(Last Updated: September 12, 2022)
What is IDA?
ÐÓ°ÉÂÛ̳¡¯s (IDA) is one of the largest and most effective platforms for fighting extreme poverty in the world¡¯s lowest income countries.?
IDA works in? in Africa, East Asia & Pacific, South Asia, Europe & Central Asia, Latin America & Caribbean, and Middle East & North Africa.
IDA aims to reduce poverty by providing?financing?and?policy advice?for programs that?boost economic growth, build resilience, and improve the lives of poor people around the world.??
More than half of active IDA countries already receive all, or half, of their IDA resources on grant terms, which carry no repayments at all.?Grants are targeted to low-income?countries?at higher risk of debt distress.????
Over the past 62 years, IDA has provided about $458 billion for investments in 114 countries. IDA also has a strong track record in supporting countries through multiple crises.
How is IDA funded?
IDA partners and representatives from borrower countries come together every three years to replenish IDA funds and review IDA¡¯s policies. The replenishment consists of contributions from IDA donors, the ÐÓ°ÉÂÛ̳, and financing raised from the capital markets. ?
Since its founding in 1960, IDA has had 20 replenishment cycles. The current 20th cycle, known as IDA20,?was replenished?in December 2021. It took place one year earlier than scheduled to meet the unprecedented need brought about by the COVID-19 pandemic in developing countries.
The $93 billion IDA20 package was made possible by donor contributions from 52 high- and middle-income countries totaling $23.5 billion, with additional financing raised in the capital markets, repayments, and the ÐÓ°ÉÂÛ̳¡¯s own contributions.
What does the IDA20 program include?
IDA is a multi-issue institution?and?supports?a range of development activities that?pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions.
To help IDA countries address multiple crises and restore their trajectories to the 2030 development agenda, will focus on Building Back Better from the Crisis: Towards a Green, Resilient and Inclusive Future. The IDA20 cycle runs from July 1, 2022, to June 30, 2025.
IDA20 will be supported by five special themes:
Human Capital: Address the current crises and lay the foundations for an inclusive recovery. This theme will continue to help countries manage the pandemic through vaccination programs deployment, scaling up safety nets, and building strong and pandemic-ready health systems.
Climate: Raise the ambition to build back better and greener; scale up investments in renewable energy, resilience, and mitigation, while tackling issues like nature and biodiversity.