Japan and World Bank host IDA20 launch; The global community consolidates its commitment to the poorest with a package of 93 billion dollars

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TOKYO, September 13, 2022 – The Government of Japan and the World Bank hosted the in-person launch of the International Development Association’s twentieth round (IDA20) at a meeting of donor and recipient countries. The $93 billion IDA20 program will help low-income countries rebuild their economies in the face of overlapping crises – climate change, COVID-19, conflict, inflation, rising debt and food insecurity – which hit disproportionately the poorest.

“The World Bank and its partners are committed to supporting poor countries in their efforts to respond to ongoing crises,” said David Malpass, President of the World Bank Group. “We are grateful to the leadership of Japan who championed a strong replenishment of IDA20 and hosted the launch, and to all our partners for their support of IDA as an unfragmented and effective platform for achieving the best results.

“The historic IDA20 agreement represents our unwavering commitment to helping developing countries achieve their development goals,” said Shunichi Suzuki, Minister of Finance of Japan. “As the international community faces multiple crises, we are convinced that cooperating with each other and sharing knowledge and experience is the wisdom that humanity has acquired throughout its history, and IDA will play an even greater role as the World Bank Group and the international community work together.”

IDA20 will help countries address these challenges by:

  • Prioritize investments in human capital such as education, health and nutrition, and COVID-19 vaccines;
  • Strengthening the resilience of food systems and providing emergency support. IDA20 will support agriculture and social protection systems to increase food production and help families cushion the effects of rising food prices;
  • Deepen support to prepare for future crises, including pandemics, financial shocks and natural hazards;
  • Strengthen action on climate change, including actions to support adaptation, preserve biodiversity and enable countries to move to a low GHG emission development path with a just transition;
  • Provide increased and flexible support to countries facing fragility and conflict; and
  • Implement a debt policy to promote sustainable borrowing and lending practices in IDA countries.

The IDA20 funding cycle runs from July 1, 2022 to June 30, 2025, with a focus on Building Back Better from Crisis: Towards a Green, Resilient and Inclusive Future. IDA20 will also continue to work closely with countries to achieve their long-term development goals such as gender equality and job creation, emphasizing governance and institutions, and reducing the digital divide to foster economic transformation and social inclusion.

The $93 billion package was made possible by donor contributions from 52 high- and middle-income countries totaling $23.5 billion, with additional funding raised from capital markets, repayments and the country’s own contributions. the World Bank.

About IDA

The World Bank’s International Development Association (IDA) is one of the main sources of financing for the fight against extreme poverty in the 74 poorest countries in the world. IDA provides grants and zero- or low-interest loans to countries for projects and programs that spur economic growth, build resilience, and improve the lives of the world’s poor. Since 1960, IDA has provided about $458 billion for investments in 114 countries.

Find out more online: IDA.worldbank.org and #IDA20 #IDAworks

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