Biden donates $4bn to W’Bank in support of ‘poorest nations

• Published On: 19 November 2024 at 11:38

US President Joe Biden has pledged $4 billion to the World Bank's International Development Association fund, which aims to help the world's poorest countries.

This three-year commitment, announced on Monday at the G20 meeting in Rio de Janeiro, breaks the previous high of $3.5 billion pledged for the 2021 replenishment.

The ongoing IDA negotiations are led by the US Treasury.

However, the future of Biden's $4 billion contribution to the World Bank's IDA fund is unknown, as President-elect Donald Trump has already called for cutting foreign aid.

Trump, who is working with Elon Musk on a government efficiency council aimed at reducing spending, may reconsider his vow.
Congress is anticipated to address the financing only after Donald Trump takes office in January.

A representative for Trump's transition team declined to comment on whether the $4 billion pledge to the IDA fund would be honored.

Earlier, in Rio de Janeiro, US Deputy National Security Adviser Jonathan Finer described Biden's declaration as a "historic" commitment to the IDA replenishment.

Finer stated that President Biden intends to establish a bilateral clean energy collaboration during his meeting with Brazilian President Luiz Inácio Lula da Silva on Tuesday.

The World Bank's IDA fund, which provides grants and low-interest loans to the world's poorest countries, is renewed every three years. A pledging conference for the fund is scheduled for December 5-6 in Seoul.

Ajay Banga, President of the World Bank, is proposing for a record replenishment of the IDA fund, with a target of more than $120 billion, up from $93 billion in 2021.

In October, Banga stated that meeting this target would necessitate significant increases in payments from member countries.

Biden's $4 billion offer represents a 14.3% increase above the US's 2021 commitment, with other countries also making larger contributions.