IDA is a multi-issue institution, supporting a range of development activities, like primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms. These interventions pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions.
IDA focuses on providing development financing and cross-sector support that responds to complex global challenges and helps countries improve their development outcomes, making it a valued partner in the global community. It provides a substantial and stable source of funding that IDA countries can rely on to fund their development priorities. Part of the funding comes from contributing partners as IDA provides an efficient channel for directing development assistance to the poorest countries.
IDA is also a key partner during crises and emergencies through tools like its Crisis Response Window (CRW). The CRW supported countries undergoing severe crises, such as the famine in East Africa and Yemen, support after earthquakes such as Haiti in 2010 and Nepal in 2015, and West African countries affected by the Ebola outbreak. Since its introduction in IDA16, the CRW has provided $3 billion to respond to crises and emergencies in 26 IDA countries across five regions.
IDA’s operational work is complemented by analytical studies that support the design of policies to reduce poverty. IDA advises governments on ways to broaden the base of economic growth and protect the poor from economic shocks.
IDA also helps countries manage their debt and has over the years coordinated debt relief for poor countries. Through a new debt policy called Sustainable Development Finance Policy, IDA is helping countries strengthen debt transparency, debt management, and fiscal sustainability.
All the work that IDA does is packaged in three-year policy frameworks called replenishments. 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. The financing package is the largest ever mobilized in IDA’s 61-year history.
The overarching theme for IDA20 is Building Back Better from the Crisis: Towards a Green, Resilient and Inclusive Future. With the aim of balancing continuity with innovation, IDA20 will maintain the four IDA19 special themes of Climate Change; Fragility, Conflict and Violence; Gender; and Jobs and Economic Transformation; and elevate Human Capital as the fifth special theme.
IDA20 will also deepen recovery efforts by focusing on four cross-cutting issues: Debt Sustainability and Transparency; Governance and Institutions; Technology; and introduce Crisis Preparedness as a new cross-cutting issue. The first three are also cross-cutting issues in IDA19. Disability which is a cross-cutting issue in IDA19 will be covered under the Human Capital theme in IDA20.