What is IDA?

What is IDA?
The International Development Association (IDA) is one of the largest and most effective platforms for fighting extreme poverty in the world's poorest countries.

• IDA is the part of the World Bank that helps the world's 74 poorest countries and is the single largest source of donor funds for basic social services in these countries.

• IDA aims to reduce poverty by providing grants, zero to low-interest loans, and policy advice for programs that boost economic growth, build resilience, and improve the lives of poor people around the world.

• Over the past 60 years, IDA has provided about $422 billion for investments in 114 countries.

How is IDA funded?
IDA partners and representatives from borrower countries come together every three years to replenish IDA funds and review IDA's policies. The replenishment consists of contributions from IDA donors, contributions from the World Bank, and financing raised from the capital markets.

• Since its founding in 1960, IDA has had 19 regular replenishments. The current cycle, called IDA19, was replenished in December 2019 with $82 billion, of which $23.5 billion came from IDA donors.
• Due to pressures from the COVID-19 crisis, the World Bank frontloaded about half of IDA19 resources in the first fiscal year (July 2020-June 2021) to meet financing needs.

• In February 2021, IDA donor and borrower country representatives agreed to advance IDA20 by one year and shorten the IDA19 cycle to two years. IDA19 will now cover July 2020 - June 2022, while IDA20 will cover July 2022 - June 2025.

Why is an early IDA20 replenishment necessary?
COVID-19 is a deeper, more synchronized, and more widespread shock than any in IDA's history. Financing needs are urgent and will remain elevated in the years ahead, so an early IDA20 replenishment will ensure that short- and long-term development priorities do not suffer.

• IDA countries are moving backwards and fast, erasing decades of hard-won progress-with existing challenges magnified in fragile and conflict-affected contexts.
• Poverty is rising, and the crisis is lowering incomes and worsening inequality. IDA countries have lost a decade of progress on maternal and child mortality. School closures are deepening learning poverty.
• Government revenues are falling; risks to fragility, conflict, and instability are on the rise; and a food crisis is looming in around one-third of IDA countries. Growing debt vulnerabilities are also exacerbating the challenges facing IDA countries.

How is IDA helping countries respond to the COVID-19 pandemic?

IDA is deploying unprecedented support to enable more than 70 countries to focus on pandemic response while setting the stage for an inclusive, sustainable, and resilient recovery.  

• IDA has delivered a swift, targeted, and agile response of unprecedented scale to the global COVID-19 crisis, while accelerating progress on longer-term commitments and supporting strong development results in IDA countries.
• IDA's support for the period between April 2020 and June 2021 is forecast to reach $50-$55 billion on highly concessional or grants terms focused on saving lives, protecting the poor and vulnerable, creating jobs, saving businesses, and building a more resilient recovery. 

• More than half of active IDA countries already receive all, or half, of their IDA resources on grant terms, which carry no repayments at all. Grants are targeted to low-income countries at higher risk of debt distress. 

Does IDA prioritize specific sectors?

IDA is a multi-issue institution and supports a range of development activities that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA's work covers education, health, water and sanitation, agriculture, business climate improvements, infrastructure, inclusion, and institutional reforms, among others.

• IDA19 focuses on five special themes: climate change; fragility, conflict and violence; gender; governance and institutions; and jobs and economic transformation. IDA19 also incorporates four cross-cutting issues: debt, disability, human capital, and technology.

• IDA19 will inform the IDA20 priorities as IDA adjusts support to countries to accelerate recovery and build back better for a greener, more resilient, and inclusive future in the post-COVID context.  

• Through IDA19 implementation and the IDA20 replenishment process, IDA will continue building partnerships for impact towards achieving the World Bank's Twin Goals of ending poverty and boosting shared prosperity, as well as the Sustainable Development Goals. 

What is IDA's impact?

The IDA program has delivered strong progress on its commitments and supported development results where they are most needed.

• During the IDA18 cycle, IDA delivered more than $77 billion, $49 billion to Africa. IDA also committed $23 billion to fragile and conflict-affected situations during the same period (more than double compared to the same period in IDA17).

• During this time, IDA has helped millions of poor people around the world, including 24 million people who now have access to improved sanitation, and more than 31 million people who now have access to improved water sources. IDA has also immunized 105 million children; offered social safety net programs to 59 million people; provided essential health, nutrition, and populations services to more than 281 million people; and recruited or trained 6 million teachers.

What are some recent examples of IDA's work?

Against the unprecedented backdrop of the economic and health crises brought about by COVID-19, IDA responded with speed, scale, and selectivity.

Here are some examples of how IDA is empowering countries towards a resilient recovery:

• In Afghanistan, women are being educated on COVID-19 risks and are taking action to keep their communities safe.

• In Cambodia, IDA built upon years of health investments to quickly disburse funding, allowing the government to procure critical emergency response supplies early on.

• In Chad, IDA worked with partners to invest in health infrastructure and the recruitment of medical staff, while providing cash transfers that enabled refugees to counter economic challenges.

• In Pakistan, the government is using technology to ensure learning for all, with a dedicated TV channel for educational content.

• In the Sahel -where climate change is compounding the impacts of COVID-19-IDA is setting up monitoring initiatives, strengthening existing early warning systems, and providing targeted responses to support the agro-pastoral sectors.

• In West Africa, an Ebola-era disease surveillance project has prepared countries to face yet another health crisis.

• In Yemen, IDA is helping millions access healthcare and strengthen the country's human capital-despite the uncertainties of conflict and fragility.

• And across Bangladesh, Cameroon, Cote d'Ivoire, Liberia, Nigeria, Rwanda, and Uganda, IDA's Private Sector Window is making working capital loans available to the small and medium-sized businesses hardest hit by COVID-19, helping them keep their doors open.

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