International Development Association (IDA) was set up in 1960 as an associate of the World Bank. IDA was set up basically to offer finance to the less developed member nations on a soft loan basis. It is because of its intention of providing soft loans that it is called the Soft Loan Window of the IBRD. Major objectives of IDA include
- To help the less developed member nations by providing development finance on easy terms,
- To aid in the elimination of poverty in the poorest countries,
- To offer funds at discounted interest rates so as to encourage economic growth, increase manufacturing capacity and living standards in the under developed countries, and
- To provide macro economic management services such as those pertaining to health, nutrition, education, human resource development and control of population.