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The support rendered by the wealthier nations to the poor nations to finance their development. As such, it is a crucial component and the largest source of development assistance to the poor countries. The World Bank's International Development Association (IDA), which was established in 1960, provides interest-free (concessional) loans and grants to poorer nations to alleviate the level of poverty by enhancing economic growth, reducing inequalities, and improving living conditions. It also provides relief to countries that are in severe debt and in financial trouble. Repayments are stretched over 35 to 40 years, including a 10-year grace period.
The United Nations (UN) encourages relatively wealthier countries to provide a percentage of their gross national income (approximately less than 1%) in the form of international assistance or ...