The World Bank has raised $24 billion through its International Development Association (IDA), enabling a record $100 billion in spending power to assist 78 of the world’s poorest nations. This marks a significant increase from the $93 billion raised during the previous funding round in 2021.
Donor nations, including the United States, Japan, the UK, Germany, and France, played a pivotal role in the replenishment. The United States alone pledged a record $4 billion, while countries like Norway and Spain also significantly increased their contributions.
World Bank President Ajay Banga emphasized the critical role of these funds in fostering global development. He noted that the aid would support investments in health, education, infrastructure, and climate resilience while stabilizing economies and creating jobs.
“This funding will be deployed to support the 78 countries that need it most,” Banga stated, highlighting IDA’s importance as the largest source of concessional climate finance. Approximately two-thirds of IDA’s funding over the past decade has been directed to African nations.
The IDA21 replenishment leverages donor contributions nearly fourfold by borrowing on financial markets. This innovative approach unlocks substantial resources for developmental projects in eligible nations.
The replenishment discussions in Seoul, South Korea, underscored the IDA’s long-term impact. Since its inception, IDA has enabled 35 former recipients—including China, Turkey, and South Korea to graduate from developing status to become contributors to the fund.
Also this year’s replenishment demonstrates global confidence in IDA’s mission to combat poverty, advance education, and address climate challenges in the world’s most vulnerable regions.
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