The World Bank has announced it raised nearly $24 billion to support some of the world’s poorest countries, leveraging this amount to generate an unprecedented $100 billion in total spending capacity. This funding, part of the International Development Association (IDA), marks an increase from the $23.5 billion pledged three years ago, according to a spokesperson.
By borrowing on financial markets, the Bank multiplies the funds by four, unlocking $100 billion for new loans and grants, surpassing the $93 billion mobilized in 2021. “We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” the World Bank noted.
This funding will benefit 78 eligible nations, aiding investments in key sectors like health, education, infrastructure, and climate resilience, said World Bank President Ajay Banga. He emphasized its role in stabilizing economies and creating jobs.
The announcement follows discussions in Seoul, South Korea, where political tensions remain high after President Yoon Suk Yeol’s recent declaration of martial law, which was later rescinded under legislative pressure.
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IDA has been instrumental in providing concessional climate finance, with two-thirds of its funding in the past decade allocated to African nations. Contributions to the IDA replenishment cycle, held every three years, primarily come from the U.S., Japan, and European countries.
This year, the U.S. pledged a record $4 billion, while nations like Norway and Spain also significantly increased contributions. Former IDA beneficiaries, including South Korea and China, now participate as donors, reflecting their economic progress.
