Japan to contribute $3.4 bn to World Bank arm to fight poverty in low-income countries

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IANS | 16 Dec, 2021
Japan will contribute a record 376.7 billion yen ($3.4 billion) to the International Development Association (IDA), a part of the World Bank fund aiming to help poor countries recovering from financial dilemma amid the Covid pandemic, the Finance Ministry said on Thursday.

The IDA will use its funds to provide assistance to 74 low-income countries, including delivering vaccines, creating job opportunities, and tackling climate change. The IDA, founded in 1960, provides aid to the poorest countries in the form of zero or low-interest loans for projects and programmes that help in economic growth and reduce poverty, Xinhua news agency reported.

"The world continues to face an unprecedented crisis due to Covid-19," Finance Minister Shunichi Suzuki said at a virtual two-day meeting of donors hosted by Japan. "Now is the time for global solidarity."

The decision on the replenishment package of $93 billion for the fund was separately announced by the World Bank. The replenishment is normally provided every three years, but the pandemic has pushed the process forward for one year. In December 2019, donors agreed to make contributions worth a total of $82 billion.

The donors have promised to provide a total of $23.5 billion this time.

"Generous commitment by our partners is a critical step toward supporting poor countries in their efforts to recover from the Covid-19 crisis," said David Malpass, president of the World Bank Group.