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International Development Association


The In­ter­na­tional De­vel­op­ment Association (IDA), which is responsible for the poorest coun­tries in the world, plays a key role in reducing pov­er­ty around the globe. It was founded in 1960 and is legally and financially independent, although it is managed by the staff of the In­ter­na­tional Bank for Reconstruction and De­vel­op­ment (IBRD). The IDA currently has 172 members (as at: October 2012). It pursues the same objectives as the IBRD, but it offers loans on significantly more favourable terms to the around 81 poorest coun­tries in the world. Since 2002 the IDA has increasingly been issuing non-repayable grants in addition to loans.

In the fiscal year 2012, the IDA provided a total of 14.7 billion US dollars in the form of loans and grants, with more than half going to coun­tries in Africa.

Unlike the IBRD, the IDA does not raise the funds for its loans on the capital markets. They are financed from members' contributions, surplus funds transferred by the IBRD and the In­ter­na­tional Finance Corporation and loan repayments from recipient coun­tries. The level of these funds is reviewed every three years within the framework of replenishment negotiations, at which IDA strategies are also reconsidered and priorities set for the coming years.

16th replenishment negotiations

At the 16th replenishment of the IDA in December 2010, IDA donor coun­tries provided about 49.3 billion US dollars, which the IDA can spend between 1 July 2011 and 30 June 2014. This sum includes contributions to the debt relief initiative for Heavily Indebted Poor Countries (HIPC) and from the Multilateral Debt Relief Initiative (MDRI). After the United Kingdom, the USA and Japan, Germany is the fourth largest contributor to the 16th replenishment of the IDA. Germany currently holds just under six per cent (5.66 percent) of the voting rights.

During the 16th IDA replenishment negotiations, the IDA Deputies from industrialised and de­vel­op­ing coun­tries debated not only the funding of the IDA but also five special issues: climate change mitigation, fragile and conflict-affected states, gender, crisis response and a tighter focus on results. The outcomes of the negotiations were set out by the IDA Deputies in their final report.

Until October 2012, Germany and France chaired the working group on fragile states. BMZ is engaged in this area on an ongoing basis in the context of the World Bank. It is supported in its work by the Ge­sell­schaft für In­ter­na­ti­o­nale Zu­sam­men­ar­beit (GIZ); this helps to promote closer links between bilateral and multilateral de­vel­op­ment co­op­er­a­tion. In April 2012 Germany presented the GIZ study entitled 'The engagement of the In­ter­na­tional De­vel­op­ment Association (IDA) in fragile states – Proposals for a reform agenda' in Washington.

Halfway through the replenishment period the IDA Deputies meet for a midterm review at which they discuss whether the IDA’s objectives are being achieved. The last midterm review was held in November 2012 in Abidjan, Côte d'Ivoire.

Another outcome of the 16th replenishment negotiations was that the IDA must now report more transparently on its progress. To this end a new IDA Results Measurement System has been set up. This system is publicly accessible and provides evidence of the progress being made, including progress between negotiating rounds and the midterm review.

17th replenishment negotiations

The 17th IDA replenishment negotiations began in March 2013 and will involve four negotiating rounds in the space of a year. In the course of the negotiations the Deputies will again address a range of special issues: inclusive growth, climate change mitigation, gender equality, and fragile and conflict-affected states.

The BMZ invites representatives of civil society and science to learn about the IDA and to participate in the thematic planning of the 17th replenishment negotiations via an internal platform.

If you have questions or ideas or would like to be involved in the experts' discussions, please email ida17@bmz.de.

More information

Contact

International Development Association (IDA)

1818 H Street, NW
Washington, DC 20433
USA
Phone: +1 / 202 / 4 73 10 00

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