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What is the Full Form of IDA?

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What is the Full Form of IDA?
What is the Full Form of IDA?

The full form of IDA is the International Development Association. It is a division of the World Bank dedicated to assisting the most impoverished nations worldwide. Founded in 1960, the IDA’s primary objective is to alleviate poverty by offering loans (referred to as “credits”) and grants with minimal to no interest rates. 

These financial resources are intended to support initiatives fostering economic development, diminishing disparities, and enhancing the overall quality of life for individuals.

Also Read: What is the Full Form of ALC?

How does the IDA function? 

The governance of the International Development Association (IDA) is carried out by the Board of Governors, consisting of 174 shareholder countries. The day-to-day operations and development work of IDA are managed by operational staff from the World Bank, governments, and implementing agencies.  

Historically, IDA has primarily relied on contributions from its member countries’ governments to secure funding (see IDA contributors). Every three years, donors convene to replenish IDA’s resources and evaluate its policy framework. These meetings involve officials from over 50 donor governments, known as “IDA Deputies,” as well as representatives from borrowing member countries. 

Their collective objective is to ensure that IDA’s policies and financing mechanisms align with the specific needs of each country. In addition, IDA seeks input from civil society organizations (CSOs), foundations, and think tanks worldwide during the formulation of its policy frameworks.

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Origin of IDA

On September 24, 1960, IDA was established with an initial funding of $912.7 million. It garnered support from 15 signatory countries: Australia, Canada, China, Germany, India, Italy, Malaysia, Norway, Pakistan, Sudan, Sweden, Thailand, United Kingdom, United States, and Vietnam. Within just eight months of its launch, IDA expanded its membership to 51 countries and allocated credits amounting to $101 million to four nations: Sudan, Chile, India, and Honduras. 

Notably, Honduras became the first country to receive an IDA credit of $9 million, designated for highway development and maintenance, which included a 62-mile extension of the Western Highway.  

Over time, IDA’s membership has grown significantly to include 174 countries, solidifying its position as the primary provider of concessional lending to 75 of the world’s most impoverished nations. 

To date, 36 countries have successfully transitioned out of IDA’s assistance. Since its inception, the cumulative value of IDA’s credits and grants has reached $496 billion, with an average annual disbursement of $34.7 billion during the most recent three-year period (FY20-FY22).

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