The World Bank has achieved a historic $100 billion funding milestone for its International Development Association (IDA), aimed at assisting the world’s poorest nations.
The funding, generated through donor contributions and innovative financial strategies, is expected to bolster climate resilience, address food insecurity, and tackle global conflicts.
At a replenishment meeting in Seoul, South Korea, donor nations pledged $23.7 billion, slightly surpassing the $23.5 billion pledged in 2021 but falling short of the $30 billion target set by World Bank President Ajay Banga. Through financial mechanisms such as increased market borrowing, the World Bank will leverage these contributions to reach the $100 billion goal.
The funds will support 78 vulnerable nations under the theme “Ending Poverty on a Livable Planet.” However, experts warn that inflation has eroded the real-term value of the funding compared to previous rounds.
Experts have noted that while securing funds is a success amidst declining aid budgets, the true measure of its impact will be in how effectively it is implemented.
The United States pledged $4 billion, but political uncertainties under a returning Donald Trump administration could affect the final disbursement. Meanwhile, the United Kingdom contributed £1.98 billion ($2.52 billion), with significant increases from Denmark, Latvia, Spain, and Poland.
African nations will receive nearly 75% of IDA financing, which remains critical in building climate resilience. Over the past decade, IDA invested $85 billion globally, half of it for climate adaptation.
This replenishment aligns with global efforts to mobilize $300 billion annually by 2035 for developing nations, a target reaffirmed during COP29 in Baku.