That IDA focuses on areas where it has comparative advantage. In the 12 months to June 30, 2003,

IDA targeted human-development projects in areas like education, health, social safety nets, water

supply and sanitation (44%), infrastructure (26%), and agriculture and rural development (11%).

IDA emphasizes broad-based growth, including

— Sound economic policies, rural development, private business and sustainable environmental

Practices

— Investment in people, in education and health, especially in the struggle against HIV/AIDS,

Malaria and ТВ

— Expansion of borrower capacity to provide basic services and ensure accountability for public

Resources

— Recovery from civil strife, armed conflict and natural disaster, and

— Promotion of trade and regional integration

IDA carries out analytical studies to build the knowledge base that allows intelligent design of

Policies to reduce poverty. IDA also advises governments on ways to broaden the base of economic

Growth and protect the poor from economic shocks.

The one billion children who live in countries that receive funds from IDA are the main beneficiaries

Of IDA-backed investments in basic health, primary education, literacy and clean water. IDA is

Now the single largest source of donor funds for basic social services in the poorest countries.

IDA also coordinates donor assistance to provide relief for poor countries that cannot manage