Tuesday, August 25, 2015

INTERNATIONAL DEVELOPMENT ASSOCIATION

INTERNATIONAL DEVELOPMENT ASSOCIATION
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 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). IBRD was established to function as a self-sustaining
business and provides loans and advice to middle-income and credit-worthy poor countries.
IBRD and IDA share the same staff and headquarters and evaluate projects with the same
rigorous standards.
IDA is one of the largest sources of assistance for the world’s 81 poorest countries, 39 of
which are in Africa. It is the single largest source of donor funds for basic social services in these
countries. IDA-financed operations deliver positive change for 2.5 billion people, the majority of
whom survive on less than $2 a day.
IDA lends money on concessional terms. This means that IDA charges little or no interest and
repayments are stretched over 25 to 40 years, including a 5- to 10-year grace period. IDA also
provides grants to countries at risk of debt distress.
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).
Since its inception, IDA has supported activities in 108 countries. Annual commitments have
increased steadily and averaged about $15 billion over the last three years, with about 50
percent of that going to Africa. For the fiscal year ending on June 30, 2012, IDA commitments
reached $14.8 billion spread over 160 new operations.
INTERNATIONAL FINANCE CORPORATION
The International Finance Corporation (IFC) is an international financial institution which
offers investment, advisory, and asset management services to encourage private sector
development in developing countries. The IFC is a member of the World Bank Group and is
headquartered in Washington, D.C., United States. It was established in 1956 as the private
sector arm of the World Bank Group to advance economic development by investing in
strictly for-profit and commercial projects which reduce poverty and promote development.
The IFC's stated aim is to create opportunities for people to escape poverty and achieve better
living standards by mobilizing financial resources for private enterprise, promoting accessible
and competitive markets, supporting businesses and other private sector entities, and creating
jobs and delivering necessary services to those who are poverty-stricken or otherwise
vulnerable. Since 2009, the IFC has focused on a set of development goals which its projects are

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