World Bank invests 75 billion US dollars in poorest countries
Germany fourth largest donor
Press release of 15.12.2016 |
YOGYAKARTA – The negotiations on the 18th replenishment of the World Bank's window for the poorest countries have been concluded successfully. Over the next three years, the International Development Association (IDA) will invest more than 75 billion US dollars in the development of these countries. This is about one and a half times the amount available for the last three years.
German Development Minister Gerd Müller said, "We have managed to significantly increase the World Bank's impact for the world's poorest countries. Together, we will give poor people opportunities for a better future – through jobs, climate action, and efforts to tackle the root causes of displacement. We have agreed to add a new dimension to our cooperation with Africa."
During the negotiations, Germany was able to get a number of important points included in the agreement. Over the next three years, the International Development Association will increase its efforts to tackle the causes of displacement, step up its support for private investment and for vocational training, invest more in climate action, and place a focus on Africa.
IDA will double its support for fragile states, bringing it to about 14 billion dollars. One focus of this assistance will be on tackling the root causes of displacement. Three billion dollars will be allocated to crisis response reserves. That is twice the amount previously available.
Two billion dollars will be available to support countries that host refugees. One billion dollars will be earmarked for possible reconstruction in Syria should the conflict have ended.
The World Bank will promote private investment in the world's poorest countries through guarantees, risk mitigation and local currency loans. Two and a half billion dollars will be available for such operations.
Climate investment will almost triple, reaching approximately 20 billion dollars.
IDA will invest more than 60 per cent of its funding in Africa.
Germany is the fourth largest donor to IDA. Over a period of seven years, it will provide a total of about 1.6 billion euros to IDA's 18th replenishment.
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