International Development Association
Concessional lender to the world's poorest nations.
The International Development Association (IDA) is a development finance institution that offers concessional loans and grants to the world's poorest developing countries. Established in 1960, it is a member of the World Bank Group and is headquartered in Washington, D.C. The IDA complements the International Bank for Reconstruction and Development by lending to countries with the lowest gross national income, troubled creditworthiness, or the lowest per capita income. Together, these two institutions are collectively known as the World Bank.
- founded
- 1960
- headquarters
- Washington, D.C., United States
- field
- Development finance
- known_for
- Providing concessional loans and grants to the world's poorest countries
- total_lending_since_1960
- $238 billion
- borrowing_members_as_of_2024
- 175
Lore & Background
The IDA was created in response to the inability of low-income developing countries to afford loans from the International Bank for Reconstruction and Development during the 1940s and 1950s. U.S. President Harry S. Truman's advisory group recommended an international mechanism between strictly-loaned and strictly-granted funds. After years of debate, including proposals for a UN-governed fund, the World Bank's Board of Governors approved a U.S.-born resolution in 1959, and fifteen countries signed the articles of agreement by January 1960. The IDA launched in September 1960 with an initial budget of $913 million.
From 2000 to 2010, the IDA financed projects that recruited and trained 3 million teachers, immunized 310 million children, and built or restored 118,000 kilometers of paved roads and 1,600 bridges. It also expanded access to improved water to 113 million people and improved sanitation facilities to 5.8 million people. As of 2024, Suriname became the 175th borrowing member. In September 2025, World Bank President Ajay Banga expressed interest in allowing private investors access to securitized risk tranches of IDA loans.
Reader's Guide
The International Development Association is significant as the single largest provider of funds to economic and human development projects in the world's poorest nations. Its concessional lending—offering interest-free loans with long grace periods—has enabled countries with prohibitive credit risk to finance infrastructure, education, health, and sanitation projects. The IDA's model of blending loans and grants has helped 36 borrowing countries graduate from eligibility, though nine have relapsed. Its governance, tied to the World Bank's Board of Governors and Board of Directors, ensures that member states collectively oversee its operations. The IDA's legacy lies in its sustained focus on poverty reduction and its ability to mobilize donor funding—$24 billion in its last round in 2024—despite geopolitical shifts. By providing affordable financing to the most vulnerable nations, the IDA has played a central role in global development efforts for over six decades.
Did You Know?
- The IDA was established in 1960 to complement the International Bank for Reconstruction and Development.
- From 2000 to 2010, IDA-financed projects immunized 310 million children.
- Thirty-six borrowing countries have graduated from IDA eligibility, but nine have relapsed.
- Suriname became the 175th borrowing member of the IDA in October 2024.
More in International Organizations And Agreements 1-24
Spotted an error? Know more?
This is a living reference — every entry is fact-audited, and reader corrections feed straight into our audit queue. Suggest an edit · See this site's audit record