What qualifies a country for financial aid from IDAA. A per capita income of more than $730.B. A per capita income of less than $410.C. A per capita income of more than ∮2,100.D. A per capita income of less than $730.
All of these considerable sums have gone to the poorest countries on generous terms. No country with a per capita income of more than $730 is eligible for IDA assistance, and in 1980 no less than 80 percent of net disbursements were to countries with per capita incomes of only $410. When incomes are so desperately low, it is not surprising that the terms allow repayment over 50 years without interest.
Nevertheless, as IDA candidly admits, measuring the effectiveness of such aid is difficult. It insists that projects must pay for themselves. In effect, the rate of return must provide the borrowing government with revenue to meet its obligations or else the loan becomes a subsidy.