World Bank Secures Record $100 Billion for Poorest Nations

The World Bank has announced a landmark $100 billion replenishment for its International Development Association (IDA), the fund dedicated to aiding the world’s poorest countries. The news came early Friday at a pledging conference held in Seoul, South Korea.

Record Funding Amid Global Challenges

The IDA provides grants and low-interest loans to 78 low-income countries, addressing challenges such as debt, climate disasters, inflation, and conflict. The $100 billion total surpasses the $93 billion pledged in 2021 and is set to be utilized through mid-2028.

Donor countries contributed $24 billion directly—up slightly from $23.5 billion in 2021—with additional funds raised through bonds and financial leveraging to meet the $100 billion target.

Contributions and Currency Challenges

While the total fell short of the $120 billion requested by African leaders, several nations increased their pledges significantly:

• Norway: 50% increase to 5.024 billion krone ($455 million).
• South Korea: 45% increase to 846 billion won ($597 million).
• Britain: 40% increase to 1.8 billion pounds.
• Spain: 37% increase to 400 million euros ($423 million).

The strength of the U.S. dollar, attributed to Donald Trump’s election victory, reduced the dollar value of some foreign currency contributions, dampening the overall total.

U.S. Commitment and Global Support

U.S. President Joe Biden pledged a record $4 billion, up from $3.5 billion in 2021. The World Bank also revealed that 17 donor nations increased their contributions by over 25%, with 10 boosting pledges by 40% or more.

Leveraging Funds for Greater Impact

World Bank President Ajay Banga highlighted the institution’s efforts to optimize its balance sheet, increasing lending capacity by $150 billion over 10 years. He emphasized that IDA funds will focus on job creation alongside addressing climate change and other crises.

“In this context, IDA is not just a financial instrument; it is a catalyst for job creation,” Banga stated. He noted the funds will support infrastructure development, education, healthcare, and private sector growth.

About 35 countries, including China, South Korea, and Chile, have transitioned from IDA recipients to donors, underscoring the program’s long-term impact.: