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International Development Association
This publication is a product
of the Development Finance
Vice Presidency of the World Bank Group
1818 H Street, N.W.
Washington, D.C. 20433
IDA.worldbank.org
Facebook.com/IDA.WBG
YouTube.com/WorldBank
Twitter.com/WBG_Fin4Dev
October 2018
Photography:
Cover, Sarah Farhat/World Bank— Dijé Issa benefited from a direct cash transfer program that helped her taking care of her
new born daughter, Cote d’Ivoire.
p.4, Graham Crouch/World Bank—Sughira, 16 years old, works at weaving silk on a loom at the historic Herat Citadel,
Afghanistan.
pp.6-7, Arne Hoel/World Bank—Food Lover’s Market at the newly opened East Park Mall in Lusaka, Zambia. The store, modeled
after the Whole Foods store chain the U.S., has 150 employees.
p.8, Khasar Sandag/World Bank—With World Bank support, rural primary schools in Mongolia give students books to take
home and read with their friends and families.
p.10, Dominic Chavez/World Bank—Karamba Banjoura, a member of UNICEF, talks about Ebola safety and prevention, in
Conakry, Guinea.
IDA • The World Bank’s Fund for the Poorest • 2
WHO WE ARE
The International Development Association (IDA) is the By the Numbers
Key IDA achievements from FY2011-2018
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. 8.5 MILLION
Teachers were recruited
and/or trained
IDA complements the World percent in the form of grants. Other
Bank’s original lending arm—the recipients receive IDA credits on
International Bank for Reconstruction regular or blend terms with 38-year
and Development (IBRD). IBRD was and 30-year maturities respectively.
established to function as a self-
sustaining business, and provides In addition to concessional loans
and grants, IDA provides significant
274
loans and advice to middle-income
and credit-worthy countries. IBRD levels of debt relief through the
and IDA share the same staff and Heavily Indebted Poor Countries
headquarters and evaluate projects (HIPC) Initiative and the Multilateral MILLION
with the same rigorous standards. Debt Relief Initiative (MDRI).
Children were immunized
IDA is one of the largest sources of In the fiscal year ending June 30,
assistance for the world’s 75 poorest 2018, IDA commitments totaled
countries, 39 of which are in Africa, $24 billion, of which 21 percent
and is the single largest source of was provided on grant terms. New
donor funds for basic social services commitments in fiscal year 2018
in these countries. comprised 206 new operations.
Since 1960, IDA has provided
657
IDA lends money on concessional $369 billion for investments in 113
terms. This means that IDA credits countries. Annual commitments have
have a zero or very low interest
charge. Recipients with a high risk of
increased steadily and averaged
about $20 billion over the last three
MILLION
debt distress receive 100 percent of years. People received essential health
their financial assistance in the form services
of grants and those with a medium
risk of debt distress receive 50
IDA • The World Bank’s Fund for the Poorest • 3
By the Numbers Key IDA achievements 44 MILLION People connected to new or improved electricity service (FY2015–2018) 86 MILLION People received access to better water services (FY2011–2018) IDA • The World Bank’s Fund for the Poorest • 4
WHAT WE DO
The world’s poorest countries are often unable to attract sufficient capital to support
their urgent development needs and therefore rely on support from multilateral
institutions and donor governments as a critical source of funding.
IDA is a multi-issue institution, For contributing partners, IDA debt-service burden, and has a
supporting a range of development provides an efficient channel for system for allocating grants based
activities, such as primary education, directing development assistance on countries’ risk of debt distress,
basic health services, clean water to the poorest countries. Because designed to help countries ensure
and sanitation, agriculture, business contributions to IDA are pooled debt sustainability.
climate improvements, infrastructure, together with repayments from
and institutional reforms. These former and current IDA recipients, IDA places a premium on
interventions pave the way toward IDA provides a substantial and development impact and is regarded
equality, economic growth, job stable source of funding that IDA as a transparent, cost-effective
creation, higher incomes, and countries can rely on to fund their platform for achieving results. (Read
better living conditions. For the development priorities. about results measurement below.)
period July 1, 2017–June 30, 2020 For example, from fiscal years 2011-
(IDA18), IDA operations are placing IDA is also a key partner during 18, IDA financing immunized 274
a special emphasis on five thematic crises and emergencies through million children; provided access to
areas: climate change, gender tools like its Crisis Response better water services for 86 million
and development, fragility, conflict Window (CRW). The CRW people; and recruited and/or trained
and violence, jobs and economic supported countries undergoing 8.5 million teachers.
