U.S. President Joe Biden Pledges Record $4 Billion to World Bank Fund for Poorest Countries
US President Joe Biden has pledged a $4 billion contribution to the World Bank’s International Development Association (IDA) fund, which supports the world’s poorest countries, according to a senior Biden administration official on Monday.
The three-year US commitment, announced during a closed session at the Group of 20 summit in Rio de Janeiro, marks a record-high contribution. The US Treasury is currently leading negotiations for the IDA replenishment, the official told reporters.
This new pledge surpasses the $3.5 billion committed by the US during the previous replenishment round in December 2021.
However, it remains uncertain whether President-elect Donald Trump, who has previously proposed reducing foreign aid, will honour Biden’s commitment.
Trump, alongside Tesla and SpaceX CEO Elon Musk, is spearheading a government efficiency panel aimed at cutting US spending. Congress is unlikely to appropriate funds for the pledge until after Trump assumes office in January.
A spokesperson for Trump’s transition team declined to comment on the matter.
Earlier in Rio de Janeiro, US Deputy National Security Adviser Jonathan Finer described Biden’s upcoming announcement as a “historic” pledge to the IDA replenishment.
Finer also confirmed that Biden plans to launch a bilateral clean energy partnership during a meeting with Brazilian President Luiz Inácio Lula da Silva on Tuesday.
The World Bank’s IDA fund provides grants and low-interest loans to the poorest nations and is replenished every three years. A pledging conference is scheduled for December 5-6 in Seoul.
World Bank President Ajay Banga is pushing for a record replenishment, aiming to exceed the $93 billion secured in December 2021.
Banga stated in October that a $120 billion replenishment could be achieved but would require significant increases in country contributions. Biden’s pledge represents a 14.3% increase from the US commitment in 2021. Other countries have also announced increased contributions.
At the IMF-World Bank meetings in October, Spain committed to boosting its contribution by 37% to €400 million ($423 million), while Denmark announced a 40% increase to approximately $492 million in September.
