Summarized by AI Model:Overglitch/t5-small-cnn-dailymail
The International Development Association (IDA) has received commitments totalling a record $100 billion . It is the division of the World Bank tasked with offering low-interest loans and grants to the world's poorest countries . The sum represents a year-long effort by World Bank President Ajay Banga to beat the record of $93 billion set in the previous IDA financing round .The International Development Association (IDA), the division of the World Bank tasked with offering low-interest loans and grants to the world’s poorest countries, has received commitments totalling a record $100 billion. The International Development Association (IDA), the division of the World Bank tasked with offering low-interest loans and grants to the world’s poorest countries, has received commitments totalling a record $100 billion.
This milestone comes after donor nations committed $24 billion in commitments this week, the bank said. According to Bloomberg, the sum represents a year-long effort by World Bank President Ajay Banga to beat the record of $93 billion set in the previous IDA financing round, which included $23.5 billion in donations in 2021.
Donor nations made a substantial contribution in spite of financial strains brought on by the pandemic, inflation, and a rising currency. Ten countries boosted their pledges by 40% or more, and 17 countries increased their contributions by 25% (in their local currencies) over the previous round.Due in part to the strength of the U.S. dollar, the two-day pledge conference was notable for falling short of the $120 billion aim set by African heads of state. Significant foreign currency contributions from a number of donor nations lost value due to the higher dollar, lowering the total.
Donations are leveraged roughly 3.5 to 4 times through IDA’s funding mechanism, increasing their impact.With almost $2 billion of the $34 billion in total commitments, Pakistan, Bangladesh, Tanzania, and Kenya were among the biggest recipients in the fiscal year 2023. About two-thirds of the $270 billion that IDA has deployed over the last ten years has gone to Africa. According to the World Bank, its initiatives have given 94 million people access to clean water, connected 117 million to dependable energy, and expanded health care to 900 million people.
The US is still the largest shareholder in the IDA, as evidenced by the Biden administration’s recent contribution of $4 billion. The donation must first be approved by Congress, which might not happen before the current session ends in two weeks. This accomplishment demonstrates the World Bank’s dedication to tackling global issues, as donor nations come together to support crucial projects in spite of economic constraints.
