The International Development Association (IDA), a concessional lending agency for low income countries, is administered by which major international financial institution?

Introduction / Context:
The International Development Association, commonly called IDA, is one of the most important arms of the World Bank Group, because it provides concessional loans and grants to the worlds poorest countries. General knowledge and banking awareness exams frequently test which larger institution administers IDA. This question checks whether the learner knows how multilateral development institutions are structured and how different arms of the World Bank family are related.

Given Data / Assumptions:

We are asked about the International Development Association, IDA.
IDA is described as a lending agency, especially for low income countries.
The question asks which institution administers IDA.
The options include several development related organisations such as IBRD and UN programmes.
We assume the term International Bank for Reconstruction and Development refers to the core World Bank institution.

Concept / Approach:
IDA is part of the World Bank Group. The central lending institution of the World Bank Group is the International Bank for Reconstruction and Development, often simply called the World Bank. Administered by IBRD means that IDA is managed within the same institutional framework, with shared staff and procedures. Therefore, to answer this question, we must recall that IDA is not an independent UN body but a window of the World Bank Group, administered by IBRD. Recognising this structure helps in understanding how funds and policies for development finance are coordinated globally.

Step-by-Step Solution:
Step 1: Recall that the World Bank Group has multiple components, including IBRD, IDA, IFC, MIGA and ICSID. Step 2: Among these, IBRD is the main institution that provides loans to middle income countries, while IDA focuses on very low income countries with concessional terms. Step 3: IDA is administered by the International Bank for Reconstruction and Development, meaning it shares the same management, staff and operational systems. Step 4: International Fund for Agricultural Development, United Nations Development Programme and United Nations Industrial Development Organization are independent UN agencies or funds and do not administer IDA. Step 5: Therefore, the correct answer is International Bank for Reconstruction and Development.

Verification / Alternative check:
A quick verification method is to remember the typical statement used in many standard textbooks on global institutions: IDA is the soft lending window of the World Bank, administered by IBRD. If a choice clearly states International Bank for Reconstruction and Development and other options are separate UN agencies, it confirms that IBRD is the correct answer. Checking multiple exam preparation books or official World Bank descriptions will reinforce this association for long term memory.

Why Other Options Are Wrong:
International Fund for Agricultural Development: This is a specialised UN agency focusing on rural poverty, not the administrator of IDA.
United Nations Development Programme: UNDP coordinates development projects and technical assistance but does not administer IDA.
United Nations Industrial Development Organization: UNIDO works on industrial development, not on administering the World Banks concessional lending arm.

Common Pitfalls:
Many learners confuse various UN funds and the World Bank Group agencies because they all work on development and poverty reduction. A typical mistake is to choose UNDP or IFAD simply because the question mentions development. Another pitfall is not remembering that IDA is structurally linked with IBRD inside the World Bank Group. To avoid these errors, candidates should prepare a simple table of global financial institutions and their main roles, such as IMF for balance of payments issues, IBRD for development loans, and IDA for concessional assistance.

Final Answer:
The International Development Association is administered by the International Bank for Reconstruction and Development.