TOKYO, Sept. 13, 2022 -The Government of Japan and the World Bank hosted the in-person launch of the twentieth cycle of the International Development Association (IDA20) at a gathering of donor and recipient countries. The $93 billion IDA20 package 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 are hitting the poorest people disproportionately harder.
“The World Bank and its partners are committed to providing support to poor countries in their efforts to respond to the ongoing crises,” said David Malpass, World Bank Group President. “We are grateful to Japan’s leadership in championing a strong IDA20 replenishment and hosting the launch, and to all our partners for their support of IDA as a non-fragmented and efficient platform to deliver the greatest results.”
“The historic agreement of IDA20 represents our unwavering willingness to help developing nations achieve development goals,” said Shunichi Suzuki, Japan’s Minister of Finance. “As the international community faces multiple crises, we are convinced that cooperating with one another and sharing knowledge and experience are the wisdom that humanity has acquired through its history, and IDA will play an even more important role as the World Bank Group and international community work together.”
IDA20 will help countries tackle these challenges by:
- Prioritizing investments in human capital such as education, health and nutrition, and COVID-19 vaccines;
- Strengthening 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 higher food prices;
- Deepening support to prepare for future crises, including pandemics, financial shocks and natural hazards;
- Enhancing action on climate change, including actions to support adaptation, preserve biodiversity, and enable countries to shift to a low-GHG emissions development pathway with a just transition;
- Providing increased and flexible support for countries facing fragility and conflict; and
- Implementing a debt policy to promote sustainable borrowing and lending practices in IDA countries.
The IDA20 financing cycle runs from July 1, 2022, to June 30, 2025, with a focus on Building Back Better from the 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, with a continued emphasis on governance and institutions, and bridging 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 financing raised in the capital markets, repayments, and the World Bank’s own contributions.
The World Bank’s International Development Association (IDA) is one of the largest sources of funding for fighting extreme poverty in the world’s 74 lowest-income countries. IDA provides grants and zero- or low-interest loans to countries for projects and programs that boost economic growth, build resilience, and improve the lives of poor people around the world. Since 1960, IDA has provided about $458 billion for investments in 114 countries.
Learn more online: IDA.worldbank.org and #IDA20 #IDAworks