The World Bank has unveiled a record $100 billion support package for the world’s poorest nations, following two days of discussions in Seoul. The funding, aimed at bolstering health, education, infrastructure, and climate resilience, will target 78 developing countries, with a particular focus on Africa.
This milestone was achieved by leveraging $23.7 billion in contributions pledged by donor nations, including the United States, Japan, and European countries like the UK, Germany, and France. By borrowing against these funds in financial markets, the World Bank increases its spending power nearly fourfold, surpassing the $93 billion allocated during the last replenishment three years ago.
“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” said World Bank President Ajay Banga, emphasizing the funding’s critical role in stabilizing economies, creating jobs, and addressing climate challenges.
The International Development Association (IDA), the Bank’s concessional lending arm, has emerged as the largest source of affordable climate finance, with two-thirds of its funds over the past decade directed to Africa. The United States led this year’s pledges with a record $4 billion contribution, while countries like Norway and Spain significantly increased their support.
The IDA’s triennial replenishment, known as IDA21, reflects its ongoing mission to assist vulnerable nations. Thirty-five countries, including South Korea and Turkey, have successfully transitioned from IDA assistance to donor status, illustrating the program’s long-term impact.
This funding comes amidst global economic uncertainties and shows the critical need for robust international cooperation to support development in the most fragile economies.
