The ARM family is big, but most ARMs are modern CPU. They don't need special software. You can run Linux on them and use regular software. For very low power ARM, like 50mhz, there is ucLinux+busybox, for more powerfull, 150mhz+, just run that standard Linux. It all depend on the cpu and memory available. You can use QEMU as an emulator to test your code, gcc to compile it.
Unless you are really talking about ARM for PIC/Atmega/TI_MSP430 like purpose (switching data pin voltage on an off from the code), you can use any IDE, like KDevelop, Code::Block or just vim/emacs. The debugger capability will depend on the dev board you use.
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