What do you mean International Development Association

International Development Association (IDA) was set up in 1960 as an affiliate of the World Bank. IDA was established primarily to provide finance to the less developed member countries on a soft loan basis.

Major objectives of IDA include:

  • To provide development finance on easy terms to the less developed member countries.
  • To provide assistance for poverty alleviation in the poorest countries.
  • To provide finance at concessional interest rates in order to promote economic development, raise productivity and living standards in less developed nations.
  • To extend macroeconomic management services such as those relating to health, education, nutrition, human resource development and population control.