This support will be delivered through the World Bank’s International Development Association (IDA) over the next three years, starting in July.
This is IDA’s twentieth replenishment and by far the largest in its 61-year history. So,
First, IDA has a unique financing model. With impressive solidarity at a time of immense global needs, a broad coalition of high-income and middle-income countries from across the globe pledged $23.5 billion. IDA uses a unique leveraging model that combines these donor pledges with funds it raises in the capital markets, along with repayments, and the World Bank Group’s own resources. This means that
Second, IDA provides comprehensive support at scale. Over time, IDA has consistently been a stellar custodian of taxpayer money. It delivers flexible concessional resources for the 74 poorest countries, with a focus on reaching as many people as possible and delivering impact for the poor and vulnerable. For example, IDA’s programs in the next three years are expected to provide nearly 400 million more people with essential health, nutrition, and population services – while an additional 300 million will get access to social safety net programs.
As part of each replenishment, borrower and donor countries take a fresh look at where IDA is making a difference and discuss how it can do more. For IDA20, this includes ambitious policy commitments in areas ranging from health and education to job creation, digital infrastructure, gender equality, and support for people with disabilities. IDA will also intensify support in places that face fragility and conflict, and those that host refugees.
Third, IDA support has been crucial throughout the COVID-19 crisis. IDA helps the world’s poorest countries cope with crises, soften the impacts on the poor and vulnerable, and build resilience. This kind of support is indispensable now, both as countries address the development setbacks brought on by COVID-19 and as they lay the groundwork for a greener, more inclusive, and more resilient recovery.
Early on, we recognized that the pandemic would cause hardship on an unprecedented scale –We also understood quickly that front-loading IDA’s resources would make the biggest difference for countries in need. While IDA usually delivers in three-year cycles, the crisis called for surge support with greater speed and scale. We are grateful that donor and borrower countries agreed to concentrate resources in the first two years of the IDA19 cycle and to advance the IDA20 negotiations by one year. Out of this $65 billion, about half is specific to COVID-19 response.
“IDA’s programs in the next three years are expected to provide nearly 400 million more people with essential health, nutrition, and population services – while an additional 300 million will get access to social safety net programs.”
, having delivered a crucial $3.9 billion in vaccine finance to 50 of the poorest countries. However, in most places vaccinations can succeed only if we help build more capacity for health systems. Hence IDA is also helping countries access essential equipment for hospitals and laboratories, establish cold chains and key logistics, train health professionals, and inform local communities to build understanding and combat vaccine hesitancy.
Investments like these have benefits far beyond the current pandemic. Over the longer term, they will help countries combat other diseases, build preparedness for future health emergencies, and deliver routine health services to many more of the poor and vulnerable. Which leads me to my fourth point.
Four, even during a crisis, IDA supports long-term goals. IDA’s strength derives from its long-term development vision and steady results to help countries achieve their goals.
The $93 billion support package will mean that as countries recover from COVID, we will help them regain lost ground in education, health, and other sectors that are critical to long-term progress. And a huge priority for IDA20 is stepping up climate action in the poorest countries, which contribute very little to emissions yet are facing many of the worst climate impacts.
The successful IDA replenishment is an important reminder that the international community can unite in solidarity with developing countries. Drawing on this solidarity,
Press Release: Global Community Steps Up with $93 Billion Support Package to Boost Resilient Recovery in World’s Poorest Countries
Story: Stepping Up to Ensure the Poorest Are Not Left Behind
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