The World Bank announces a record support of 100 billion for the world’s poorest countries | Poverty and Development

The international development agency says the sum will be used to support 78 countries ‘in greatest need’.

The World Bank has announced that it has raised nearly $24bn in loans and grants to some of the world’s poorest countries, which it can use to generate a record $100bn of total spending power.

Donor countries have pledged $23.7bn to repay the lending bank, known as the International Development Association (IDA), a World Bank spokesperson told AFP news agency, marking a slight increase from the roughly $23.5bn pledged during the last three years. ago.

The bank could use the money to borrow from the capital markets, allowing it to use up almost four times as much, unlocking around $100bn in new loans and grants, up from $93bn by 2021.

“We believe that the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” reads the World Bank’s statement, referring to the current round of IDA funding.

“This funding will be used to support the 78 countries that need it most,” World Bank President Ajay Banga said in a separate statement, addressing developing countries that are eligible for IDA support.

He added, it will help provide “resources to invest in health, education, infrastructure, and climate resilience,” as well as help stabilize the economy and create jobs.

The World Bank’s announcement follows two days of talks in the South Korean capital, Seoul, with the city reeling after President Yoon Suk-yeol declared martial law on Tuesday local time, before backing down under pressure from lawmakers.

IDA has become the single largest source of climate, or sub-market, funding, and nearly two-thirds of all IDA funding over the past decade has gone to African countries, according to the World Bank, an international development agency. in 187 countries.

Replenishment of the IDA is an important part of the bank’s operations, and it happens once every three years, most of the funding comes from the United States, Japan and several European countries including the United Kingdom, Germany and France.

This year, the US announced early that it would contribute a record $4bn in new IDA funding, while other countries – including Norway and Spain – have also significantly stepped up their financial support.

Thirty-five former recipients of IDA aid have graduated to economic development in recent decades, including China, Turkey and South Korea, many of whom are now donors to the fund.