While the International Bank for Reconstruction and Development (IBRD) raises most of its funds on the world's financial markets, IDA is funded largely by contributions from the governments of its richer member countries. Additional funds come from IBRD's and International Finance Corporation's (IFC) income and from borrowers' repayments of earlier IDA credits.
Partners meet every three years to replenish IDA funds and review IDA’s policies. The most recent replenishment of IDA’s resources, the ninetieth (IDA19), was finalized in December 2019, resulting in a historic $82 billion financing package for IDA countries for fiscal years 2021-2023, representing a 3%-increase in real terms compared to IDA18.
The funding will allow IDA to reinforce its support to job creation and economic transformation, good governance, and accountable institutions. It will also help countries deal with the challenges posed by climate change, gender inequality, and situations of fragility, conflict, and violence, including in the Sahel, the Lake Chad region, and the Horn of Africa.
Key innovations in the new package include: a stronger presence in Fragile and Conflict-affected States (FCS); a new Sustainable Development Finance Policy (SDFP); a scaled-up Regional Window; and a new early response framework for slower-onset crises under the Crisis Response Window (CRW).