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(IDA)
The (IDA) is an international financial institution which offers concessional loans and grants to the world's poorest developing countries. The IDA is a member of the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from the lowest gross NATIONAL INCOME, from troubled creditworthiness, or from the lowest per capita income. Together, the and International Bank for Reconstruction and Development are collectively generally known as the World Bank, as they follow the same executive Leadership and operate with the same staff.
The association Shares the World Bank's mission of reducing POVERTY and aims to provide affordable development financing to countries whose credit risk is so prohibitive that they cannot afford to borrow commercially or from the Bank's other programs. The IDA's stated aim is to assist the poorest nations in growing more quickly, equitably, and sustainably to reduce poverty. The IDA is the single largest provider of funds to economic and Human Development projects in the world's poorest nations. From 2000 to 2010, it financed projects which recruited and trained 3 million teachers, immunized 310 million children, funded $792 million in loans to 120,000 small and medium enterprises, built or restored 118,000 kilometers of paved roads, built or restored 1,600 bridges, and expanded access to improved water to 113 million people and improved sanitation facilities to 5.8 million people. The IDA has issued a total $238 billion USD in loans and grants since its launch in 1960. Thirty-six of the association's borrowing countries have graduated from their eligibility for its concessional lending. However, eight of these countries have relapsed and have not re-graduated.
The IDA is governed by the World Bank's Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). The Board of Governors delegates most of its authority over daily matters such as lending and operations to the Board of Directors. The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group. The executive directors collectively represent all 187 member states of the World Bank, although decisions regarding IDA matters concern only the IDA's 172 member states. The president oversees the IDA's overall direction and daily operations. As of July 2012, Jim Yong Kim serves as the President of the World Bank Group.
The IDA lends to countries with the aim to finance projects that will develop Infrastructure-2/”>INFRASTRUCTURE and improve Education, healthcare, access to clean water and sanitation facilities, and environmental responsibility. It is considered to be the soft lending window of the World Bank, while the IBRD is considered to be the hard lending window. The association offers grants and loans with maturities ranging from 25 to 40 years, grace periods of 5 to 10 years, and interest rates of 2.8% or 1.25% depending on whether the borrower is a blend country and to which degree it is eligible. Regular IDA-eligible borrowers may take advantage of no-interest loans.
United Nations Conference on Trade and Development (UNCTAD)
UNCTAD is the part of the United Nations Secretariat dealing with trade, Investment, and development issues. The organization's goals are to: "maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis. UNCTAD was established by the United Nations General Assembly in 1964 and it reports to the UN General Assembly and United Nations Economic and Social Council.
The primary objective of UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. The conference ordinarily meets once in four years; the permanent secretariat is in Geneva.
One of the principal achievements of UNCTAD (1964) has been to conceive and implement the Generalised System of Preferences (GSP). It was argued in UNCTAD that to promote exports of manufactured goods from developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this argument, the developed countries formulated the GSP scheme under which manufacturers' exports and import of some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed countries. Since imports of such items from other developed countries are subject to the normal rates of duties, imports of the same items from developing countries would enjoy a competitive advantage.
The creation of UNCTAD in 1964 was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations. The United Nations Conference on Trade and Development was established to provide a forum where the developing countries could discuss the problems relating to their Economic Development. The organisation grew from the view that existing institutions like GATT (now replaced by the World Trade Organization, WTO), the International Monetary Fund (IMF), and World Bank were not properly organized to handle the particular problems of developing countries. Later, in the 1970s and 1980s, UNCTAD was closely associated with the idea of a New International Economic Order (NIEO).
Organization for Economic Cooperation and Development (OECD)
The Organisation for Economic Co-operation and Development (OECD) is variously referred to as a think tank or monitoring group. Its stated goals include fostering economic development and cooperation; fighting poverty; and ensuring the environmental impact of Growth and social development is always considered. Over the years, it has dealt with a range of issues, including raising the standard of living in member countries, contributing to the expansion of world trade and promoting economic stability. Read more: Organization for Economic Cooperation and Development (OECD).
In 1948, in the aftermath of World War II, the Organisation for European Economic Co-operation (OEEC) was established to administer the predominantly U.S.-funded Marshall Plan for post-war reconstruction on the continent. The group emphasized the importance of working together for economic development, with the goal of avoiding more decades of European warfare. The OEEC was instrumental in helping the European Economic Community (EEC), which has since evolved into the European Union (EU), to establish a European Free Trade Area Read more: Organization for Economic Cooperation and Development (OECD).
