The World Bank announced Thursday that the International Development Association (IDA) would release a record $100 billion in financing for the poorest countries on the planet. This announcement comes at the end of a year-long fundraising process which raised $23.7 billion, a World Bank spokesperson told AFP. This represents a slight increase from the $23.5 billion pledged by donor countries in the last fundraising round three years ago.
The World Bank can use this money to borrow on financial markets, allowing it to approximately quadruple the amount raised, thereby unlocking some $100 billion in new loans and grants, compared to $93 billion in 2021. “This financing will be deployed to support the 78 countries that need it most,” said Ajay Banga, president of the institution in a press release.
The World Bank’s International Development Association helps the world’s 78 poorest countries, including countries in Africa, by providing grants and low- or no-interest loans. It has always been mainly financed by contributions from member states. Donors meet every three years to replenish its resources.
Historic success
This latest fundraising was described in a press release as a “historic success” by the World Bank, which sees it as a “vote of confidence and support from donors and clients”. The IDA replenishment is a crucial part of the World Bank’s operations, with the majority of financing typically coming from the United States, Japan and several European countries, including the United Kingdom, Germany and the France.
This year, the United States announced it was providing a record $4 billion in IDA funding, while other countries, including Norway and Spain, significantly increased their financial support.
And among the 35 countries formerly recipients of IDA aid, such as China, Turkey and South Korea, many are now “generous donors” to the fund, the world bank points out on its site. The funds are intended to finance projects and programs that stimulate economic growth, reduce poverty and improve the lives of poor people in various areas, such as access to education, health and adaptation to climate change. .
