The International Development Association (IDA) will receive a $93 billion replenishment package from the World Bank to assist Nigeria and other low-income countries in dealing with the COVID-19 issue and developing a greener, more resilient, and inclusive future.
According to a post on the World Bank’s blog. The financing package, which was reached during a two-day conference electronically hosted by Japan, is the IDA’s largest in its 61-year history.
$23.5 billion in contributions from 48 high and middle-income nations, as well as capital market financing, repayments, and World Bank contributions, make up the financing.
World Bank Group President David Malpass said, “Today’s generous commitment by our partners is a critical step toward supporting poor countries in their efforts to recover from the COVID-19 crisis.
“We are grateful for the confidence our partners have in IDA as a non-fragmented and efficient platform to tackle development challenges and improve the lives of millions of people around the world.”
The money will be distributed to the world’s 74 poorest countries as part of the IDA20 initiative, which focuses on assisting countries in recovering from the COVID-19 crisis. The report said, “ The funds will be delivered to the world’s 74 poorest countries under the 20th replenishment (IDA20) program, which focuses on helping countries recover from the impacts of the COVID-19 crisis. In these countries, the ongoing pandemic is worsening poverty, undermining growth, and jeopardizing the prospects of resilient and inclusive development.”
The world bank acknowledges that “Countries are struggling with falling government revenues; increasing debt vulnerabilities; rising risks to fragility, conflict, and instability; and dropping literacy rates. About a third of IDA countries are facing a looming food crisis.”
A significant percentage of this money will be used to combat climate change, with an emphasis on assisting countries in adapting to rising climatic impacts and preserving biodiversity. IDA will also step up its support for developing countries.
“To help countries build back greener, a substantial portion of these funds go to tackling climate change, with a focus on helping countries adapt to rising climate impacts and preserve biodiversity. IDA will also deepen support to countries to better prepare for future crises, including pandemics, financial shocks, and natural hazards. While IDA20 will support countries globally, resources are increasingly benefiting Africa, which will receive about 70 per cent of the funding,” the World Bank added.
With this robust package, IDA will be able to ramp up its pandemic response and address health issues, assisting 400 million people in receiving critical health and nutrition services. A total of 375 million people are expected to benefit from the social safety nets program.