The IDA was organized by the World Bank in 1960 to provide additional financial assistance to the poorest developing countries. In order to provide resources on better terms than those that are available from the World Bank, the IDA provides special “credits.” These credits are zero-interest loans that have longer payment periods of 35 to 40 years and a grace period of 10 years. These types of loans are offered to the poorest countries to help them pursue their development goals, sometimes despite disease and conflict.

To help developing countries with these issues, the IDA has established a framework that emphasizes six core principles.

1. The IDA seeks to promote growth through macroeconomic policy, especially in rural and private sector development.
2. The IDA concentrates on social issues such as gender equality and public health.
3. The IDA works to improve governance by assisting in public management and in combating corruption.
4. The IDA strives for sustainable developmentdevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs. projects that help protect the environment.
5. The IDA fosters recovery efforts in post-conflict countries.
6. The IDA promotes economic integration through regional trade.

Examples of IDA projects include the following:

• In Tanzania, since 1995, the IDA has allocated US $3.2 Billion, which has caused an annual increase of five and six percent in the GDP, and the GDP per capitaPer unit of population. Per capita energy consumption, for example, is the amount of energy that is used on average by each person in a given country. has doubled. All of this has greatly improved the standard of living.⁸
• In Bhutan, the IDA gave a 10-year, $31 million credit for construction of rural schools and curricula development.⁹

For more on sustainable developmentdevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs., read the Development Issue in Depth (Sustainable Developmentdevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs.) and the Environment Issue in Depth  (Is Sustainable Developmentdevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs. the Way Forward?).

8 http://web.worldbank.org/WBSITE /EXTERNAL/EXTABOUTUS/IDA/0,,content MDK:21303704~pagePK:51236175~piPK:437394~ theSitePK:73154,00.html
9 http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS /IDA/0,,contentMDK:21271546~menuPK:3266877
~pagePK:51236175~piPK:437394 ~theSitePK:73154,00.html

Next: International Finance Corporation