In the past, IDA has been largely funded by contributions from the governments of its member states (see IDA contributors). Donors meet every three years to increase IDA funds and review their policy framework. The replenishment process usually consists of four formal meetings that take place over the course of a year. In addition to officials from more than 50 donor governments (known as „IDA MPs“), representatives of borrowing Member States are invited to participate to ensure that IDA policies and funding frameworks meet the needs of countries. The strategy documents discussed in the refuelling negotiations will be made available to the public and the draft refuelling agreement will be published on the internet for public notice before the last refuelling meeting. IDA staff also work in collaboration with civil society organizations (CSOs), foundations and think tanks around the world. Developing countries were increasingly frustrated at not being able to afford IBRD loans and saw the Marshall Plan as a relatively generous gift to European nations. In the late 1940s and early 1950s, developing countries began calling on the United Nations to create a development agency that would provide technical assistance and concessional financing, with a particular desire for the Agency to comply with the Convention of other UN bodies in each country that has a voice, not a weighted voice. However, the United States ultimately rejected such proposals. Increasingly concerned about the growth of the Cold War, the United States made a concession in 1954, at the request of its Department of Foreign Affairs, by supporting the design of the International Finance Corporation (IFC).

Despite the introduction of the IFC in 1956, developing countries continued to call for the creation of a new funding mechanism and the idea intensified within the IRD. [11] IBRD President Eugene R. Black, Sr. began spreading the idea of an International Development Association, contrary to the idea of a united Nations-run concessionaire called the Special United Nations Fund for Economic Development (SUNFED). [12] Paul Hoffman, the former administrator of the Marshall Plan, proposed the idea of an interest facility within the World Bank, where the United States would have a casting vote in the granting of such loans. Democratic Senator Mike Monroney of Oklahoma supported the idea. [12] As chairman of the Senate Subcommittee on International Finance, Monroney proposed a resolution recommending a study on the possible creation of an International Development Association to be attached to the I IBRD. [10] Monroney`s proposal was more preferred in the United States than SUNFED. [11] The resolution was passed in 1958 by the Senate and then by the United States.