KATMANDU, DECEMBER 16
The World Bank today announced a $ 93 billion International Development Association replenishment plan to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient future and more inclusive.
The funding brings together contributions valued at US $ 23.5 billion from 48 high and middle income countries with funding raised in capital markets, repayments and the World Bank’s own contributions.
The financial package agreed upon during a two-day meeting virtually hosted by Japan is the largest ever mobilized in IDA’s 61-year history, according to a statement released by the World Bank Group. âThe generous engagement of our partners today is a crucial step in supporting poor countries in their efforts to recover from the COVID-19 crisis,â said World Bank Group President David Malpass. âWe are grateful for the trust our partners place in IDA as an unfragmented and effective platform to address development challenges and improve the lives of millions of people around the world.
The funds will be distributed to the 74 poorest countries in the world under the 20th Replenishment Program (IDA20), which aims to help countries recover from the impacts of the COVID-ID-19 crisis.
In these countries, the ongoing pandemic is exacerbating poverty, compromising growth and jeopardizing prospects for resilient and inclusive development. Countries are grappling with declining public revenues, growing debt vulnerability, growing risks of fragility, conflict and instability, and declining literacy rates. A substantial part of these funds is devoted to the fight against climate change, with an emphasis on helping countries to adapt to the increasing impacts of climate change and to preserve biodiversity.
Established in 1960, the World Bank’s International Development Association assists the world’s poorest countries by providing grants and loans at low or zero interest rates for projects and programs that stimulate economic growth, reduce poverty and improve the lives of the poor.
A version of this article appears in the December 17, 2021 print version of The Himalayan Times.