James M. Jeffords: “today I voice my support for meeting U.S. commitments to the International Development Association [IDA] by fully…”

“today I voice my support for meeting U.S. commitments to the International Development Association [IDA] by fully funding replenishment to IDA-10 and IDA-11. The International Development Association was established in 1960 to lend to the poorest and least creditworthy developing countries on confessional terms. Only countries with a per capita income below $905 with limited or no ability to borrow on market terms and a record of using IDA resources effectively are eligible. Currently, 79 counties meet IDA's loan criteria--55 percent of the world's population. Twenty countries have graduated from IDA. Very notably, three of these graduate countries--Botswana, Korea, and Turkey--are now IDA donors. This is a solid rate of success. IDA provides development assistance to poor countries through loans, rather than grants. Loans must be repaid in full. IDA funds come largely from contributions of 35 donor countries negotiated in general replenishment. Increasingly, repayments of past IDA loans are supplementing IDA income. As a result, the U.S. share of contributions to IDA has decreased by 20 percent since it was established in 1960. The administration's request of $1.035 billion for IDA is divided into two parts: $235 million to meet U.S. payments to IDA's 10th replenishment and $800 million for the first of two U.S. payments for IDA-11. The subcommittee recommends $950 million in funding for IDA for fiscal year 1998. This would fully fund the first U.S.…”