transformation, and governance and severe crises, such as the famine in
East Africa and Yemen, Haiti in the Visit us online to learn more about
institutions.
aftermath of the 2010 earthquake, what we do and see what donors
IDA18 financing is expected to West African countries affected and others say about us at
provide, among other things, by the Ebola outbreak, and Nepal ida.worldbank.org, www.facebook.
essential health and nutrition after the 2015 earthquake. Since com/ida.wbg, www.twitter.com/
services for up to 400 million people, its introduction in IDA16, the CRW WBG_Fin4Dev and www.youtube.
immunizations for 130-180 million has provided $3 billion to respond com/worldbank.
children, and safe childbirth for up to crises and emergencies in 26 IDA
to 20 million women through the
provision of skilled health personnel.
countries across five regions. CRW
funds were provided in addition to
From 1960-2018,
Some 45 million people will benefit
from access to clean water and
the countries’ regular IDA allocation.
IDA provided
IDA’s operational work is
more than 300 million children are
expected to benefit from the training complemented by analytical studies $369 billion for
that support the design of policies
of 9-10 million teachers.
to reduce poverty. IDA advises investments in
Many of the issues developing governments on ways to broaden the
countries face do not respect base of economic growth and protect 113 countries.
borders. By helping address these the poor from economic shocks.
problems, IDA supports security,
IDA also coordinates donor
#EndPoverty
environmental and health concerns,
and works to prevent these threats assistance to provide relief for poor
countries that cannot manage their
#IDAWorks
from becoming global issues.
IDA • The World Bank’s Fund for the Poorest • 5
HOW DOES IDA WORK?
IDA is overseen by its 173 held over the course of one year. of $75 billion to finance projects
In addition to officials from the now over the three-year period ending
shareholder countries, 50+ donor governments (known as June 30, 2020. IDA18 introduced the
“IDA Deputies”), representatives of most radical transformation of IDA’s
which comprise the Board borrowing member countries are financial model since its inception
of Governors. The day- invited to participate to help ensure in 1960. For the first time, IDA will
that IDA’s policy and financing leverage its equity by blending
to-day development frameworks are responsive to donor contributions with IDA’s own
work of IDA is managed country needs. Policy papers resources and funds raised through
discussed during the replenishment debt markets.
by Bank operational negotiations are disclosed to the
staff, governments, and public, and the draft replenishment
implementing agencies.
agreement is posted on the web
for public comment prior to the last
IDA doubled its
replenishment meeting. IDA staff
also engages with civil society funding for fragile
IDA has historically been funded
organizations (CSOs), foundations
largely by contributions from the
governments of its member countries
and think tanks around the world on and conflict-affected
an ongoing basis.
(see box on IDA contributors).
Donors meet every three years
countries in IDA18.
The most recent replenishment
to replenish IDA resources and
review its policy framework. The
of IDA’s resources—the 18th #Fragility
replenishment (IDA18)—was
replenishment process typically
consists of four formal meetings
finalized in December 2016,
resulting in a record replenishment
#PostConflict
IDA • The World Bank’s Fund for the Poorest • 6The financing package offers • Relative poverty defined as GNI This assessment and portfolio
exceptional value for money—with per capita must be below an performance together constitute the
every $1 in partner contributions established threshold (updated IDA Country Performance Rating. In
generating about $3 in spending annually). In fiscal year 2018, this addition to the rating, population and
authority—and is one of the was $1,165. per capita income also determine
most concrete and significant IDA allocations. These ratings
commitments to date to scale up • Lack creditworthiness to borrow are disclosed on IDA’s website:
financing to achieve the Sustainable on market terms and therefore http://ida.worldbank.org/financing/
Development Goals. have a need for concessional resource-management.
resources to finance the
How IDA funds are allocated. country’s development program. Lending terms. IDA offers a range
IDA borrowers have very significant of financing products—from grants to
needs for concessional funds. But Countries are then assessed to loans on IBRD terms—that take into
the amount of funds available, determine how well they implement account the variations in economic
which is fixed once contributions are policies that promote economic and social development of IDA
pledged by donor governments, is growth and poverty reduction. countries. The latest lending terms
below what countries need. This is done through the Country can be found at http://ida.worldbank.
