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Understanding the World Bank Group: What is the IDA?

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Understanding the World Bank Group: What is the IDA?

June 30, 2021

Estimated reading time: 5 minutes

what is ida world bank

The World Bank Group (WBG) is the world’s largest multilateral development agency. Whilst the World Bank is technically an agency of the UN system, it is truly independent and has different sources of funding. But how much do you know about the WBG?

In this article, we will show what is the IDA and what is its role in the WBG – crucial information if you ever want to start a career at such an impactful IGO!

In pursuit of its mission, the OpenIGO network has prepared a comprehensive eBook and support and guidance services with the aim of highly increasing your chances of success in this competitive process.

Our comprehensive eBook will introduce you to the complex world of the World Bank Group and its approach towards international development, as well as will teach you how to prepare each of the documents required in detail, and will also get you ready for the interview and assessment center. This eBook was written and revised by a team of professors, human resources specialists, and former young professionals with a great deal of diligence.

In addition, we have developed support and guidance services. These services include revising your WBG YPP application documents (essay, curriculum vitae, and thesis/dissertation short summaries) and a mock interview as per the World Bank YPP model.

Having a mock interview with a professional who has extensive experience and knowledge of the World Bank YPP interview model will help you be better prepared for this phase, greatly increasing your chances of being selected for the desired vacancy.

WOULD YOU LIKE TO KNOW MORE ABOUT OUR World Bank YPP PRODUCTS & SERVICES?

WBG YPP – Products and Services

 

Want to discover how to write the perfect essay for the WBG YPP? Then check out our article on the topic!

 

International Development Association (IDA)

Being one of the 5 organizations that comprise the World Bank Group, the International Development Association (IDA) is also one of two agencies that make up the World Bank – the other being the International Bank for Reconstruction and Development (IBRD).

The main objective of the IDA is to diminish poverty in the poorest countries by offering loans and guarantees for programs that enhance economic growth, lower inequalities, and boost people’s living conditions.

The IDA was established in 1960 and is one of the biggest sources of assistance for the world’s 79 poorest countries. It is the single largest source of donor funds for essential social services in these nations. IDA-financed operations bring positive change for almost 2.5 billion persons, the majority of them surviving with less than 2 dollars a day.

IDA’s place in the WBG

IDA’s place in the World Bank Group is to lend money on concessional terms. IDA charges little or no interest and repayments are stretched over 2 to 4 decades, including a 5- to 10-year grace period.

IDA also provides grants to countries at risk of debt distress. IDA provides guarantees to assist in attracting private financing. Besides that, the IDA supplies significant levels of debt relief through the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative.

Since its creation, IDA has engaged in activities in 108 countries. Annual commitments have increased regularly, with a good part of it going to Africa.

IDA’s funding

IDA has, throughout its history, been funded mainly by contributions from the governments of its member countries. Donors meet every three years to refill IDA funds and review the institution’s policy framework. The process of refilling the funds generally consists of four formal meetings held over the course of one year.

With $912.7 million in its opening funding, the IDA was established with 15 signatory countries. Currently, IDA is one of the largest sources of assistance for the world’s 79 poorest countries.

what is ida world bank

WBG’s composition

The WGB is comprised of five institutions. They are:

  • The International Bank for Reconstruction and Development (IBRD): The IBRD offers loans to governments of middle-income and creditworthy developing countries.
  • The International Development Association (IDA): The IDA provides concessional loans and grants to governments of the poorest developing countries. It should be noted IBRD and IDA together are referred at the World Bank.
  • The International Finance Corporation (IFC): The IFC is the world’s largest development institution focused entirely on the private sector.
  • The Multilateral Investment Guarantee Agency (MIGA): MIGA’s aim is to promote foreign direct investment into developing countries in order to foster economic growth and improve the quality of life.
  • The International Centre for Settlement of Investment Disputes (ICSID): The ICSID supplies international facilities for conciliation and arbitration of disputes between international investors and States.

Would like to know more about World Bank internship opportunities? Then check our WB Internships overview:

World Bank Internships Overview

In pursuit of its mission, the OpenIGO network has prepared a comprehensive eBook and support and guidance services with the aim of highly increasing your chances of success in this competitive process.

Our comprehensive eBook will introduce you to the complex world of the World Bank Group and its approach towards international development, as well as will teach you how to prepare each of the documents required in detail, and will also get you ready for the interview and assessment center. This eBook was written and revised by a team of professors, human resources specialists, and former young professionals with a great deal of diligence.

In addition, we have developed support and guidance services. These services include revising your WBG YPP application documents (essay, curriculum vitae, and thesis/dissertation short summaries) and a mock interview as per the World Bank YPP model.

Having a mock interview with a professional who has extensive experience and knowledge of the World Bank YPP interview model will help you be better prepared for this phase, greatly increasing your chances of being selected for the desired vacancy.

WOULD YOU LIKE TO KNOW MORE ABOUT OUR World Bank YPP PRODUCTS & SERVICES?

WBG YPP – Products and Services


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