Developing and Industrial Countries

In general, the term developing refers to countries whose economies are classified as low income or middle income. The terms industrial or developed refer to countries whose economies are high income. The use of these terms is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development.

I and Part II Countries

In IDA, countries choose whether they are Part I or Part II primarily on the basis of their economic standing. Part I countries are almost all industrial countries and donors to IDA, and they pay their contributions in freely convertible currency. Part II countries are almost all developing countries, some of which are donors to IDA. Part II countries are entitled to pay most of their contributions to IDA in local currency.

MIGA makes a similar distinction between Category I and Category II member countries. The breakdown of countries into these categories differs slightly from the breakdown within IDA.

Donors and Borrowers

In general, the term donor refers to a country that makes contributions specifically to IDA. In contrast, the term borrower refers to a country that borrows from IDA or IBRD or both. However, all member countries pay capital subscriptions, and this payment is distinct from a given country's lending and borrowing.

IBRD, IDA, and Blend Countries and Graduates

The distinctions between IBRD and IDA borrowers— and the circumstances in which a country may be eligible to receive a blend of IBRD loans and IDA credits and grants—are based on per capita income and the country's creditworthiness. Note that as a country's per capita income increases, it can graduate out of eligibility for IDA credits and grants and, in turn, become eligible for IBRD loans. Wealthier countries remain members of Bank Group organizations, however, even if they or the enterprises operating within their borders do not draw on Bank Group services.

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