$23.5 billion in donor contributions to IDA, the World Bank’s fund for the poor
WASHINGTON, December 15, 2021 – The World Bank today announced a $93 billion International Development Association (IDA) replenishment program to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient and inclusive future. The funding brings together $23.5 billion in contributions from 48 high- and middle-income countries with funding raised from capital markets, repayments and the World Bank’s own contributions.
The financing package, agreed at a two-day meeting hosted virtually by Japan, is the largest ever mobilized in IDA’s 61-year history. IDA’s unique leverage model enables it to get greater value from donor resources – every dollar donors give to IDA is now transformed into nearly $4 in financial assistance to the poorest countries .
“The generous commitment of our partners today is a crucial step in supporting poor countries in their efforts to recover from the COVID-19 crisis,” said World Bank Group President David Malpass. “We are grateful for the trust that our partners place in IDA as an unfragmented and effective platform to address development challenges and improve the lives of millions of people around the world.
The funds will be disbursed to the world’s 74 poorest countries under the 20th replenishment program (IDA20), which aims to help countries recover from the effects of the COVID-19 crisis. In these countries, the ongoing pandemic is deepening poverty, undermining growth and undermining prospects for resilient and inclusive development. Countries are grappling with declining government revenues; increasing debt vulnerabilities; the growing risks of fragility, conflict and instability; and declining literacy rates. About a third of IDA countries face an impending food crisis.
To help countries build back greener, a substantial portion of these funds are dedicated to tackling climate change, with a focus on helping countries adapt to increasing climate impacts and preserve the biodiversity. IDA will also strengthen its support to countries to better prepare for future crises, including pandemics, financial shocks, and natural hazards. While IDA20 will support countries around the world, the resources are increasingly flowing to Africa, which will receive around 70% of the funding.
Through this robust program, IDA will be able to scale up its support in the pandemic and address health challenges, helping 400 million people receive essential health and nutrition resources. The social safety net program is also expected to reach up to 375 million people.
The IDA20 program has more ambitious policy commitments that will help countries prioritize investments in human capital, covering issues such as education, health and nutrition, vaccines, safety nets and support for people with disabilities. . IDA will also increase its ambition to address other major development challenges such as gender inequality, job creation, and situations of fragility, conflict, and violence, including in the Sahel, Lake Chad and the Horn of Africa. A continued focus on governance and institutions, debt sustainability, and digital infrastructure interventions will help foster economic and social inclusion.
Due to the urgent development needs of IDA countries, the replenishment was brought forward by one year. IDA20 will cover the period from July 1, 2022 to June 30, 2025. The IDA20 policy architecture builds on the solid foundations of IDA19, with improvements to make IDA20 even more ambitious and relevant to today’s challenges.
Key IDA19 achievements for IDA20 include:
Strong response to COVID-19 with nearly 70 countries benefiting from IDA financing for vaccines, training of health professionals and hospital equipment.
More than 60% of climate finance, in fiscal year 2021 alone, focused on adaptation and resilience; IDA has helped 62 countries institutionalize disaster risk reduction plans.
Greater debt transparency through the Sustainable Development Financing Policy introduced in IDA19, with 19 countries publishing annual and ad-hoc debt reports in fiscal year 2021.
The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and loans at low or no interest rates for projects and programs that stimulate economic growth, reduce poverty and improve the lives of the poor. IDA is one of the largest sources of aid to the world’s 74 poorest countries, 39 of them in Africa. The rest are in other regions: 14 in East Asia; 6 in South Asia; 4 in Europe and Central Asia; 8 in Latin America and the Caribbean; and 3 in the Middle East and North Africa. IDA resources bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $458 billion to 114 countries. Annual commitments averaged around $29 billion over the last three years (FY19-FY21), of which around 70% went to Africa. Find out more online: IDA.worldbank.org and #IDAworks
World Bank Group Response to COVID-19
Since the start of the COVID-19 pandemic, the World Bank Group has deployed more than $157 billion to address the health, economic, and social impacts of the pandemic, the fastest and most effective crisis response. important in its history. The funding is helping more than 100 countries strengthen their pandemic preparedness, protect the poor and jobs, and kick-start a climate-friendly recovery. The Bank is also supporting more than 50 low- and middle-income countries, more than half of which are in Africa, with the procurement and deployment of COVID-19 vaccines, and is making available $20 billion in financing for this purpose. until the end of 2022.
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PRESS RELEASE No.: 2022/033/DFI