Bartosz Hadyniak/Getty Images

Time for India to Stretch its Wings

The World Bank's International Development Association program supports 77 of the poorest countries in the world – half of which are in Africa. But 20% of its resources go to a single country, which no longer needs it: India.

WASHINGTON, DC – Imagine you are a parent with a large number of children and limited resources. Your oldest child is mature enough to move out of your home, but he does not want to. So he stays, consuming resources that his siblings desperately need. Is it right to allow your other children to suffer because their big brother is reluctant to strike out on his own?

A similar dynamic is playing out between the World Bank and the recipients of its International Development Association program. IDA supports equitable growth in poor countries by providing low-interest, long-term loans and grants to national governments. The program supports 77 of the poorest countries in the world – half of which are in Africa. It also provides assistance to one country that no longer deserves it: India.

At the end of the 2014 fiscal year, India officially graduated from the IDA program, because it was no longer poor enough to qualify. The World Bank sets a threshold for receiving assistance, based on per capita gross national income (GNI). In the fiscal year 2016, the threshold is $1,215. India’s per capita GNI has exceeded the World Bank’s limit each year since 2010. In 2014, it was $1,570.

To continue reading, please log in or enter your email address.

To access our archive, please log in or register now and read two articles from our archive every month for free. For unlimited access to our archive, as well as to the unrivaled analysis of PS On Point, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/k4PuYjo;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.