UPSC Prelims 2010 Q150: Indian Economy – International Institutions & Reports
The International Development Association, a lending agency, is administered by the
- (a) International Bank for Reconstruction and Development
- (b) International Fund for Agricultural Development
- (c) United Nations Development Programme
- (d) United Nations Industrial Development Organization
Answer: (a) International Bank for Reconstruction and Development
Explanation
Who administers the International Development Association
The International Development Association (IDA) is a specific lending arm within a larger institutional family.
| Option | Verdict | Reason |
|---|---|---|
| (a) International Bank for Reconstruction and Development (IBRD) | Correct | The IDA, which provides concessional loans/grants to the poorest countries, is administered by the IBRD — together, they form the core of the World Bank Group |
| (b) International Fund for Agricultural Development (IFAD) | Incorrect | IFAD is a separate UN specialized agency, unrelated to the IDA's administration |
| (c) United Nations Development Programme (UNDP) | Incorrect | UNDP is a distinct UN development body, not the IDA's administering institution |
| (d) United Nations Industrial Development Organization (UNIDO) | Incorrect | UNIDO focuses on industrial development, unrelated to IDA's administration |
IDA and the World Bank Group:
| Point | Detail |
|---|---|
| Administered by | IBRD (World Bank) |
| IDA's role | Concessional lending to the world's poorest countries |
| Together | Core components of the World Bank Group |
Answer: (a) International Bank for Reconstruction and Development.
Why each option is right or wrong
- (a) CORRECT. The IDA is administered by the IBRD, together forming the World Bank Group's core.
- (b) Incorrect. IFAD is a separate UN specialized agency, not the IDA's administrator.
- (c) Incorrect. UNDP is a distinct UN development body, unrelated to IDA's administration.
- (d) Incorrect. UNIDO focuses on industrial development, unrelated to the IDA.
Key point
The International Development Association (IDA), which provides concessional financing to the poorest countries, is administered by the IBRD — together forming the core of the World Bank Group.
Remember
International Development Association (IDA): administered by the International Bank for Reconstruction and Development (IBRD).
Common mistakes
- Confusing the IDA's World Bank/IBRD administration with separate UN specialized agencies like IFAD or UNIDO.
- Not knowing the World Bank Group's internal structure (IBRD + IDA + IFC + MIGA + ICSID).
- Mixing up UNDP's broader development mandate with the IDA's specific concessional-lending role.
Exam tip
IDA = World Bank Group's concessional-lending arm, administered by the IBRD. Not IFAD, UNDP, or UNIDO.
Sources
- International Development Association — Articles of Agreement (1960)
- Ministry of Finance, Government of India — India and the World Bank Group institutions