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 eighteenth (IDA18), was finalized in December 2016, resulting in a record replenishment size of Special Drawing Rights (SDR) 53.5 billion ($75 billion) to finance projects over the three-year period from July 1, 2017 to June 30, 2020.
The funding will enable IDA to dramatically scale up development interventions to tackle conflict, fragility and violence, forced displacement, climate change, and gender inequality; and promote governance and institution building, as well as jobs and economic transformation—areas of special focus over the next three years. These efforts are underpinned by an overarching commitment to invest in growth, resilience and opportunity.
To increase openness and help ensure that IDA’s policies are responsive to country needs and circumstances, representatives of borrower countries from each IDA region have been invited to take part in the replenishment negotiations since IDA13. In addition, since IDA13 background policy papers are publicly released, as well as drafts of the replenishment reports before their finalization.