Understanding the International Development Association: A Legal Perspective
Definition & meaning
The International Development Association (IDA) is a specialized agency of the United Nations that operates under the umbrella of the World Bank. Its primary mission is to provide financial assistance in the form of long-term, interest-free development credits to the world's poorest countries. The IDA raises funds through contributions from wealthier member countries of the World Bank, as well as from its own resources. This support aims to help these nations improve their economic conditions and reduce poverty.
Table of content
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The IDA plays a significant role in international development law and economic assistance. It is often involved in legal agreements related to development projects, funding arrangements, and partnerships with various countries. Legal practitioners may encounter IDA-related issues in areas such as international law, public finance, and economic development. Users can manage related documentation through legal templates available on platforms like US Legal Forms.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
Example 1: A low-income country receives a development credit from the IDA to build infrastructure, such as roads and schools, which helps boost its economy.
Example 2: A government in a developing nation collaborates with the IDA to implement a health program aimed at reducing child mortality rates. (hypothetical example)
Comparison with Related Terms
Term
Definition
Key Differences
World Bank
An international financial institution that provides loans and grants to the governments of poorer countries.
The World Bank provides loans, while the IDA focuses on interest-free credits.
International Monetary Fund (IMF)
An organization that aims to promote global economic stability and growth through monetary cooperation.
The IMF primarily focuses on macroeconomic stability, while the IDA focuses on development projects.
Common Misunderstandings
What to Do If This Term Applies to You
If you are involved in a development project that may be eligible for IDA funding, consider reaching out to your government or relevant agencies for guidance. You can also explore US Legal Forms for templates that can help you draft necessary documents related to international development agreements. If your situation is complex, seeking professional legal advice may be beneficial.
Quick Facts
Attribute
Details
Type of Assistance
Long-term, interest-free development credits
Eligibility
Poorest member countries of the World Bank
Funding Sources
Contributions from wealthier member countries
Key Takeaways
FAQs
The IDA funds projects aimed at improving infrastructure, health, education, and economic development in low-income countries.
Countries must meet specific income criteria set by the World Bank to qualify for IDA funding.
No, IDA funding is provided as interest-free credits, which differ from traditional loans.
