(MENAFN- Caribbean News Global)
WASHINGTON, USA —The World Bank launched an early twentieth replenishment process of the International Development Association (IDA), its fund for the world's poorest countries, aiming to support countries in their recovery from the COVID-19 crisis and transition to green, resilient, and inclusive development. The IDA20 replenishment will conclude in December 2021 with a policy and financial package to support 74 countries between July 2022 and June 2025.
'IDA accelerated its financing commitments in 2020 to help the world's poorest countries contain the impacts of the pandemic and lay the groundwork for recovery. I am pleased that our shareholders have agreed to an early replenishment so IDA can continue these efforts,' said World Bank Group President David Malpass. 'IDA is a uniquely effective platform, consolidating global resources from donors and capital markets to support well-focused country programs and development spending. An ambitious and successful IDA20 replenishment by December 2021 will be critical to provide the concessional financing and grants that the poorest countries need so urgently at this time.'
The IDA19 three-year cycle started in July 2020 with $23.5 billion of donor contributions aiming to enable a total of $82 billion financing to IDA countries. Almost half of this amount has been committed to the world's poorest countries in the first year of the IDA19 cycle, necessitating advancing IDA20 so that additional financial resources can be available for countries to meet their urgent development needs. In February 2021, IDA donor and borrower country representatives agreed to advance IDA20 by one year due to pressures of the COVID-19 crisis.
Under the theme 'Building Back Better from the Crisis: Towards a Green, Resilient and Inclusive Future,' the IDA20 replenishment process will be informed by IDA19 progress as well as the World Bank's mission and COVID-19 response. IDA donor and borrower representatives agreed that the IDA20 policy framework will maintain the four IDA19 special themes of climate change ; fragility, conflict and violence ; gender ; and jobs and economic transformation ; and introduce human capital as the fifth special theme. IDA20 will also deepen recovery efforts by focusing on four cross-cutting issues: crisis preparedness; debt sustainability and transparency; governance and institutions; and technology .
Negotiations on the policy commitments and financing framework will continue through meetings in June and October, concluding with donors pledging their contributions on December 13-14, 2021. The negotiation process will be co-chaired by Axel van Trotsenburg, World Bank managing director of operations, and Dr Denny Kalyalya, an independent co-chair selected by IDA donor and borrower representatives.
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