World Bank Secures $100 Billion Support for the World’s Poorest Countries

The World Bank announced on Thursday that it has secured nearly $24 billion to provide loans and grants to some of the world’s poorest nations. This funding will be leveraged to generate a total of $100 billion in spending power. Donor countries have pledged $23.7 billion to replenish the bank’s concessional lending arm, the International Development Association (IDA). This represents a slight increase from the $23.5 billion pledged in the previous fundraising round three years ago. The World Bank can use this money to borrow from financial markets, allowing it to quadruple the amount, thus unlocking $100 billion in new loans and grants, an increase from $93 billion in 2021. World Bank President Ajay Banga emphasized that this funding will support 78 countries most in need, helping to invest in sectors like health, education, infrastructure, and climate resilience, as well as stabilize economies and create jobs. This announcement follows two days of discussions in Seoul, South Korea. IDA has become the largest source of concessional climate finance, with around two-thirds of its funding in the past decade directed toward African countries. The replenishment, which occurs every three years, is largely funded by the United States, Japan, and European countries, including the UK, Germany, and France. This year, the United States committed a record $4 billion to the IDA, with other countries such as Norway and Spain also increasing their contributions. Over the past decades, 35 former IDA recipients, including China, Turkey, and South Korea, have transitioned into developing economies and are now contributors to the fund.