US President Joe Biden has pledged a historic $4 billion contribution to the World Bank’s International Development Association (IDA) fund, aimed at supporting the world’s poorest countries. The three-year commitment was announced during a closed session of the Group of 20 summit in Rio de Janeiro, according to a senior Biden administration official.
This new pledge marks a record high, surpassing the $3.5 billion contribution made by the US during the previous IDA replenishment round in December 2021. The US Treasury is leading negotiations for the replenishment at the World Bank.
However, it remains uncertain whether President-elect Donald Trump, who has previously advocated for cuts to foreign aid, will honor Biden’s commitment. Trump, alongside entrepreneur Elon Musk, is pushing for significant cuts to US spending through a new government efficiency panel. The US Congress is expected to finalize funding for the pledge only after Trump takes office in January.
At the G20 summit, US Deputy National Security Adviser Jonathan Finer described Biden’s pledge as “historic.” He also announced plans for a bilateral clean energy partnership with Brazil’s President Luiz Inacio Lula da Silva.
The IDA fund provides grants and low-interest loans to the world’s poorest countries and is replenished every three years. A pledging conference for the fund will take place on December 5-6 in Seoul. World Bank President Ajay Banga is aiming to secure a record replenishment exceeding the $93 billion raised in 2021, with a goal of $120 billion, contingent on substantial increases in contributions from other countries.
Biden’s new pledge is a 14.3% increase over the US contribution in 2021. Other countries, including Spain and Denmark, have also announced increases in their contributions, with Spain boosting its commitment by 37% and Denmark by 40%.
