The World Bank has announced a 93 billion US dollars replenishment package of the International Development Association to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient, and inclusive future.
The financing brings together contributions worth 23.5 billion USD from 48 high and middle-income countries with financing raised in the capital markets, repayments, and the World Bank’s own contributions.
The financing package agreed to over a two-day meeting hosted virtually by Japan is the largest ever mobilized in IDA’s 61 years history, according to a statement issued by the World Bank Group.
“Today’s generous commitment by our partners is a critical step towards supporting the poor countries in their efforts to recover from the COVID-19 crisis,” said World Bank Group President David Malpass. “We are grateful for the confidence our partners have in IDA as a non-fragmented and efficient platform to tackle development challenges and improve the lives of millions of people around the world.”
The funds will be delivered to the world’s 74 poorest countries under the 20th replenishment (IDA20) program, which focuses on helping the countries recover from the impacts of the COVID-19 crisis.
In these countries, the ongoing pandemic is worsening poverty, undermining growth, and jeopardizing the prospects of a resilient and inclusive development. The countries are struggling with declining government revenues, increasing debt vulnerabilities, rising risks to fragility, conflict, and instability, and dropping literacy rates.
A substantial portion of these funds go to tackling climate change, with the focus on helping the countries adapt to the rising impacts of climate change and to preserve biodiversity.
Established in 1960, the World Bank’s International Development Association helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve the lives of poor people.