Policy and Institutional Assessment. org/financing/ida-lending-terms.
IDA must therefore make decisions
about how to allocate scarce
resources among eligible countries.
(See box on borrowers.) Allocation
IDA placed in the highest category in
decisions are based on several
criteria, including countries’ income
the Aid Transparency Index every year
levels and performance record in
managing their economies and
since the index was first published in
ongoing IDA projects.
2010. #OpenDev #AidEffectiveness
To be eligible for funds, countries
must first meet the following criteria:
IDA • The World Bank’s Fund for the Poorest • 7IDA Borrowers
Seventy-five countries are creditworthiness needed to
currently eligible to receive borrow from IBRD.
IDA resources. Eligibility for
IDA support depends first Some countries, such as
and foremost on a country’s Nigeria and Pakistan, are IDA-
relative poverty, defined eligible based on per capita
as gross national income income levels, but are also
(GNI) per capita below an creditworthy for some IBRD
established threshold. borrowing. They are referred
to as “blend” countries.
IDA also supports a number
of countries, including several See the list of IDA borrowers
small island economies, at http://ida.worldbank.org/
which are above the about/borrowing-countries.
operational cutoff but lack the
IDA Contributors
Despite difficult circumstances and from former IDA
in many countries, the borrowing countries provided
global community agreed in a welcome addition to the
December 2016 to accelerate overall financing pool. These
the fight to end extreme contributions underscore
poverty through a record the increasing role emerging
financing commitment. This is economies are playing in
testament to our development the development of poorer
partners’ belief that an countries.
investment in the future of
the poorest countries is an As in past replenishments, the
investment in the future of all World Bank Group contributed
countries. its own resources to IDA,
with IBRD and IFC providing
The record outcome reflects more than $600 million. The
the substantial joint efforts replenishment also included
of more than 50 traditional, contributions by IDA client
emerging, and new partners countries and graduates
to stretch their contributions through credit reflows,
(as of March 2017), as well hardening of terms, and credit
as the endorsement of IDA’s repayment accelerations.
new hybrid financial model.
G7 countries accounted for See the list of IDA contributors
69 percent of grant equivalent at http://ida.worldbank.org/
contributions. Contributions about/contributor-countries.
from first-time contributors
IDA • The World Bank’s Fund for the Poorest • 8HOW DO WE KNOW By the Numbers
Key IDA achievements from FY2011-2018
IDA WORKS?
86
Since 2002, IDA has been The other two capture elements
measuring its role in helping of performance against agreed
countries grow and reduce poverty
and informing donors about the
performance standards. The
four tiers are: (1) IDA Countries’
MILLION
effectiveness of their contributions. Progress; (2) IDA-Supported People received access to an
The Results Measurement System Development Results; (3) IDA improved water source
(RMS) uses an integrated results Operational Effectiveness; and (4)
and performance framework to IDA Organizational Effectiveness.
show aggregated results across IDA
countries. It also shows whether The RMS supplements the more-
IDA is managing its operations and detailed project, country, and sector
services effectively and is functioning results data previously available and
657
efficiently. complements qualitative overviews
conducted at the country, sector,
The RMS framework groups thematic, and project levels.
indicators into four tiers. The first MILLION
two tiers track aggregate country
development results and IDA’s
People received access to essential
contribution to these results. health services
THE PATH AHEAD FOR IDA
Today’s fiscal environment more public and private sector A new IDA18 IFC-MIGA Private
presents challenges for all those capital in support of the SDGs. Sector Window will leverage $2.5
involved in development—from billion of IDA’s capital to mobilize at
borrowing countries to donors to As part of our efforts to stretch least $6-8 billion in additional private
CSOs. While the new Sustainable WBG resources to meet the needs sector investments in the poorest
Development Goals present a critical of developing countries, IDA has and most fragile markets over the
opportunity to end extreme poverty, adopted a new hybrid financial next three years. The “window”
the scope and complexity of the model. For the first time, IDA will will de-risk investments typically
challenge bring to light the depth of leverage its equity by blending donor considered too risky, but with a
commitment and financing needed to contributions with internal resources potentially strong development
meet the goals. And while a number and funds raised through debt impact.
