Lord Oramasked Fier Majesty's Government:
By what formula contributions to the International Development Association are determined; whether the size of the United Kingdom contribution is linked to that of the United States; what reduction in the United States contribution has recently occurred and what effect this reduction has had or will have on the contributions of the five largest contributors to the association's funds.
§ Lord TrefgarneContributions to the periodic replenishments of the International Development Association (IDA) are agreed after negotiation on each occasion. The terms of the most recent replenishment are set out in the IDA 6 Agreement (Cmnd. 7900).
The total size of the United Kingdom contribution is not linked to that of the United States. The full United States contribution (3,240 million US dollars) has been authorised by the United States Congress, but the 1st and 2nd instalments have not yet been appropriated in full. To preserve the principle of burden-sharing, which is basic to the IDA, the agreement provides that in such a situation the IDA's ability to commit the contributions of other members will be restricted pro rata to the phasing of the United States contribution, but the other members have agreed to waive this requirement in respect of the first instalment, which was covered by the "bridging" arrangements. For the current year (to 30th June 1982) the United States is contributing 700 million dollars instead of 1,080 million dollars and the availability to the IDA of contributions made by most other members, including the five largest, will be limited in proportion; total contributions available for the year will thus be about 2.6 billion dollars instead of 4.1 billion dollars. To offset this reduction some 800 million dollars additional lending on 259WA the International Bank for Reconstruction and Development terms will be made available to IDA borrowers which are sufficiently creditworthy.