President Joe Biden recently unveiled a significant boost in the United States’ contribution to the International Development Association (IDA). The IDA, which is the World Bank’s division dedicated to assisting the most impoverished and vulnerable nations, will receive a substantial increase in funding from the U.S.
During the G20 Summit in Río de Janeiro, President Biden made a significant announcement, urging current donors to emulate the United States’ lead by enhancing their support and encouraging new donors to begin contributing.
According to the White House, the Biden Administration plans to commit $4 billion over the course of three years to the ongoing IDA replenishment, pending Congressional approval.
Biden emphasized the importance of Congress approving funding to increase the World Bank’s lending capacity by $36 billion. He acknowledged the G20 members who have already made their own contributions to this initiative led by the United States and urged other leaders to follow suit by making their own contributions.
President Biden has urged G20 countries to promptly offer debt relief to nations in need and has emphasized the need to expedite the debt restructuring process. He has called for improvements to the G20 Common Framework in order to achieve this goal.
At the Rio Summit, the United States made a significant announcement, pledging a generous donation of $325 million to the Clean Technology Fund. This fund aims to provide substantial support to eligible developing economies, enabling them to expand and diversify their clean energy supply chains. Additionally, the United States has extended $2 billion in shareholder guarantees through the World Bank to facilitate India’s and Indonesia’s investments in the burgeoning clean energy sector.
President Biden, along with G20 leaders, participated in the Rio Summit where they initiated the Global Alliance Against Hunger and Poverty. This alliance aims to create consistent political support and foster improved coordination of financial resources and knowledge-sharing. The ultimate goal is to effectively combat poverty and work towards its elimination.
