Development assistance is distributed through several means, including development banks, government and international agencies, and non-governmental organizations.
As described in the Issue in Depth on the World Bank, the bank established in 1945, aims to foster development by providing low-interest loans, interest-free credit, and grants. In 2011, the World Bank provided $57.3 billion in grants and loans to middle- and low-income nations. Africa received $7.1 billion, while South Asia borrowed $10.1 billion. The figure below displays these numbers; Latin American and Caribbean’s loans represent the largest fraction of the total aid provided by the World Bank (The World Bank 2011).
In addition to the World Bank, there are also a number of major regional development banks similarly dedicated to providing low-interest financing for development projects. These banks have considerable expertise in understanding and reacting to the special needs and conditions of the regions which they operate. Prominent examples of regional development banks are the Inter-American Development Bank (IADB), the Asian Development Bank, and the African Development Bank.
In 2011, the IADB approved $10.4 billion in loans (Inter-American Development Bank 2011). The Asian Development Bank’s operations totaled $14,02 billion ,$12.6 billion of which were loans. Also in 2011, the African Development Bank gave $5.72 billion in development assistance. Examples of its work include funding the development of credit institutions in Mongolia for the rural poor, primary school education in the Dominican Republic, and road construction in Malawi (African Development Bank Group 2011).
For more information on the World Bank, refer to The IMF and the World Bank Issue in Depth.
United Nations Development Program
The United Nations Development Program (UNDP) is the agency of the United Nations that directs development policy in member nations. It specifically...