As long as the World Bank's International Development Association can be an important source of recovery funds for the poorest economies, those resources must be used effectively. This will require closing the IDA's Private Sector Window and instead providing resources directly to governments.
NEW DELHI – The International Development Association is the part of the World Bank that is meant to help the world’s poorest countries. Its explicit mission is “to reduce poverty by providing zero to low-interest loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.” The IDA provides around a quarter of its financing in grants, and the rest in concessional loans that can be repaid over 30-40 years, including a grace period of up to ten years.
NEW DELHI – The International Development Association is the part of the World Bank that is meant to help the world’s poorest countries. Its explicit mission is “to reduce poverty by providing zero to low-interest loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.” The IDA provides around a quarter of its financing in grants, and the rest in concessional loans that can be repaid over 30-40 years, including a grace period of up to ten years.