International Development Association

FY2016 Funding Recommendation:  
$1.4016 billion

 

Funding History

       Enacted   

       President's FY2016 Request   

       InterAction's FY2016 Recommendation

*The President's FY2016 Request and InterAction's FY2016 Recommendation include funding for the Multilateral Debt Relief Initiative.


Justification

 Key Facts

  • IDA is ranked as one of the top seven most transparent development aid organizations in the world in Publish What You Fund’s 2014 Aid Transparency Index.

  • Since its inception, IDA has supported activities in 108 countries through grants and interest-free, long-term loans, half of which were directed to countries in Africa.

  • Between 2002 and 2012, IDA ensured: over 72,000 miles of roads were built or fixed; 123 million people obtained access to improved water sources; and 3.5 million teachers were recruited or trained. Between 2003 and 2013, IDA ensured: 195 million women received prenatal care; 117 million people obtained access to health services; and 597 million children were immunized.

The International Development Association (IDA) is known as the World Bank’s “Fund for the Poorest.” One of the largest development financiers in the world’s least-developed countries, IDA supports antipoverty programs with long-term, no-interest loans. Since its inception, IDA has supported activities in 108 countries. Over the last three years, it has distributed on average $18 billion annually in grants and loans, directing approximately half of those funds to Africa.

IDA is a critical facilitator and financier of development projects in areas such as infrastructure, institutional development, and technical support. It leverages the efforts of other donors to help developing countries develop the systems and capacity they need to use donors’ funds.  Between 2002 and 2012, IDA ensured: over 72,000 miles of roads were built or fixed; 123 million people obtained access to improved water sources; and 3.5 million teachers were recruited or trained. Between 2003 and 2013, IDA ensured: 195 million women received prenatal care; 117 million people obtained access to health services; and 597 million children were immunized.

In December 2013, donors committed a record $52 billion to the 17th IDA replenishment, a sum which would cover IDA financing for three years (from July 1, 2014 to June 30, 2017). InterAction supports the U.S. commitment to IDA for 2016 of $1,290,600,000. 

Multilateral Debt Relief Initiative

In addition, the U.S. is approximately $300 million behind in payments for our commitment to the Multilateral Debt Relief Initiative (MDRI), which provides certain low-income countries with 100% relief on eligible debt from three multilateral institutions, at IDA and the African Development Fund. InterAction recommends an additional $111 million to continue paying down our arrears to the IDA MDRI, consistent with the President’s FY2016 budget request. This $111 million for MDRI brings the total InterAction funding recommendation for IDA for FY2016 to $1.4016 billion.

With these funds, IDA estimates that from 2014 to 2017, it will provide:

  • Electricity for 15-20 million people;
  • Life-saving vaccines for 200 million children;
  • Microfinance loans for more than 1 million women;
  • Basic health services for 65 million people;
  • Access to clean water for 32 million people; and
  • Access to improved sanitation facilities for 5.6 million people.

Success Story:

Saving lives in Nepal through healthcare access

Although Nepal has seen considerable improvement in health over the last few decades, progress tended to favor those with higher incomes. The poor’s health needs struggle against limited access to maternal healthcare, family planning, and vaccinations.  

To help fill this unmet need, the International Development Association and the government of Nepal have come together with the Second Health, Nutrition and Population (HNP) and HIV/AIDS Project. The project increases poor people’s access to and utilization of an affordable package of health services, while improving governance and accountability in Nepal’s health sector.

Since 1994, IDA and the Nepalese government have worked to improve health care in Nepal, especially focusing on poor and more disadvantaged populations. Over the last decade, the country has made tremendous strides in reducing maternal and infant mortality. Maternal mortality fell from 530 deaths per 100,000 live births in 1996 to 281 in 2006, while infant mortality declined 39% over the last 15 years.

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