The OECD publishes economic reports, statistical databases, analyses and forecasts on the outlook for economic growth worldwide. Reports are variously global, regional or national in orientation. The group analyzes and reports on the impact of social policy issues such as gender discrimination on economic growth, and makes policy recommendations designed to foster growth with sensitivity to environmental issues. The organization also seeks to eliminate bribery and other financial crime worldwide. Read more: Organization for Economic Cooperation and Development (OECD).
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The International Development Association (IDA) is the largest source of concessional financing and grant assistance for the world’s poorest countries. Established in 1960, IDA is a member of the World Bank Group and provides grants and low- or no-interest loans to countries with annual per capita incomes below $1,235.
IDA Resources come from contributions from donor countries, which are paid into a revolving fund. When a country repays an IDA loan, the Money is returned to the fund and can be used to make new loans.
IDA operations are guided by the following principles:
- Poverty reduction: IDA’s goal is to reduce poverty and improve the lives of the poorest people in the world.
- Sustainability: IDA’s investments are designed to be sustainable, meaning that they will continue to benefit people even after IDA’s support ends.
- Ownership: IDA works with countries to develop and implement their own development strategies.
- Results: IDA focuses on achieving measurable results, such as reducing poverty, improving Health, and increasing access to education.
IDA has achieved significant results in reducing poverty and improving the lives of the poorest people in the world. For example, IDA-supported programs have helped to:
- Reduce extreme poverty by more than half since 1990.
- Increase access to education for more than 100 million children.
- Improve health outcomes for millions of people.
- Increase access to clean water and sanitation for more than 200 million people.
IDA works with a wide range of partners, including governments, civil Society organizations, the private sector, and other development institutions. These partnerships help IDA to achieve its goals more effectively and efficiently.
IDA eligibility is determined by a country’s per capita income. Countries with annual per capita incomes below $1,235 are eligible for IDA assistance.
IDA borrowers are the poorest countries in the world. As of 2020, there were 75 IDA-eligible countries.
IDA lending terms are very concessional. IDA loans have a maturity of 35 years, including a 10-year grace period. The interest rate on IDA loans is 0.75%.
IDA has a significant impact on the lives of the poorest people in the world. IDA-supported programs have helped to reduce poverty, improve health, increase access to education, and promote economic growth.
IDA has been criticized for its high administrative costs and for its lack of transparency. However, IDA has also been praised for its effectiveness and for its commitment to poverty reduction.
IDA is currently undergoing a reform process. The goal of the reform process is to make IDA more effective and efficient. The reform process is expected to be completed in 2023.
The future of IDA is uncertain. The World Bank Group is currently considering whether to continue IDA after 2023. The decision will depend on a number of factors, including the level of donor support and the effectiveness of IDA’s operations.
What is the International Monetary Fund (IMF)?
The International Monetary Fund (IMF) is an international financial institution that was founded in 1945. It is headquartered in Washington, D.C., United States. The IMF’s goal is to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. It also provides financial assistance to countries that are experiencing economic difficulties.
What is the World Bank?
The World Bank is an international financial institution that was founded in 1944. It is headquartered in Washington, D.C., United States. The World Bank’s goal is to fight poverty and improve living standards for people in the developing world. It does this by providing loans, grants, and technical assistance to developing countries.
What is the World Trade Organization (WTO)?
The World Trade Organization (WTO) is an international organization that was founded in 1995. It is headquartered in Geneva, Switzerland. The WTO’s goal is to promote free trade among its member countries. It does this by negotiating trade agreements, settling trade disputes, and monitoring national trade policies.
What is the United Nations (UN)?
The United Nations (UN) is an international organization that was founded in 1945. It is headquartered in New York City, United States. The UN’s goal is to maintain international peace and security, develop friendly relations among nations, and promote social progress, better living standards, and Human Rights.
What is the Group of Eight (G8)?
The Group of Eight (G8) is an informal group of eight major industrialized countries. The G8 countries are Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. The G8 meets annually to discuss economic and political issues.
What is the Group of Twenty (G20)?
The Group of Twenty (G20) is an international forum for the governments and central bank governors of 20 major economies. The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. The G20 meets annually to discuss Global Economic Issues.
What is the Organization for Economic Co-operation and Development (OECD)?
