World Bank’s fund for poorest gets $52b to fight extreme poverty

The International Development Association (IDA), World Bank’s fund for the poorest, has received a $52 billion in commitments for the fight against poverty in the next three years.

This was after a global coalition of developed and developing countries agreed to increase funding for the IDA, the World Bank announced December 17, 2013.

A total of 46 countries pledged to IDA, and the World Bank Group is continuing the tradition of contributing its own resources to IDA.  The World Bank Group is providing close to $3 billion to IDA over the three-year period.

The coalition was of the view that increased funding was needed to tackle the toughest issues in fragile and conflict-affected states to help those countries tip the balance toward stability.

“This is a success for the global community,” said World Bank Group President Jim Yong Kim.

Mr Kim added “We are deeply appreciative of the extraordinary efforts made by countries, many of which are facing their own economic challenges, to stretch to help the poorest.We are committed to making the most of every scarce development dollar to create new opportunities and bring about transformational change in the lives of poor people.”

In a statement, the World Bank said the IDA replenishment will see an increased focus on the most challenging frontier areas, greater private sector mobilization, and stronger, more targeted investments in climate change and gender equality, as key to shaping the future.

IDA is the World Bank’s main instrument for achieving the goals of ending extreme poverty and boosting shared prosperity in the world’s poorest countries

The funding is said to allow the IDA to deliver customized and innovative solutions to help the poorest countries address their most pressing development challenges.

By Ekow Quandzie