The World Bank fund that lends to the poorest countries is
asking emerging economies for more cash because the rich
nations are short of it, a senior Bank official has said.
The International Development Agency (IDA) is seeking a big
increase in its funding to meet the needs of poor countries in
the wake of the financial crisis and to meet the
Millennium Development Goals targets for 2015.
Axel van Trotsenburg, the World Bank official overseeing the
negotiations over IDA replenishment, told Emerging
Markets that rich countries were clearly under domestic
pressure to cut spending.
Many donors face very difficult circumstances at home
with tight budgets so while these countries remain very
strongly committed to IDA, there is also a recognition that
there is fiscal stress and one needs to find the appropriate
balance, he said.
The negotiations for what is known as IDA16, which cover a
programme to lend to 79 countries in the three years from 2011
to 2014, are looking to put together a new financial framework
that really stresses global solidarity and a global
contract for all.
Van Trotsenburg said the new framework involves
actively seeking support from new emerging donors
and from countries that benefited from previous IDA grants.
We are committed as the World Bank Group to a strong
IDA, he said. It will require that every party will
do his or her part, and really stress the global partnership
that IDA constitutes.
But van Trotsenburg declined to reveal how the burden would
be split between up to 50 donor countries, saying that it would
be premature to disclose percentages at this stage.
The G7 alone contributed more than 56% of the 2007 IDA15
The issue comes to a head next week in Washington, when
delegates from donor and recipient countries meet for two days
of talks to agree on IDA funding. A deal must be agreed this
The Bank has produced five alternative scenarios for
replenishment. These range from a zero increase in real terms
(5.72% in nominal terms) and four increases of 10%, 15%, 20%
and 25% above IDA15s record $41.6 billion.
At their June meeting in Mali, delegates proposed narrowing
the options down to the three middle scenarios, i.e. a package
ranging between ranging from $46.9 billion to $51.3
Van Trotsenburg, who is the Banks vice president for
concessional finance, said there was a growing consensus on the
need to shift the focus onto IDA programmes results.
The World Bank will today publish an analysis of results
that a decade of IDA-funded projects have brought over the last
10 years. The headline figures are:
At least 13 million lives saved;
310 million children immunised against killer
Access to water and sanitation provided to 177
million people; and
More than 47 million people given access to health
Van Trotsenburg said: The results are part and parcel
of the IDA framework ... so that whatever is committed is most
effectively being used.
In the area of health, for example, IDA has been able to
support countries that could in turn with these resources save
13 million lives.