World Bank and other multilateral lenders to increase aid for poorest countries

The World Bank plays a vital role in supporting the poorest countries around the world through its multilateral lending activities. One of its key initiatives is the International Development Association (IDA), which has provided a total of US$533 billion to 115 low-income countries since its establishment in 1960. This funding has helped to lift communities out of poverty, improve access to basic services like electricity and water, and protect vulnerable populations from diseases.

However, there is a growing demand for more support from multilateral institutions like the World Bank for IDA-eligible countries. World Bank President Ajay Banga recently called for a significant increase in funding for the IDA to address the extensive financial needs of these nations. As the primary creditor for IDA-eligible countries, accounting for 47 percent of the total US$322 billion owed to multilateral creditors by the end of 2022, the World Bank’s role in providing external financing for these nations is crucial.

The financial needs of IDA countries are substantial, and multilateral lenders have been providing critical support for many years. The impact of this support has been tangible, with communities in these countries seeing significant improvements in their development and well-being as a result. By increasing funding and support for IDA-eligible nations, multilateral lenders can continue to make a significant difference in addressing poverty and promoting sustainable development in these regions.

In conclusion, multilateral lenders like the World Bank play a critical role in supporting the poorest countries around the world through their provision of external financing. Institutions like the IDA have made a tangible impact on communities’ development and well-being over many years. With growing demand for more support from multilateral institutions like the World Bank, there is an opportunity to increase funding and continue making a significant difference in addressing poverty and promoting sustainable development in these regions.

By Sophia Gonzalez

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