IDA Full Form: History, Overview, Functions etc.

The IDA Full Form is the International Development Association, which is one of the biggest and most powerful organisations fighting severe poverty in the world’s poorest nations. The 74 poorest nations in the world receive assistance from the World Bank, and the largest single source of donor money for these nations’ essential social services is IDA. By offering grants, loans with no or low-interest rates, and policy advice for initiatives that foster economic growth, foster resilience, and enhance the lives of the poor around the world, IDA seeks to decrease poverty.

IDA has aided in the improvement of hundreds of millions of people’s lives. 395.9 million children received vaccinations, 974.9 million individuals received basic healthcare services, and 113.3 million had access to better water services in the ten years leading up to 2021.

History

IDA was established on September 24, 1960, with 15 signatory nations: Australia, Canada, China, Germany, India, Italy, Malaysia, Norway, Pakistan, Sudan, Sweden, Thailand, United Kingdom, United States, and Vietnam. The organization’s original investment was $912.7 million. In the first eight months after it was established, IDA had 51 members and gave loans totalling $101 million to Sudan, Chile, India, and Honduras. As the first recipient of an IDA credit, Honduras received $9 million in 1961 for the construction and upkeep of highways, including a 62-mile Western Highway expansion.

IDA now has 174 member nations and is the largest provider of concessional loans to 74 of the world’s poorest nations. 37 nations have completed the IDA overall. IDA credits and grants have totalled $458 billion since its creation, averaging $29.4 billion over the previous three years (FY19-FY21).

IDA Overview

Functions

IDA is seen as a global institution with a transformative impact that cannot be matched by individual national donors.

• IDA takes on difficult development challenges as the “first mover.” IDA brings people together for the greater good and contributes to global security.
• IDA offers direction. IDA is the first of the main development partners to work in post-conflict and crisis settings, where risk mitigation is crucial, and to offer significant help.
• IDA provides worldwide solutions to worldwide problems. Simple solutions that apply to one sector, one nation, or one organisation cannot solve many issues. Instead, finding answers necessitates cooperation and knowledge exchange among numerous industries, nations, and organisations.
• No other development organisation can equal IDA’s ability to bring people together. Its comparative advantages include its capacity to deploy novel financial tools, cross-sectoral knowledge, global reach, country solutions, operational know-how, and implementation skills.
• IDA is revolutionary. From its history-changing agricultural solutions in the 1970s to its groundbreaking work in debt relief and the phase-out of leaded gasoline, IDA assists nations in developing solutions that have transformed the development landscape.
• IDA is a reliable associate. IDA has worked with nations on new concerns or in places where others can’t or won’t. IDA stays in a nation after the cameras stop rolling, focusing on long-term progress and ensuring ongoing success.
• For the poorest, IDA provides. IDA gives hundreds of millions of poor people access to clean water, power, and sanitary facilities, improving their quality of life and sense of dignity.

Frequently Asked Questions (FAQs)