face historic levels of public debt. IDA is working to help countries enhance debt transparency, fiscal sustainability, and manage their debt so more money can be spent on longer-term development.
7. IDA supports countries on issues and in areas where others cannot or will not, including in post-conflict and crisis environments. IDA is a steadfast partner, staying in a country after the cameras leave, emphasizing long-term growth and lasting results.
8. IDA’s investments have helped to change the lives of millions of people. In the decade to 2021, almost 1 billion people received essential health services, 400 million children were immunized, and more than 110 million received access to an improved water source.
9. IDA helps countries on a sustainable path toward funding their own development. Since IDA’s inception, 37 IDA countries no longer rely on IDA support, and many have gone on to become IDA donors, including China, Chile, India, South Korea, and Turkey.
10. Every $1 contributed to IDA turns into more than $3 of support to countries. Wealthier country members of IDA contribute funds to support low-income country members to meet their development goals. IDA combines these contributions with funds it raises in the capital markets and loan repayments. This impact is one reason African leaders have called for robust support for IDA, for the good of all.
Last Updated: Dec 08, 2021