The World Bank Group has announced a historic $100 billion replenishment for the International Development Association (IDA), highlighting a crucial step in global development efforts. This substantial financing comes with changes aimed at making IDA operations more efficient and flexible by reducing policy commitments and metrics by half, allowing clients to better focus on their development priorities.
World Bank President Ajay Banga marked the end of a year-long replenishment effort with an open letter to donors, clients, stakeholders, and partners. The letter presents a vision for utilizing these enhanced resources to achieve transformative results.
Key aspects of the announcement include:
- A total pledge of $23.7 billion in IDA21, which will translate into $100 billion after leveraging.
- Increased contributions from 17 donors by over 25% in national currency, with 10 donors increasing their commitments by 40% or more.
- Streamlined operations in IDA21, cutting policy requirements and duplicative metrics from 1,100 to 500.
- Financial commitments from 59 countries supporting IDA21.
- The funding will assist 78 countries with investments in health, education, infrastructure, and climate resilience.
This record IDA replenishment emphasizes the global community's dedication to tackling poverty and building resilience in low-income nations. It highlights the World Bank Group's commitment to creating opportunities and improving lives worldwide.
IDA is the World Bank's fund for low-income countries, providing concessional financing for projects that enhance economic growth and resilience. Since its inception in 1960, IDA has provided $533 billion to 115 countries.