Soft Lending Arm of the World Bank: IDA

The soft lending arm of the World Bank is the International Development Association (IDA). It was established in 1960 and is one of the five institutions that make up the World Bank Group. The IDA's primary goal is to reduce poverty and promote sustainable development in the world's poorest countries.

Key Points about IDA:
- The IDA provides interest-free or low-interest loans and grants to the world's poorest countries.
- These loans and grants are given to governments to support projects and programs that aim to improve education, healthcare, infrastructure, agriculture, and other areas that are crucial for poverty reduction and development.
- The IDA focuses on countries with the greatest needs, including those affected by conflict, fragility, and natural disasters.
- It provides long-term financing with low or zero interest rates and long repayment periods to give countries the flexibility to implement development projects without putting too much strain on their budgets.
- The IDA also provides technical assistance and policy advice to help countries design and implement effective development programs.
- The funds for IDA loans and grants come from contributions made by member countries, as well as from repayments of earlier IDA loans.
- The IDA replenishment process takes place every three years, during which member countries pledge new funds to support the IDA's operations.
- The IDA has played a significant role in supporting development efforts in low-income countries, helping to improve living conditions and reduce poverty.
- It has supported projects in areas such as education, healthcare, clean water and sanitation, rural development, and infrastructure development.
- The IDA's focus on poverty reduction aligns with the United Nations' Sustainable Development Goals, particularly Goal 1, which aims to end poverty in all its forms everywhere.

In conclusion, the International Development Association (IDA) is the soft lending arm of the World Bank. It provides interest-free or low-interest loans and grants to the world's poorest countries to support their development efforts and reduce poverty.