World Bank Secures Record $100 Billion for Poorest Nations
The World Bank has announced a record-breaking $100 billion funding package for the world’s poorest nations, Al Jazeera reports, citing AFP.
The funding, secured through a replenishment of the International Development Association (IDA), the Bank’s concessional lending arm, will be deployed as loans and grants to 78 eligible developing countries.
Donor countries pledged $23.7 billion to the IDA, a slight increase from the previous $23.5 billion pledge three years ago. This sum, however, will be leveraged through borrowing on financial markets, quadrupling its impact to the unprecedented $100 billion total. This surpasses the $93 billion generated in the 2021 funding round.
The World Bank hailed the replenishment as a “vote of confidence” from both donors and recipient countries. World Bank President Ajay Banga stated that the funds will be crucial in supporting investment in vital areas such as health, education, infrastructure, and climate resilience. The funding will also aid in economic stabilization and job creation.
The announcement comes on the heels of a two-day meeting in Seoul, a city that recently experienced heightened political tension following President Yoon Suk-yeol’s brief declaration of martial law before retracting the order.
The IDA has emerged as the largest single source of concessional (below-market) climate finance globally. Over the past decade, around two-thirds of IDA funding has been allocated to African nations. The replenishment, which occurs every three years, relies heavily on contributions from major donors, including the United States, Japan, the United Kingdom and France.
This year witnessed record contributions, with the US committing a record $4 billion, and other countries, such as Norway and Spain, also increasing their support significantly. The World Bank noted that 35 former recipients of IDA assistance have since graduated from developing economy status, including China, Turkey, and South Korea—many of which now contribute to the fund.
