International development association, Microeconomics

INTERNATIONAL DEVELOPMENT ASSOCIATION:

International Development Association (IDA) is an affiliate of the IBRD. It was established in 1960 to provide "soft loans" to economically sound projects which create 'social capital' such as the construction of roads and bridges, slum clearance and urban development. The IDA provides loans for such projects interest-free and for longer periods. Therefore, it is often referred to as the 'soft loan window' of the Bank. Only the poorest of the poor member countries (with per capita income below $895 at 1995 prices) are eligible for assistance. 

India has immensely benefited from the IDA. It has received a series of loans, almost continuously. Most of the assistance has gone to the high development priority projects which could not get finance from other sources. 

Posted Date: 11/15/2012 1:16:36 AM | Location : United States







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