IDA: Stepping Up

Posted on by

September 26, 1960 marked the beginning of a new chapter in the World Bank’s history by introducing one of the most effective instruments in the global fight to eradicate poverty:  “The International Development Association (IDA), a new international agency for financing economic growth in the less developed countries, came into being today as an affiliate of the World Bank,” read the release.

 


This was a significant step, as many rapidly developing member countries were approaching the limits of their capacity to assume additional financial obligations. Eugene Black, the World Bank’s third president, recognized this and mobilized 15 member countries to contribute $686 million (more than $6 billion today) to IDA, in an effort to “promote economic development by providing finance to the less developed countries on terms more flexible and bearing less heavily on their balance of payments than conventional loans.”

In the 61 years that have elapsed, IDA has continued to deliver on the promises spelled out in its charter: “to promote economic development, increase productivity, and raise standards of living in the less-developed areas of the world.” The IDA community has since grown to include 174 countries, whose contributions support operations in 74 countries.

Full Article