This research is conducted to explain the effect of IDA and IBRD loans on HDI given political risk and bank lending factors. In order to reach his objective, the researcher analyzed data for 22 developing countries that is available on Euromoney 94 and World bank 93 annual report. The developing countries are divided into four categories as follows: The Latin American countries category is composed of Bolivia Honduras, Paraguay, El Selvador, Costa Rica, Dominican Republic and Ecuador. It is characterized by having the highest HDI94 average score amounting to 0.64 compared to an average score ...