The Organization for Economic Co-operation and Development (OECD) is an international organization that was founded in 1961. It is headquartered in Paris, France. The OECD’s goal is to promote economic growth, prosperity, and social welfare among its member countries. It does this by providing economic analysis, policy advice, and statistical information.
What is the African Union (AU)?
The African Union (AU) is an intergovernmental organization that was founded in 2002. It is headquartered in Addis Ababa, Ethiopia. The AU’s goal is to promote unity and solidarity among African countries, to defend the Sovereignty, territorial Integrity, and independence of its member states, and to promote economic and social development.
What is the Association of Southeast Asian Nations (ASEAN)?
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization that was founded in 1967. It is headquartered in Jakarta, Indonesia. The ASEAN’s goal is to promote economic growth, social progress, and Cultural Development in Southeast Asia. It does this by promoting trade and investment, regional cooperation, and cultural exchange.
What is the Non-Aligned Movement (NAM)?
The Non-Aligned Movement (NAM) is a group of 120 countries that were founded in 1961. The NAM’s goal is to promote peace, cooperation, and development among its member countries. It does this by advocating for the rights of developing countries, promoting South-South cooperation, and working to resolve conflicts peacefully.
Sure, here are some multiple choice questions about the topics of international development, foreign aid, and the World Bank:
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Which of the following is not a goal of international development?
(A) To reduce poverty
(B) To promote economic growth
(C) To improve health and education
(D) To protect the Environment -
Which of the following is the largest source of official development assistance (ODA)?
(A) The United States
(B) The European Union
(C) Japan
(D) China -
The World Bank is a multilateral Development Bank that provides loans to developing countries. Which of the following is not one of the World Bank’s five main lending institutions?
(A) The International Bank for Reconstruction and Development (IBRD)
(B) The International Development Association (IDA)
(C) The International Finance Corporation (IFC)
(D) The Multilateral Investment Guarantee Agency (MIGA) -
The World Bank’s lending is based on the principle of conditionality, which means that countries must meet certain conditions in order to receive loans. Which of the following is not one of the World Bank’s typical conditions for lending?
(A) The country must implement Economic Reforms
(B) The country must reduce its budget deficit
(C) The country must privatize state-owned enterprises
(D) The country must increase its spending on education and health -
The World Bank has been criticized for its role in the Structural Adjustment Programs (SAPs) that were imposed on developing countries in the 1980s and 1990s. Which of the following is not a criticism of SAPs?
(A) SAPs led to cuts in social spending, which hurt the poor
(B) SAPs led to the Privatization of state-owned enterprises, which often led to job losses
(C) SAPs did not lead to the economic growth that was promised
(D) SAPs were imposed without the Consent of the people in the countries that were affected -
The World Bank has also been criticized for its role in the promotion of large-scale infrastructure projects, such as Dams and highways. Which of the following is not a criticism of large-scale infrastructure projects?
(A) These projects often displace people from their homes and land
(B) These projects can have negative environmental impacts
(C) These projects are often not sustainable
(D) These projects do not always benefit the poor -
Despite these criticisms, the World Bank remains an important SOURCE OF FINANCE for developing countries. Which of the following is a reason why the World Bank is still important?
(A) The World Bank is the only source of finance for some developing countries
(B) The World Bank’s loans are often at lower interest rates than loans from Commercial Banks
(C) The World Bank’s loans are often tied to technical assistance, which can help developing countries to improve their policies and institutions
(D) The World Bank is a forum for dialogue between developed and developing countries -
The World Bank is facing a number of challenges, including the rise of China as a donor, the increasing complexity of development challenges, and the need to improve its effectiveness. Which of the following is not a challenge facing the World Bank?
(A) The World Bank is facing a funding crisis
(B) The World Bank is facing a legitimacy crisis
(C) The World Bank is facing a management crisis
(D) The World Bank is facing a technological crisis -
The World Bank is responding to these challenges by reforming its operations and by focusing on new areas of development, such as Climate change and fragile states. Which of the following is not an example of the World Bank’s reforms?
(A) The World Bank has increased its focus on country ownership
(B) The World Bank has increased its focus on results-based management
(C) The World Bank has increased its focus on Transparency and Accountability
(D) The World Bank has increased its focus on private sector development -
The World Bank is a complex institution with a long history. It has been both praised and criticized for its role in international development. The World Bank is facing a number of challenges, but it is also responding to these challenges by reforming its operations and by focusing on new areas of development.