By Ron Chen, Bureau Chief, Asia
The World Bank Group December 6, unveiled a record US$100 billion replenishment of the International Development Association (IDA), marking a significant moment for global development. Alongside this record-breaking financing, the World Bank is introducing a simpler, faster, and more agile IDA, reducing policy commitments and metrics by half, giving clients more freedom to prioritize and shape their development.
The announcement concludes a year-long replenishment effort, celebrated in an open letter from World Bank President Ajay Banga to donors, clients, stakeholders, and partners. The letter outlines a vision for leveraging these enhanced resources to drive transformative outcomes.
Key Highlights:
Record Financing: A total of US$23.7 billion was pledged in IDA21; resulting in US$100 billion in financing after leveraging.
Donor Leadership: 17 donors increased their contributions by more than 25 per cent in national currency, with 10 donors raising their commitments by 40 per cent or more.
Streamlined Operations: IDA21 significantly reduced policy requirements and eliminated duplicative metrics, cutting the previous number in half from 1,100 to 500.
Broad Participation: 59 countries made financial commitments to IDA21.
Global Impact: Funding will support 78 countries, enabling investments in health, education, infrastructure, and climate resilience while stabilizing economies, creating jobs, and laying the foundation for long-term prosperity.
The record IDA replenishment demonstrates the global community’s unwavering dedication to addressing poverty and fostering resilience in low-income countries. It underscores the World Bank Group’s commitment to delivering solutions that create opportunities and improve lives for millions worldwide.
