Biden pledges historic $4bn to World Bank’s fund for poorest nations

The outgoing U.S. President, Joe Biden, has committed $4 billion to the World Bank’s International Development Association (IDA) fund, which supports the world’s poorest countries.

He pledged the historic sum during the G20 summit in Rio de Janeiro, Brazil.

This record-setting three-year pledge surpasses the $3.5 billion pledged by the U.S. during the previous replenishment round in December 2021.

Biden announced the pledge during a closed session at the summit, with the U.S. Treasury leading negotiations on the IDA replenishment.

However, questions remain about whether the incoming administration of President-elect Donald Trump will uphold the commitment. Trump’s past proposals to reduce foreign aid and plans for a new government efficiency panel aimed at cutting spending cast uncertainty over the pledge.

Congressional appropriation to fund this commitment will likely not occur until after Trump’s inauguration in January.

The World Bank’s IDA fund, replenished every three years, primarily provides grants and low-interest loans to the poorest nations.

The upcoming pledging conference, scheduled for December 5-6 in Seoul, aims for a record replenishment amount, exceeding the $93 billion achieved in 2021.

World Bank President Ajay Banga emphasized the rising needs of nations facing challenges such as crushing debt, climate crises, and conflicts.

In addition to the IDA pledge, Biden is expected to launch a bilateral clean energy partnership with Brazilian President Luiz Inácio Lula da Silva, further reinforcing commitments made during the G20 summit.