International Development Association (IDA): Role, Funding, Members and Lending
The International Development Association (IDA) is the concessional financing institution of the World Bank that supports low-income countries through grants and low-cost development credits. Established in 1960, IDA finances projects and programs intended to reduce poverty, improve living standards, strengthen institutions and expand access to essential services.
- Established
- September 24, 1960
- Members
- 175 member countries
- Current recipients
- 78 countries eligible to receive IDA resources
- FY2027 income cutoff
- GNI per capita of $1,365, subject to IDA eligibility rules and exceptions
- IDA21 period
- July 2025 to June 2028
- IDA21 package
- Up to $100 billion in financing capacity
What is the International Development Association?
IDA is one of the two institutions that make up the World Bank, the other being the International Bank for Reconstruction and Development (IBRD). While IBRD primarily lends to middle-income and creditworthy countries, IDA focuses on countries with lower incomes and limited access to conventional financing.
IDA provides a mix of grants, highly concessional credits and other financing instruments. The applicable terms depend on factors such as a country's income level, creditworthiness, debt-distress risk and the financing window being used. Some IDA credits have very long maturities and grace periods, while grants do not require repayment.
Official reference: What is IDA - World Bank.
Legal foundation: IDA Articles of Agreement
IDA is governed by the Articles of Agreement of the International Development Association, which became effective on September 24, 1960. The Articles operate as IDA's constitutional charter and define its purposes, membership, resources, financing powers, governance and institutional status.
Article I - Purposes
Article I states, in substance, that IDA exists to promote economic development, increase productivity and raise standards of living in less-developed areas within its membership. It does this especially by providing development finance on terms that are more flexible and less burdensome on a country's balance of payments than conventional loans.
Article II - Membership
Article II deals with membership and initial subscriptions. Membership is linked to membership of the International Bank for Reconstruction and Development, subject to the terms determined under the Articles.
Article VI - Organization and Management
Article VI establishes the core governance structure of IDA, including the Board of Governors, Executive Directors and President. The World Bank's governance arrangements are therefore directly relevant to IDA's institutional administration.
The Articles also prohibit political interference in IDA decision-making and require economic considerations to guide its decisions.
Official legal text: IDA Articles of Agreement - World Bank.
Who can receive IDA financing?
IDA eligibility is based primarily on relative poverty and limited creditworthiness. For fiscal year 2027, the operational income cutoff is $1,365 GNI per capita. The threshold is updated annually.
Eligibility is not determined by income alone. Some small island economies and other countries may remain eligible even above the cutoff where they lack sufficient creditworthiness for regular IBRD borrowing. Some countries are classified as blend countries because they can receive IDA resources while also being creditworthy for certain IBRD financing.
As of the latest official IDA information available in 2026, 78 countries are eligible to receive IDA resources.
Official reference: IDA Borrowing Countries and Eligibility.
IDA grants, credits and lending terms
IDA financing terms vary according to the recipient country's circumstances. Depending on eligibility and debt sustainability, financing may be provided as grants, zero-interest or low-interest credits, blend credits, small-economy terms or other approved instruments.
| Financing form | General feature | Typical use |
|---|---|---|
| Grants | No repayment of principal | Countries facing high or severe debt-distress risks, subject to IDA rules |
| Concessional credits | Long maturity with low or no interest, depending on the applicable terms | Development programs and projects in eligible countries |
| Blend credits | Terms for countries eligible for both IDA and some IBRD borrowing | Countries with stronger creditworthiness than IDA-only recipients |
| Other IDA financing | May include guarantees and selected non-concessional instruments | Specific programs, windows and financing needs |
Under IDA21 terms effective from July 1, 2026, the World Bank publishes detailed repayment schedules, service charges and other applicable rates. Because the terms can change, users should consult the current official schedule rather than rely on older fixed figures.
Official reference: Current IDA Lending Terms.
How IDA is funded
IDA is financed through a combination of contributions from member governments, repayments on earlier IDA credits, transfers and income from other World Bank Group sources, and borrowing in capital markets. IDA began issuing bonds in the capital markets in 2018, adding a major financing source to its traditional replenishment model.
Representatives of donor and borrower countries normally meet every three years to replenish IDA's resources and review its policy framework. The latest replenishment, IDA21, was finalized in December 2024 and supports a financing package of up to $100 billion for the July 2025 to June 2028 period.
Official reference: IDA Replenishments.
What does IDA finance?
IDA supports development activities across sectors such as education, health, clean water and sanitation, infrastructure, agriculture, social protection, institutional reform, climate resilience, private-sector development, regional integration and recovery from conflict or natural disasters.
IDA also provides policy advice, analytical work and technical assistance. Its financing is intended to support development outcomes rather than operate as ordinary commercial lending.
IDA performance and evaluation
IDA-supported activities are subject to project monitoring, fiduciary controls and evaluation. Within the World Bank Group, the Independent Evaluation Group (IEG) evaluates development effectiveness and provides independent assessments intended to improve accountability and learning.
Official reference: Independent Evaluation Group.
IDA membership and graduation
IDA has grown from 15 initial signatory countries in 1960 to 175 member countries. Countries may "graduate" from IDA when their income and creditworthiness improve sufficiently. According to the World Bank, 35 countries have graduated from IDA, including countries such as China, India, South Korea and Vietnam.
Graduation is not always permanent. A country may later regain access to IDA resources if its economic circumstances deteriorate and it meets the applicable eligibility criteria.
IDA commitments and scale
In the fiscal year ending June 30, 2026, IDA commitments totaled approximately $30.53 billion, including about $8.45 billion in grants. Since 1960, IDA has provided hundreds of billions of dollars in development financing to eligible countries.
Current financing data: IDA Financing - World Bank.
Relationship between IDA, the World Bank and the United Nations
IDA is part of the World Bank and is legally distinct from the United Nations. The World Bank's formal relationship with the United Nations dates to a 1947 agreement recognizing the Bank as an independent specialized agency of the UN. That relationship supports cooperation on economic and social development while preserving the Bank's institutional and financial independence.
Accordingly, a precise description is that IDA is the concessional financing arm of the World Bank, while the World Bank has an independent specialized-agency relationship with the United Nations.
Why IDA matters
IDA remains a major source of development finance for countries that often have limited access to affordable capital. Its importance lies not only in the volume of funding it provides, but also in the long maturities, grant financing, debt-sensitive terms, technical expertise and institutional support available to eligible countries.
Frequently asked questions
Is IDA part of the World Bank?
Yes. The World Bank comprises IBRD and IDA. IDA concentrates on grants and concessional finance for low-income and other eligible countries.
Is IDA a United Nations organization?
IDA is not a UN lending arm. It is part of the World Bank. The World Bank has a formal status as an independent specialized agency in relation to the United Nations.
How many IDA member countries are there?
The World Bank states that IDA has 175 member countries.
How many countries currently receive IDA resources?
The current official list identifies 78 countries as eligible to receive IDA resources.
What is the IDA income cutoff for FY2027?
The operational cutoff is $1,365 GNI per capita for fiscal year 2027, although eligibility also considers creditworthiness and special exceptions.