Aid- Arithmetic of IDA Credit Cuts

WHETHER or not the recent visit of the World Bank President A W Clausen had anything to do with the impending reduction in IDA credits to India, there clearly is need to understand the arithmetic of the reduction before one forms one's judgment on its implications for economic policy now and in the future, Total World Bank assistance to India till the end of June 1981 was $ 12.8 billion, of which as much as $ 9.6 billion was in the form of IDA credits. For the year 1980-81, IDA credits amounted to a little over $ I billion out of a total of $ 1.4 billion.