Donor countries pledge record $100 billion for poorest nations

In a historic move, donor countries have pledged a record $100 billion for the World Bank’s International Development Association (IDA) to support the world’s poorest nations over the next three years.

The announcement was made on Friday in Seoul during the IDA’s replenishment conference, where countries committed vital resources to assist low-income nations grappling with debt, climate disasters, inflation, and conflict.

This replenishment surpasses the previous $93 billion committed in December 2021. The new funding includes approximately $24 billion in direct contributions to IDA, with the remainder raised through bonds and other financial tools, stretching the total to $100 billion in grants and loans by mid-2028.

World Bank President Ajay Banga emphasized that the funding would be directed to the 78 countries most in need, helping to invest in critical sectors like health, education, infrastructure, and climate resilience, while also aiding in economic stabilization and job creation.

IDA replenishments, which take place every three years, are essential to the World Bank’s operations.

This year, key contributors included the United States, Japan, and European nations such as the UK, Germany, and France. Notably, the United States pledged a record $4 billion in new funding, with other countries like Norway and Spain also significantly increasing their support.

The renewed commitment promises to provide a lifeline for the world’s most vulnerable nations, enabling them to tackle the compounded challenges they face.