This is the amount the World Bank has received from contributing countries to replenish IDA (International Development Association) funds. The announcement was made on Wednesday evening, December 15, 2021, after the two participating countries reached an agreement at the end of a two-day summit in Japan. The money will be used primarily in the fight against the Govt-19 epidemic and its social consequences, but also in the fight against global warming.
The World Bank has never charged so much for its three-year IDA plan: $ 93 billion to be spent over three years, eleven billion more than the previous plan. But the real achievement is to convince donor countries that it is an emergency. Due to a health disorder, money from the previous three-year plan was spent in just two years.
Is the World Bank expensive? Yes, in times of growth and especially crisis, the company refers to an employee. Because IDA, the International Development Association, is an organization other than the World Bank. It seeks to promote growth through education, health and basic services. Half of the amounts paid are grants and the other half are concession zero interest loans.
This tool would be useful in times of epidemics and considering the difficulties faced by poor countries. Of course, this may not be enough to combat the effects of the Govt crisis in Africa or Haiti, but it will allow the World Bank to control social damage. One-third of funding should be earmarked for global warming and adaptation policies because the effects of climate change are as catastrophic as epidemics.
Up to 70% of the accumulated resources will be levied on Africa.
Axel Van, Managing Director of World Bank Operations