Articles Of Agreement International Development Association

IDA has 173 member countries that contribute every three years to replenish their capital. On 12 December 2008, Samoa joined UNIDO as its 173rd member. [2] IDA lends to 75 borrowing countries, more than half of which (39) are in Africa. [24] IDA membership is only available to World Bank member countries, particularly I IBRD. [25] Over the course of its lifetime, 44 credit countries have completed the association, although 9 of these countries have lagged behind as borrowers after graduating from university. [26] In 1995, the IRD adopted “the guidelines: supply under EIB loans and IDA loans” (updated in 1999 and 2004). The loan agreement governs the legal relationship between the borrower and the bank. Its provisions on international offers and other financial instruments (domestic tenders, purchases, direct purchases, purchases) are intended to ensure that the money lent by the Bank is intended for the purpose for which it was intended. The adoption of these guidelines is essential for states wishing to borrow from the IBR. This last observation is the most important for the “achievement approach” of external actors – although the relations agreement offers autonomy from the United Nations, it does not offer autonomy from international legal obligations. IDA`s efforts in Asia have been particularly successful. Many Asian countries have completed the IDA credit program, including the Philippines, China, South Korea, Thailand and India. [52] Of the association`s credit countries, about 20 are in Asia.

[53] The association`s efforts in South Asia have focused mainly on projects in the fields of education, health, transport, agriculture and energy. [54] The rapid population growth of Asian countries has given rise to some areas of poverty. To mitigate this effect, IDA has adopted an economic plan that has set up organizations to improve education and health care, with a focus on reducing poverty in Asian countries in a way that is compatible with local culture. [52] IDA provides loans to countries to finance projects to develop infrastructure and improve education, health care, access to clean water and sanitation, and environmental responsibility. [32] [41] It is considered the World Bank`s soft window of credit, while the IBRD is seen as the hard window of credit. [42] [43] The association proposes grants and loans lasting 25 to 40 years, maturities of 5 to 10 years and interest rates of 2.8% or 1.25%, depending on whether the borrower is a mixed country and to what extent it is eligible. Regular borrowers eligible for IDA can benefit from non-interest-related loans. [44] Financial resources are allocated to eligible countries on the basis of their success in implementing domestic policies that promote growth and poverty reduction.

IDA uses the World Bank`s Development Indicator for National Policy and Institutional Assessment (CPIA) to determine each country`s place in a resource allocation index. It then gives priority to its loans to countries considered to be the most promising in terms of favourable aid policy and effectiveness. [28] [45] [46] In 2007, IDA adopted the rapid response window to provide timely emergency assistance in response to crises.

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