of countries are expected to exceed markets. The financing package will
IDA’s per capita income threshold help the world’s poorest countries These innovations reflect IDA’s
in the next decade, it is also clear grow, create opportunities for people, efforts to evolve in the face of
that these countries will continue to and make themselves more resilient the ever-changing development
be home to millions of poor people to shocks and crises. finance landscape. We are
who will still need extensive support, continuously engaged with donor
Underpinned by strong donor and borrower countries in exploring
particularly during the transition
support, the new financing model is ways to address issues such
period from concessional to harder
allowing IDA to increase financing as IDA’s financial sustainability,
lending terms.
for all eligible countries, double country fragility, and other frontier
While the development finance financing for countries affected by development issues. The challenge
landscape has experienced fragility and conflict (to more than is to keep the world, and increasingly
significant changes, official $14 billion), and provide $2 billion the private sector, engaged in the
development assistance will remain for activities supporting refugees global aspiration to end extreme
a key source of financing for IDA and their host communities. It will poverty.
clients, and grant contributions will also provide additional resources for
remain central to the IDA model. crisis preparedness and response,
But making smarter use of this pandemic preparedness, and
concessional finance is essential disaster risk management.
for catalyzing and leveraging much
IDA • The World Bank’s Fund for the Poorest • 9IDA helps countries transition from crisis and
fragility to stability, pooling and scaling up
donor efforts for impact. #CrisisResponse
IDA • The World Bank’s Fund for the Poorest • 10WHY IDA?
The International Bank for Reconstruction and Development, better known as the
World Bank, was established in 1944 to help Europe recover from the devastation
of World War II.
The success of that enterprise led water, electricity, and toilets to • Equally, a 2018 assessment
the Bank, within a few years, to turn hundreds of millions of poor by the Center for Global
its attention to developing countries. people. Development and the Brookings
By the 1950s, it became clear that Institution named IDA one of
the poorest developing countries • IDA makes the world a better the international community’s
needed softer terms than those place for girls and women. IDA top performing providers of
that could be offered by the Bank, works to reverse millennia of development assistance, citing
so they could afford to borrow the gender discrimination by getting IDA’s low administrative costs,
capital they needed to grow. This led girls to school, helping women more predictable aid flows, and
to the creation of IDA in 1960. access financing to start small large project size relative to other
businesses, and ultimately donors.
Today, IDA is recognized as a global helping to improve the economic
institution with a transformative prospects of families and • And a 2017 survey of policy
effect that individual national donors communities. makers from 126 low- and
cannot match. middle-income countries by
• Working with the World Bank AidData ranked the World Bank
• IDA provides leadership on global Group, IDA brings an integrated 2nd out of 56 bilateral donors
challenges. From its support for approach to development. IDA and multilateral institutions on
climate resilience to the creation helps create environments where its agenda-setting influence
of jobs to get former combatants change can flourish and where in developing countries. The
back into society, IDA rallies the private sector can jumpstart report cites the World Bank as
others on tough issues for the investment. “punching above its weight” on
common good and helps make value for money.
the world more secure. • IDA is also a global leader in
transparency and undergoes In a climate where donor finances
• IDA is transformational. IDA the toughest independent are stretched, there is even more
helps countries develop solutions evaluations of any international need for donors to make greater and
that have literally reshaped the organization. For example, IDA better use of multilateral channels.
development landscape—from placed in the highest category in The leader among those channels
its history-changing agriculture the 2018 Aid Transparency Index is IDA.
solutions for millions of South every year since the index was
Asians who faced starvation in first published in 2010—ranking
the 1970s to its pioneering work highest among multilateral
in the areas of debt relief and the development banks.
phase-out of leaded gasoline.
• IDA is there for the long haul.
IDA stays in a country after the From 2013 to 2016, 80,000
cameras leave, emphasizing
long-term growth and capability people benefited from community
to make sure results are
sustained. infrastructure projects in South
• When the poorest are ignored Sudan, including the construction of
because they’re not profitable,
IDA delivers. IDA provides dignity
and quality of life, bringing clean
clinics and schools. #IDAWorks
IDA • The World Bank’s Fund for the Poorest • 11The World Bank 1818 H Street, N.W. Washington, D.C. 20433 USA ida.worldbank.org www.facebook.com/ida.wbg www.twitter.com/WBG_Fin4Dev www.youtube.com/worldbank
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