The Republic of Korea has announced a significant increase in its contribution to the World Bank’s International Development Association (IDA) during the G20 Summit in Rio de Janeiro. Korea's commitment for IDA21 will rise by 45%, amounting to KRW 846 billion, compared to its previous contribution of KRW 585 billion for IDA20.
"Drawing from Korea’s experience of transforming from poverty and hunger into a major economy, Korea will actively contribute to global efforts to overcome the challenges," stated Yoon Suk Yeol, President of the Republic of Korea. He emphasized Korea's support for IDA's role in aiding low-income countries toward sustainable development and resilience against global challenges.
The IDA serves as the World Bank's fund dedicated to 78 low-income countries, providing them with multilateral development finance. It offers concessional financing for projects aimed at promoting economic growth and improving living conditions. Korea, having graduated from IDA in 1973, has been contributing as a donor since 1977. The increased pledge comes amidst ongoing global crises affecting low-income nations disproportionately.
In addition to this pledge, Korea will host the final IDA21 replenishment meeting in Seoul on December 5-6, 2024. This event will allow donor countries to finalize their contributions and discuss future strategic directions for IDA's financing framework. High-level representatives from various nations and international organizations are expected to attend.
"Korea's journey from an IDA recipient to a leading donor is a compelling testament to progress, resilience, and global leadership," said Ajay Banga, President of the World Bank Group. He noted that Korea’s commitment underscores the impact of IDA in driving development across digital sectors, health services, skills training, infrastructure growth, job creation, and sustained prosperity.
IDA supports numerous development activities such as digital advancement, climate adaptation initiatives, primary education enhancement, basic health services provision, gender equality promotion, clean water access improvement, agriculture development support, infrastructure building efforts, and sustainable debt management practices.
For media inquiries:
In Washington: Meriem Gray at mgray@worlbank.org or +1202-294-9606
In Sejong: Kwangsun Ahn at m14m14@korea.kr or +82-44-215-8713
More information can be found at https://ida.worldbank.org/en/replenishments/road-to-IDA21
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