ABSTRACT

INTERNATIONAL DEVELOPMENT ASSOCIATION

The International Development Association (IDA) is the part of the World Bank that helps the
earth’s poorest countries reduce poverty by providing no-interest loans and grants for programs
aimed at boosting economic growth and improving living conditions IDA funds help these
countries deal with the complex challenges they face in striving to meet the Millennium
Development Goals. They should, for instance, react to the focused weights and also the
chances of globalization; capture the spread of HIV/AIDS; and forestall struggle or manage its
result.

The purposes of the Association are to advance monetary improvement, increment profitability
and in this manner bring ways of life up in the less developed areas of the world included inside
the Association's membership, specifically by giving money to meet their essential formative
necessities on terms which are more adaptable and bear less vigorously on the adjust of
instalments than those of standard mortgages, subsequently assisting the formative destinations
of the International Bank for Reconstruction and Development and supplementing its activities.
IDA supplements the World Bank's other loaning arm, the International Bank for
Reconstruction and Development (IBRD) which serves centre pay nations with capital venture
and warning administrations. IBRD and IDA share a similar staff and central command and
assess ventures with the same thorough guidelines.

IDA loans money (known as credits) on concessional terms. This implies IDA credits have no
intrigue charge and reimbursements are extended more than 35 to 40 years, including a 10 year
grace period. IDA loans address primary education, basic health services, clean water supply
and sanitation, environmental safeguards, business-climate improvements, infrastructure and
institutional reforms. These projects are intended to pave the way toward economic growth,
job creation, higher incomes and better living conditions. IDA also provides grants to countries
at risk of debt distress.

YOGESH GARG

2016125