World Banks Fight against Extreme Poverty Gets Record Support

Stocks and Financial Services Press Releases Wednesday December 18, 2013 08:46
MOSCOW--18 Dec--World Bank
$52 Billion for IDA, the World Bank’s Fund for the Poorest

MOSCOW, December 17, 2013 – Despite tough economic times, a global coalition of developed and developing countries today pledged to accelerate the fight to end extreme poverty by committing a record $52 billion in financing over the next three years for the World Bank’s fund for the poorest, the International Development Association (IDA).

“This is a success for the global community,” said World Bank Group President Jim Yong Kim. “We are deeply appreciative of the extraordinary efforts made by countries, many of which are facing their own economic challenges, to stretch to help the poorest. We are committed to making the most of every scarce development dollar to create new opportunities and bring about transformational change in the lives of poor people.”

The coalition agreed that increased funding was needed to tackle the toughest issues in fragile and conflict-affected states to help those countries tip the balance toward stability. This IDA replenishment will see an increased focus on the most challenging frontier areas, greater private sector mobilization, and stronger, more targeted investments in climate change and gender equality, as key to shaping the future. A strong commitment to more equitable growth underpins these efforts.

IDA is the World Bank’s main instrument for achieving the goals of ending extreme poverty and boosting shared prosperity in the world’s poorest countries–home to nearly one billion people living on less than $1.25 per day. The funding will allow IDA to deliver customized and innovative solutions to help the poorest countries address their most pressing development challenges.

In line with the IDA17 overarching theme of maximizing development impact, this financing is expected to provide, for example, electricity for an estimated 15-20 million people, life-saving vaccines for 200 million children, microfinance loans for more than 1 million women, and basic health services for 65 million people. Some 32 million people will benefit from access to clean water and another 5.6 million from better sanitation facilities.

IDA17, which runs from July 1, 2014 to June 30, 2017, will span the target date for the MDGs and the launch of the post-2015 agenda—a pivotal crossroad in the global effort to end extreme poverty.

“We have a unique opportunity to harness a changing global economy to help the poorest countries get on a path to sustainable, inclusive growth, lift millions from poverty, and increasingly fund their own development,” said Sri Mulyani Indrawati, World Bank Group Managing Director and Chair of the IDA17 negotiations. “Investing in the future of the poorest countries is an investment in the future prosperity and security of all countries.”

A total of 46 countries pledged to IDA, and the World Bank Group is continuing the tradition of contributing its own resources to IDA. IBRD and IFC are providing close to $3 billion to IDA over the next three years.

While grant contributions remain at the core of IDA’s financing framework, IDA17 is using Concessional Partner Loans as a way for countries to increase their contributions—in recognition of the exceptional circumstances of the current fiscal environment amid strong demand for resources.

“IDA is a unique partnership of developed and developing countries that share a commitment to invest in a better future for the world’s poor and for the global good,” said Joachim Von Amsberg, World Bank Vice President for Concessional Finance and Global Partnerships. “At a time of ongoing economic difficulty, this outcome is a testament to the spirit of global solidarity that underpins IDA.”

The International Development Association, IDA, is the World Bank’s fund for the poorest countries. One of the world’s largest sources of aid, IDA provides zero- to low-interest credits and grants for investments in health and education, infrastructure and agriculture, and economic and institutional development to the least developed countries—40 of them in Africa. These countries are home to 2.5 billion people, 1 billion of whom live in extreme poverty, surviving on $1.25 a day or less. Since its inception, IDA has supported activities in 108 countries. Annual commitments have increased steadily and averaged about $16 billion over the last three years, with about 50 percent of that going to Africa. Funding for the fiscal year ending on June 30, 2013, enabled more than 160 new operations.

Latest Press Release

Gavin Bambury named OANDA(R) CEO

A global leader in online multi-asset trading services and currency data and analytics, OANDA Global Corporation is pleased to announce the appointment of industry leader Gavin Bambury as Chief Executive Officer, effective Monday 26 August 2019. Based in...

Thailand Focus 2019 showcases new governments policies to reinforce confidence

The Stock Exchange of Thailand (SET) will hold the annual flagship inbound roadshow "Thailand Focus 2019: Embracing Opportunities - The Next Chapter", during August 28 – 30, 2019 in Bangkok, marking the first conference for the new government to...

SCB joins with Intelspire to help SMEs increase people management efficiency with Timemint, an advanced digital platform powered by SCB Payroll

Siam Commercial Bank (SCB) continues to expand its digital partnerships to help increase efficiency. Recently, the bank joined hands with Intelspire Co., Ltd., a Thai startup and developer of the Timemint Application, a digital platform used for people...

TMB Appoints New Chief Retail Banking Officer (CRBO)

TMB has appointed Mrs. Marie Ramlie as Chief Retail Banking Officer, effective from August 1, 2019. Marie succeeds Roel Huisman who has completed his tenure with TMB on July 31, 2019. Marie has joined TMB as Head of Retail Products since 2013. She was...

Bankruptcy Court dismisses rehab petition against GL, removes automatic stay, and finds GL is not insolvent

The Central Bankruptcy Court has dismissed the rehabilitation petition submitted by JTA against GL as the Court ruled that GL is not insolvent and that JTA's claims have not proven to be true Previously, on August 15, the Central Bankruptcy Court for the...

Related Topics