Skip to main content
Students in Primary Seven at Zanaki Primary School in Dar es Salaam, Tanzania, during an English language class. Zanaki Primary School is a public primary school started in 1957.

What is IDA?

The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

IDA complements the World Bank’s original lending arm—the International Bank for Reconstruction and Development (IBRD). IDA supports a range of development activities that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA is one of the largest sources of assistance for the world’s 75 poorest countries and is the single largest source of donor funds for basic social services in these countries.

IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 30 to 40 years. More than half of IDA countries receive all, or half, of their IDA resources on grant terms, which carry no repayments at all. These grants are targeted to the low-income countries at higher risk of debt distress.

IDA has historically been funded largely by contributions from the governments of its member countries. Donors meet every three years to replenish IDA resources and review its policy framework. The most recent replenishment of IDA’s resources, the twentieth (IDA20), was finalized in December 2021, resulting in a historic $93 billion financing package for IDA countries for fiscal years 2022-2025.

In addition to concessional loans and grants, IDA provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).

In the fiscal year ending June 30, 2023, IDA commitments totaled $34.2 billion, of which $7.3 billion in grants. Africa region received 75 percent ($25.8 billion) of the total commitments. Since 1960, IDA has provided $533 billion to 115 countries. Annual commitments have increased steadily and averaged about $36 billion over the last three years (FY21-FY23).

Thirty-six countries have graduated, and many have become IDA donors, including China, Chile, India, South Korea, and Turkey.

Last Updated: Sep 12, 2023