World Bank's fight against extreme poverty gets record support
Moscow: Despite tough economic times, a global coalition of developed
and developing countries today pledged to accelerate the fight to end
extreme poverty by committing a record $52 billion in financing over the
next three years for the World Bank's fund for the poorest, the
International Development Association (IDA).
"This is a success for the global community," said World Bank Group
President Jim Yong Kim.
"We are deeply appreciative of the extraordinary efforts 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," he said.
The coalition agreed that increased funding was needed to tackle the
toughest issues in fragile and conflict-affected States to help the
countries tip the balance toward stability.
This IDA replenishment will see an increased focus on the most
challenging frontier areas, greater private sector mobilisation, and
stronger, more targeted investments in climate change and gender
equality, as key to shaping the future. A strong commitment to more
equitable growth underpins these efforts.
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 - home to nearly one billion people living on less
than $1.25 per day. The funding will allow IDA to deliver customised and
innovative solutions to help the poorest countries address their most
pressing development challenges.
In line with the IDA17 overarching theme of maximising development
impact, this financing is expected to provide, for example, electricity
for an estimated 15-20 million people, life-saving vaccines for 200
million children, microfinance loans for more than one million women and
basic health services for 65 million people. Some 32 million people will
benefit from access to clean water and another 5.6 million from better
sanitation facilities.
IDA17, which runs from July 1, 2014 to June 30, 2017, will span the
target date for the MDGs and the launch of the post-2015 agenda - a
pivotal crossroad in the global effort to end extreme poverty.
"We have a unique opportunity to harness a changing global economy to
help the poorest countries get on a path to sustainable, inclusive
growth, lift millions from poverty, and increasingly fund their own
development," said World Bank Group Managing Director and Chair of the
IDA17 negotiations, Sri Mulyani Indrawati.
"Investing in the future of the poorest countries is an investment in
the future prosperity and security of all countries."
Over 45 countries have pledged to IDA, and the World Bank Group is
continuing the tradition of contributing its own resources to IDA. IBRD
and IFC are providing close to $3 billion to IDA over the next three
years.
While grant contributions remain at the core of IDA's financing
framework, IDA17 is using Concessional Partner Loans as a way for
countries to increase their contributions - in recognition of the
exceptional circumstances of the current fiscal environment amid strong
demand for resources.
"IDA is a unique partnership of developed and developing countries
that share a commitment to invest in a better future for the world's
poor and for the global good," said World Bank Vice President for
Concessional Finance and Global Partnerships, Joachim Von Amsberg.
"At a time of ongoing economic difficulty, this outcome is a
testament to the spirit of global solidarity," he said.
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