World Bank pledges record $3.5 bln for poorest countries

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    The World Bank Group pledged on Thursday that it will contribute a record 3.5 billion dollars from its income to provide grants and credits for the world's poorest countries.
    The pledge, which will be provided through the 15th replenishment of the International Development Association (IDA), was more than double the 1.5 billion dollars pledged by the World Bank to IDA 14 in 2005.
    "By boosting its IDA pledge by over 100 percent, the World Bank Group is putting its money where its mouth is," said Robert. B. Zoellick, president of the World Bank Group.
    "This should help us gain momentum as we urge donor countries to increase their commitment to help the 81 poorest countries, especially in Africa, through an ambitious IDA 15 replenishment," he said.
    The IDA 15 began in March and are expected to conclude in December.
    Zoellick also added that South Africa has already pledged an increase of over 30 percent to support IDA, urging other donor countries to increase their commitments.
    The 3.5 billion dollars is expected to be contributed equally by two World Bank Group affiliates - the International Finance Corporation (IFC) and the International Bank for Reconstruction and Development (IBRD). The IDA undertaking depends on the annual incomes of IBRD and IFC, as distributed by their respective Boardseach year.
    The World Bank Group will also deepen the connection between IFC and IDA as part of a larger growth strategy for IFC, to expand private sector investments in developing countries.
    "IDA and IFC can co-invest to support public-private partnerships in infrastructure, especially in energy, water, agriculture, transportation and telecommunications," said Zoellick." These investments can be especially helpful in encouraging regional integration."
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